Broker that makes more than you thought

NameLlama · May 1, 2019

Did you hear about that broker that tells you he can try to sell for 20k, then tells you best he can do is close at 15k..., but sells for 20k and keeps 5k for himself secretly?
Or tells you he closed at 19k but really got 30k or 40k..... in secret....

ResoluteDomains · May 8, 2019

wwwweb said:
The person who I am suggesting works for corporate clients, and pays more than a fair share of the current market pricing. What he puts on his backend percentage is probably more than your average broker, but his buyer has deeper pockets, it is a win win for all. They don't do random names, they usually do a have a specific name for a specific purpose in mind.

If you're talking numbers way up there 6 and 7 figures then yea - I can see this happening and probably is generally acceptable in that realm. I would not know that world, probably will never operate in that world. But in my world of 3, 4, even low 5 figure sales - I want to keep every single cent that I can.

My point is, we are all trying to keep as much of the sale in our pockets. Many of us have participated in threads about precisely that: how to squeeze as much out of that sale and keep it in our wallets. Paying the broker his fee is not what I am talking about - thats a cost of doing the transaction. Its that "extra" under the table, that isnt disclosed, which could have been in my pocket (either as buyer OR seller) that bothers me. But like you said, its mostly likely brokered sales of names that I have or ever will have.

I think I'll just refrain from using brokers from now on.

JagG · May 8, 2019

AGAME said:
This doesnt just affect the seller.. What if you're the buyer?

Consider this scenario: You're a buyer and have $30K to spend on a name for your startup.

1) You tell the broker that you're willing to buy the name for $25K (+20% commission for the broker/company trying to get the name for you)
2) The broker turns around and tells the seller that he has a firm offer of $10K on his hands "buyer cant afford any more than $10K, deal or no deal?"
3) You mull it over and decide to accept the $10K offer from the broker.
4) The buyer pays the broker $25K + $5K commission.
5) The broker tells the seller, "Congrats the name sold for $10K, we have the cash in our account so transfer the name to our holding account"
6) You transfer the name to the broker and the broker sends you $10K clear, then he transfers the name to the buyer.

Not only did the seller get screwed but you, the buyer, also got screwed.... Instead of paying the broker $10K + 20% = $12K for what the broker SAID the seller "accepted", you paid $25K + $5K = $30K.

The broker not only fleeced the seller but also the buyer too.

As a broker myself, the above is unethical IMO. I personally would never dream on doing the above. Repeat business is far more important

Let me explain ...

If a buyer reached out to me with a budget of $30k and I end up getting the seller at $10k, I will simply work everything out and get back to the buyer with total price of $11,675,50 ( Domain, my commission plus escrow fees ) and close this deal via Escrow.com. I wouldn't ask anyone to put money direct into my business account for a brokerage deal, and also wouldn't recommended anyone else either. ( Unless someone is buying my own name, then yeah pay me and I transfer name, no need for escrow )

This is more ethical and again IMO everyone walks away happy with the deal, with the above @AGAME said, imagine if sale price goes public on Dnjournal, someone will be pissed & puts a bad vibe in the domain industry.

With what I'm saying the buyer will save around $18k and seller got asking price, and trust me, next time buyer or someone they know is looking for Domain names, you be the first on the contact list.

ResoluteDomains · May 8, 2019

JagG said:
As a broker myself, the above is unethical IMO. I personally would never dream on doing the above. Repeat business is far more important

Let me explain ...

If a buyer reached out to me with a budget of $30k and I end up getting the seller at $10k, I will simply work everything out and get back to the buyer with total price of $11,675,50 ( Domain, my commission plus escrow fees ) and close this deal via Escrow.com. I wouldn't ask anyone to put money direct into my business account for a brokerage deal, and also wouldn't recommended anyone else either. ( Unless someone is buying my own name, then yeah pay me and I transfer name, no need for escrow )

This is more ethical and again IMO everyone walks away happy with the deal, with the above @AGAME said, imagine if sale price goes public on Dnjournal, someone will be pissed & puts a bad vibe in the domain industry.

With what I'm saying the buyer will save around $18k and seller got asking price, and trust me, next time buyer or someone they know is looking for Domain names, you be the first on the contact list.

Thanks for weighing in. This is good business.

.X. · May 8, 2019

I think you will have some who care and some who don’t care.

Me personally, it doesn’t matter how large or small the transaction is, I have no problem at all with a broker selling my names at a higher price and the broker pocketing anything above our agreed price.

It wouldn’t bother me in the least if per say the sale showed on DNjournal and the broker sold the name for more and pocketed the profit,

The last time I used a broker to sell a name, I gave the broker a gratuity of $300 as appreciation.

Broker that makes more than you thought

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