Domain name investment – ROI


When you start your web business domain name is the first investment you will probably make. In this regard people often overspend money on the domain name itself cutting funds elsewhere. For example domain hosting is a crucial thing for your web business and if you cut corners on this you will have problems in the long term.

The normal way to proceed in the domain purchase is to do a proper research. If you are starting a company a company name or at least company main product line should be in the domain name. Nowadays you can expect that more than 90 percent of popular and searched domain names are already taken in the .COM and even .NET top level domains. That said, you might want to rethink even your company name and adjust it according to the available name for your brand. To be even more sure about the name of the company and domain name itself you should also query registered trademarks and patents to see if the domain name is cleared through.

Now once the proper research is done and you have found a potential brand name for your product line or your company you need to find this domain name for sale. If you land on the parking page for that particular brand name or you are seeing standard registry page chances are that domain name is put on sale. Let the negotiations begin!

Here is the trick from the start of our article. Do not overspend! And I mean it. There is no use if you are going to spend half of your funds on domain name itself because there is no return of investment on horizon. The major return of investment you can expect is from the branding your business in which domain name does play a large part but not that crucial to approve overspending.

Now that out of the equation, we can put a price on the name. To find the seller either use standard WHOIS query, find the information on the parking page or use some informative research about the company or individual having hold of the name. Or you can simply forget this lengthy stressful process and just use domain brokerage service like Sedo.com for example. Using Sedo’s services you pay the fee but you do not need to worry about domain ownership transfer, even finding the rightful owner is not a worry. And the most important thing (because brand name is usually expensive) the payment process is safe using Sedo’s escrow service. Escrow service is a process where money changes hands via a proxy – in this case Sedo. In the nutshell, you as a buyer pay Sedo then Sedo informs seller to transfer the domain name to your ownership and once verified they release funds to the seller. We at Vastus Domains are using Sedo’s services extensively and you can request payment using Sedo’s escrow if you choose PayPal in the buy menu.

And to stress this once again, do not ovespend on the domain name alone. There is no need to do that and we at Vastus Domains have numerous brandable names you can choose from which are quite affordable.