Microsoft 365 - Verify Third-Party Domain Names
Before you can license Microsoft 365, Microsoft has to verify your domain to make sure that you are the domain owner. Since your domain isn’t registered through Bluehost, we can’t take care of the verification, so you’ll need to take a few extra steps so Microsoft 365 can verify your domain through your domain’s current registrar. The simplest way to make that happen is to go to your domain registrar and point your domain’s nameservers to Bluehost.
Every website has an IP address, which is how computers look them up. But to make it easier for us humans, we use domain names instead. Nameservers tell the web where to find the domain names, and then the DNS (Domain Name System) converts domain names (like “www.example.com) to a machine-readable IP address (like 126.96.36.199). Think of it like the contacts in your smartphone; you enter a name, and the nameservers and DNS database turn that name into a number, so you get to the right site.Propagation.
If you have other products reliant on DNS records through a different domain registrar, pointing your nameserver to Bluehost will not transfer those records.