discuss Broker Commissions and the extra mile

[ThatNameGuy]

I've started and been active in quite a few different businesses and industries in my life, but the domain business really mystifies me. The business I'm most experienced with is the debt recovery and collection business. I started a company called Credit Control Corporation in Virginia in 1973 and operated it for about 15 years when I sold it (note, it's still in business today generating 10M annually in commission/fee revenue). Not all, but most collection businesses operate on a "commission" and the last time I checked I think the "average" commission paid is around 30% of dollars collected, but the fee varied based on different criteria like the age of the debt, the amount/size of the debt and the kind of debt ie. medical, retail, financial.

Today I saw on NP where New.Life sold two domains in one day for $63,000 (Congrats New.Life if you're reading this.) The first domain he (his broker) sold for $38,000, and he paid Uniregistry a commission of 10% or $3,800. The second domain he sold for $25,000, and paid Afternic a commission of $4,000 or 16%. My initial thoughts to commissions like this are, wow that's really cheap, no wonder domainers/brokers only sell 1-2% of their portfolios annually, and why I'm reluctant to work with a broker at all.

Now more to the point, I'd gladly pay a commission of 25 to 50% of a domain sale "if" a broker could liquidate 5-10% of my domains annually. It doesn't seem unreasonable to me, if I were to list 10 food and beverage domains with a broker who understands that industry for them to sell one in ten. For example, I just registered a couple of domains; TopNotchWines.com (note that Elliot Silver owns a business called TopNotchDomains.com) I say this because I'm sure it will add credibility to my reputation here on NP for "crappy" domains, and shortly after I reg'd that, I reg'd TipsyLiquors.com because I always wanted to own a liquor store, and I know that's a pretty "catchy" name as well

My question is this, why aren't there any brokers in this industry who will go the extra mile to sell domains like I went the extra mile in the debt recovery business to collect my clients debts? My clients gladly paid me my commissions because they knew the alternative was little or nothing returns

Any brokers out there reading this, I want to hear from you. What gives??? Anyone else care to opine?

 

[Joe N]

So you're in Rob's head and know what he's thinking??? Rob knows that when I came up with the domain "MakeMyShave.com", and asscoiated it with Clint Eastwoods, Go ahead, Make My Day! was a lightning strike.

You're right, Rich. Neither of us should really be speaking for someone else. Actually, it would be great to hear further clarification of the MakeMyShave.com opinion you shared from your convo with @Rob Monster, if he'd be so inclined. I always appreciate getting viewpoints from people who operate in the domain industry full-time.

You and my other critics will scream from the rooftop they're all "crappy" names, but I know better

I wouldn't dream of criticizing your names, Rich. The quality of the types of brand names you like to register is very much a subjective thing. Where one sees something of low quality, another sees lots of value.

I like to joke and offer my own opinion of the value and sale-ability of a name, but ultimately it's the sale itself that cannot be refuted.

I truly look forward to hearing about your first domain name sale, Rich! I know it'll happen for you eventually.

 

[Rob Monster]

Well, I told Richard what I would tell anyone:

- The rich are getting richer and the poor are getting poorer. The folks who build their business model around selling to people who are not rich, can expect to not do well. The rich have budget. They are rational people who can afford the best. Well, in general, right now that means .COM.

- Outbound selling rarely works. I know, we tried it for years and optimized the daylights out of it. In general, the people who have the money to buy domains for big budget don't want to be reached. They will reach you. Many of them have "money is no object" budget.

As for Richard, he has creative talent. I will grant him that. He regularly registers domains at Godaddy, paying too much, and then asks me what I think. I tell him I think he should register at Epik.

I believe Richard would do well to use his creative talents to conceive of compelling brand names, set Epik-powered SSL landers on them like these:

https://episteme.com/
https://iota.com/

And then just wait patiently for the inquiries

The math is simple. If he registers 1000 creatively inspired names, and sells 1 name per year at $10,000 or better, he is ahead of the game. Those odds are not horrible if you have the gonads to ask for 6 figures for a well-conceived brandable.

 

[bmugford]

- Outbound selling rarely works. I know, we tried it for years and optimized the daylights out of it. In general, the people who have the money to buy domains for big budget don't want to be reached. They will reach you. Many of them have "money is no object" budget.

I agree. Like I said in my first post in this thread brokers are not miracle workers.
It doesn't matter what % you offer them, it is hard to sell something without natural demand.

Cute brands and puns do sell from time to time, but quality brokers are going to spend their time and resources on much more liquid, high upside assets.

And then just wait patiently for the inquiries

The math is simple. If he registers 1000 creatively inspired names, and sells 1 name per year at $10,000 or better, he is ahead of the game. Those odds are not horrible if you have the gonads to ask for 6 figures for a well-conceived brandable.

Yep, that is the math that works for most domain investors.
It is also the same business model Bulloney has been trashing.

1.) Buy decent domains.
2.) Set reasonable prices.
3.) Sell 1-2% a year relatively passively.

