Guide

What Is a Domain Broker?

A domain broker is a specialist intermediary who acquires or sells domain names on a client's behalf. On the buy side, the broker finds the owner of a name including many that are not for sale, approaches them without revealing who the buyer party is, negotiates the price, and closes through licensed escrow. On the sell side, the broker prices the asset against real comparable sales and runs a discreet process to reach the buyers who will pay the most. This can be a public process to draw out the best buyers as well.

The value of the role is concentrated in the parts of a transaction that are invisible from the outside: using their investigative skills and tools in finding who actually controls a name, knowing the data on what similar names privately sold for, and keeping the buyer's identity out of the conversations so the price reflects the market, rather than the buyer's or sellers balance sheet. The most highly experienced brokers have often negotiated transactions at every level -including at the 7 and 8 figure levels. This allows them to leverage their negotion skills, acting as a buffer in what may turn into an emotionally charged process, to advise their clients on offers, make counter offers, trade-offs, concessions, and often importantly advise on the timing. When a broker is not deployed, companies may often task a employee or even a C- level executive to negotiate. Many whom while highly competent in their roles are out of their comfort zone, lacking important data, or the patience for what may easily become an emotionally charged complicated, and time consuming process, that may include several impasses, and take then off task. This all may end up costing them far more than any percieved savings of a direct negotiation. Most big company have CEOs have great negotiation skills but are not aware of domain values and simply do not want to spend their valuable time on a protracted negotiation when they have other more important and urgent strategic priorities.

What domain brokers actually do

How domain brokers are paid

The standard structure at domain regitrars is an upfront non refundable fee ($170-$500) and a success-based fee : a commission is due on the completed transaction, commonly 10–20%, Some engagements include a modest retainer for research-heavy acquisitions, credited against the success fee. The structure should always be documented before hiring a broker , and funds should always move through a licensed escrow agent rather than directly between the parties. Domain Assets does not charge an upfront fee and are fees are typically 10-15% with buyer side fees based on targets.

When you need one — and when you do not

• Use a broker when the name is unlisted, the owner is unreachable, your identity would move the price, or if this if out of your comfort zone or you realize this will take much more time and energy then you have alotted.
• Use a broker when the transaction is large enough that a few percentage points of negotiation exceed the broker fee and may cost you hundreds thousand or millions of dollars.
• Skip the broker when the domain is already listed at a fixed buy-now price you are happy to pay.
• Skip the broker when you are registering an available name, where no negotiation exists.

Frequently asked questions