Domain Knowledge

5. What can I do with my domain?

A domain name will allow you to design and build an optimal online presence by creating your brand and website content. It is, so to speak, the main billboard of your business or project. In addition, you can create custom emails for the domain, which you can use for communication. Domains can also function as redirects or pointers to another online destination. You also have the ability to earn money with domains by entering the domain trade or parking your domain.

8. Things to pay attention to when choosing a domain name

A domain is essential for you to build a successful online presence and to be found by your clients on the internet. Therefore, the right choice of the domain name is enormously important, as not all domains are the same. The value or potential of domains can differ greatly and several factors can influence its marketability and success.

First, ask yourself two questions: How do I want to use my domain? And which market or group do I want to target? Once you have answered these questions, choose a domain name with these five characteristics

a) The top-level domain

The most popular TLDs include .com, .net, and .org because they are used internationally. But a .com extension does not necessarily make your domain a more valuable domain than a .de, within Germany for example. Choose a top-level domain appropriate to your target audience and website content. 

For example, a German online shoe seller, with the SLD "Schuhe" should choose the extension .de, since the term and the target audience are speakers of the German language. Alternatively, the domain extension .store would be a good choice, as its ending promptly indicates the function of the website content

b) The length and memorability of the domain

A domain should be short, memorable and free of any typos. Pick short, descriptive terms that can generate a lot of direct type-in traffic, such as übersetzer.de or music.com for example...

c) The Linguistic and Phonological Suitability

Domains with umlauts and special characters are generally allowed, but should be used with caution. Always keep in mind that not all umlauts and special characters are represented on all keyboards. For example, on the German keyboard you will find umlauts such as ü, ö, ä, i but no French special characters such as ç, æ, î, œ. 

Internet users with a different keyboard layout cannot find the umlauts on their keyboard and may be unable to type it in. Only use umlauts and special characters that your target group can find on their keyboard, such as büromaterial.de for German users or pañuelo.es for the Spanish speaking audience

d) The legal situation

Always ensure you are not violating the trademark rights of other parties with your domain, as this will help you avoid long and costly legal proceedings. 

Keep in mind that trademark infringement typically occurs when you intentionally profit from someone else's famous mark. Avoid known and famous company or brand names, names of celebrities, work titles, typo domains like "ebey.com", well-known titles e.g. in movies and cities, authorities and other governmental institutions. You can do a trademark search at the DPMA (German Trademark and Patent Office)

e) The search engine suitability

To test the business potential and market capabilities of your domain, check it out in Google and other search engines, such as Bing.

The number of results demonstrates how relevant a topic/keyword already is on the internet. A high number of results typically indicates that the domain name is popular and when compared to domains with less popular keywords, it has an increased market and business potential

9. What is the domain aftermarket?

The domain aftermarket refers to the purchase, sale, and monetization of already registered domains by their owners. For this purpose, there are specialized online marketplaces where domain owners can buy, park, and monetize domains. The domain aftermarket is also referred to as the secondary domain market. While the primary market describes the pure registration of domains, the secondary market is about the trading of domains by their current owners.

In the early days of the World Wide Web, the 1990s, it was still relatively easy to find an available domain of choice. Today, when almost all good domains are already taken, the search for the right domain can be frustrating. The alternative: buying an already registered domain. After all, there are many domain owners who at some point no longer need a previously registered domain and would like to sell it on. It’s worth inquiring if a domain’s owner is willing to sell it.

10. How does domain trading work?

In domain trading, domains are bought and sold or the ownership is transferred from the seller to the buyer after a purchase agreement.
Domain trading is a well-established and quite lucrative business. In 2020 alone, the top 100 domains sold to the public resulted in a turnover of 14.6 million dollars.
The purchase and sale of domains of all kinds is most easily handled via domain trading platforms such as Sedo.com.

Five important rules for successful domain trading:

• Only deal with domains that do not pose a trademark risk.
• Find out about the pricing of a domain and give a realistic price idea.
• Market your domain to make potential buyers aware of your domain via:
  1. a trading platform such as Sedo.
  2. a sales notice on your own website by parking the domain at Sedo.
• After both parties have agreed, a payment request is automatically generated in the system.
• During the exchange, the domain owner or the admin submit mandatory data and to keep it up to date for the registry

Steps of domain trading:

1. Selling price negotiation.
2. Agreement to a price.
3. Creation of a sales contract or the creation of an invoice
4. Holder transfer:
   • The buyer usually submits a provider change request, which is granted by the seller.
   • The buyer will be registered at the responsible registry as the new domain owner.
   • The duration of the processing depends on the Top Level Domain.
   • The buyer’s contact information is updated with the domain.
5. Payment of the purchase price

When you sell and buy domains through the Sedo.com platform, a transfer service is available to you. The service team provides you with a purchase contract, supports you in a secure transaction of the purchase price, as well as in the technical processing of the domain transfer. They are also your contact for any further questions regarding the transfer. You can also use the Sedo domain brokerage, a process where negotiations can be done by a member of Sedo's expert domain brokerage team; this way your action is minimal.

11. What is the pricing for domains?

At the beginning, you may struggle with pricing domains - the value of a virtual good is not tangible for everyone. However, there are numerous tools available to help you determine a price that is in line with the market.

