How do domain brokers negotiate big deals for buyers?

batsman2015 · Dec 5, 2015

We are launching a new company next year and are in the process of finalizing the name/branding. As always,the perfect domain name is taken. Its a 4 letter .com word and is registered by a Chinese individual/company. We do have a few options but this domain will help us win over competition immensely as its highly brandable and easy to remember. It also defines the industry (it will be a sports ecommerce store) we will operate in which is the most important bit!

Now I realize the domain will be well over $50k and us having no experience in acquiring high worth domains before or dealing with Chinese domainers, its best to hire a professional domain broker. My understanding is that the broker will charge a percentage (10-15%?) of the sale price. In this case, wouldn't the domain broker want the sale price to be as high as possible to gain a good commission?How do I know my broker is relaying me the price which is the lowest the seller is willing to go,and not negotiating hard enough?

Can anyone recommend me a good broker to go after this domain?

Thanks guys!

Argentum · Dec 5, 2015

From my experience it's always better to deal directly, especially when you are trying to purchase name.

jkhg · Dec 5, 2015

You can set a flat commission of say $5k, for your target price of say $50k.
With the final price, you then pay 20 cents for every dollar that is below $50k.
So if let's say the final price is $40k, you will pay $5k + ($10k*0.2) = $7k.
This way the broker is incentivize to get a lower price for you.

batsman2015 · Dec 5, 2015

Domain-Reseller said:
From my experience it's always better to deal directly, especially when you are trying to purchase name.

Might have to do it myself if I can't find a decent broker/agree to terms

jkhg said:
You can set a flat commission of say $5k, for your target price of say $50k.
With the final price, you then pay 20 cents for every dollar that is below $50k.
So if let's say the final price is $40k, you will pay $5k + ($10k*0.2) = $7k.
This way the broker is incentivize to get a lower price for you.

This is a blood good work-around! I will definitely try this.Thank you!

But would brokers agree to this? Knowing that they can get a higher commission if they set a % on the final sale price..Would be interesting to know from anyone who has hired a broker to purchase a domain before.

James Iles · Dec 5, 2015

PM me the domain.

Silentptnr · Dec 5, 2015

Perhaps you should ask around for ideas that others think might be good for your business. You could very possibly save thousands and find a name that is just as exciting. I have found that there are usually alternatives that work very well. If you would like some ideas, send me a pm. It's gonna take some time to work it all out anyway.

80-20 · Dec 6, 2015

The common opinion among domainers is, that Chinese (investors) don't want to part with their domains and for that reason, will quote absurd prices.

Alternatives are always cheaper, and not necessarily inferior...

William V · Dec 6, 2015

I think dodo.com was owned by a Chinese investor.. he took 1 million to part with it.

batsman2015 · Dec 6, 2015

William V said:
I think dodo.com was owned by a Chinese investor.. he took 1 million to part with it.

I think the Chinese investor did a lot of research and background check before selling it. Seeing that an internet company wanted to buy it, the investor probably had no issues asking for such a big price. The buyer did a bad job in hiding their company info!

serryjw · Dec 6, 2015

IMHO you don't want to do this yourself. The language barrier would make this impossible. George at Guta.com is probably a fine choice.

http://guta.com/en/buy/
http://www.thedomains.com/2015/09/19/george-hong-of-guta-com-brokers-dd-com-domain-name-sale/

AbdulBasit.com · Dec 6, 2015

William V said:
I think dodo.com was owned by a Chinese investor.. he took 1 million to part with it.

Correction - It was DUDU.com and not DODO.com

mwzd · Dec 6, 2015

Considering dudu just forwards to liveschool - a ppc lander, I'm thinking the person who paid $1M for it is a dodo, or the sale isn't completely kosher.

My suggestion to most startups is to the buy the best domain in their budget, though sometimes stretching for the best can make a major difference, but you don't have to do it on day one, even Facebook started off as TheFacebook.