A domain name is the unique address of a website or email server. It consists of the words following www. in a website URL, or after the @ in an email address – for example: example.co.uk. This domain name will direct users to a site and emails to a server, in the same way that a telephone number directs the caller to a particular phone.
Certain domain names carry more status, are easier to remember, and are consequently more valuable than others. Domain name sales can be a lucrative business if you know how to play the game.
So how do you sell a domain name? Here are some tips to embarking into the world of domain names.
1. How to choose the right domain name
Acquiring the right domain name can have a big impact for a business, which is why they may be willing to pay a lot of money to get the right one. Typically businesses will try and choose a name that is related to the name of their company or product. Keeping a domain name simple means customers will be able to easily identify a website, or guess the name when they are searching for it.
If you are looking for domain names that will have good resale value, try to focus on a particular industry that you are familiar with. Consider what names could be valuable for people within this industry. Using keywords in a domain name is known to have some value in improving a domain name’s search engine optimisation.
2. Understanding extensions
Each domain name ends with an extension – for example .co.uk or .org – that indicates the region the name is registered in or the type of organisation it is used by.
Some extensions carry certain restrictions. For example, the extension .eu is limited to companies registered in the EU. So following the end of the Brexit transition period, UK companies or individuals will no longer be able to register or renew a .eu domain name.
As well as researching which extensions will be available to you, think about your target customer and what extension will be attractive to them, as these will be the domain names that offer greater value.
3. Registering a domain name
It is not possible to buy a domain name outright. Instead, domain names must be registered. Registering gives the buyer the right to use the domain name for an agreed period and the registration will need to be renewed periodically.
Most .uk domain extensions are managed by Nominet, and all .co.uk domain names need to be registered with them. However, there are various companies who can register a different domain name for you.
4. Increase the value of your domain name
You are able to keep hold of a domain name for 10 years. Older, more established sites are going to be more attractive if they already receive a lot of traffic. So rather than leaving these domains sitting on the shelf, why not use this time to monetise them, applying SEO strategy to increase their value, and allow you to justify a higher sale price. You could further your investment by creating a fully functioning website that you could sell rather than just a domain name.
How to find buyers for your domain name
Once you are ready to look for buyers, there are various ways to go about it.
Auction sites like EBay, or Sedo are a good place to start. Also get your name listed in domain selling networks. This will get the name in front of thousands potential buyers who already trust the network.
Don’t forget to make potential buyers aware that your domain name is for sale with a clear indication on your site. You could create a landing page to direct them to.
Avoiding potential disputes
Legal disputes over domain names are common. This is because registrations can be challenged by third parties if they can claim the domain name is misusing their trademark. It might be that the trademark is included in the domain name, or closely replicated.
If a company can evidence loss of income from your use of their trademark, by misleading the public or benefiting from their brand to direct traffic to an alternative site, they have a legal claim on that domain name. So be careful to avoid potentially disputed domain names, as they could lead to more trouble than they are worth.
How to sell a domain name
Before selling a domain name, you will need to make sure you:
- have a legal right to sell it;
- are able to transfer the domain name upon sale;
- are not at risk of trademark disputes.
Your Domain Name Sale Agreement must certify your right to sell the domain name and include warrantees on the domain name being available for sale, without any pre-conditions attached.
At the point of sale, you will need to register the change of ownership with the appropriate internet domain name registry. You can then submit an authorisation code to begin the transfer process.
If you are looking to sell the whole website, as well as just the domain name, this is a more complicated transaction. There are various other factors including several IP rights to consider. Therefore, you will want a more thorough sales agreement to cover all these elements.
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