Buying or selling a domain name

Every year, businesses and private individuals in the Netherlands buy and sell thousands of domain names. Trading the rights to registered domain names is known as 'domaining'. To people who aren't familiar with it, domaining often seems complex. So we've produced a simple guide to the activity and the implications of buying or selling a domain name that's already registered.

Registering a domain name Transferring your domain name Infringement of rights

The right to a .nl domain name is transferrable

A domain name isn't an object, like a television or a painting. It's the right to receive certain services from SIDN. That right can be transferred to someone else. For payment, if that's what both parties want.

Registration details must always be correct and specific

For the transaction to go smoothly, it's important that the information recorded in SIDN's register (known as the Whois) is always correct and specific to the current registrant. That prevents any misunderstanding about your right to use the name. In the case of a business, the Trade Register number can be included in the registration, making it possible to check who is entitled to make decisions about a domain name on behalf of the business.

Trading makes .nl domain names valuable

Buying and selling means that domain names take on value. Every year, lots of people and businesses make money by selling domain names that they don't want for themselves, but are valuable to others. A domain name can also be used as security for a loan.

When is a .nl domain name worth something?

billboard with .nl

There are numerous factors that determine what a domain name is worth. Alexandpatswedding.nl is attractive to an engaged couple called Alex and Pat, but isn't very useful to anyone else. Names that can be valuable include:

  • Names based on generic terms that people looking for products and services may search for (e.g. laptops.nl), but aren't protected brands (such as unox.nl, which only Unox can use)

  • Names based on common surnames, especially surnames that a lot of traders use (e.g. jansen.nl)

  • Names that are short and easy to remember

  • Names that may match abbreviations (e.g. names with fewer than six characters)

  • Names that you know how to spell as soon as you hear them (e.g. on the radio)

Just how much a name is worth is hard to judge if you're not a domainer. So, if you're thinking of buying or selling, it's a good idea to ask an expert for a valuation. We would certainly discourage anyone from paying a lot for a domain name without getting expert advice. After all, the seller may be inexperienced and asking an unrealistic price.

How much do domain names sell for?

You hear lots of stories about how much domain names change hands for. When a name is sold for a huge amount, it hits the headlines and leaves a lasting impression. But most sales actually involve less than €1,000.

How do I transfer the right to a .nl domain name?

  1. Tell your registrar or internet service provider what you want to do, and who the new registrant will be.

  2. Your registrar or service provider will make the necessary changes in the register, and then the new registrant will have control of the name.

  3. If you're selling the name, the financial arrangements have to be agreed separately by you, the buyer and, where relevant, the broker. Those arrangements are nothing to do with SIDN or the registrar.

Once they have control of the domain name, the new registrant may transfer it -- that is, change the registrar that manages the registration -- if they want to.

What if someone is offering to sell a .nl matching my business name?

Sometimes, a business that's registered with the Chamber of Commerce discovers that the domain name matching their business name is up for sale. Selling a domain name like that is sometimes called domain hijacking. There are two important things to bear in mind:

  1. No one is entitled to register a domain name matching a brand or trademark that isn't theirs. If someone has registered a name like your brand or trademark, you can start a Dispute Resolution procedure. However, a procedure can take a while to complete and does cost money. So it's usually best to try settling your differences privately first. SIDN's mediators can help with that.

  2. Before registering a new business with the Chamber of Commerce, it's a good idea to check whether the matching domain name is still available. Seventy per cent of people starting out in business already do that, but not all. Checking gives you the opportunity to go for a different business name, for which the domain name is available.