Domain Considerations for Purchase
The opportunity to create a new domain name or buy a name at auction pops up thousands of times a day. Checking to see if a new name is registered with ICANN registrars or looking up the current owner is half the fun. The ideas of how to make a website and what the name should are practically forming a new age hybrid of literature and linguistics.
But many domainers will agree a lot of this time and energy could be spent on domains already in the stable. Many bidders have undeveloped names already. Sometimes in the rush to obtain a new domain name, acquisition comes at the expense of existing projects. A critical list of references to check the name against could save a domainer time, trouble, and money.
The chance to buy or bid on a name or even see what’s up for sale can be a once in a lifetime opportunity. But scanning auctions takes time. Making offers for strategic domains is even more time consuming. We’ve talked a lot about domains and websites, but here is a short reminder list every domainer should tick through before bidding or buying even one more domain name. The savings in the end run could be huge.
The next domain purchased for any domainer’s portfolio should bring value to the name game. The resale value projection should take into account promotion costs, marketing effort, and hosting fees for any site that might be launched for that url. The expectation of affiliate revenues should be supported by some kind of data metrics for traffic visitation or projection of same via a statistical report.
The reports should come from more than one source and show a detailed analysis of traffic referrals and revenue payments from known and trusted sources. It should also be established that no violations have been received or any misuse of any affiliate codes or revenue programs have been undertaken that would cloud the owner of the name in shame.
Many domainers look back to big ticket name expenditures and try to figure out what they were thinking. Many frantic name buyers cite frenzied bids on the buzz of recent propaganda to support a certain type of name, the rush of last minute bids by other bidders for names at auction, and the euphoric rush of adrenaline that comes with buying a name that could be the ramp to fame and fortune online.
A domain name should have a history of bringing in revenue if the dollar amount exceeds three to four figures and beyond. The longevity of its ownership should not exceed its marketability, such as for a trend or product that will not long be popular or for sale. Names that promote illegal wares or activities frowned upon by banking institutions or hosting providers will likely not be resold at a premium.
A domain name that is a typo of a famous trademark or a proper domain name with heavy traffic will only enjoy robust accidental traffic dependent on the popularity and SEO results and customer use of the proper name. The nature of its name should create a wary buyer. Even trusted auction sites can get stuck with bad names. Bad names have lawsuits and C & D letters attached to them that unwary bidders may not find about until after they’ve bought the name.
As always, the last type of name information and background search and check for any domain name under serious consideration is the copyright search. Ideas already trademarked by others and the monetary derivation of profit for those ideas is guarded by legal means. A legal opinion should be sought by domainers interested in keeping their legal calendar clear.
Is someone else launching or using this name or something very much like it on another TLD or sub-TLD? For typos, have other lawsuits been filed? Will your launch efforts for the name be robbed of a typo itself? Who owns or hold the names similar to this one and why or why not have they developed them? How long has their site been up and will your site be confused with theirs?
Consideration of the domain name and development potential beyond the auction win and name purchase will transform a passive portfolio into an actively reviewed body of names. Consideration of other names to flip for value to fund new name purchases, and the offer of trades can be accomplished with good communication and successful negotiation with other domainers.
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