NameSilo

Brokers, outbound and domaining

Labeled as discuss in General Domain Discussion, started by abstractdomainer, Jun 7, 2020

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  1. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    I've been trying to understand the psychology of the brokers in domaining, the value that they bring to the table, their business model and how does it all fit in, in the whole array of things.

    When looking at the entire brokering industry, be it, Dave Evanson, selling $75M+ in domain names over the course of his career or any other broker in the business, if I were to classify their services in one of the following categories:

    1) Inbound - Helping negotiate a deal for a potential lead who wants to acquire a domains
    2) Outbound - Finding the right lead/potential end-user for a domain name that you own

    I would classify a typical broker into an outbound salesperson. A broker takes your domain name after having looked at all the aspects of the domain, the pricing that is possible for the same, whether it is worth their effort and then, identifies the right lead who would be willing to invest those millions (hundreds of thousands or millions of dollars) and convince them to negotiate and purchase that domain name.

    Now doing that outbound (whatever it might be in this case - whether reaching out to the top bosses in a particular company or whether it is a startup), they know who to reach, how to reach, what value to show to these companies and most importantly, how to close a sale for such an amount.

    The way someone does a deal for $$$$, these guys know how to do it for $$$,$$$ or $,$$$,$$$. And I believe, there is a lot to learn from that process and put it here in our method to close $$$$ or even low $$,$$$ sales, should we go ahead and learn from them.

    So, inviting brokers, experienced folks to share how they identify a domain name that would like to broker, how do they find out leads for the same, how do they reach out to them and how does a typical sale closes

    For anyone who wishes to add more questions which may be answered by such excellent and experiences folks, you can add a +1 and write your questions. We may probably invite a broker to the thread who shares his wisdom with us.
     
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  2. karmaco

    karmaco Top Contributor VIP

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    I would imagine most successful top brokers only take on top tier names- dictionary words, actual word 4 letters, 2 and 3 letters, etc from sellers to make it worth their effort.

    But it works the other way too. They often represent a buyer who wants to remain annonymous and do a stealth acquisition.

    I am not convinced they are mostly outbound as you are but moreso an intermediary between a buyer and a seller in either scenario as in the case of Dave or any number of other company/platform employed brokers. Or even an agent between a seller and a group of potential buyers who could benefit from that name. Competition makes people open the wallet faster.

    I think most names that go through high profile brokers could probably sell themselves but the seller or buyer or both doesn’t want to deal with the stress of negotiation or have the skills or patience.

    Seller is more likely to get emotional or heated while the broker who is more detached from the name can remain calm and cool in the process. I think they are probably pretty helpful on the nuances of the selling part when a seller is adamant about a very high price, Or a buyer says that’s too high etc.

    Most of us don’t need a broker for regular names. I am sure those who have had someone else handle their top tier name might reply. Don’t expect brokers to come here and give their tricks of the trade away though.
     
  3. Save Breach

    Save Breach Established Member

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    thanks, following this thread.
     
  4. werejack

    werejack Established Member

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    As an addition, I read something where a broker stated that some domain purchases occur when a broker pitches a domain name to his/her contacts that have been built over time e.g repeat buyers like domain portfolio investors, website portfolio investors, serial entrepreneurs etc...
     
  5. Seyikp

    Seyikp Established Member

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    Ok, let's go
     
  6. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Valid pointers. Sure. We understand the need of the broker. But at the end of the day, they do find some leads, contact them and then, quote a price to ultimately sell the domain.
    The process is the same and that is what I am inquisitive about - what makes them close $$,$$$ in outbound (except of course, the quality of the domain name)

    Rare cases I think. Once in a blue moon type!
    A company acquiring a multi-million dollar or a $200,000 name wouldn't acquire 10s of such names unless they have a business use.
     
  7. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    It's very important for the domain owner to represent a broker for their domain who is mostly in favor of the seller. I've seen many brokers who're simply looking to manipulate the domain owners in order to get them agree at lower price so they've better chance of striking the deal. For brokers, what matters the most is the commission.

    I've always been very cautious when selecting domain brokers. It's better trying to sell domain by yourself than giving to a broker who's main motto is to make the commission and don't valuate the domain based on it's actual value.
     
  8. lock

    lock DomainUsed.com VIP

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    A broker wouldn't touch a domain that doesn't get inbound it needs to be desirable you use a broker to handle your business. There really isn't an extra mile like many think just outbound on the logical leads.
     
    Last edited: Jun 15, 2020
  9. Sumeeth

    Sumeeth DomExpert Epik.com Staff VIP

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    Good thread :) It is known fact that most of the top brokers broker top tier domains. Is any broker available there in the industry who has a track record a of brokering a normal domain through his skill and turn it to million dollar sale? Those type of knowledge sharing I would like to see here and that will be helpful for whole domain Industry in learning those skills.
     
