question How much commission should I pay for someone who connected me to a buyer?

[LOLed]

I was selling my domain on a platform similar to Namepros and someone contacted me that they have a buyer. Their role was only finding and sharing the domain stats (is a traffic domain) with the buyer that I provide and I have to deal with the Escrow, payments, due diligence etc...

How much commision should I give as a finder's fee?

 

[biggie]

Hi

big difference between a finders fee and commission.

still, both or either should be specified prior to.

but it’s your call whether you give a thank you or a small donation

imo….

 

[Ch. Humayun]

Normally 10%

 

[johnn]

Good name 10-20%
Bad name 50%

 

[Eric Lyon]

Sounds like a Bird Dog fee to me...

For example:

• A bird dog commission is a finder's fee paid for providing a lead on a potential buyer of a domain name.
• A broker commission is generally a regulated fee for facilitating and managing a transaction for a domain name.

Note: The key difference lies in the legality, licensing requirements, and scope of work for each role. There's obviously way more work involved brokering a domain name than there is simply handing you a lead and you doing all the work to close it.

Typical commission percentages:

• Bird Dog = 2% to 5%
• Broker = 10% to 25%

The above should be a safe guestimate, but you may want to do more research to determine what you're comfortable with paying, that you can justify based on the scope of their involvement.

 

[LOLed]

Hi

big difference between a finders fee and commission.

still, both or either should be specified prior to.

but it’s your call whether you give a thank you or a small donation

imo….

Sounds like a Bird Dog fee to me...

For example:

• A bird dog commission is a finder's fee paid for providing a lead on a potential buyer of a domain name.
• A broker commission is generally a regulated fee for facilitating and managing a transaction for a domain name.

Note: The key difference lies in the legality, licensing requirements, and scope of work for each role. There's obviously way more work involved brokering a domain name than there is simply handing you a lead and you doing all the work to close it.

Typical commission percentages:

• Bird Dog = 2% to 5%
• Broker = 10% to 25%

The above should be a safe guestimate, but you may want to do more research to determine what you're comfortable with paying, that you can justify based on the scope of their involvement.

Thanks for replying guys. So they found the buyer and talked to them and I will handle the transaction and Escrow. I did not know that they would want a commission but they told me after the deal was finalized.

Is 3 to 5% okay?

 

[Eric Lyon]

Thanks for replying guys. So they found the buyer and talked to them and I will handle the transaction and Escrow. I did not know that they would want a commission but they told me after the deal was finalized.

Is 3 to 5% okay?

Ya, personally, it sounds like a bird dog, so 3% to 5% is acceptable since they didn't do the negotiating and closing. You have/had to do all that work. If the talk they had with them, you mentioned, included having to pitch and rebuttal, then maybe slide it up to 5% to 8%.

You can explain it to them like that as well if they feel compelled to ask you for more money.

 

[BaileyUK]

I think a lot depends on the final selling price. I'm guessing it's lower than your listed price, hence the direct contact. but are we talking 200 or 2,000 dollars.

Giving anyone an amount below $20 on a $200 sale is a bit of an insult. However, If this X.XXX plus sale I doubt I'd be paying more than 5% as a finders fee

 

[bmugford]

It depends what they actually did.

How did they find the buyer?

Was it an existing contact they had?

Were they pitching your domains with permission?

I have paid fees in the past around 5% - 10% in similar situations on the sell side, or buy side if someone brings a domain to me.

It also depends on the sale price. 5% on a $200 sale is basically nothing.

Brad

 

[biggie]

Thanks for replying guys. So they found the buyer and talked to them and I will handle the transaction and Escrow. I did not know that they would want a commission but they told me after the deal was finalized.

Is 3 to 5% okay?

Hi


if they were professional, straightforward people, then they would have mentioned a commission initially.

don’t wait until after you make a deal to ask for $
as is, you could have assumed they were doing it out of kindness

I do shit for folks and don’t ask for a dime

also, ask buyer to pay escrow fee, so at least you won’t be paying out both ends in case you decide to pay the lame-o a fee.


imo….

 

[LOLed]

Ya, personally, it sounds like a bird dog, so 3% to 5% is acceptable since they didn't do the negotiating and closing. You have/had to do all that work. If the talk they had with them, you mentioned, included having to pitch and rebuttal, then maybe slide it up to 5% to 8%.

You can explain it to them like that as well if they feel compelled to ask you for more money.

I think a lot depends on the final selling price. I'm guessing it's lower than your listed price, hence the direct contact. but are we talking 200 or 2,000 dollars.

Giving anyone an amount below $20 on a $200 sale is a bit of an insult. However, If this X.XXX plus sale I doubt I'd be paying more than 5% as a finders fee

It depends what they actually did.

How did they find the buyer?

Was it an existing contact they had?

Were they pitching your domains with permission?

I have paid fees in the past around 5% - 10% in similar situations on the sell side, or buy side if someone brings a domain to me.

It also depends on the sale price. 5% on a $200 sale is basically nothing.

Brad

Hi


if they were professional, straightforward people, then they would have mentioned a commission initially.

don’t wait until after you make a deal to ask for $
as is, you could have assumed they were doing it out of kindness

I do shit for folks and don’t ask for a dime

also, ask buyer to pay escrow fee, so at least you won’t be paying out both ends in case you decide to pay the lame-o a fee.


imo….

Thanks again everyone! I agreed to pay 4.5%, and the amount is > 10k USD