Domain Brokers' Honesty in Pricing

[Pusang Gala]

Hi! I wanted to share a recent experience I had with a domain broker and get your thoughts on it. This is just an example, not an actual case, but it got me thinking about the honesty of some domain brokers when it comes to pricing.

So, here's the scenario: A domain broker approached me via email, claiming there was a potential buyer interested in my domain name, and they were willing to offer $5,000. I decided to counter with $20,000 USD, and after some negotiation, we settled at $12,000 USD.

My concern is this: Could the broker potentially misrepresent the agreed-upon price to the buyer, stating that we settled at $20,000 USD instead of the actual $12,000 USD? This would create an $8,000 difference, which would presumably go to the broker.

I'd like to hear your opinions on this matter. Have any of you encountered similar situations or have insights into how to ensure transparency in domain transactions with brokers? How can we protect ourselves from potential dishonesty in such deals?

Feel free to share your experiences and strategies for dealing with domain brokers.

 

[BaileyUK]

Personally I don't think you should be worrying too much about middle men. Out of the hundreds of domains I have sold (over 20 odd years) I'm sure many have been negotiated on behalf of an end-client. You can usually identify when this happens by the language used in the negotiations, Brokers tend to use generalisations all the time, they stay away from specifics. Their whole talk revolves around Dollars. Now of course some may give you an imaginary scenario but that can also expose weaknesses in their negotiations

Work with what your happy to sell for/receive. This is like talking about domainers buying your domain. Of course it happens. they also sell on for a profit. Brokers or domainers brought that potential sale to your door, I'm happy with that.

Every time you buy something from a shop or online your probably just been hiked by up to two thirds but we don't question that. It's all part of the business service provided. I see it the same with brokers.

I've mentioned it before. many years ago I sold the domain Touch/Note in com for a price I was happy with. Only to be barraged by daily tv adverts a few months later. It was a service for online ordering of greeting cards by a major service player. their service probably brought in millions of dollars. I had to laugh. For me the domain was worth what I sold it for

 

[tldboss]

I charge what I want, don't care if a broker charges more, as long as deal is completed. For me, sale > transparency. Recently got paid a bit more than I expected after fees, lead me to believe broker charged more, happy I got what I wanted and a bit more.

 

[capybara]

have insights into how to ensure transparency in domain transactions

You can insist on using a "transparent to seller broker transaction" or "transparent to buyer and seller broker transaction" at Escrow.com, if this is essential to you.
https://www.escrow.com/support/faqs/what-is-a-transparent-to-seller-broker-transaction

But, whats really important is whether you get the price you want. Brokerage (legitimate, not clown) is about having status, connections and influence so the person may be able to get the terms you would never achieve with the same customer if dealing directly, so the broker's margin shouldn't be always perceived as something you "lose".

 

[othellotech]

My concern is this: Could the broker potentially misrepresent the agreed-upon price to the buyer, stating that we settled at $20,000 USD instead of the actual $12,000 USD? This would create an $8,000 difference, which would presumably go to the broker.

Whilst it's possible the broker has a different "sale price" agreed with the buyer (and I've seen it happen on smaller amounts), any decent broker or brokerage cares more about their business and reputation than to play that sort of game.