Pros and Cons of Buying New Domains, Dropping Domains, Expired Domains and Domains For Sale
By Anna Johnson on July 29th, 2010When it comes to getting a domain name, should you register a new domain, get an expired domain, back-order a dropping domain, bid on a domain name at auction, or buy a domain name for sale or make an offer to a domain name owner?
Following on from my article explaining the differences between each of these approaches (see Should You Register a New Domain Name or Buy a Domain That’s Expired, Dropping or For Sale?) let me outline some of the pros and cons of each.
1. Registering a new domain name
PRO: you get to choose your preferred name.
PRO: you get to choose your preferred domain extension.
PRO: you get to choose your domain name registrar.
PRO: it’s generally cheaper to register a new domain name (sometimes as little as a few dollars if you’re buying a domain with a coupon deal from Namecheap or Go Daddy).
PRO: registering a new domain name is a fairly straightforward process.
CON: the domain name you want may already be registered.
CON: you may not get your preferred domain name extension.
CON: your domain name won’t have any ‘Internet history’ so you’ll have to work harder to get it ranked and optimized for the search engines, build back-links, etc.
2. Buying an expired domain name
PRO: there are literally thousands of expired domain names available (50,000 to 60,000 are added to the Domainer Income Expired Domain Name database each DAY) so it’s possible to pick up some great names.
PRO: expired domain names are generally inexpensive.
PRO: buying an expired domain name is generally as easy as registering a new domain.
PRO: you may be able to get an expired domain name that’s still ranked in the search engines and/or has back-links which may help in generating traffic.
CON: you may not be able to get the domain name you want.
CON: you don’t choose the registrar and it can be a hassle to transfer a domain to another registrar.
CON: the domain may not have any back-links or SEO advantages.
3. Buying a dropping domain name
PRO: a lot of premium domain names are available through the drop process.
PRO: you may be able to get a premium domain name with no competition if others don’t back-order the same name.
PRO: you can choose the back-ordering company you want to get the domain on your behalf.
PRO: you may be able to get a great domain relatively inexpensively depending on whether your back-ordering company gets the domain name first– the highest bid doesn’t necessarily win the domain.
PRO: the domain name may still be ranked in the search engines, have back-links, etc.
CON: your back-ordering company may be unable to get the domain name you want. You have no control over who gets the domain if there are a number of back-ordering companies seeking the domain – the highest bid doesn’t necessarily win.
CON: you may need to pay a premium for a premium domain.
CON: you have to pay auction fees and domain registration fees.
4. Bidding on a domain name via auction
PRO: many premium domain names (with search engine rankings, back-links, etc) are available via auction.
PRO: you can choose the domain name you want.
PRO: you can name your price.
PRO: you may have an upper hand if you have good ‘auction skills’.
PRO: the domain auction company will generally ensure the transaction to buy the domain is secure i.e. both the domain and the money you pay will go into escrow, ensuring you get the domain after you’ve paid the money.
CON: you may get out-bid for the domain you want.
CON: you may have to pay a premium for a premium domain name.
CON: you may be at a disadvantage if you lack auction skills.
CON: you’re locked into the transaction even if you accidentally place the winning bid.
5. Buying a domain name on offer at a forum or auction site.
PRO: you may be able to get a great domain name as more people and companies seek to sell their domains on forums and auction sites.
PRO: you may be able to buy a website, not just a domain name.
PRO: the seller may be less sophisticated than you, allowing you to buy a premium domain name at a bargain price.
PRO: the domain may be ranked in the search engines, have back-links, etc all of which confer SEO advantages.
PRO: you may get access to key metrics that assist you value the domain.
PRO: you can name your price.
PRO: you may have time to access further information from the domain name seller.
CON: not everyone selling their domain are genuine sellers or have a realistic notion of what their domain name is worth.
CON: a less sophisticated seller may not budge from wanting an unrealistic price for their domain.
CON: you may not get the key information you need from the domain name seller.
CON: your transaction to buy the domain name may not be secure i.e. unless you and the seller agree to a third party escrow arrangement.
CON: if you establish an escrow arrangement, you may need to pay escrow fees.
6. Approaching and negotiating directly with a domain name owner
PRO: you can choose the domain name you want.
PRO: Since you are directly approaching the domain name owner, you control the negotiation process (at least in the beginning).
PRO: you can name your price and conditions of purchase.
CON: the domain name owner may not want to sell their domain.
CON: the domain name owner may demand too much money for the domain (i.e. it may be too expensive).
CON: your transaction to buy the domain name may not be secure i.e. unless you and the seller agree to a third party escrow arrangement.
CON: if you establish an escrow arrangement, you may need to pay escrow fees.
CON: you may not like the domain name registrar and it can be a hassle to transfer a domain to another registrar.
