How to prepare for a domain auction.
Whether you are in the market for a particular domain name, or looking to expand your domain portfolio, domain auctions offer a plethora of new investment opportunities worth exploring. Before you start purchasing domains, however, there a few steps you must take to properly prepare for your purchase and ensure that you’re making the most of your investment.
Know Your Budget
One of the greatest draws to a domain auction is the low prices. Whether the auction has low or no reserve prices, you have the chance to name your price and make an offer on a domain. But what happens when you find yourself in a bidding war? This is when knowing your budget is crucial. Your initial offer may be well under the amount you are willing to spend, but if the bidding continues to rise you must know your limit. Setting a budget for yourself, or for a particular domain, will help you to purchase a domain at the appropriate value.
Learn About Your Prospective Domain
Among the long list of domains available in an auction are expired domains, which for one reason or another, current owners have abandoned. While there’s nothing wrong with many expired domains, it is essential to obtain some background information on your prospective domain. Determining how old the domain is and its traffic potential are great starting points, but learning how the domain was originally used is also important. If the domain was used in an illegal manner, such as spamming, it will be difficult to recover its SEO potential should you choose to develop it after purchase.
In any transaction, both the buyer and the seller are anxious to complete the sale in a fast manner. However, this is normally not the case in a domain auction. Domain auctions often run for a specified period of time and each domain is open to any buyer throughout that time period. Unless there is a “Buy Now” option within the auction, you may be stuck watching for opposing bidders throughout the auction’s duration.