How to Set Up Custom Domain Email with Microsoft 365 – 2025 Update

This guide will walk you through setting up a professional email address using your own domain (like yourname@yourbusiness.com) with Microsoft 365. No technical experience required!

What You’ll Need Before Starting

• A domain name (like yourbusiness.com) – you can buy one from GoDaddy, Namecheap, or similar services
• A Microsoft 365 subscription (Business Basic, Standard, or Premium)
• Access to your domain registrar account (where you bought your domain)
• About 30-60 minutes to complete the setup

Step 1: Purchase Microsoft 365 Business Plan

1. Go to office.com and click “For Business”
2. Choose a plan:
   • Business Basic ($6/month) – Email and web apps only
   • Business Standard ($12.50/month) – Includes desktop Office apps
   • Business Premium ($22/month) – Includes advanced security features
3. Click “Buy now” and follow the checkout process
4. Create your Microsoft 365 admin account when prompted

Step 2: Add Your Custom Domain to Microsoft 365

1. Sign in to the Microsoft 365 admin center at admin.microsoft.com
2. In the left sidebar, click “Settings” then “Domains”
3. Click “Add domain”
4. Type your domain name (like yourbusiness.com) and click “Next”
5. Choose “Add a TXT record” to verify you own the domain
6. Important: Keep this page open – you’ll need the TXT record information in the next step

Step 3: Verify Domain Ownership

Now you need to prove you own the domain by adding a special code to your domain’s DNS settings.

If your domain is with GoDaddy:

1. Open a new browser tab and go to godaddy.com
2. Sign in to your account and go to “My Products”
3. Find your domain and click “DNS”
4. Click “Add” and select “TXT”
5. Leave “Name” field blank or put “@”
6. In the “Value” field, paste the TXT record from Microsoft 365
7. Click “Save”

If your domain is with Namecheap:

1. Sign in to your Namecheap account
2. Go to “Domain List” and click “Manage” next to your domain
3. Click “Advanced DNS”
4. Click “Add New Record”
5. Select “TXT Record”
6. Set “Host” to “@”
7. Paste the TXT record value from Microsoft 365
8. Click “Save All Changes”

For other domain providers:

Look for “DNS Management”, “DNS Settings”, or “Advanced DNS” in your domain account, then add a TXT record following similar steps.

Step 4: Complete Domain Verification

1. Go back to your Microsoft 365 admin center tab
2. Click “Verify” (it may take 15-30 minutes for the TXT record to take effect)
3. If verification fails, wait 30 minutes and try again
4. Once verified, click “Continue”

Step 5: Set Up Email Routing

Microsoft will now ask how you want to handle your email:

1. Select “Add the required DNS records for me” if you want Microsoft to manage everything automatically
2. OR select “I’ll add the DNS records myself” if you prefer manual control
3. For beginners, choose the automatic option
4. Click “Next”

Step 6: Add DNS Records for Email

If you chose manual setup, you’ll need to add these records to your domain’s DNS:

MX Record (Mail Exchange):

• Name/Host: @ or leave blank
• Points to: yourdomain-com.mail.protection.outlook.com
• Priority: 0

CNAME Records:

• autodiscover pointing to autodiscover.outlook.com
• sip pointing to sipdir.online.lync.com
• lyncdiscover pointing to webdir.online.lync.com

Add these records in your domain registrar’s DNS management section, similar to how you added the TXT record.

Step 7: Create Your Email Address

1. In the Microsoft 365 admin center, go to “Users” then “Active users”
2. Click “Add a user”
3. Fill in the user details:
   • First name: Your first name
   • Last name: Your last name
   • Username: The part before @ (like “john” for john@yourbusiness.com)
   • Domain: Select your custom domain from the dropdown
4. Set a password (or let Microsoft generate one)
5. Assign a license (Microsoft 365 Business Basic/Standard/Premium)
6. Click “Add user”

Step 8: Access Your New Email

You can now access your custom domain email in several ways:

Option 1: Outlook Web App

• Go to outlook.office.com
• Sign in with your new email address and password

Option 2: Outlook Desktop App

• Open Outlook on your computer
• Click “File” > “Add Account”
• Enter your custom email address
• Outlook will automatically configure the settings

Option 3: Mobile App

• Download the Outlook mobile app
• Add your account using your custom email and password

Step 8: Test Your Email

1. Send a test email from your new custom address to your personal email
2. Reply to that email to test incoming mail
3. Check that emails are arriving in your Outlook inbox

Troubleshooting Common Issues

“Domain verification failed”

• Wait 30-60 minutes after adding the TXT record
• Double-check that you copied the TXT record exactly
• Contact your domain provider’s support if needed

“Emails not arriving”

• DNS changes can take up to 24 hours to fully propagate
• Check your spam/junk folder
• Verify MX records are correct in your domain’s DNS settings

“Can’t sign in to email”

• Make sure you’re using the full email address (including @yourdomain.com)
• Try resetting your password in the admin center
• Clear your browser cache and try again

Final Tips

• Keep your admin account secure – enable two-factor authentication
• Set up email signatures in Outlook settings with your business information
• Configure mobile devices to access email on the go
• Consider email aliases if you need multiple email addresses (like info@, support@)
• Backup important emails regularly

What’s Next?

Once your email is working, you might want to:

• Set up additional email addresses for team members
• Configure email forwarding for old email addresses
• Explore Microsoft Teams and other included apps
• Set up email rules and filters for better organization

Your professional email address is now ready to use! This setup gives you a more credible business presence and access to Microsoft’s powerful email and productivity tools.