Domain Aftermarket: Buying Premium Domains from Previous Owners

Aftermarket domain acquisition. Valuation, negotiation, brokers, escrow, expired domain opportunities.

Trademark Lens Team

Domain aftermarket: Perfect .com already registered? 90% of premium domains owned by investors/resellers willing to sell. Voice.com sold for $30M. Hotels.com for $11M. But 2-word .com domains typically $2K-50K. Negotiate everything - listed price is starting point.

Aftermarket Sources

Expired domains: Owner forgot to renew. Goes to auction. GoDaddy Auctions, NameJet, SnapNames. Sometimes hidden gems. Risk: May have SEO penalties or bad history.

Domain marketplaces: Sedo, Afternic, BrandBucket, Flippa. Owners actively selling. Fixed price or make offer. Broker mediated. Safer than direct contact. Commission: 10-20% of sale price.

Direct owner contact: WHOIS lookup shows owner email. Reach out directly. No broker fees. But harder negotiation. Owner may not want to sell or quote sky-high price.

Domain aftermarket sales 2023: $340M total transaction value, median sale price $2,847 - most premium domains are affordable, not $1M outliers.

Valuation Factors

Length matters: 5-letter .com worth more than 12-letter. Stripe.com > StripeSolutions.com. Every character adds friction. One-word domains command premium.

TLD hierarchy: .com > .net > .org > country codes > new gTLDs. .com worth 10-50x more than .io or .ai for same name. Don't overpay for non-.com unless strategic.

Keyword value: Generic terms worth more. Insurance.com worth millions. Flurble.com worth hundreds. Commercial intent keywords = higher value. CPC data predicts domain value.

Brandability: Made-up words easier to brand. Memorability, pronunciation, spelling ease. Zoom.com > VideoConferencing.com despite being less descriptive.

Domain length vs price: 5-letter .com average $12,500. 10-letter .com average $1,200. 15-letter .com average $280 - exponential value decay with length.

Negotiation Tactics

Never accept first price: Listed $25K? Offer $8K. Negotiate. Owners expect lowball offers. Work up from there. Most sales happen at 30-60% of asking price.

Show alternatives: "I'm also considering DomainB.com and DomainC.io." Creates urgency, shows you have options. Reduces perceived buyer desperation. Strengthens position.

Buyer anonymity: Use broker or proxy. Don't let seller know you're well-funded startup. They'll inflate price. Anonymous LLC registration helps. "John Smith" not "Meta Platforms Inc."

Negotiated discount average: 42% off asking price for domains listed over $10K - sellers price high expecting negotiation.

Red Flags

SEO history: Check Archive.org Wayback Machine. Was domain previously adult content, pharma spam, malware? Google may have blacklisted it. Use Ahrefs to check backlink profile.

Trademark conflicts: Domain may infringe existing trademark. Previous owner facing lawsuit. You buy domain, you inherit legal problem. Check USPTO database before purchasing.

Stolen domains: Verify ownership legitimacy. Some domains hijacked via account compromise. If ownership disputed, you lose domain + money. Use escrow always.

Escrow Process

Never pay directly: Use Escrow.com or similar. You pay escrow, seller transfers domain, escrow releases funds. Protects both parties. Costs 1-3% of transaction.

Transfer timeline: Seller initiates transfer at registrar (5-7 days typical). You confirm receipt. Escrow releases payment. Don't accept "I'll transfer after payment." Scam risk.

Domain transaction fraud rate: 8% without escrow, 0.1% with escrow - $2,500 domain = $50 escrow fee to avoid $2,500 loss risk.

Broker Services

When to use: Domain owner won't negotiate directly. You want anonymity. Complex multi-domain deal. International transaction. Broker navigates language/cultural barriers.

Commission structure: 10-15% of sale price typically. Sometimes flat fee. Buyer or seller pays (negotiate this). For $50K domain, broker gets $5K-7.5K. Worth it for smooth transaction.

Financing Options

Installment plans: Some marketplaces offer payment plans. $10K domain? Pay $2K upfront + $1K/month for 8 months. Immediate use, spread cost. Interest typically 5-10%.

Domain leasing: Rent domain with option to buy. Test business viability before committing full purchase price. Lease payments apply to purchase if you convert. Not all owners offer this.

Domain installment plan usage: 23% of aftermarket sales over $5K use payment plans - lowers barrier to premium domain acquisition.

Expired Domain Hunting

Drop lists: Services track domains approaching expiration. ExpiredDomains.net, FreshDrop.com. Filter by metrics: age, backlinks, traffic. Snipe valuable domains as they expire.

Auction strategy: Set max bid and walk away. Easy to get emotionally attached and overpay. Winning auction ≠ good deal if you paid too much. Discipline beats excitement.

Alternative Extensions

Perfect .com unavailable and unaffordable? Consider .io (tech-friendly), .co (startup common), .ai (AI companies), country codes (.uk, .de, .ca if operating there). 90% cheaper than .com equivalent.

New gTLDs: .shop, .app, .tech, .design. Lower prestige, but available + affordable. If budget $500 vs $20K for .com, choose new gTLD and invest $19.5K in marketing instead.

Trademark Lens checks trademark availability - buying premium domain doesn't grant trademark rights, and domain may infringe existing trademark requiring change anyway.

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