Choosing a domain broker depends on the client’s goals, with some brokers buying names and others selling. Factors such as fees and services vary, but researching and interviewing potential brokers can lead to a rewarding and profitable experience. Clients should also consider potential legal disputes with domain names.
The most important thing to consider when selecting a domain broker is how well the broker’s services align with the client’s goals. Some domain brokers focus on buying names for clients; others spend most of their attention selling names. Some brokers limit their sales to names on certain top-level domains, like .com, while others will trade names on all domains. Other variables, such as fees and optional additional services, also vary from broker to broker.
With the Internet name space continuing to expand and domain name ownership becoming more and more profitable, domain brokerage services number in the hundreds. While the initial search for domain brokers can make the thought of choosing a good one seem daunting, choosing the best one can be a rewarding and profitable experience when you enter with clear goals, specific research, and articulated expectations.
The first step a brokerage client should consider when selecting a business is the desired outcome. Some customers are looking to sell a domain name they currently own or buy a name that is currently owned by someone else. A client may want just one name or a portfolio of similar names. A client may need an investment consultation on what she can hope to achieve with a particular Internet domain name, or she may already know exactly what she wants to achieve. Discerning the type of service desired will help narrow your search, because brokers often specialize in specific types of services.
Domain brokerage companies 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 firms, and can be a good place to start a search. Websites and blogs dedicated to domain sales and monetization can also be a valuable source of information about specific brokers and the services they offer.
Once a client has identified the domain brokerage firms that provide the types of services they are looking for, they should be prepared to interview their top contenders. Most domain brokerage firms offer a free initial consultation, and the client should take advantage of this service. The client’s main questions should be about fees, specifically, whether the broker assesses a flat fee or a percentage of the final sale. The client must also discern whether the broker uses an escrow service for the sale and whether that service is owned by the brokerage firm or by a third party. Escrow services generally charge their own fees that are not included in the brokerage firm’s take.
The client should also inquire about the broker’s strategy and methodology, whether for trading, selection services, or auction bidding. Domain brokers must be upfront about their business practices. They must also be willing to provide the client with a detailed action plan and regular progress reports once the brokerage begins.
Some brokerage services will identify names in portfolio purchases that 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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