Every once in a while, a domain name transaction happens that sends shockwaves around domain community. During the first half of 2024, for example, three domain sales met this standard, for Diary DN. These include the sale of Rural.com for $550,000, TP.com being acquired for $1.2 million and Gold.com setting a record for the year after being acquired for a breathtaking $8.5 million.

I can't begin to tell you how excited I was to know that the three-letter, ultra-premium domain name I wanted was available for purchase. In my case, this was VPN.com, a domain that I originally purchased for $1 million in 2017 on a purchase that would change my life forever.

Looking back now, after successfully completing hundreds of domain name transactions afterward, I can offer some important advice to anyone looking to join the seven-figure domain name ownership club.

Related: 4 Reasons to Consider a Domain Name Change for Your Startup

Only fools rush

Making a big purchase is exciting and can sometimes create a fog in our minds when we get so excited. It's almost like that giddy feeling you get when you know you've found the new car they want to buy and are ready to complete the transaction.

First of all, it's important to take a deep breath and take your time.

• Large domain name purchases require a verification. So you'll want to take some time to learn more about the domain, its history, traffic volume and built-in SEO benefits, ownership, and so on, well before you decide.
• Some domains may come with intellectual property (IP) attached that you can use for your own benefit, which is often included in the sale. You will want to ask about this and make sure that, if so, these attributes are clearly defined in the purchase contract.
• Consulting with the right legal counsel is critical, especially if you plan to cut a seven-figure check. So don't worry about shelling out a little cash to make sure your transaction closes in a way that benefits you more in the long run. It's money well spent.

Your broker matters

Who you use as an intermediary matters a lot. Not all brokers are equal, and bigger is not necessarily better here. Since these brokers cut their teeth in this industry, having an experienced one on your side representing your interests in the purchase is important from the start.

• Brokers understand the details and outcomes of these transactions and have the experience to help you complete them in a timely manner – not overlooking any important details along the way that could negatively impact the timeline or outcome final.
• Most brokers have vetted legal counsel and use industry standard contracts and escrow services to simplify the purchase and protection of funds in transit.
• Many domain name brokers also offer “Secret Domain Name Acquisition” services that essentially protect the identity of the buyer (and sometimes the seller) to add an extra layer of privacy to large transactions. This is especially important for enterprise-level new brand launches or protected celebrity transactions.

It's like buying a piece of digital real estate

Dropping seven figures on a domain name is akin to buying real estate in the digital age. These domain names already come with verified instant value propositions. And, for the most part, many will continue to appreciate in value over time as well. Of course, some represent investments in a brand or future brand – like what you'd find with Gold.com, which, after a quick check in Chrome, automatically switches to a well-known brand name of the bullion seller. .

Using this as our example, we can see that the company that bought this domain name knew that the traffic coming to it was so valuable that they just wanted the traffic to be forwarded to their homepage – and they were more than willing to. happy to spend over $8 million in hard US currency to make sure it does.

Chances are good that this domain name will never decrease in value and that the new owner will generate significant revenue growth as a direct result. These are two impressive plays in the domain playbook that we can all learn from.

Related: 5 Realistic and Practical Ways to Increase Your Domain Authority for Google Search

There are legalities to consider along the way

As you would expect with any transaction that is on such a large scale, there will be some legalities that you will want to consider along the way. While you will always want to retain legal counsel to answer your questions, and while no two transactions in the fields are almost ever the same, there are a few things to consider here.

Are you going to buy the domain yourself (usually not recommended) or use a company or brand to buy it? In general, you will want to purchase any domain name assets under the protection of a Limited Liability Corporation (LLC), but the best advice to follow here is that provided by your own legal counsel.

What kind of asset protection measures are you planning to implement? While it's never a pleasant thing to think about, you'll want to plan for every possible variable that could happen, including Divorce correction your domain estate.

Are you planning to keep and sell the domain or use the asset to get new traffic and get more value? What you decide can make a difference in the path you choose to purchase, including, as mentioned earlier, considering a secret domain name transaction.

What other types of questions might you have before completing the transaction that you should consult with qualified legal counsel? Take the time to create a detailed checklist so you can proceed with confidence, knowing that all important questions or concerns have been addressed in advance to your satisfaction.

Start using your new asset to generate income from day one

I bought my domain to be the face of my new company. I knew I could tap into its value and potential from the first day I owned it. Knowing this gave me enough time to create a unique value proposition and an action plan for my large-scale transaction. It also gave me enough time to work alongside a talented web development team to create high-value websites in stages that I could fine-tune and be ready for launch immediately after purchase. Looking back, I cannot stress how critical this forward-thinking approach was in achieving my ultimate goals.

Having this knowledge and timeline well in advance helped me secure the seven-figure domain name I wanted while executing a carefully crafted plan of action to maximize impact. In retrospect, I feel strongly that these are the five most critical elements I considered during my million dollar domain purchase journey.

For me, a seven figure domain name purchase really changed my life forever and for good. If you take your time and follow through with your next domain purchase, it may have the potential to yield a similar result for you.