If you are looking for a custom domain email on a reliable host for free, then Microsoft Outlook is the best free solution. Microsoft Outlook custom domain provides free services for at least 500 users of your small business or organization. If you want to be email provider then Microsoft Outlook for custom domain is also best choice. You may do this without spending a single penny.
Recently, Google has stopped offering Google Apps for free. They charges are pretty high for any type of organisations. Well, I will not compare between the two services in the topic, but just helping you to configure Microsoft Outlook custom domain for free email. But first discuss about the features what Microsoft offers for free.
- Email hosting
- Maps
- Profiles
- Photos
- SkyDrive
- Groups
- Calender.
All services are free and can be offered from a custom domain or sub-domain.
Setup Microsoft Outlook custom domain for email hosting:
Step 1:
Go to https://domains.live.com/Signup/SignupDomain.aspx. Fill the domain name in the box. If you don’t have any domain and want to purchase then you may buy from any Microsoft partners or buy from GoDaddy, Name.com or Dreamhost are best in the segment.

Don’t forget to check “Set up Outlook.com for my domain” in “Choose mail service for your domain” on the same page [As shown in the image above]. You may also change this setting later, but who want’t to do that! Now click “Continue”.
Step 2:
In the next step, you will be ask to setup domain administrator. [A domain administrator will be responsible for all activity in the Outlook custom domain account]. I will recommend you to use an existing account or account from outside the custom domain. Check “Sign in with an existing Microsoft account” and hit continue to login existing account. You may also signup for a new outlook.com account if you don’t have any.

After logging in to account Microsoft will ask you to review the settings and accept agreement just hit “I Accept” after review it.

Step 3: Verifying domain and set up MX record
To verify domain name you will need to goto your domain registrar and add some records.
Add a txt record which will be in v=msv1 t=example, and
MX record which will be in “example.msv1.invalid”. Note the “example” part will be same.
You may refer to your domain registrar help topics for any help in configuring TXT and MX record. Now you will have to wait for sometime, until dns is propagating across the globe. It may take from few seconds to 48 hrs. After some time hit “Refresh” button in the yellow alert box. When your domain got verified the domain will be ready to use and you may create your first free custom email on outlook.com platform.
Once the domain got verified you will see a green indicator and active status in the domain dashboard of your account. [As shown in the image below]

Step 4: Create an email id with custom domain
Once your account is verified and active you may navigate to dashboard and click on the domain under which you want to create email/account. Their will be a form asking to fill some info. Just fill those and create your first email id with custom domain. the important thing is “Account name” in the form. it will be the email id and may have alphanumeric, periods, hyphens and underscore.

After creating the account you may ask user to login and accept terms and conditions. Also their will be an account reset question for your users, which will be setted at first login.
Benefits of Microsoft Outlook custom domain over Google Apps!
- Microsoft offers these apps for free.
- Up to 500 users may be added just after signing up. If required, you may ask Microsoft to increase the number of users.
- You may also offer your site visitors to signup email ids with under your domain.
- Outlook.com offers unlimited storage. So, you will never required to delete mail.
- You may also offer maps, skydrive and other services from your domain/sub-domain
If you have any query or problem let me know by commenting below. Don’t forget to share this post on Google+, Twitter or Facebook, if you liked it.

Nice Article.
Once all config is done, How to configure & check emails on Outlook ?
I dont want to go to live.com everytime & login there on webpage.
Can we check within outlook software ?
If you don’t want to visit live.com then you may set a CNAME record.
Yes, outlook software should work.
Is there any option for mailing list (groups) ?
No.
Hotmail Outgoing Mail (SMTP) Server: smtp.live.com
Use Authentication: Yes
Port: 25
Use SSL: Yes
Hotmail Incoming Mail (POP3) Server: pop3.live.com
Use SSL: Yes
Port: 995
Thanks for sharing the info!
The writer of this post is absolutely spot on, This is awesome post which will help us regarding this issue. Thank you very much.
Hello Anand, it’s nice to be in contact with you. I have a doubt and i think you can help me with a Microsoft Custom Domain. I’ve checked all requirements and made a full and clean setup. The service is active and the domain @portalgsti.com is recognized. But, our emails can just send messages, do not receive, in anyway from anyone. Do you know what’s going on? I’m very thankfull for your support.
Have you updated MX record on Domain registrar or host. Check the MX record on both side.
Hi, is it possible to setup multiple administrator to manage the email domain? It means that we need to prove ownership of the administrators so add multiple TXT records? Is it possible?
Yes, This is possible. I have tested on a domain.
But there is no official statement about multiple administrator in free “Microsoft outlook for custom domain”. They officially provide this for Office365 suite.
hi anand thank you foe the everything by using your blog’s information i have setup the windows live account and hosted few website in that for email hosting but from last 3 days i am unable to access my windows live admin account as it is saying That “Microsoft account doesn’t exist. Enter a different email address” i have also tried to reset the password but no use i have also tried to make the new one by using the same login details but its saying the account already exists and if you want we can reset the password but their is no option to raise the request to reset the password i also tried he single use code also but no use i have not received any code from Microsoft yet so i have raised the request by using support system i got on mail saying that we received your complaint and we will resolve the isue in 24 hours but no use now it more than 30 hours i dont know what to do and how i can recover my admin account login details
so if you can help me out in this
thank you
Hi, I can add more domain admins who have permission create email account?
thanks
No. Not at this time.
Hi Anand,
Thanks for this post, it has been very useful.
I have a query. Can I only have a few users using outlook.com? I only need my managers to access email off site, but don’t want everyone to be able to do it.
Can I leave 10 users on POP with existing details and “migrate” 3 Managers to using outlook.com.
Will this be via multiple mx records?
The simple answer is NO!
To receive mails to two different servers/services like Google Apps and Microsoft Outlook for custom domains will not be possible. Which means you can’t have user @example.com and Google apps (or whatever) and editor @example.com at Outlook.com. This is because, email will be designated to highest priority server (unless the server failed to respond). Suppose, Google Apps in this condition if editor @example.com is not configured at Google Apps it will be bounced back and the sender will get some error messages something like this:
However, you may have 2 separate subdomains for separate service. like user @example.com on Google Apps and editor-name @editor.example.com on Outlook.
Hi Anand,
Nice article – what I am trying to do, is to migrate my existing live ID with Skydrive, but without mail service (in fact, my live ID is a local e-mail provider) and I want to:
1) Migrate my current live ID under my newly created custom domain – e.g. from Gianluca@localprovider.com to Gianluca@mydomain.com
2) be the administrator of custom domains with the same live ID as I would normally use (e.g. Gianluca@mydomain.com)
3) have active e-mail service over at Outlook com with still the same live ID (e.g. Gianluca@mydomain.com)
This seems to be something really unachievable – do you know, how to approach this?
Thanks!
Gianluca
i guess there is only 50 users you can use, not 500 anymore, check check today, anyway is good, i have tried with outlook “offline” and it works fine
Hi!
Switched over Google Apps to Outlook.com/
Any temp solution for group mailing lists? maybe create an account and forward to emails for time being? like a rule?
Tks!
-Marv
Outlook do not allow bulk email from free accounts. You should take a look on Mailchimp or other services.
Somewhere i read, they allow only 300 emails/day.