Should You Register a New Domain Name or Buy a Domain That’s Expired, Dropping or For Sale?
By Anna Johnson on July 28th, 2010So you’ve got an idea for an online business, want to build a website and need a domain name. Your first instinct is probably to come up with a name for your business and see if the domain name is available. Stop! Before you register that domain, consider whether you may be better off registering an expired domain name, back-ordering a ‘dropping’ domain, or purchasing a domain name for sale.
We’ll talk about the pros and cons of registering an expired domain name, back-ordering a ‘dropping’ domain or purchasing a domain name for sale in the second article in this two-part series. For now, let me explain what is meant by registering a new domain, registering an expired domain and buying a domain for sale (whether via a domain name ‘drop’, at auction, via an online marketplace or by way of private sale).
Registering a new domain name is pretty straightforward. You come up with a name, visit a domain name registrar (such as Namecheap or Go Daddy), see if the domain is available and (if it is) register it, choosing whatever domain extension (.com, .net, .org, .info, etc) you think appropriate.
If the domain name is not available, don’t lose all hope. It may be for sale, in which case you might be able to buy it (see below). Alternatively, the domain name may be about to expire, in which case you might be able to get it if the existing owner fails to renew (see below). If, however, you insist on registering a brand new domain name, just keep on trying out names until you find one you want that’s available!
An expired domain name is a domain name that someone previously registered but hasn’t renewed i.e. they’ve let the domain name expire.
The Domainer Income Expired Domains Database lists all the top level domains (TLDs) and main country code TLDs (ccTLDs) that have expired and which are available to register right now.
About 50,000 to 60,000 newly expired domain names are added to the database each day. It’s a free resource (you just need to sign up for a free Domainer Income membership to access it) and you can use the advanced search and filtering functionality to quickly zero in on expired domains that contain certain keywords and/or meet other specific criteria. If you like a domain, just choose from the available registrars, and click the link to register the domain straight away.
You can also buy domain names that are about to expire, known as ‘dropping’ domains. If you know a great domain name is about to expire (or ‘drop’) you can try registering it as soon as it does so by getting a company such as Snapnames to ‘back-order’ the domain on your behalf when the domain does, indeed, drop.
There’s no guarantee you’ll get the domain name – it depends on whether there are other companies attempting to back-order the domain on behalf of their clients, and how effective your back-ordering company is in getting the domain.
While the existence of competition is no reason not to attempt to get a dropping domain (we’ve picked up some excellent domains via drops!) it IS reason to use a tool such as Domainer Income to stay alert to domain names about to drop so you can back-order them as soon as possible. (This feature is available to Domainer Income Pro members).
Finally, you can also buy domain names that people or companies are attempting to sell. The domain name ‘aftermarket’ includes domain name brokers/marketplaces, online forums and other websites, and the ‘hidden’ marketplace of buyers and sellers engaged in private negotiations.
Domain name brokers and marketplaces such as Sedo and Pool use a few different approaches to sell domain names.
Typically, they will privately broker or auction extremely high value domains (e.g. valued at $1 million or more). To this end, they may approach potential buyers individually or invite confidential expressions of interest. Secondly, they will run public auctions at major events such as T.R.A.F.F.I.C. to sell high value domains (generally 5 and 6 figure domains) or extremely high value domains.
Thirdly, they will run online auctions (for low to high value domains) and, finally (if they also provide domain parking services) they will advertise parked domains for sale. In the latter case, the domain name owners who have their domains parked with the relevant company have indicated a willingness to sell their domains if the price is right.
You can also buy domain names via private negotiation. For example, you can personally contact a domain name owner and negotiate a deal. Or you might visit an online forum or a site such as Flippa or eBay where sellers post their domains (and websites) for sale.
Given the number and scattered nature of all these domain name marketplaces, you can be forgiven for thinking that finding a quality domain in a timely manner (i.e. before anyone else) is an almost impossible task. You’re right. In fact, it was largely because of this problem that we developed Domainer Income in the first place!
Domainer Income aggregates, in one place, the details of all the domain names available for sale via the top domain name brokers, auctions, markets, forums and other sites, along with extensive analytics about these domains. Further, its advanced search and filtering features allow you to quickly find, value and buy domains you’re interested in. (See Domainer Income for details).
Okay, so that’s a brief summary of the various ways in which you can acquire a domain name. In Part 2 of this two-part article series, we’ll discuss the pros and cons of each approach and what may be the best strategy for you, based on your circumstances and objectives.
If you haven’t already done so, be sure to sign up for a free membership to Domainer Income so you can start using this invaluable tool. (If you’re ready for all the advanced features, sign up for the Domainer Income Professional membership.
