discuss Is domain brokerage a low-risk high reward business?

[abstractdomainer]

I was just contemplating the high value sales of names like Affiliate.com, LA.com etc by some of the industry experts and I concluded 2 things:

1) Domain brokerage business is difficult to start, low-risk high reward business
2) If you are a seller broker, it is essentially an outbound business

I think overall it's a good business where you could be working on multiple deals together once you have the hang of things and have developed contacts, and every conversions leads to hefty commissions (I have heard commissions as high a 15% but the experts can comments better).

What's your thought on the brokerage business?

 

[bmugford]

You have to bring something to the table. There are tons of amateur "brokers".

People with high quality domains want professional brokers with a strong track record.

It is not the easiest field to get started in. There is the chicken and egg problem.

How do you get quality domains with no history? How do you build a business without quality domains?

Brad

 

[NickB]

You have to bring something to the table. There are tons of amateur "brokers".

People with high quality domains want professional brokers with a strong track record.

It is not the easiest field to get started in. There is the chicken and egg problem.

How do you get quality domains with no history? How do you build a business without quality domains?

Brad

If you have or come from a strong B2B business background and have the right type of high level contacts at big, medium sized companies/corporates that would be a nice leg up - but yeah for the average Joe trying to start a domain brokerage sounds like real hard work

Even then, trying to broker multi million dollar or xxx,xxx deals is not as easy people think, hell even trying to negotiate x,xxx sales is hard enough

 

[jhm]

If you're the average guy (the average broker) trying to hit it big, you're just like everyone else...everyone wants to hit it big

A person that is looking to sell a domain of high quality, he / she is going to work with someone that can bring something to the table (as @bmugford said). Like in "any" business...average broker trying to sell a multi-million dollar painting, a valuable piece of real estate, a diamond, a deal selling scrap metal...bring something to the table

Your network, reputation, known track record, professional presence, ability to get things done, knowing what you're talking about...this doesn't just come, and the average guy out there (for the most part) is wasting his time. IMO

 

[lock]

I have broker related domains. But in reality if domains are great buy them off others and hold them as most will throw lists and lists in front of you that you don't feel worth the time. Don't feel required to build portfolios they do not help with the domain someone is enquiring about. The domain is the merit.

 

[lock]

One negative can be the portfolio. Lets say you hold geo + keyword domains and you registered every 2 word and found buyers. But buyers see you as you have entire industry then decide too hard you only dilute.

 

[cooljub]

A domain brokerage business is easy to start. How well it goes from there on is another matter, especially if the person starting it doesn't really know what they're talking about.

 

[abstractdomainer]

You have to bring something to the table. There are tons of amateur "brokers".

People with high quality domains want professional brokers with a strong track record.

It is not the easiest field to get started in. There is the chicken and egg problem.

How do you get quality domains with no history? How do you build a business without quality domains?

Brad

Agreed with it! Maybe start off with outbound, build your way up to certain number of sales in XXX range, do a couple of XXXX brokerage, and 1/2 XX,XXX. There you go! I know this is easier said than done and I agree with your point of view.

If you're the average guy (the average broker) trying to hit it big, you're just like everyone else...everyone wants to hit it big

A person that is looking to sell a domain of high quality, he / she is going to work with someone that can bring something to the table (as @bmugford said). Like in "any" business...average broker trying to sell a multi-million dollar painting, a valuable piece of real estate, a diamond, a deal selling scrap metal...bring something to the table

Your network, reputation, known track record, professional presence, ability to get things done, knowing what you're talking about...this doesn't just come, and the average guy out there (for the most part) is wasting his time. IMO

But isn't a pro guy an average guy that built up? How does an average broker become a pro broker, starting afresh?
Maybe network, ability to get things done and knowing what you are talking about is something they can try to develop.

A domain brokerage business is easy to start. How well it goes from there on is another matter, especially if the person starting it doesn't really know what they're talking about.

Finding someone who would allow you to sell their XXXX name for them may be easy. But having this as your sustainable business is a bit complex! I agree with this point of view but I think sustainability is going to be a challenge, unless you are planning to scale it to a level where one large deal a year would do the job for you.