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interviews Expert Exchange: When Does It Make the Most Sense to Hire a Broker?

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Domain name brokers are experts in buying and selling domain names on behalf of their clients, but in which scenarios should you consider hiring a domain broker? In our final installment in this series of Expert Exchange, we ask our assorted panel of domain name brokers to describe the situations in which hiring a broker would be beneficial.

When does it make the most sense to hire a domain name broker?


@Joe Uddeme, Founder of NameExperts LLC
Sensible and responsible brokers who actually know what they are doing, make all the difference in the world when negotiating for the buyer and seller. Here are a few reasons why a solid domain broker makes sense on both sides of the equation:
  • Removes emotion out of the deal.
  • Experts in negotiation and contract edits.
  • Experts in the transfer process.
  • Ability to extract suitable buyers by being 100% focused on the opportunity (allow buyers and sellers to focus on their line of expertise). The domain broker should be 100% focused on you.
  • The best domain brokers know the top domain owners in the space.
  • Find a broker with swagger and someone that will be honest and straightforward.
The fact is, solid and reputable domain brokers are extremely valuable in all aspects of buy-side, and sell-side brokerage. They add value in all levels of the negotiation (if they are solid). Ask questions when hiring a broker. How good are they? If they have a track record, they will be more than happy to mention that when you interview them for the gig!


@Jen Sale, COO of Evergreen.com
We represent both domain investors and startups/companies in both buying and selling domains. It makes the most sense when the buyer/seller has a high profile and wishes to remain anonymous, and also for high-end/complex deals where the broker has a lot of experience and infrastructure.


@Bill Sweetman, CEO of NameNinja
From my perspective as a Buyer Broker, if you're what we in the industry would call an end-user buyer (not a domainer), and you don't have lots of experience researching, negotiating, and transferring domain names, then you'd be crazy not to work with a broker.

A professional domain buyer broker is going to save you time, money, and stress. A broker can also help you understand what a realistic budget is, can help you avoid getting scammed during a transaction, and can shield your identity as the buyer (or seller) of the domain. Be sure to check the background and references of a broker before hiring them because, sadly, anyone can call themselves a domain broker despite having zero training or experience.

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George Hong, CEO of @GUTA
Here are two scenarios:

  1. Selling domains/seller’s broker: when you can find an ethical broker who can add value and is good at promotion to help you net more money than you [would] sell[ing] on your own.

  2. Buying domains/buyer’s broker: when you can find a trustful broker who is good at negotiation and you believe that he/she can help you spend the least amount of money on acquiring a satisfactory domain.

An investor may consider hiring a broker if he/she has a language issue or negotiation obstacle.
A company or startup may consider hiring a broker if they want to hide their identity and/or they are not that familiar with the domain market and the processes of completing a domain transaction.


@Giuseppe Graziano, CEO of GGRG
If you have high expectations for your domain, hiring a broker is not particularly useful, as your best bet is simply to sit on a domain and wait for a motivated end user to contact you. It also does not make much sense to pay a commission to a broker just to filter your inbound inquiries.

The best time to hire a domain broker is once you have decided to sell your domain for the highest fair price and you need someone who can guide you through the sale process in an ethical and transparent way.


Kevin Fink (@iHaveThisIdea), COO of Starfire Web Holdings
It would make sense if someone wishes to remain anonymous in the process, have help in educating the buyer, handling negotiations to suit their best interests, and in assisting with all escrow, transfer and closing processes.

It is very different for a domain investor versus a larger or new entity seeking our help. We reject the lion's share of domain investor submissions.

We are primarily focused on onboarding assets on behalf of larger companies, especially original asset owners (who are most of the time never investors).

These clients might be holding a 15-20 year old one-word .COM that has massive commercial benefit. We have found that they greatly value someone to represent and kick that sales process into gear.


@Dave Evanson, Senior Broker at @Sedo
It makes sense to hire a broker to acquire a domain when you don’t want seller to know who is buying, want help getting a good price, don’t know how to find the seller or decision maker at seller organization, need suggestions for a domain name, aren’t experienced at negotiating or just don’t have the time. The rationale for, and advisability of, hiring a broker is similar for different types of buyers but can vary somewhat. For example, larger companies might care more about confidentiality so that price doesn’t get inflated and/or competitors don’t know what they are thinking or doing.

When selling a domain a broker can help with valuation, getting the highest price, preventing seller’s customers or competitors from knowing the domain is for sale, and providing secure escrow and transfer. For the most part, sellers use brokers for similar reasons with some exceptions. One exception might be individual sellers probably have a stronger preference to keep their sales and sales prices private.


@Hobi Michalec, Co-founder of Lumis Group
I'm probably a bit bias when it comes to this as I'd say it almost always makes sense to hire a broker. Most people don't domain full-time. Whether that's brokering, buying, or selling domain names. A domain broker specializes in this.

Every day a broker is speaking with buyers around the world across all walk of life about domain names. The more eyes on a domain name, the higher your chance of selling it. When it comes to buying, it takes the stress and emotion out of it. Instead of wasting time attempting to offer $2,500 for a $100,000 domain we'll tell you ahead of time that this offer doesn't make sense. We provide answers and you can make the decisions instead of stressing and wasting time on non-value added activities.


@Mike Robertson, Director of Business Development, Fabulous.com
For companies and startups with little or no domain name knowledge, it's vital to use a broker. An experienced broker can help a buyer navigate the entire process, from negotiation to fulfillment. Using a broker is also beneficial for those companies or start-ups that want to acquire a domain in stealth mode. First contact, can make or break a deal, so having a professional broker initiate discussions will greatly increase the likelihood of a successful acquisition.

Most domain investors are savvy and experienced enough to acquire domains without having to use a broker. With that said, I have had domain investors hire me to purchase domains on their behalf, one reason being, they want to remain anonymous in the transaction.

The other scenario is when the domain is owned by a company or corporation and it makes more sense to have a professional domain broker to represent them. One of my biggest achievements that I am most proud of, was successfully acquiring the domain Strong.com from Wells Fargo; after the client had previously hired two other brokers.


These responses have been edited for clarity.
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
Can anyone recommend a broker?....I've tried the above with no joy.

Best regards Michael.
 
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Kevin Fink (@iHaveThisIdea), COO of Starfire Web Holdings
These clients might be holding a 15-20 year old one-word .COM that has massive commercial benefit. We have found that they greatly value someone to represent and kick that sales process into gear.

Yap! imagine some domain investors will tell you that age does not matter in domaining. You can now see that when you have a high profile domain; age is an added factor for better sales.

Thanks for sharing. @James Iles
 
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