Key Steps in Obtaining a Great Domain Name

A great or catchy domain name for your company or product can make a huge difference in your potential success. But getting a great domain name isn’t easy, as almost all quality domain names are already owned by someone else. In this article, I provide some strategic advice on how to choose and obtain a desirable and brandable domain name.

Check if the domain name is available from a registrar

Your first step in getting a domain name should be to check its availability on a domain name registrar such as GoDaddy. If you happen to be extremely lucky and find the name available, the .com and .net domain names should only cost you about $8 to $10 per year. Other top-level domain names such as for .pizza, .tv, and .nyc will be more expensive.

My recommendation is that you stay away from any extensions other than .com, other than possibly using .law if you are a lawyer. A .com name signals to the marketplace that you are legitimate and trustworthy, and it avoids future confusion for your end users or customers. (Be sure to read Purchasing the Snappa.com Domain for $40,000.)

With the huge number of registered domains today, it’s likely that your desired domain name will not be available from the registrar. If you are really wedded to that particular name, you will have to try to buy it from the person who already owns it. To find out who the owner is, you can search the Whois database, which will often list the name and contact information of the registered owner. But this isn’t a foolproof method as some owners keep their name and contact information confidential.

Search domain name marketplace sites

As you are searching for a catchy domain name and if you are open to ideas, check out domain name marketplace sites. These are sites where owners post their domain names for sale, using an eBay-type model. Often these sites will auction off names, and sometimes they’ll offer names for a fixed price. Some good marketplace sites to check include:

Examples of catchy names for your business

There are tons of catchy domain names out there that would be perfect for the right startup. Many would work for a wide variety of businesses. Here are some of my favorites from my portfolio of names:

Sweepstakes.com (great for a lottery, gaming, or contest site)
Trounce.com (great for a gaming or mobile gaming business)
Surmise.com (great for a software or artificial intelligence company)
Recuperate.com (great for a mobile app or web-based service to help people recuperate from injuries—check out Want to Raise Financing for Your Mobile App Startup? Here’s the Ultimate Pitch Deck)
Negligent.com (great for a personal injury attorney website)
Panoply.com (great for a software company or internet business)
Afire.com (short, catchy, and memorable for multiple types of businesses)
Canny.com (great for a cannabis-oriented business)
Administer.com (great for a software company or benefits administrator)
Emanate.com (evokes a positive image and is suitable for many businesses)
Zigging.com (great for a mobile gaming app, as is Zagging.com)
Resemble.com (great for a gaming or app company)

Consider using one of the sites that help you brainstorm name options, such as NameStudio, Visual Thesaurus, or Naminum.

Tips for choosing desirable domain names

Here are some practical tips on trying to decide on what domain name to get:

Avoid domain names that are easy to misspell.
Typically, the shorter the domain name, the better (but some two word memorable domain names may be great, such as InBusiness.com or SmartCompany.com).
Pick a name that your employees will be proud to be associated with.
Pick a name that will be easy to pronounce.
Avoid names that are problematic if translated into another language.
Don’t pick a name that will be too limiting as you grow your business. For example, you may want to avoid SanFranciscoToiletSupplies.com if you plan for the business to grow beyond San Francisco or into other types of supplies.
Pick a name that is memorable.
Consider names that immediately let users know what the site or business is about (such as eArbitration.com, eMediation.com, or ContestLine.com).
Try to avoid hyphenated names; if you do get the name, then acquire both the hyphenated and non-hyphenated names, and have one site redirect to the other site.
Think about how the domain name will work for keyword searches on Google. Good names can result in some free organic traffic, such as CityofParis.com.

Do due diligence on the name

Before you approach an owner of a domain name, you want to do some due diligence first to see if it makes sense to buy the name. Here are some of the due diligence steps you should undertake:

Perform a Google search on the name to see what references and links are out there.
Check out Google’s penalty tool to make sure the domain name doesn’t have a penalty against it.
Do a trademark search at uspto.gov.
Check the Wayback Machine to see what kind of inappropriate or harmful content might have been published on the site in the past.
See if you can obtain your desired name on social media sites such as Facebook, Twitter, Instagram, and Pinterest.
Do a search of the Secretary of State’s records where the business is formed to make sure your name won’t be confusingly similar to a business name that’s already registered.

