What Is LOI (Letter of Intent)?
An LOI (Letter of Intent) is a formal document from a buyer expressing serious interest in acquiring a domain name and outlining proposed terms — including the purchase price, payment structure, timeline, and conditions. While not always legally binding, an LOI demonstrates commitment and moves the transaction toward a definitive agreement.
LOIs are most common in high-value domain transactions ($50,000+) where both parties want to formalize their intentions before entering detailed contract negotiations. They typically include: buyer identification, proposed price, payment terms, due diligence period, exclusivity period, and conditions for closing.
An LOI serves several purposes: it locks in the key terms before spending money on legal fees for a full purchase agreement, it can include an exclusivity clause preventing the seller from negotiating with others, and it demonstrates professional intent that serious sellers appreciate.
Why This Matters for Startups
You'll encounter LOIs primarily when purchasing premium domains through brokers or in direct negotiations for high-value names. If asked to sign or provide an LOI, treat it seriously — it's a professional step that shows you're a credible buyer. For domains under $25,000, a simple purchase agreement or marketplace transaction usually suffices without an LOI.
Ready to Find Your Startup's Domain?
Browse our curated collection of premium domains or get a free appraisal on any name.
Browse Premium Domains