NameSilo

The FUTURE of Domain Name Brokers and The Long Tail

Located in General Domain Discussion, started by Rob Monster, Feb 20, 2020

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99
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5,774

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What do you think about the arrival of a vast number of domain brokers into the industry?

  1. The More the Merrier!

    34.3%
  2. I am dreading them

    7.5%
  3. I doubt I will notice a change

    43.3%
  4. I am already broke

    6.0%
  5. This thread is stupid

    9.0%
Total: 67 vote(s)
  1. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    How many domains does a disadvantaged but talented person in one of the emerging economies needs to buy in order to do as you say. The lack of capital in some of these places is what makes it difficult for people to get started as domainers and I believe is the issue that Rob is trying to address here, although as I have already said I am not that much of a fan for arbitrage specially if it is being done without the domain owner's permission or even knowledge.

    IMO
     
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  2. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO VIP Gold Account

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    This is not quite what I meant here.

    The brokers in this example will be practicing what we refer to as a "broker spread". They are securing a domain for $X and selling for $Y. They are banking the spread.

    So this is not about earning 10-20% commission on a sub $1000 domain. This is about arbitraging one man's rotting trash into someone's else's recycled treasure.

    I hope to make that more clear in this thread as that is the essence of what NameLiquidate is about. The missing ingredient has been scalable, viral demand that pushes sell prices much higher for sellers.
     
  3. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO VIP Gold Account

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    The scenario being discussed is limited to perishable inventory where the seller would have otherwise gotten zero if sent through the registrar's expiry stream.

    So, we are talking 100% upside. The operative question is whether we can get the seller a sale at $1000 or at $9. If there is a retail flip on the other side of the trade, the $1000 liquidates will be frequent.
     
    Last edited by a moderator: Feb 20, 2020
  4. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    that sounds good as long as it's being done with the domain owners permission, and as long as the domains are being promoted to end users properly (to avoid mass emails and spamming).

    Perhaps you need to have a training course for those who want to become brokers.

    IMO
     
    Last edited: Feb 20, 2020
  5. Recons.Com

    Recons.Com Top Contributor VIP

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    Come on now!

    1. If you have skills to do outbound and get around 10% of sell through, you need just 10 domains for 1 sale or invest as little as $50 and earn $300. And now, you have $300 to buy 50 names, sell 5 etc.

    2. You are focusing on much smaller problem of having $50 to start a business for a "disadvantaged but talented person", while forgetting that this person will have to overcome much bigger problems of a) language barrier; b) buyers being in the rich countries where they will distrust anyone from a developing country; c) other disadvantages like not being able to provide a phone number or make a call etc.

    There is a reason brokers focus on top names and that is that selling names involve considerable effort. It makes more sense to spend 5x more time and effort and sell $xx,xxx name for 15% than work for 20% or even 50% commission for a $500 name.

    It also doesn't make sense of working for 20% when you are doing the 80% of the effort/investment, as the owner invests only his $5-20, while you might need to spend hours.
     
  6. Recons.Com

    Recons.Com Top Contributor VIP

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    Thanks for clarifying. So he is effectively buying the name at $x. That wouldn't be brokering though. That would be selling your own name?
     
  7. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    In the general discussion again promoting Epik, Name Liquidate, Name Brokers, etc.

    In the future please remove "This thread is stupid" as an option and replace it with "This thread is self promotion".

    Brad
     
  8. oldtimer

    oldtimer Do some good for humanity and the environment VIP ★★★★★★★★★★

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    According to Rob there are people who already have become successful in selling domains once they have been able to overcome the $50 or $100 dollar barrier that they needed to get started, and yes $50 dollars could be a big barrier to a lot of the people who live in some of the more disadvantaged places around the World.

    As far as lack of communication skills and not having proper contact credentials, keep in mind that they can get started by selling domains in their local areas and then move up from there.

    IMO
     
  9. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    Well said.
     
  10. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    If you are struggling to get $50 you are likely from a country with a weak economy.

    In that type of country where people are struggling to pay for basic necessities, how big is the pool of potential domain buyers you can deal with locally? Not very big.

    There is really nothing new in this thread. There have been spam farms for years sending out endless emails selling domain names that they don't actually own, using labor from developing countries.

    Brad
     
    Last edited: Feb 20, 2020
  11. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    https://www.thedomains.com/2013/01/...hy-do-they-keep-sending-offers-never-respond/

    https://www.sweetmantra.com/2013/05/how-to-deal-with-alex-the-domain-sales-spammer.html
     
  12. Ostrados

    Ostrados Entrepreneur VIP

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    Firstly, dont sell something that you dont own.

    Secondly, to broker a domain you need verbal or written authorization from the domain owner and you must be transparent with the domain owner about selling price and commission!


    Thirdly, This idea is simply what some frontrunners do in auctions, front running is not permitted in all auction platforms, Epik is the first to allow and encourage it in their nameLiquidate platform!

    You can search about front running in this forum, and you will learn that it is a disrespectable practice
    Negotiating with Front runners

    Finally, front running is not brokerage, so I think the title of this thread is misleading.
     
