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So you've found your perfect business name—but the domain is already registered. Before you give up, know that premium domain purchases happen every day. Here's how to approach it strategically.
Should You Buy a Premium Domain?
Is the domain worth more than finding an alternative name? Sometimes the answer is yes—but often, a creative alternative is better business.
When Premium Domains Make Sense
| Situation | Example | Recommendation |
|---|---|---|
| Category-defining business | stripe.com, square.com | Worth significant investment |
| Marketing-heavy company | Direct-to-consumer brands | Domain is marketing asset |
| Large funding round | Can justify expense | Consider premium option |
| Perfect exact match | Once-in-a-decade name | May be worth it |
When to Find an Alternative
| Situation | Why | Better Approach |
|---|---|---|
| Early-stage startup | Capital should go to product | Use alternative TLD |
| Domain is $100K+ | Likely better uses for cash | Find creative alternative |
| Business model unclear | Don't know if you need it | Start cheaper, upgrade later |
| Many good alternatives exist | Opportunity cost | Pick available option |
Step 1: Research the Domain
Before reaching out, understand what you're dealing with.
WHOIS Lookup
Use tools like whois.domaintools.com to find registration info. Note: many owners use privacy protection.
Check the Website
Is it actively used? Parked with ads? For sale listing? This affects approach.
Research the Owner
If identifiable, understand their situation. Company? Individual? Domain investor?
Check Sale History
Has this domain sold before? What did similar domains sell for? Check NameBio.com for comps.
Domain Status Types
| Status | Description | Likely Price |
|---|---|---|
| Active business | Owner is using it | High (or not for sale) |
| Parked with ads | Generating revenue | Medium to high |
| For sale listing | Owner wants to sell | Listed price + negotiation |
| Inactive/unused | No active use | Best negotiation opportunity |
| Domain investor | Professional portfolio | Market rate |
Step 2: Determine Fair Value
Domain sellers often start with aspirational prices. Research comparable sales to understand true market value.
Factors That Affect Price
| Factor | Higher Price | Lower Price |
|---|---|---|
| Length | 1-3 letters | 10+ characters |
| Words | Single dictionary word | Made-up compound |
| TLD | .com | Other extensions |
| Search volume | High monthly searches | Low/no searches |
| Industry | Tech, finance, health | Niche sectors |
| Traffic | Existing type-in traffic | No traffic |
| Brandability | Clear, memorable | Hard to pronounce |
Price Research Tools
| Resource | What It Shows | Cost |
|---|---|---|
| NameBio.com | Historical sales data | Free |
| GoDaddy Auctions | Current listings | Free to browse |
| Sedo | Market listings | Free to browse |
| EstiBot.com | Automated valuations | Free basic |
| DN.com | Premium listings | Free to browse |
Step 3: Make Contact
Do
Be professional, explain your use case briefly, ask if they'd consider selling
Don't
Lead with a price, reveal desperation, lowball insultingly, over-explain
Finding Contact Information
| Method | Success Rate | Notes |
|---|---|---|
| WHOIS email | Medium | Often privacy-protected |
| Website contact form | High | If site is active |
| Domain broker | High | Adds cost but effective |
| LinkedIn research | Medium | For identified owners |
| "Make offer" button | High | On parked domains |
Sample Initial Message
"Hi, I noticed you own [domain.com]. I'm building [brief description] and the domain would be a great fit for our brand. Would you consider selling it? If so, I'd love to discuss. Thanks, [Name]"
Keep it short. Don't reveal your budget or how much you want it.
Step 4: Negotiate
Common Seller Tactics
| Tactic | What They Say | Your Response |
|---|---|---|
| Anchor high | "I'd need $500K" | "What's that based on?" |
| Emotional attachment | "This domain is special to me" | "I understand. What would work?" |
| Artificial scarcity | "Others are interested" | "Good luck with those discussions" |
| Refusing to counter | "Make me an offer" | Give range, not single number |
Negotiation Best Practices
Let Them Price First
Ask what they're looking for before revealing your budget.
Show Comp Data
"Similar domains have sold for $X-Y. How did you arrive at your price?"
Be Willing to Walk
Having alternatives gives you leverage. Never seem desperate.
Consider Creative Terms
Payment plans, lease-to-own, or equity can bridge gaps.
Step 5: Close the Deal
Safe Transaction Methods
| Method | Protection | Fees | Best For |
|---|---|---|---|
| Escrow.com | High (industry standard) | ~3% | Most transactions |
| Sedo escrow | High | ~3% | Sedo-listed domains |
| Dan.com | High | 9% (seller pays) | Quick transactions |
| Direct transfer | None | None | Only with known parties |
Always use an escrow service. Domain scams are common. The buyer funds escrow, seller transfers domain, escrow releases funds.
Post-Purchase Checklist
| Task | Timeline | Priority |
|---|---|---|
| Transfer to your registrar | Within 7 days | High |
| Update WHOIS info | Immediately | High |
| Set up DNS | Before launch | High |
| Renew for multiple years | Within 30 days | Medium |
| Set up domain monitoring | Ongoing | Medium |
Working With Brokers
When to Use a Broker
| Use Case | Broker Value |
|---|---|
| Domain is $50K+ | Worth the commission |
| Owner is unresponsive | Brokers have relationships |
| Complex negotiation | Professional expertise |
| Your time is valuable | They do the legwork |
Top Domain Brokers
| Broker | Known For | Typical Commission |
|---|---|---|
| MediaOptions | High-end sales | 10-15% |
| Sedo Broker | Large inventory | 10-20% |
| NameExperts | Premium .coms | Negotiated |
| Domain Holdings | Corporate clients | 15-20% |
Alternative: Find Available Names Instead
Sometimes the smartest move is finding a great available name rather than paying premium prices.
Pros
- ✓ Save $5K-500K+ in domain costs
- ✓ Use capital for product and marketing
- ✓ Full creative control from day one
- ✓ No negotiation stress
Cons
- ✗ Exact-match name unavailable
- ✗ May need to build brand awareness
- ✗ Alternative TLD considerations
Generate Available Names Instead
Skip the negotiation. Find brandable names that are available right now:
Ready to Find Your Perfect Domain?
Generate AI-powered business names with guaranteed availability. No signup required.
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