advice Brokerage of domains questions!

[slkn]

Need some help about domain brokerage contract terms:

1. If broker ask for a 6-months exclusivity for domain representation, is it normal to ask for a minimum sales (domain number or cash value) to reach per month?

Therefore, if sales objective term is not achieved, contract should be terminated?

2. Regarding transaction, bank transfer, escrow and related fees, should be described in the contract terms? As a seller, buyer would cover all these related.

3. How do we ensure that the buyer have placed a realistic offer, and broker is not offering a lower acceptable value for a domain. This is benefiting from both commission and margin from real offer vs broker offer?

Example: Real buyer offer at 5,000; broker ask seller for 3,000 (which is minimum acceptable price by contract); then broker to earn 10% of 3,000 + extra 2,000, without informing of the real offer.

Thank you all!

 

[anantj]

Example: Real buyer offer at 5,000; broker ask seller for 3,000 (which is minimum acceptable price by contract); then broker to earn 10% of 3,000 + extra 2,000, without informing of the real offer.

This is highly unethical. If the broker is skimming off the top, then they're not ethical (not sure of the legality). If the domain sells for $5000 (With $3000 being the floor price set by the seller), the commission should be on the final sale price and not on the floor with the rest being retained by the broker/brokerage. I'd never work with such a broker

 

[slkn]

I agree, that would be unethical. How do you make sure broker send you the right offer so, and not taking advantage?

 

[anantj]

I agree, that would be unethical. How do you make sure broker send you the right offer so, and not taking advantage?

Include that in the contract!

 

[Kate]

A real broker will surely not want to blow his reputation forever over a few dollar bills.
The thing is, anybody can claim to be a domain broker. But not everyone is qualified. Some scammers call themselves brokers too.

If the broker is real and has a track record, probably he has reviews on this forum, or people who can vouch for him. Before you worry about the fine print, check out the person.