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How you should approach a domain name holder

Once you have the name and contact information of the registered domain name holder, you will want to approach the owner in the appropriate way. Owners of high-quality premium domain names are often clumsily approached by people wanting to buy a domain name. Here is what not to do:

Don’t ask the person if they are the owner of the domain name (you can be certain they are if you found them through the Whois lookup).
Don’t ask if their domain name is for sale (you can assume it is, and if it isn’t, they will simply ignore your email).
Don’t ask what price they want for the domain name (you are the one interested in buying the name, so the obligation is on you to make a reasonable offer).
Don’t make a lowball offer for the name, especially if it’s a premium name (the owner may simply ignore you and think you aren’t worth negotiating with).
Don’t tell them you are a struggling startup that can’t afford to pay much for the name (they probably won’t believe you, nor is it their problem if you can’t afford to pay fair market value).
Don’t try to make the argument that because the name is not currently being used as a website, that they should sell it to you at a low price (it’s the owner’s business how they decide to use their domain name).
Don’t tell them that you are considering other domain names to buy and that the owner must get back to you quickly on your offer (this is a poor negotiating tactic).
Don’t ask what other offers they have gotten for the name (it’s their personal business, and you would never ask the seller of a home this type of question).
Don’t use a fake name or fake email address for your inquiry (the owner will likely check to see if you are real and will want to review your LinkedIn profile).

At the end of the day, the best way to approach someone about buying a domain name is to be direct, respectful, and come in with a reasonable offer. Identify who you are and why you are interested in the name so that the domain name holder will know you are real and you’re not a bot nor a scam artist. Expect to negotiate.

How much should you pay?

Premium domain names are like beachfront real estate or a Manhattan condo—they are unique and valuable. Think of a premium name as a long-term investment for your business. Ultimately, its value will be subject to negotiation with the seller, but the following factors will indicate a higher price:

Catchy short names
Common word names
.com names over any other top-level domain names
Names that are memorable
Names that convey credibility
Names that have a high search volume on search engines
Names that have great marketing potential
Names that are brandable
Names that have an exact match with a corporate name

Some names have sold for millions of dollars, such as the following:

Voice.com—$30 million
360.com—$17 million
NFTs.com—$15 million
Connect.com—$10 million
Tesla.com—$11 million
Business.com—$7.5 million
Beer.com—$7 million
Hotels.com—$11 million
Sex.com—$14 million
Insure.com—$16 million
20.com—$1.75 million
Fund.com—$10 million
Diamond.com—$7.5 million
iCloud.com—$6 million
Loans.com—$3 million
CreditCards.com—$2.75 million
Candy.com—$3 million
Porn.com—$9.5 million

For more examples, be sure to read Million Dollar URLs: The Most Expensive Domain Names of All Time and the List of Most Expensive Domain Names.

Key terms of the purchase agreement

After you have reached an agreement for the purchase of a domain name, it’s wise to prepare a contract to be signed by both the buyer and seller, laying out the important terms. The actual terms will depend on whether you are trying to make the contract pro-seller oriented or pro-buyer oriented.

Here is a list of the critical terms in a domain name purchase agreement (find sample forms and agreements in the Business Forms and Agreements Center at AllBusiness.com):

The domain name being sold.
The purchase price and how the price will be paid.
The agreement that the seller will convey the domain name to the buyer upon payment of the purchase price. In this regard, a service like escrow.com is often used where the money is first deposited with the escrow holder before the name is transferred, to protect both the buyer and seller. But the seller will want to make clear that the buyer obtains the right to the domain name only if in fact that seller receives the required payment from the escrow holder.
A representation from the seller that he or she owns the domain name; is the registered owner at the domain name registrar; and that they have the right, power, and authority to transfer the name.
The buyer may ask for a variety of additional representations, but that is often resisted by the seller. Examples of requested representations and warranties include that to the seller’s knowledge the domain name is not infringing on any third-party intellectual property; that the name is free of any encumbrances, security interests, restrictions, or licenses; and that to the seller’s knowledge the name is not subject to any pending litigation or legal proceeding. Most sellers insist on an “as is” sale (other than representation of ownership of the name).
A section setting forth how any disputes between the parties will be resolved (a confidential binding arbitration clause often makes sense).

Benefits of a great domain name

A great premium domain name can be essential to the success of your business. Don’t be afraid to pay a premium price for the right name, as it is often a worthwhile investment.