When looking for domain names to buy, you may find it productive to undertake a similar research process to that you would follow if you were going to register an available domain name.

However, once we start talking about involving a 3rd party, other factors must be taken into consideration:-

• How important is it for you to secure a very specific domain name?

• What level of budget do you have available for purchasing the domain name?

• How quickly do you want to complete the transaction?

Let's take a specific example: you own a medium-sized business selling car parts. The information on this site, coupled with your own experience, has shown you that the likelihood of finding a simple, memorable domain name relating to your industry still available is zero. However, you decide that you can afford to spend up to $1,000 on securing a suitable domain name.

You draw up a shortlist of names that you would be happy to use for your online site (none of which are currently available):

• carparts.com

• car-parts.com

• carparts.net

• autoparts.com

• automobileparts.com

Now it's time to start honing your list down to the top one or two candidates.

To do so, you need to examine the use to which the name is being put.

Try and visit each domain name on your shortlist by typing it into the "Address" bar of your browser to see if it has a site associated with it (remember to try both DOMAINNAME.com and www.DOMAINNAME.com as sometimes only one of these is associated with a site)

If there is a site associated with the domain name, is the site:-

A) Related to the domain name, and associated with a thriving business that is using the domain name as its primary URL?
In our example, if you were checking the domain name "carparts.com" and you found a site belonging to a company selling car parts, with "CarParts.com" as its company name or in its main logo, with an up-to-date News section and copyright statement on it, then clearly the domain name is being put to very good use by its current owner. BUYING DIFFICULTY: 10/10.

B) Related to the domain name, and associated with a thriving business that is NOT using the domain name as its primary URL?
If you checked out "carparts.com" and found an up-to-date site belonging to a company selling car parts, with "AutoParts.com" as its company name or in its main logo, with an up-to-date News section and copyright statement on it, then while the domain name is clearly being put to good use by its current owner, the owner is not using the domain name as the PRIMARY domain name for their site, which makes it a little easier when it comes to negotiating a purchase. BUYING DIFFICULTY: 9/10.

C) Related to the domain name, but containing clearly out of date material?
If you checked for "carparts.com" and you found a site with broken links, missing pictures and a 4-year-old copyright notice, then things are looking more promising. While the domain name owner clearly made good use of the domain name at some point, it is not being used very effectively right now. BUYING DIFFICULTY: 6/10-8/10.

D) Related to the domain name, but essentially just linking to one or more affiliate programs?
If you checked for "carparts.com" and you found a single page with a few affiliate program links relating to car parts, then this reduces a possible future transaction to one main variable: MONEY. In other words, the current owner is monetizing the domain name by sending its traffic straight to an affiliate program and reaping a commission from the transactions generated by visitors, and so therefore the value of any sale must reflect this loss of income. However, the current owner does not seem likely to have any deeper, or long-term attachment to the name. BUYING DIFFICULTY: 5/10-7/10.

E) Unrelated to the domain name, but linking to a generic affiliate link or search portal?
Coming back to our trusty "carparts.com" example, if you visited the site to find a bland "Hottest Sites on the Web!" type links page filled with affiliate links to gambling, credit card, cell phone, loan and other ads, then again any transaction will likely be based on one factor only: money! However, it's also clear the current owner isn't too sure what to do with the domain name, since they're not targeting it at an appropriate affiliate program.  BUYING DIFFICULTY: 4/10-6/10.

F) Showing a generic "registrar" page or a blank "Under Construction" page
If "carparts.com" directed you straight to a page advertising a registrar's services or an Under Construction page, then clearly the owner hasn't "moved in" to the domain name yet. At the same time, they are not currently doing anything with the name to generate revenue, so it may well be easier to persuade them to sell it and therefore unlock value from it...  BUYING DIFFICULTY: 3/10-5/10.

G) Pointing to a "Domain For Sale" page
This could be your hardest challenge! The domain name is owned by somebody who clearly understands that desirable domain names can have value. The prospect of closing a sale will depend on your ability to pay, their expectations and experience in the domain name resale market, and your negotiating skills!  BUYING DIFFICULTY: 4/10-10/10.

If the domain name is not currently pointed at any web site, this at least tells you that its owner is not making any money off of the domain name right now. Maybe there used to be a site at that domain name, or maybe the server hosting the site is offline - but whatever the reason, the domain name is currently gathering cyber-dust, which should make it that little bit easier to close a sale. 

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