Decoding SEDO Domain Brokers

[interestedenough]

Hi,

I have been contacted by a domain broker from SEDO recently with an offer for one of my domains. I truly don't like the feeling since they make the process asymmetric by keeping the buying party anonymous (the price for my domain is set and I will not change it regardless of who is contacting me - company or individual anyways). I'd like to understand their end a bit more so the process won't feel as unfair.

Does anybody know how things work on their (domain broker/buyer) end?
- Do they start with a domain valuation?

How does the domain broker get paid?
- A percentage of the transaction?
- Based on their initial valuation (if any)?... they might get paid more if they buy it for less is my guess here.

What is the strategy they follow?
- Pressure the seller?
- Fishing kind of strategy, pull, wait, pull wait ?
- In my case the broker proposed a starting price that is about 40% of what I have asked for the domain, they should have known this because I had it listed in SEDO. When I proposed my asking price (to other interested parties in the past), the domain broker offered an additional 10%, bringing the price to 50% of my asking and said that this was the most the client could offer. I said no, and she said that was it. Then she came back a couple of weeks later asking if I was interested in selling it for a little more, and I have yet to respond to that.

I might not sell this domain name to this party as the price is set in my mind and anything that is not close to that price is not really worth it for me.

Thanks in advance

 

[wot]

Simply stay with the price that is in your mindset and do not be pressured by parties that only partially have your interest at heart.

The "brokers" in general do not have much experience and are only out to "make the commission" make sure your share is what you want not what they say you should have. :imho:

 

[central]

Does anybody know how things work on their (domain broker/buyer) end?
- Do they start with a domain valuation?

-Domain appraisal
-Consultation
-Negotiation
-Domain Transfer service for successfully brokered domains

http://sedo.com/broker/index.php4?tracked=&partnerid=&language=us
http://sedo.com/shop/?domain=&productid=1100&tracked=&partnerid=&language=us

How does the domain broker get paid?

$69 to hire the broker. 10% brokerage fee.

http://sedo.com/services/prices.php3?tracked=&partnerid=&language=us


central

 

[interestedenough]

I just noticed this for the first time... when you click on a "more info" button for a domain in SEDO, the following text shows below in the domain info:

No time for direct negotiation?

Then let our professional domain brokers handle it for you! Our brokers will work directly with you, take over the tedious back and forth negotiations with the seller, and use their expert knowledge to get the domain for you at the lowest price possible. Take advantage of our personal and competent service to finally get the domain that you really want.

My guess is that this is true to a certain extent... just as it is for a real estate broker, there has to be a balance between the lowest price and how quick the negotiation is done from the domain broker's point of view. They must know that a reasonable offer that brings expectations of the seller and buyer at a balance point benefits everybody. The lowest price possible might mean the longest time bearable... just my thoughts here.

 

[Charley]

I might not sell this domain name to this party as the price is set in my mind and anything that is not close to that price is not really worth it for me.

List the same in LIVE auctions, you can get an idea on setting a reserve price.