How to avoid scams in buying premium domain names?

You've finally found the perfect domain name for your brand. It's simple, powerful and already taken.

Welcome to the Internet.

The good news? Just because a domain name is taken doesn't mean it can't be used anymore. The better news? With the right approach, you can get it - without paying exorbitant fees or getting ripped off. Here's a step-by-step guide on how to buy a premium domain name you already own, written for founders, marketers and ambitious individuals who know that a great name can be a game changer.

Step 1: Check the Landscape

Start by visiting the domain name. If it's for sale, you're in luck. If it's in a parked state (e.g., a landing page with ads), that's usually an indication that it's available. If it's being used by an active business ...... then you're now at the “make an offer they can't refuse” stage.

PRO TIP: Use a WHOIS lookup tool to try and find the owner's contact information. But remember - many domain names are privacy protected.

Step 2: Know your options

There are two ways to acquire a premium domain name:

-Buy it from a domain marketplace (e.g. Sedo, Dan, Afternic, GoDaddy).

-Contact the owner directly

-Contact a domain broker

Marketplaces are very convenient, but they are also usually more profitable. Contacting customers directly can lead to better deals - but only if you know what you're doing.

Step 3: Make contact (don't appear sketchy)

If you contact directly, keep it polite and concise to avoid sounding like a scammer.

How to say:

-Who you are and what your business is about

-Your interest in domain names

-Friendly query, “Is there a potential sale you would like to discuss?”

Avoid starting with a budget. And don't say, “I'm just a student.” (Yes, some people will do that. But it doesn't help.)

Step 4: Don't Ignore the Red Flags

This is where many eager buyers suffer losses - because the warning signs are there and they don't know what to look for.

The main red flags:

-Sellers only ask for cryptocurrencies and won't consider any secure payment platforms

-They refuse to use a neutral third party like escrow

-They demand payment before proving they own or can transfer the domain name

-They strongly emphasize urgency - “You must pay today or it's gone”

Let's be honest: If a seller isn't willing to verify ownership, provide registrar confirmation information, or use an escrow service, then get out. No domain name is worth getting ripped off.

We recommend Escrow.com or Dan.com, both of which offer secure payment and transfer protection. These platforms ensure that your money won't transfer until the domain is transferred.

Step 5: Negotiate like a pro

Domain pricing is not like real estate. There are no sites like Zillow for high-end .com domains. However, you can look at similar sales on NameBio.com to get a feel for the market.

Bid below the actual maximum price, but not ridiculously low. Don't say $500 for a domain name worth five figures. Domain owners know their price point.

Need help? A broker can take care of that for you.

Step 6: Close the deal

Use escrow. Confirm the transfer. Make sure your registrar accepts inbound transfers (most do). Then, as soon as the domain is transferred into your account, lock it.

Yes, pop the champagne.

Step 7: Protect yourself from the law

Before you buy:

-Check to see if the domain name is trademarked (if you're in the U.S., search USPTO.gov).

-Avoid typing in misspellings of well-known brands (Go0gle.com can get you sued)

-Be wary of names that sound like well-known businesses

What makes a domain name ‘premium’?

It has nothing to do with length and everything to do with demand.

Premium domain names are:

-short, memorable and easy to spell

-Usually authentic keywords, brand terms or common phrases

-Describe a product, category or feeling

A premium domain name doesn't always mean a six-figure price tag. We've seen some great domains sell for less than $5,000. The key is to be clear about what you value it at.