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How to Add a Domain in Microsoft 365 Tenant – The Ultimate Guide

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Published By Aldrich Calvin
Anuraag Singh
Approved By Anuraag Singh
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Published On January 7th, 2025
After you have set up Microsoft 365 and want to shift your data to it, you are required to have a proper domain name before continuing. In this article, we go through the detailed process on how to add a domain in the Microsoft 365 tenant and various other factors that we should be aware of.  Before we begin, we need to learn what a domain is.

What is a Custom Domain?

A custom domain is a domain that can be bought and registered by users for their websites, emails, or other online applications. It is a domain that is personalised that users can own and control rather than using a domain that is provided by hosting services or free-to-use email providers. Now, we will move onto the question of how to add a domain in Microsoft 365 tenant. 

How to Add a Domain in Microsoft 365 Tenant?

In order to add the domain you have already set up, Follow the steps given below: 

  1. Go to the Admin Centre in Microsoft 365. 
  2. Click on settings and then go to the domains page. 
  3. Choose the add domain option. 
  4. Select the option through which you want to verify that you own the domain. 
    • Microsoft will automatically set your records up if your domain registrar uses Domain Connect. It will have you sign in to your registrar and then authenticate the connection after which you will be returned to the Admin Center. Microsoft will then automatically verify your ownership of the domain.
    • You can verify your domain through a TXT record. Select this option and then select Next to look at the steps for adding it to your website. It can take up to 30 minutes for the verification to complete. 
    • You can add a .txt file to your domain. You can do so by Downloading the .txt file and then uploading it to your website’s top-level folder. Microsoft will confirm your ownership of the domain by finding this file on your website.
  5.  Select the DNS changes needed for Microsoft to use your domain. 
  6. Select the Add DNS records for me option if your registrar has Domain Connect. With this option, Microsoft will automatically set your records up. For this, Microsoft will first ask you to sign in to your registrar and then confirm the connection to Microsoft 365. 
  7. Select the I’ll add the DNS records myself if you only want specific services for your domain. You can do it later if you wish to skip it for now. 
  8. If you have chosen to add the DNS record yourself, then you can click on next and a page with all the records that you need to set up your domain will appear. 
  9. Select Finish. 

How to Set Up Your Custom Domain Name and Add the Domain in Microsoft 365 Tenant?

To add, remove, or modify domains, you must be a Domain Name Administrator of an enterprise or a business plan. The changes users make will affect the entire tenant and regular users or customised tenants will not be able to make these changes. 

Follow the steps given below to set up your custom domain name: 

    1. Choose the setup option in the Microsoft 365 Admin Center.
    2. Select the Choose your custom domain set up option
    3. Select View > Manage > Add domain
    4. Enter the name you want and then click Next
    5. Sign in to the domain registrar and select the Next option.
    6. Choose the service you want for your new domain.
    7. Select Next > Authorise > Next, and then click on Finish.
    8. Your new domain has been added.

Editing or Adding a Custom DNS Record

Here are the steps you need to follow to add records for websites and 3rd party services:

  • Sign in to Microsoft 365 Admin Center. 
  • Go to Settings > Domains. 
  • There, select a domain.
  • In the DNS records option, select custom records. 
  • Select Add records.
  • Choose the type of DNS records you want to add. 
  • Select the Save option. 

Registrars Having Domain Connect

Registrars that have domain connect have the ability to add their domain to Microsoft 365 in a process that takes just minutes. 

In the wizard, Microsoft confirms that you actually own the domain and then automatically sets up the domain’s records, so that when emails come to Microsoft 365 or other Microsoft 365 services, they work with your domain. 

What Happens to Your Website and Email?

After setting up, the MX record for your domain is updated so that Microsoft 365 and all emails for your domain will start coming to Microsoft 365. You need to make sure that you have added users and set up appropriate mailboxes in Microsoft 365 for everyone that receive emails on your domain. 

Conclusion

After you have set up Microsoft 365 and want to shift your data to it, you are need to have a proper domain name before continuing. We have discussed the detailed process with step-by-step explanation of how to add a domain in Microsoft 365 tenant. Adding a domain to the Microsoft 365 domain tenant is a very simple and straightforward process if users know the correct procedure. 

FAQ

  • What does MX priority mean? 

When mail is sent to the exchange server with the highest priority, you should use MX priority to route mail which should have the lowest priority preference number which is typically 0 or high priority. When a user creates an MX record, most DNS hosting providers need you to set the preference number. Some people label these as preference, while some label them as priority. If a user has only one MX record, then any value is fine for preference or priority.

  • What is a Domain name? 

A domain name is a name unique to a user which appears after the @ sign in the email address. It usually takes the form of your organisation’s name and a standard Internet suffix. Using a custom domain with Microsoft 365 can help users build credibility for your brand. 

  • Can I connect a domain with Family or Personal offerings? 

You can create an email address that has a connection with your Personal or Family Outlook mailbox. Microsoft only supports connecting domains managed by GoDaddy with Outlook as of now.