  10. lock

    lock DomainUsed.com VIP

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    Of course not nobody sold crap for a million dollars they were premiums. Why if they did sell anything overpriced admit it was worth less now?
     
    Last edited: Jun 15, 2020
  11. Sumeeth

    Sumeeth DomExpert Epik.com Staff VIP

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    I agree, nobody sell crap for millions of dollars but every non-premium is not a crap, beauty lies in the eyes of beholder :) Skill is not to do extraordinary things using extra ordinary ones. It is doing extraordinary ones with normal things :)
     
    Last edited: Jun 15, 2020
  12. lock

    lock DomainUsed.com VIP

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    Non premium domains haven't sold for millions without other assets.
     
  13. lock

    lock DomainUsed.com VIP

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    Skill is knowing the procedure and keeping with the script. I see threads where domain for sale $100 offer comes in and seller then offers a counter offer capping his sale. No need to counter just yet only need to thank them for their interest. You need to come up with own procedure that will maximize sale by the buyer offering you more.
     
  14. Theydon

    Theydon Established Member

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    The name should meet a certain quality standard and the broker needs to see a market, if there isn't a market with clear end users and commercial use then they will likely not be interested. Then its about alignment with the owner on target price range, floor price range and fee. There are so many tools and sites available to identify potential end users. The higher the sale price the smaller the pool of buyers, as the price comes down the end user options grow as more companies will have a budget for the name. The owner may want a quick sale or will be happy to wait until their target price is met - the broker needs to understand their clients needs and act in their best interest.
     
  15. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    Important point there. But how do you determine that? Once you both decide upon a minimum price that you'd accept and an average price, there is nothing like buyer biased or seller biased. Or is it?
    If you had to approach someone for WFH(dot)co and sell it yourself using outbound, what would the process be? I am thinking in those terms.

    Ya but what I am trying to understand is, even with a good domain, it is not like they call up a lead and they are ready to buy. They should understand the value.

    Almost never happens! Because maybe, the domain isn't worth it.
     
  16. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    By millions, I mean say $$,$$$ or something way above expectation.
    Right. And here is where a difference comes up. @AbdulBasit.com One of the pointers where maybe, the objective of the buyer could be a quick sale vs having a hefty amount (yes, of course I don't deny that more the price, the better).
     
  17. biggie

    biggie Top Contributor VIP ★★★★★★★★★★

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    Hi

    totally agree!

    I wouldn't invite any, as it would be detrimental to their services

    bad enough with all the "how to spam enduser" threads
    next thing you know, er'body wanna be a borker or think they can be one too

    learn how to buy and sell your own names first,
    get some experiences and contacts, establish a past and a presence for yourself.

    imo...
     
  18. AbdulBasit.com

    AbdulBasit.com DomainsWeb.com AbdulBasit.com PRO VIP ★★★★★★★★★★

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    It's the communication during which the domain owner has to understand and judge how is the broker. Ask as many questions as possible until you're clarified and decide what to do.
     
  19. lock

    lock DomainUsed.com VIP

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    It isn't happening like you think those sales that appear high are sold on own strengths or the the existing website or assets even launder may come in to play.
     
    Last edited: Jun 16, 2020
  20. bulkdomainz

    bulkdomainz Established Member

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    Someone paid Godaddy some $70 to offer me $100 for my nice domain. I indicated I was willing to negotiate and 'dreamt up a figure' at broker's request. Broker says his client only authorised him to offer max $100 but he will get back to client and come back to me.

    2 weeks on, nothing despite my email asking for an update.

    I doubt I will hear back, but it would have been nice to get a closing or update email.

    I always thought paying someone else to put in an offer for a domain you want when the domain landing page clearly shows you can make an offer is not particularly a clever idea. Why pay a Middleman 70 to offer 100 when you can offer 100 directly, or 170?

    I would sell through a broker, but not buy!
     
  21. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    That's so ridiculous pay $70 to make $100 max offer.
     
  22. abstractdomainer

    abstractdomainer Upgraded Member Gold Account

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    They should come back, unless they changes their mind! Just wait and watch
     
  23. bulkdomainz

    bulkdomainz Established Member

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    They already did (I think) via someone from another company on another continent who is offering 1000. 😂 Guess it is part of the 'Your broker will help you formulate a strategy to help you acquire the domain at the lowest price possible' promised as part of the Broker Service.

    Why drag the thing out and waste everyone's time risking the domain being picked up by someone else when the transaction could have been done and dusted in a day or a week?

    Not clever, IMO!
     
    Last edited: Jul 13, 2020
  24. bulkdomainz

    bulkdomainz Established Member

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    Broker Service 'promise'.
     

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