A realistic price is the best basis to enter into negotiations with potential buyers. Domain names can be acquired for as little as $100 or $2 million dollars, depending on the characteristics and intrinsic value of the domain, as well as the existing demand. Large companies have a larger budget available than private individuals or individual entrepreneurs. If there are several interested parties at the same time, this can influence the purchase price.

Demand is influenced by these nine factors:

1. Top-level-domain

Does the domain extension match the language of the domain name? How well known is the TLD?

2. Length and memorability

Is the domain short enough? Is it easy to remember?

3. Language suitability

How complex is the keyword of the domain? Are there any special characters included?

4. Typo susceptibility

What is the risk of typing the domain incorrectly? Does the name contain an unexpected or alternate spelling of lesser popularity?

5. International usability

Can the domain name be used internationally, or does it only work for a local market?

6. Search engine suitability

Does the domain comply with search engine guidelines? Or are there reasons to penalize the domain?

7. Advertising potential

How suitable is the domain for advertising campaigns (the shorter the better)? How catchy is the name?

8. Sales opportunities

Is there a high demand for this web address? Are domains with the same keyword under other top-level domains already all taken?

9. Business potential

Can the domain be used as a company address, or should an alternative be used for the benefit of the company

12. How do I buy domains?

The easiest way is to buy domains via a trading platform like Sedo.com. There you can easily check the availability of your desired domain and enter into negotiations with the seller, purchase domains instantly at the buy-it-now (BIN) price, buy them at auction or hand over the task to our domain brokerage team. No matter what you choose, our service team at Sedo supports you with the transfer of the domain or the ownership transfer.

These six steps take place during a domain purchase:

1. Choose your desired domain.
2. Check the availability of your desired domain.
3. Conduct negotiations with the seller of the domain (depending on the option to sell the domain.)
4. Come to an agreement with the seller.
5. A sales contract is drawn up.
6. Transfer of ownership of the domain.
   • As a rule, a provider change request is made from your side, which is granted by the vendor.
   • You will be registered with the responsible registrar as the new domain owner.
   • The duration of the processing depends on the top-level domain.

13. What do I do if my desired domain is not available for sale?

At Sedo you also have the chance to get domains that are not for sale: Sedo's domain brokers have a wide range of knowledge and network in the domain industry.

They are often in direct contact with domain owners who own large domain portfolios and are therefore in a much better position to negotiate successfully. Since they are familiar with domain prices and trends, they have a good sense of how much a domain is worth and in what price range you should start bidding in order to have a successful negotiation. Here you can learn in detail what happens during the process of domain brokerage.

14. How do I sell my domain!

Do you want to sell your domain? Then all potential buyers should know about it. It is always smart to present this information in the domain’s WHOIS/Contact data*. But this alone is often not enough, as few users query WHOIS data and your offer thus remains unrecognized. 

It  makes more sense to offer the domain via a trading platform like Sedo.com, reaching out to multiple potential buyers worldwide and receiving attention to your domain. In addition, it is worthwhile to set up the domain’s profile with information. Sedo provides a free domain sale page with many different layouts to choose from.

At a domain trading platform like Sedo.com you can sell the domain at a fixed price, via negotiations, or in an auction to the highest bidder. The process is straightforward and we have summarized all options for you.

Before negotiating with potential buyers, you must determine the value of the domain. It is important to define a realistic price so that you do not scare off potential sellers with outrageous prices. As soon as an agreement is reached during negotiations or an immediate price is agreed upon, the system generates a purchase contract to secure the buyers as well as the sellers. 

When the purchase price is received by Sedo, the transfer of ownership takes place. During the transfer of ownership or transfer of the domain, the buyer usually submits a provider change request, which must be approved by you. Once the domain has been transferred, the buyer will be registered as the new domain holder with the appropriate registrar. Finally, the buyer enters his mandatory owner data. You will then receive the purchase price from Sedo, minus the commission depending on the type of sale. You can view our 

fee list

The duration of the process varies depending on the top level domain. While a .com or a .de domain transfer can be done in a few hours, it may take longer for other TLDs.

*WHOIS data is owner data. "Who is" is a database that can be accessed from various platforms. Here you can find the Whois database of Denic. (registry of all .de domains).

15. How does domain parking work?

With domain parking, you can promote domain sales through a customizable page and sell the domain faster, make money with unused domains from your portfolio, and get insights into statistics like the number of visitors.

The term "domain parking" describes the placement of advertising content on a domain as a monetization measure. Unused domains that do not have any website content are provided with advertisements instead of a message that says "this page is under construction". 

A parked domain has an appealing landing page, which may differ depending on the parking provider. So no popups / banner ads etc. are displayed there, only headlines with links that redirect to the advertising provider. 

The type of ads displayed is determined by an advertising provider such as Google, based on the domain’s keyword. For example, if your domain is about watches, you will probably find advertising links about watches on the parked page. If a website visitor clicks on these advertising links, you earn money based on a pay-per-click (PPC) remuneration.

If you want to park your domain, find out about suitable parking providers. While some providers charge for parking, you can park your domains for free at Sedo.com.

Here at Sedo we hope you’ve found this information useful. Get started today, at Sedo.com.