Posted on Nov 18, 2014

Buying and Selling Premium Domains

Buying and Selling Premium Domains


In 2010 Facebook decided it wanted the domain name The owner was the American Farm Bureau Federation, and they sold it to Facebook for $8.5 million. If you want to sell premium domain names this probably makes you excited. And if you want to buy domains, your nerves may be getting the best of you. But don't be nervous, and don't get too excited either, until you've read this guide on buying and selling premium domain names.


The marketplace for domain names is active. And it is easy to make a mistake. The values are usually in the hundreds rather than the millions, but it is still possible to get your fingers burned.


What is a Premium Domain Name?


A domain name is premium only if someone wants to buy it. So names like, and are all premium domain names. is not a premium domain name.


But how can you tell if your domain name is premium? The vast majority of premium domain names have the following five characteristics:


  1. They are .com
  2. They are short – typically one word or an obvious abbreviation. Two word domain names are sometimes valuable, but rarely any longer than that.
  3. They don’t have hyphens
  4. They are words that are / can be branded (e.g., or they are exact match keywords (e.g.
  5. They have a high search volume


Understanding what makes a domain name premium is important so that you pay – or receive – the right price. But what is that price?


How Do You Value a Premium Domain Name?


This is the hardest question to answer as it depends on how much someone is willing to pay for it. One of the best ways to get an understanding of how much your domain name is worth is to look at some of the popular auction websites. They include Ebay and You will be able to see how much other domains sell for, and the types of domain name that generate interest.


Tips for Buying a Domain Name


The first thing you should do is some research. This starts with looking it up on your internet browser. You can get a variety of different results when you do this, but typically it falls into three categories:


  1. It is an active website with content
  2. There is no website on the domain
  3. The domain is parked. It has some content although it is unlikely to be relevant to the name, and will largely consist of ads.


This information will go a long way to determining the value of the domain. For example, if the domain has content and is generating revenue, it will be more valuable to a seller than one that isn’t.


Once you have this information there are some other things you should do:


  • Consider an alternative – this could be a different .com domain, or a different domain extension (.net, .co etc). Do research on a domain reseller like They will give you alternatives if the name you are looking for is not available, and they will help you purchase a premium domain.
  • If you want the name try to find out who the actual owner is.
  • Make contact and be professional and friendly throughout. Even if the deal doesn’t take place, keep the door open. You never know what might happen in the future.
  • Decide on your maximum price and start negotiating at a level far below this.
  • Decide on a reliable process for completing the transaction that offers protection to both parties.


Tips for Selling a Domain Name


If you are selling a domain name your first objective is to find buyers. Domain hosts like can help, plus you can use auction sites like Sedo and Ebay.


Once you have a buyer it all comes down to the negotiation. Try to find out as much about them as possible. You are likely to get a higher price if you are negotiating with a large company than if you are negotiating with an individual.


Finally, agree on a payment and transfer process that looks after both of your interests.


Whether you are buying or selling it is all about getting a return on investment. So do your research, understand who you’re communicating with, and get the best price that you can.