Buying Aftermarket Domains

Is this scenario familiar? “You decide to build a web site. You type the name you want in your web browser to see if the .com you would like is being used for a web site already - find it is not and race to a domain registrar to snatch the name up for yourself - only to find that the domain name is 'Not Available'. Arghhh!” Learning that unused (but registered) names are unavailable can be frustrating for buyers. However, there is hope! Many domain owners are selling their previously registered domains. Read on to learn how buying aftermarket domains works.

The Aftermarket Market
Domain name owners are selling previously registered domain names through aftermarket domain buying/selling websites. These services post “for sale” domain names for domain name owners and reserve a commission of the sale of the domain name for themselves. Buyers are able to browse available names and purchase them through the web sites secure escrow services. Then the ownership of the domain name is transferred from seller to buyer.

Aftermarket Pricing
Using your business name or brand in a domain name can be important and essential for your business’s e-commerce success. And domain sellers know this. So aftermarket domains are very pricey. You can’t get any $4.95 deals in the aftermarket. You can plan on spending $100+ for an aftermarket domain name. Some domain names are selling for thousands, and hundreds of thousands of dollars.

How Prices are Determined
Although an ambitious domain seller could place any price they wanted on a domain name, there is some help for buyers in determining domain value. Domain name appraisal services will, for a fee, appraise the value of a domain name using specific algorithms and criteria. For example, one word .com’s, two and three character domains, high traffic keywords, and brand specific names are worth a lot more than the others. Most domain sellers will have their domain appraised and buyers should request to see the appraisal certification before purchasing a high value domain.

Pricing- Flat Rate vs. Auction
The pricing methods of aftermarket domains vary depending on the service. Some domain buying/selling web sites sell domains on a flat-rate basis, while others offer more of an auction. AfterNIC, the leader in aftermarket sales, offers a combination of both pricing structures, where sellers determine minimum bid amounts and buyers can bid on the price, OR buyers can purchase a domain name for the asking price. The asking price is usually very high, but serious buyers don’t have to worry about being out-bid.

Using Escrow to Safely Transfer Funds
Because domains are for sale by owner through the aftermarket, buyers should be wary of making deals one-on-one. Aftermarket domains are usually sold for a great sum and caution should be taken when transferring money from buyer to seller. For the safety of both parties use an escrow, or trusted third-party, service to make the transaction. Domain buying/selling sites will have an on-hand escrow service. Use it.

The Built-in Traffic Bonus
Some previously owned domain names come with baggage. This can be good or bad. Some domain names may have received a lot of traffic with a previous owner or have advertised the domain heavily. This can help a new owner get going. On the other hand, maybe the previous owner was a bit shady and the domain is banned from upstanding searches for malcontent and they are trying to get rid of the domain on the aftermarket. This is probably not anything to worry about- but worth considering as an aftermarket buyer.

Where to Find Aftermarket Domains
The best place to go to purchase previously registered domain names is AfterNIC.com. They have the most reputable services for sealing the deal, and an enormous selection of domain names. Other aftermarket domain buyer/seller sites include: GreatDomains, Sedo, and DomainMart.

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