What Is NDA (Non-Disclosure Agreement)?
An NDA (Non-Disclosure Agreement) in the domain context is a legal contract between buyer and seller requiring both parties to keep transaction details confidential. This includes the purchase price, the identities of the parties, negotiation details, and sometimes even the fact that a transaction occurred.
NDAs are common in high-value domain transactions where either party has reasons for confidentiality. Buyers may not want competitors to know they're investing in a particular domain. Sellers may not want to set price expectations for their remaining portfolio. Both may have strategic reasons for keeping the deal private.
Most NDAs are mutual — both parties agree to confidentiality. Some are one-sided, typically protecting the buyer's identity while allowing the seller to reference the sale price in their portfolio history.
Why This Matters for Startups
If you're purchasing a premium domain for your startup, an NDA can protect your strategic plans. You might not want competitors to know you're building in a specific space (the domain name could reveal this), or you might not want the purchase price to become public knowledge. If the seller requests an NDA, it's standard practice — not a red flag. If you need confidentiality, don't hesitate to request one yourself.
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