If he had a problem with 1-2%, I wonder how he feels about your proposed 0.1% sell through rate.

Brad

 

[Rob Monster]

I agree. Like I said in my first post in this thread brokers are not miracle workers.
It doesn't matter what % you offer them, it is hard to sell something without natural demand.

Cute brands and puns do sell from time to time, but quality brokers are going spend their time and resources on much more liquid, high upside assets.



Yep, that is the math that works for most domain investors.
It is also the same business model Bulloney has been trashing.

1.) Buy decent domains.
2.) Set reasonable prices.
3.) Sell 1-2% a year relatively passively.

If he had a problem with 1-2%, I wonder how he feels about your proposed 0.1% sell through rate.

Brad

With Bulloney, he is selling art. With art, beauty is in the eye of the beholder.

My main advice to Bulloney is to focus on brands that can be businesses, rather than marketing campaigns. For example, for years, I had the domain name ShowUsYourCans.com which at one point appealed to a brewery for a $10K purchase of what would be a cheeky ad campaign where cute women would show their beer cans. I still like that idea but a beer marketer has yet to follow through on that idea. Business names have far broader appeal and far more longevity than a here-today-gone-tomorrow campaign URL.

 

[wwwweb]

With Bulloney, he is selling art. With art, beauty is in the eye of the beholder.

My main advice to Bulloney is to focus on brands that can be businesses, rather than marketing campaigns. For example, for years, I had the domain name ShowUsYourCans.com which at one point appealed to a brewery for a $10K purchase of what would be a cheeky ad campaign where cute women would show their beer cans. I still like that idea but a beer marketer has yet to follow through on that idea. Business names have far broader appeal and far more longevity than a here-today-gone-tomorrow campaign URL.

Those type of ad campaigns have been silenced with the likes of the ME2 movement etc.., much like the year godaddy spent not sure how many millions on a superbowl of a guy sitting at a desk writing something for 30 seconds due to their ad being turned down.

 

[Rob Monster]

Those type of ad campaigns have been silenced with the likes of the ME2 movement etc.., much like the year godaddy spent not sure how many millions on a superbowl of a guy sitting at a desk writing something for 30 seconds due to their ad being turned down by the approval committee.

There is always someone willing to push the edge.

If Gillette is any indication, the day is coming when seemingly-gender-neutral men will be used for this campaign.

Ad agencies specialize in fomenting controversy just to get social media to do the heavy lifting.

I am not advocating for this ad. ICYMI, I dropped the domain.

 

[wwwweb]

There is always someone willing to push the edge.

If Gillette is any indication, the day is coming when seemingly-gender-neutral men will be used for this campaign.

Ad agencies specialize in fomenting controversy just to get social media to do the heavy lifting.

I am not advocating for this ad. ICYMI, I dropped the domain.

I get it, and I welcome people pushing the edge, and the limits as it gets eyeballs, but these days marketing campaigns are very sensitive as going too far off the edge can cost the entire boycott of a company.

The beer commercial you pitched in one sense it can be considered edgy, with a bit of humor mainly targeted at the male audience, but in another sense if the backlash comes back the other way, it will be like why can't women just enjoy beer without skimpy clothes etc... I have just seen it more, and more in twitter type boycotts in the past year. I would concur people are hyper sensitive, and just need to enjoy things at times instead of censoring everything to death, but these campaigns, and companies are so scared of alienating anyone that they tend not to deviate from this spectrum now.

A name I remember Berkens sold for $30K was FindYourCalling.com, these are the type of positive message type names that you want to strive for, but everyone is sort of looking for the same thing, so they don't come cheap. There is still ways to make money with phrases like Fake News, and other catchy things that hit from time to time, trying to hit the bullseye on an ad campaign is what huge domains $2K specials are for in their 7 million strong inventory.

 

[Josh R]

From the looks of your beard Josh you might be able to use any of these domains;

PerformanceShave.com
BetheShave.com
or
MakeMyShave.com ....derived from Clint Eastwood's "Go Ahead, Make My Day"

Like with the "Tiger" domains, "if" you're willing to go the "Extra Mile" I might be able to help you

Thanks for the compelling offer.

 

[Joe N]

Well, I told Richard what I would tell anyone:

- The rich are getting richer and the poor are getting poorer. The folks who build their business model around selling to people who are not rich, can expect to not do well. The rich have budget. They are rational people who can afford the best. Well, in general, right now that means .COM.

- Outbound selling rarely works. I know, we tried it for years and optimized the daylights out of it. In general, the people who have the money to buy domains for big budget don't want to be reached. They will reach you. Many of them have "money is no object" budget.

As for Richard, he has creative talent. I will grant him that. He regularly registers domains at Godaddy, paying too much, and then asks me what I think. I tell him I think he should register at Epik.

