Choosing a domain brokerage that aligns with your goals is crucial. Some brokers specialize in buying or selling names, while others deal with all domains. Consider fees, additional services, and the desired outcome. Research and compare brokers, interview top contenders, and ask about commissions, strategy, and potential legal disputes.
The most important thing to consider when selecting a domain brokerage is the degree to which the broker’s services align with the client’s goals. Some domain brokers focus on buying names for clients; others devote most of their attention to selling names. Some brokers limit their sales to names in certain top-level domains, such as .com, while others will deal with names in all domains. Other variables, such as fees and optional additional services, also vary from broker to broker.
The Internet namespace continues to expand and domain name ownership proves ever more lucrative, so domain brokerage services number in the hundreds. While an initial search for domain brokers can make choosing a good one seem daunting, choosing the best one can be a rewarding and profitable experience when undertaken with clear goals, focused research, and articulated expectations.
The first step a brokerage client should consider when selecting a firm is the desired outcome. Some customers are looking to sell a domain name they currently own or buy a name currently owned by someone else. A client might want just one name or a portfolio of similar names. A client may need investment advice on what she can expect to achieve with a particular Internet domain name, or they may already know exactly what she wants to achieve. Discerning the type of service you want will help narrow your search, because brokers often specialize in specific types of services.
Domain brokerage firms are prolific and the industry is growing. There was no centralized database of brokerage firms in 2010, but domain brokerage review sites are a popular and convenient way to compare companies and can be a good place to start a search. Websites and blogs dedicated to selling and monetizing domains can also be a valuable source of information about specific brokers and the services they offer.
Once a client has identified domain brokerage firms that provide the types of services they are looking for, they should be ready to interview their top contenders. Most domain brokerage firms offer a free initial consultation and the client should take advantage of this service. At the top of the client’s questions should be commissions, particularly if the broker rates a flat commission or a percentage of the final sale. The client should also discern whether the broker uses an escrow service for the sale and whether that service is owned by the brokerage firm or a third party. Escrow services generally charge their own fees which are not included in the brokerage firm’s takings.
The client should also ask about the broker’s strategy and methodology, whether it’s trading, collection services, or bidding at auction. Domain brokers should be upfront about their business practices. They should also be willing to provide the client with a detailed action plan and regular progress reports once the brokerage has started.
Some brokerage services will identify names in portfolio purchases which could lead to legal disputes. Domain names that contain or look like trademarks are often the subject of lawsuits and dispute resolution proceedings, and it is the owners, not the brokers, who are ultimately responsible for any infringement. Having potential conflicts identified early on can save a client from legal headaches later.
Smart Asset.
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