A non-active domain is an excellent option for startup companies. However, there is a right and wrong way to go about the process. Learn about some of the factors you should watch out for during the process.
Learn About Real Vs. Fake Owners
Make sure you know that there is a difference between a real and fake owner of a domain. A real owner is a company or individual that is the rightful owner of the domain, and typically, the business or service that is attached to it. In some instances, a real owner could also be a domain broker.
A fake owner, on the other hand, is someone that has virtually stolen the domain from the original owner, through extortion or a trademark violation. Spotting a fake owner isn't always easy. Someone with experience in the industry, like a broker, can help weed out the bad guys for you.
What's worse is that fake owners will sometimes price these domains at a low cost to offload them as fast as possible. However, as alluring as a lower price might seem, it's not worth it to try and purchase from a fake owner because you will likely end up fighting to keep the domain in the future once the original owner takes legal actions. As a new business owner, you don't need the hassle of a fight, and you don't want to jeopardize the name and reputation of your new business.
Keep It Simple
It's always a good idea to keep your contact with the domain owner as minimal as possible. After what feels like never-ending research, when some startup business owners finally find a domain, they are eager to contact the original owner and offer details about why they want to sell the domain. If the owner on the other end happens to be an individual that is not using the site, you might not have too bad of an experience.
However, if the person on the other end happens to be a large company that has simply purchased the site to keep it from a competitor, your experience might be less than pleasant. Even if you can get them to sell the domain to you, you will likely pay a high cost.
Working with a domain broker in this type of situation is a good idea because your identity remains hidden, all the company knows is that the broker is working on behalf of their client. This lack of personal contact often diminishes the original owners urge to increase the price depending on the buyer.
A domain broker can assist you through every phase of the process, from selecting a domain to purchase to the transaction process.