I believe Richard would do well to use his creative talents to conceive of compelling brand names, set Epik-powered SSL landers on them like these:

https://episteme.com/
https://iota.com/

And then just wait patiently for the inquiries

The math is simple. If he registers 1000 creatively inspired names, and sells 1 name per year at $10,000 or better, he is ahead of the game. Those odds are not horrible if you have the gonads to ask for 6 figures for a well-conceived brandable.

Wise words all around, Rob. Thanks for chiming in.

Rich, step one is to get those domain names priced and listed. I know you're not a fan of passive sales, but Rob makes some very compelling arguments why it's a good way to go. It doesn't need to cost you a thing, and you may just make a few sales per year while developing business plans.

Once you start moving some names, you'll start developing a better sense for what types of domains give you better odds at making a sale, thereby improving your sell-through rate!

 

[ThatNameGuy]

Wise words all around, Rob. Thanks for chiming in.

Rich, step one is to get those domain names priced and listed. I know you're not a fan of passive sales, but Rob makes some very compelling arguments why it's a good way to go. It doesn't need to cost you a thing, and you may just make a few sales per year while developing business plans.

Once you start moving some names, you'll start developing a better sense for what types of domains give you better odds at making a sale, thereby improving your sell-through rate!

You're right, Rich. Neither of us should really be speaking for someone else. Actually, it would be great to hear further clarification of the MakeMyShave.com opinion you shared from your convo with @Rob Monster, if he'd be so inclined. I always appreciate getting viewpoints from people who operate in the domain industry full-time.


I wouldn't dream of criticizing your names, Rich. The quality of the types of brand names you like to register is very much a subjective thing. Where one sees something of low quality, another sees lots of value.

I like to joke and offer my own opinion of the value and sale-ability of a name, but ultimately it's the sale itself that cannot be refuted.

I truly look forward to hearing about your first domain name sale, Rich! I know it'll happen for you eventually.

Joe...ask Rob, but I see now why you guys are so offended at being referred to as "Hoarders". I shared this with Rob in a PM, and I also told him to check out the movie, "The Current War" and see who I remind you of You've been a blast Joe, and when I say thanks for all your encouragement and motivation, I mean it from the bottom of my heart

 

[ThatNameGuy]

I get it, and I welcome people pushing the edge, and the limits as it gets eyeballs, but these days marketing campaigns are very sensitive as going too far off the edge can cost the entire boycott of a company.

The beer commercial you pitched in one sense it can be considered edgy, with a bit of humor mainly targeted at the male audience, but in another sense if the backlash comes back the other way, it will be like why can't women just enjoy beer without skimpy clothes etc... I have just seen it more, and more in twitter type boycotts in the past year. I would concur people are hyper sensitive, and just need to enjoy things at times instead of censoring everything to death, but these campaigns, and companies are so scared of alienating anyone that they tend not to deviate from this spectrum now.

A name I remember Berkens sold for $30K was FindYourCalling.com, these are the type of positive message type names that you want to strive for, but everyone is sort of looking for the same thing, so they don't come cheap. There is still ways to make money with phrases like Fake News, and other catchy things that hit from time to time, trying to hit the bullseye on an ad campaign is what huge domains $2K specials are for in their 7 million strong inventory.

I know you appreciate a good laugh wwweb, but here are a few i hand reg'd in the last couple of days. If you know a broker who might go the "Extra Mile" I would appreciate the reference. Thanks for participating on this thread.

PerformanceBull.com - think Wall Street

Brandenomics.com - a couple of my NP critics already said "cool" and "decent", but what do I know?

BoBoWings.com - this is a "catchy" one. A friend of mine had the Ba*ls to open a chicken place in a town and a location where there are nothing but Seafood Restaurants. The name of his restaurant is Bo Bo's Chicken, and he modeled his restaurant after Chick-fil-A. He actually worked for Chick-fil-A after getting his MBA from the Darden School of Business at UVA. Frankly I thought the young man had lost his mind, but after a little over a year, he's making it. The one thing he doesn't do is chicken "Wings", and since I luv wings, and there isn't a decent wings place within 5-10 square miles, I bought BoBoWings.com to give to him "if" he were ever to cook wings like Buffalo Wild Wings. It cost me $8.50 to register this .com for a year with GD, but Rob Monster at Epik said he can save me fiddy cent, if I reg it with him. I have a lot of respect for Rob so I'm asking you, should I have reg'd this domain with Epik? I'm so confused about this industry, and I'm hoping you can help? Maybe you know a broker who can? Thanks in advance.

 

[Joe N]

Joe...ask Rob, but I see now why you guys are so offended at being referred to as "Hoarders". I shared this with Rob in a PM, and I also told him to check out the movie, "The Current War" and see who I remind you of You've been a blast Joe, and when I say thanks for all your encouragement and motivation, I mean it from the bottom of my heart

Rich, I'm guessing I'm no more offended at being called a hoarder with my 150 names than you are with your 1200 names.

Ultimately, it doesn't matter how a few outliers refer to you or what they think of you, as long as your reputation is intact and you feel good about the contributions you've made at the end of that day.

So are you going to list your names? Happy to give you some tips on doing it if you need them.