Do I need…a custom tracking domain?

YES

(if tracking is on)

Tracking links default to a domain you share with strangers—and their reputation becomes yours. If you track opens or clicks, the redirect domain should be one you own.

The long answer ↓

When click tracking is enabled, every link in your email gets rewritten to pass through a redirect domain that records the click before forwarding the reader on. The question is whose domain does that job.

The default is a shared domain

Out of the box, most ESPs route tracking through a domain shared across many customers. Shared domain, shared reputation: if other senders on it behave badly, the domain’s standing degrades—and every link in your email now carries that smell. You did nothing wrong and inherited the damage anyway, which should sound familiar if you’ve read the dedicated IP answer. Links are the same story with worse defaults.

Why your own domain wins

The setup

It’s one DNS record. On Resend, custom tracking domains are free: pick a tracking subdomain (say, links.yourdomain.com) in the domain’s configuration, add the record, and all tracking routes through it automatically—configurable via the API too. Both open and click tracking are off by default, so this only matters once you switch something on.

The verdict logic

The qualifier carries the whole answer: this is a yes precisely when tracking is enabled. If you track nothing—a reasonable choice for transactional mail—there are no tracking links to align and nothing to set up. But the moment tracking is on, running it through someone else’s domain is an unforced error.