Broker that makes more than you thought

[NameLlama]

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....

 

[Ruhi Angel]

You're paying your agent hundred of dollars for each hour to enable you to purchase a condo. This shouldn't take over an hour yet we need to heat in some pad. Without a doubt, it's bulky yet its notoriety would make you think you'll be

 

[Optimal Names]

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.

 

[900Worldwide]

That should not be a problem as long as the broker got you the amount you was happy with. Stop worrying about the extra money made by them. Just learn to sell the domains yourself.

 

[ixex]

Stop complaining people.
As long as you are happy with the price. I don’t see anything wrong with it.
Last month I asked $2,000 for a name and afternic came back and asked me if I am ok with $4,000. I sold the name for $4k and did not complain.
Always takes look at everything situation from two angles.
All I see in many posts here are complaining and whining.

Brokers need money to feed the family too.
Be a man.

"Always takes look at everything situation from two angles."

I would say three angles: Mine, Yours, and Theirs LOL

 

[.X.]

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.

No one is getting screwed around in any way, if I tell a broker I want 1k for the name, the broker gives the buyer a price of $1,200 and the buyer agrees, the sale is done, I get the 1k I wanted, the broker pockets 200 extra, the buyer obviously agreed to the price and has the domain they want. I don’t see a foul anywhere with any of that.

The broker is charging me a % fee for the 1k sale which is agreed upon, if the broker can make more money for increasing the price, more power to em.

That is just simply business IMO

Nothing unethical going on

Hiring a broker is the same as selling something on consignment, the consignment store can negotiate any price they want, after all, they are doing all the work

 

[900Worldwide]

@.X. Best response this thread “if the broker can make more money for increasing the price, more power to them”.

I’d say their a good broker if you get the price you agree upon while bringing themselves more.

 

[Optimal Names]

No one is getting screwed around in any way, if I tell a broker I want 1k for the name, the broker gives the buyer a price of $1,200 and the buyer agrees, the sale is done, I get the 1k I wanted, the broker pockets 200 extra, the buyer obviously agreed to the price and has the domain they want. I don’t see a foul anywhere with any of that.

The broker is charging me a % fee for the 1k sale which is agreed upon, if the broker can make more money for increasing the price, more power to em.

That is just simply business IMO

Nothing unethical going on

Hiring a broker is the same as selling something on consignment, the consignment store can negotiate any price they want, after all, they are doing all the work

Well, I am going to have to disagree with that. To ME its unethical. Its OK that its ethical to you, or to anyone else -- it doesnt affect me.

 

[wwwweb]

There is a broker who does do this, but he doesn't work for any registry type company, I think I know who the OP is talking about. I am sure many veterans have probably done business with him.

 

[Recons.Com]

If he is clear about it, sure. He can go like "if name sells up to X amount, I will take 10% of that. Anything above X amount, I keep" and if the X amount is already fair or more than fair, most would accept it and won't feel screwed. Because, broker might use his own connections to sell and even might have a say which name to recommend. Let's say his buyer says we want a dictionary word, our budget is 300K$. So the guy brings in 5 options for which he'll pay anywhere from $50K to $200K (while getting 10% there too) and will keep $250K to $100K in addition. In this scenario, it can be argued that everything is fair, as the buyer will choose a name for $300K without factoring in what was the original cost of a name. Maybe, $50K name will be considered more valuable and more proper for them. And the seller will sell for more than he'd otherwise hope.

 

[wwwweb]

If he is clear about it, sure. He can go like "if name sells up to X amount, I will take 10% of that. Anything above X amount, I keep" and if the X amount is already fair or more than fair, most would accept it and won't feel screwed. Because, broker might use his own connections to sell and even might have a say which name to recommend. Let's say his buyer says we want a dictionary word, our budget is 300K$. So the guy brings in 5 options for which he'll pay anywhere from $50K to $200K (while getting 10% there too) and will keep $250K to $100K in addition. In this scenario, it can be argued that everything is fair, as the buyer will choose a name for $300K without factoring in what was the original cost of a name. Maybe, $50K name will be considered more valuable and more proper for them. And the seller will sell for more than he'd otherwise hope.

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.

 

[Optimal Names]

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.

 

[jagdotme]

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.

 

[Optimal Names]

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.]

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.