    Last edited: Feb 20, 2020
  13. Don Gondon

    Don Gondon Established Member

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    Why? There is no reason for such "must", Escrow.com runs confidential transactions and non-transparent to either buyer or seller transactions, as these are pretty common. If you are strictly against such practice you might be losing some sales.
     
  14. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    Well, policy aside, I personally would not be working with a broker who was not willing to be transparent.

    I guess it depends how you define "transparent" though.

    Brad
     
  15. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO VIP Gold Account

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    For those who missed it, the plan is to introduce "Broker" feature right inside of the name liquidation service.

    What this means is a 3rd button for "Escrow":


    upload_2020-2-20_9-49-30.png

    So, there are 3 buttons:

    - Buy Now
    - Place Bid
    - Broker

    If you press the Broker button, then the following:

    - Broker is reserving the domain for 7 days
    - Broker pays the transfer fee with a deposit fee sufficient to cover the transfer fee

    If Broker does not complete the sale within 7 days, the lose their deposit and the liquidation auction can resume unless the seller cancels the auction having just gotten a free domain renewal for their trouble.

    It seems to be full of win. I agree that the broker representation should be EXCLUSIVE and TRANSPARENT. All in favor?
     
    Last edited by a moderator: Feb 20, 2020
  16. bmugford

    bmugford www.DataCube.com PRO VIP ICA Member ★★★★★★★★★★

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    Good luck with a likely inexperienced seller from a developing country trying to sell a domain to a US lawyer.
    It is one of the hardest fields to make a sale in period, never mind under those circumstances.

    Brad
     
  17. frank-germany

    frank-germany domainer since 2001 / musician VIP

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    come on, Rob
    is that a non-promotional post????

    "just helping other domainers
    in leading them somewhere" ????
    who knows where.

    time = money

    mad ideas = time and money spent

    welcome in the Adam Dicker's "lets create webpages and sell them to local business owners
    buy them from me for only 1.495 USD" club of scammers.
     
  18. Samer

    Samer Top Contributor VIP

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    Rob, as i told you in DM...

    Dont be like other Uni “brokers”

    still get “another part interest” since 2014 :ROFL:,
    don't appreciate their tactics, doubt party exists

    Samer
     
    Last edited: Feb 20, 2020
  19. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    This may be discussed in connection with a regular marketplace. Not NameLiquidate. NameLiquidate is exclusively domainer-2-domainer platform (at least by original design). So, there is no space for brokers (even legitimate brokers with owners approval), saying nothing about frontrunners...
     
  20. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO VIP Gold Account

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    Let's think about this for a second.

    Domainers are liquidating domains. They bidding starts at $1000.

    Now, a broker comes along and has an idea who should buy it. Why would you deny a broker the opportunity to put skin in the game to go close a deal with a retail buyer within 7 days and bank the spread?

    I can see why buyers just want the inventory to fall to $9, but from a seller's perspective, is there really any downside to having risk-free help to sell your domain?

    Perhaps we need to add an optional "Broker" button to marketplace listings generally to allow domain owners to secure the assistance of brokers on mutually agreed terms.

    My thinking was to start with NameLiquidate because we are talking about inventory that the seller is LIQUIDATING and presumably will appreciate ROI of some kind.

    So, thinking with your SELLER hat on, what is wrong with free help to sell a domain you are dropping?
     
  21. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    As a buyer, I want the full inventory with decreasing prices. So, on this stage, I cannot appreciate an inventory disappearing or becoming otherwise limited. NameLiquidate customers are both buyers and sellers, equally, just on different domains. By introducing brokers to NameLiquidate, Epik is punishing regular buyers - its customers base, domainers, who are expected to make money naturally - by purchasing the liquidation domains first, and selling or otherwise monetizing them only after the purchase.
     
    Last edited: Feb 20, 2020
  22. Rob Monster

    Rob Monster CEO, Epik Epik.com Staff PRO VIP Gold Account

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    Now, try once more with your SELLER hat on.

    I know it's hard but role-play for a second.
     
  23. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    What for? I consider myself as a buyer of some domains. And as a seller of other domains. The platform should equally care. Brokerage is good, but on a regular marketplace. Not on a liquidation one!
     
  24. BaileyUK

    BaileyUK Top Contributor VIP

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    More wishful thinking from Rob. Yeah suddenly all these poor souls that probably lack a decent education to boot (not their fault) are suddenly going to become experts in identifying good domains, identifying good prospects, have good financial and business skills to supplement their already great negotiating skills.

    Dream on

    This reads like another promised land thread, for those gullible enough to believe Yeah I too can become a millionaire overnight if I'm willing to believe.

    Praise the ROB and you too will be rewarded
     
    Last edited: Feb 20, 2020
  25. Ostrados

    Ostrados Entrepreneur VIP

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    That is not brokerage, a broker is just a mediator between seller and buyer with a fixed commission, what your describing here is more like drop shipping in e-commerce, in auctions it is called front running. It is not suitable for nameLiquidate IMO, you may need to make separate name broker platform but should come with clear guidlines and transparent agreeable commissions.
     

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