Can a bad domain be fixed?

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What are you defining as a 'bad domain'?

A domain with a few old spammy backlinks is very different than a domain that was previously used for illegal stuff.
 
It depends on the damage. Minor issues can usually be fixed, but if the domain has a bad spam history, starting fresh is often the better option.
 
It totally depends on what you mean by a bad domain. If it's used for casino, pharma, or adult niches, you better stay away. If it has a penalty, you might be able to recover it losing authority and trust scores.
 
Really comes down to what 'bad' means like @Stavro said. if we are talking about a manual penalty for pure spam in search console, honestly just drop it and save your sanity... not worth the weeks of waiting for a reconsideration request. but if it just has some crappy automated backlinks from a few years ago, google mostly devalues that stuff anyway nowadays so you could probably still build on it if the name is actually good. what does the anchor text profile look like?
 
If you're talking about the spam score, it can be improved. But if it has a lot of illegal activity in its past, you shouldn't use that domain.
 
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