New! Used Names in 5 Steps

By Lee Hodgson

If the domain name you've chosen for your new Web site has already been registered, don't despair. Domain name speculators own most names, and in these dot-bomb days, domain resale prices have fallen considerably.

Here's a five-step guide to securing the domain name you want at a price you can afford.

Is the Name For Sale?

If the domain name you want to buy already hosts an active Web site, chances are the owner won't be selling. To find out, type the name into a browser.

If an active site appears, don't give up on the name just yet. Check to make sure the name you typed matches the site name.

Why? Well, domain-savvy site owners often point multiple domain names to their site. It's a good way to use domain names that are for sale.

For example, type /cgi-bin/gt/go_to.html,user=ffffffffffff&url=http://www.yet.com into your browser. You're immediately forwarded to a Web site called SitePoint because yet.com is being used to catch traffic for that site. If this happens when you type in the name you want, there's a good chance it's for sale.

If you get an "under construction" page or a browser error when you type in the domain name you want, there's a good chance the name is for sale.

Another way to find out whether a name is for sale is to visit Sedo. This site houses a searchable database of domain names for sale. It's a two-minute job to look up your target domain.

Set a Budget

By now you should have a good idea of whether it's worth going after the name. If so, it's time to take the next step: Set yourself a purchase budget. If you don't do this, you could end up paying far more than the name is worth to you.

It's not easy to establish the value of a name, but here are a few ways a good name might boost the value of your company:

Increase "type-in" traffic. A good, short name that is easy to type, spelled properly and easily recalled will always produce more traffic.

Improve search engine positions. A domain name containing one or more keywords relevant to your business will improve your position in some search engines.

Enhance customer confidence. If you own a prestigious domain name, site visitors are more likely to trust your site. As any site owner knows, no visitors become customers until they trust your business.

Make your Web site stand out from the crowd. Hundreds of Web sites offer mutual funds, but only one can use the name mutualfunds.com.

Be a valuable asset. With the value of good dot-com names skyrocketing the past couple of years, you have good reason to believe high-quality domain names are a sound investment.

Trying to quantify the benefits of having a good domain name is more art than science, but you should try to quantify the benefits as you see them. Not only will it help you come up with a purchase budget, it will also clarify the reasons you're spending the money to purchase a domain name.

OK, so you've a target name and a purchase budget. Now the fun begins.

Make an Offer

You now have a major decision to make. Should you engage in direct dialogue with the current name owner, or should you employ a third party to act as a broker?

Both methods have pros and cons you need to weigh carefully. By conducting the negotiations yourself, you'll have a direct handle on the purchase and you'll save on broker fees. The downside is that by negotiating directly with the seller, you'll find it difficult to maintain anonymity. With something as intangible as a domain name, anonymity is desirable, especially if you're purchasing the name on behalf of a corporation.

The bigger you are, the more money the seller will expect to make. It's that simple.

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Ex.  GFCOATM (Medium)      Basic: $35.20 ea.       Posted Upgraded Price:  $17.60, (at Intlwholesale.com)    Actual updated Upgrade Prices on New UPG Members site:  (this is what you will see on the new UPG Site)

UPC Each Weight Case Weight Carton Cubic Foot Case Pack Available   3.900 39 10 1944 Warranty Catalog Origin Product Code Next Shipment 036B China Giftware Clothing 4-29-2002 Price Count Each: $17.60 1 Case: $16.72 10 Quantity: $0.00 0 You can see the value in the upgrade, right?  If you were to order 3 jackets, you would have paid for the upgrade in the savings of $51.15 if you compare the price discounts.

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Keep It Quiet

If you use a professional domain name broker, you can keep your identity secret. A good domain name broker will advise you on your purchase budget, find out quickly if the name is available and conduct negotiations. Hiring a professional is a good approach if you have a relatively large purchase budget.

Many small businesses prefer to employ a virtual domain name broker. Major domain name trading sites, such as Afternic, GreatDomains and URLBuyers have such services. The virtual broker e-mails the currently listed owner with your offer and negotiations are carried out anonymously via the Web.

This method isn't perfect. It relies on the domain name's registration records to list a valid owner e-mail address, which isn't always the case, but it works for most names.

Seal the Deal

It's best to start with a low offer price, as low as 10 percent of your budget. Really, there's nothing to lose and everything to gain from this approach. You might get lucky and pick the name up for a bargain price. If not, you still win because you've set a low boundary value for upcoming negotiations.

If you get a counteroffer from the owner, it's time to get serious. It means they're definitely interested in selling the name to you. Don't be intimidated if the counteroffer is too high. Just be patient and make a small concession from your original offer.

Negotiations can take days or weeks. If both parties want a good deal, a fair price will eventually be negotiated.

Make the Switch

The final piece in the puzzle is to transfer the name from the current owner. If you negotiate through one of the domain name trading sites, the transfer will be done automatically through an escrow account. If you've negotiated directly with the owner, you should still use an escrow service. It's good protection for both parties. Escrow.com is one such service.

Depending on the willingness of the parties involved, the transfer process can be straightforward and completed in approximately a week. Or it can take two to three months.

Where the name is registered is also a factor. Some companies can make the transfer in an hour; others may take weeks.

Finally, here are key points to keep in mind:

Establish a budget and stick to it.

Hire a professional domain name broker for big-budget names.

Use a virtual domain name broker for low-budget names.

At GreatDomains and URLBuyers, the seller is responsible for all transfer and escrow fees. At Afternic, the buyer pays.

Always use an escrow service.

The views of our authors don' t necessarily reflect the views and policies of this company or its advertisers.

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