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Buying a Premium Domain? Don't Make These 8 Common Mistakes

Updated on January 6, 2020
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In 2019, for the first time in history, online retail business overtook general merchandise sales. This goes to show the increasing value of having a credible domain to compete online today. Premium domain names promote instant recognition, are easy to market, and increase in value over time. In this post, I explore some mistakes you should avoid when buying a premium domain.

Inadequate Research

Before buying a premium domain, you will want to be sure that it will help meet the objectives of your business. This is why you should take the time to do some research before making the purchase.

For starters, begin by comparing the domain name with related ones to ensure there will not be any confusion. This way you will minimize the chances of your business losing customers to your competitors. During your research, find out alternative meanings of the domain name to ensure it does not have an offensive meaning in another language.

Buying Impulsively

It is normal to be excited about your business idea and setting up a new website. However, you should remember that buying a domain is a big and important decision. Just like other types of investments, you will want to get a return on the money you put in. Take your time, research your options, and create a list of possibilities before paying any money.

Infringing Upon Trademarks

One of the most common mistakes people make is registering their trademark before purchasing their premium domain. Exercising a bit of caution will go a long way in ensuring you avoid some costly mistakes. Infringement lawsuits will tarnish your brand's name, on a platform where reputation is king. As such, take some time to check whether the domain you want to register is already trademarked.

Revisiting the Domain Repeatedly

Once you have identified the domain name you wish to buy, you should avoid revisiting it. By revisiting the landing page, you will be increasing traffic to the domain. This will not only add to the asking price but could also present the risk of your identity being revealed. Most premium domains attract a good amount of traffic and will wave the red flag, terming your repeat visits as an interest in buying their domain.

Using Trickery

Some domain buyers attempt to use trickery to get domain owners to sell at a lower price. However, this may have the opposite effect, leading to the seller hiking the price even further. For instance, when a buyer uses several profiles, they may think that they will receive two under-market value offers from the seller. However, this will usually lead the seller into thinking that there is abundant interest in their asset.

Fail to Negotiate Strategically

Make sure you have a clear negotiating strategy when looking to buy a premium domain. One of the mistakes you should avoid is revealing your position. Contacting the domain owner directly and telling them who you are will allow them to understand how much you can spend. They can also assess your competitors and create a bidding war between you and them. This will push the price higher and put you in an undesirable position.

Paying up Eagerly

If you are not working with a domain broker, you should ensure that you are using a credible service. You may also want to consider having a purchase document that details the legalities of the deal. This will help you to find a domain that will work for you and make it easier to seek a refund if things go awry.

Not Securing your Domain

A domain name is an asset, meaning its essential to secure it from theft and interference. Today, unscrupulous people can steal or hijack your domain name, particularly if it sounds attractive. This is why you need to use a secure email address, have strong passwords, and mask any details that appear on public records.

One of the ways of ensuring you get value for your money is by working with a reputable domain broker. An expert will not only help you to avoid these common traps, but also make it easy to find a domain that will meet your needs and propel your business in the right direction.


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