How to buy domain names from big companies? A domain name investor shares his experience

In the domain name investment market, many potential domain names are not activated because they are held by large companies. Such domain names are often shelved due to company mergers and acquisitions, product discontinuation, etc. As a domain name investor, it is tempting to buy such idle domain names from large companies, but it also faces many challenges. The following are typical problems and experience summaries I encountered in the process of domain name purchase.

1. Find the right decision maker

First of all, it is often not easy to contact the right decision maker. Usually, the contact information on the Whois record usually points to the IT department or a general company email address. These contacts usually do not have the decision-making power for domain name sales. Many times, the IT department receives a large number of emails, and the investor's inquiry email is likely to be ignored or cannot be conveyed to the decision-making level.

In addition to Whois information, another strategy is to find people or departments that have influence on domain name management or sales through research. Sending a sincere offer often helps to attract the attention of the right people. Concisely and clearly expressing the purchase intention in the email and explaining the potential transaction advantages can sometimes help you take the first step to success.

2. Obtain sales authorization

Once the decision maker is found, obtaining approval to sell the domain name is the next level. Companies generally don’t sell domains that are related to their normal business. Even if the domain is ostensibly idle, it may still be used for backend functions, such as corporate email, SEO traffic, etc. Some companies will not sell any domains at all, considering future reuse.

If a company decides to sell a domain, the challenges are not over. Even if there is an intention to sell, the negotiation process for a domain is still complicated, especially when the other party offers too high a price or lacks motivation to complete the deal. When negotiating the price of a domain with a large company, the relevant person in charge on the other side usually has no clear personal interests and may therefore lack the motivation to facilitate the transaction.

3. Complex legal process

If the price is agreed upon, the next step is the tedious legal review process. I usually send a draft purchase agreement, but the other party’s legal team almost always proposes modifications. Multiple rounds of contract modifications are very time-consuming and, if lawyers are involved in review, the cost is also quite high. In addition, sometimes there will be internal personnel changes in the company, and the new management may suspend or terminate the sale for various reasons, adding more uncertainty.

Once all parties finally sign the purchase agreement, the transaction usually goes smoothly. However, sometimes the other party has difficulty with the Escrow.com verification process, especially when it comes to KYC (know your customer) audits. Some company executives are unfamiliar with the Escrow.com process and refuse to submit identification documents. In this case, I will choose lawyers to escrow, but this will also lead to time delays and contract revisions.

4. Details in the transfer process

After completing the agreement and escrow arrangements, the remaining steps are relatively simple. I will provide the seller with detailed instructions on how to apply for and send the authorization code to start the transfer process. Clear instructions can save communication time for both parties, especially reducing the large number of email exchanges, ensuring a smooth transaction.

5. The sense of achievement after completing the transaction

Successfully acquiring a domain name held by a large company often brings a great sense of achievement. Usually, this process involves a lot of time, energy and even financial investment, and has gone through several rounds of negotiations and contract modifications. For these domain names that have never been sold on the market, many competitors give up due to failure in the initial communication stage. Although buying domain names from large companies may involve higher financial risks, as investors gain experience, they can gradually improve their negotiation skills, thereby reducing risks and securing high-quality domain names with potential.