The FUTURE of Domain Name Brokers and The Long Tail

[Rob Monster]

Some of you will be familiar with the term "The Long Tail". It is perhaps one of the most famous articles ever written in Wired Magazine back in its hey-day. Chris Anderson is the visionary author. The old classic can be found here: https://www.wired.com/2004/10/tail/

What exactly do I mean by "Long Tail" Domains

There is a finite but knowable universe of people who will value the domain name TampaGolfLessons.com. If you can find them and engage them good chance that they value them for some price that allows them to earn a return from switching from what they use now to something better.

To illustrate, these are classic :"long tail" domains:

The Barrier to entry to become a Domain Broker is effectively zero

Why I think it matters to domainers is this: the super-brokers might not have any interest in brokering a 3 figure domain or a 4 figure domain because of the size of prize is too low, even at a 20% commission. Some brokers won't even take on a domain for less than 6 figures, again due to small size of prize.

On the other hand, in some parts of the world, notably in emerging markets, many people have more time and intellect, than they have money or domains. Nevertheless, they absolutely do have much to offer the domain industry by using their time and talent to connect supply with demand.

As we look ahead to the next phase of domaining, I foresee an explosion of Domain Name Brokers. The long-time brokers might perhaps dreading this day because they will up against a dual squeeze:

1. Godaddy, the aspiring monopolist, now has 1 million owned and operated domain names that they will be eager to sell through their channel to a vast retail customer base with a brokerage team who will be under pressure to add value and have access to a large proprietary data set about who buys what domains.

2. Emerging markets are about to serve up an absolute explosion of independent Name Brokers, who can make use of a fast-expanding array of free tools for finding who owns what domains, and can use secure ways to clear those transactions, e.g. through marketplaces and escrow services.


So what is a Boostrapping Domain Broker to do?

The good news is that brokering domains is a capital-efficient way for emerging market participants to bootstrap their way into an industry, even with little or no capital.

One way to get started might be to leverage a domain liquidation service - go find a domain that is newly listed, and try to find a buyer for that domain before the reverse auction ends. After all, the price keeps coming down while your prospective buyers can be bid up.

Many people might look at domain liquidation services on the last day, looking for expiring auctions to find the bargains. However, the contrarian move is a bit different and that is to look at the new arrivals, and not just for the mispriced domains but I think more importantly for the bootstrapper, the arbitrage opportunities.

Examples:

We plan to add a "Escrow" feature right inside of our domain liquidation service so that domain flippers can essentially send a domain into escrow, cover the transfer fee, and then have a short window to make good on their purchase. If they fail to make good, the auction resumes and the broker is out their transfer fee.

Looking ahead, we have larger ideas for how a fast-expanding pool of domain brokers could leverage a domain brokerage platform. Will share more on that if folks are interested in the topic.


Why a massive increase in the number of brokers is good news for (almost) everyone

The really great news for domain owners is that there will be a vast supply of highly energetic people who will be able to help connect supply with demand, and to get more supply into the hands of end-users. The end result of this is more liquidity in the domain economy, and higher retail prices for quality inventory.

 

[7363824]

For this to be done right, you should make it a separate platform for hiring domain brokers, for example sellers can list their domains they want to sell, brokers can pick the domains they are interested in, if both seller and broker agree on brokerage terms then the domain should be hidden/removed from the public list so that no other broker can see it.

I agree that's exactly how this should be done.

 

[Rob Monster]

I was talking to Adam on skype
and kind of liked him

And I am kind of rooting for the @Adam Dicker comeback. He is an innovator, and perhaps comes back wiser and stronger. That's my hope actually. I talked to him via phone earlier this year actually.

 

[Rob Monster]

I also believe that they should be kept separate,

another solution is to allow brokers on Name Liquidate only while the domains are above lets say $500 dollars.

IMO

Interesting compromise scenario there though not highly inclusive of the guy with time and talented but less $. I think the solution is to allow domain owners to set upon domain submission whether they allow brokers.

As for the NameLiquidate broker time window, 7 days should be enough for the broker to decide whether to pull the trigger on a domain for a domain prices at up to $1000.

After all, we don't want to tie up the liquidator's asset if their goal is to LIQUIDATE. The only thing the broker gets is a 7 day window to get the seller a decent price.

This thread is about brokerage so fair game to discuss vision for NameBrokers.com. @Ala Dadan will have some mocks to share soon.

The point here is to bring some structure and professionalism to name brokerage as the number of brokers increases quite materially as I believe it will.

In the meantime, for all those guys who are sniping bargains on NameLiquidate, don't worry, as the pie gets bigger, the inventory increases. There will still plenty of deals to be had. I am not worried there at all.

 

[tonyk2000]

I'm sure the potential buyer will be thrilled to be offered the same domain by five different "brokers"

Enduser may react this way then -

A plague on both your houses
(William Shakespeare, Romeo and Juliet)

... and avoid purchasing the domain in question today, as well as any other aftermarket domains in future.

 

[lock]

I will be the first for a true affiliate program where owner of the domain can offer commission to sell premium names and secure the deal where broker buyer seller all happy. I have ideas for marketplaces that offer advertising spaces for handpicked or keyword related domains displayed on the domain landing pages. So a second choice domain could sell a first choice due to them bringing the traffic. Eg: advertisebyemail dot com brings attention to emailadvertising dot com and makes sale profit shared. Eg thoughts today would be catchy with 50% referral and hand choosing some names but it all could be so much easier to do the same idea automated.

I love the guys that have owned 10 domains and have sold 3 so now a broker but seriously do because your proactive. laugh and praise you.

 

[tonyk2000]

Due to the collapse of the Venezuelan economy, there are now millions of Venezuelans living in Colombia and neighboring countries

I've personally spoken to Venezolanos who are now living in other South American countries. They leaved without any money and are looking for any type of job. As a matter of fact, high and upper middle class (medical and IT professionals most notably) migrated years before. A small %%% of the current migrants may find some success offline, but, honestly, I see no way for any of them to make $$$ in any type of online business, domaining including. No money, no appropriate qualifications, and, in many cases, lack of papers (no opportunity to open bank account as the result). The last but not the least, many speak only Spanish and can say just "hello" in English...

P.S. I wanted to include a couple of youtube videos (real, made by Venezolanos themselves and one independent Russian journalist) as to what really happens there... Scary. Horror. But this would be offtopic for this thread, and the videos are not in English anyway.

 

[oldtimer]

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.

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

 

[equity78]

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

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

 

[bmugford]

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.

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

 

[frank-germany]

For those who missed it, the plan here is to introduce "Broker" feature right inside of the NameLiquidate dialog.

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


Show attachment 145312

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?

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.

 

[ThatNameGuy]

Here is the thing:

If you have skills to do outbound for this kind of names, you are way better off buying your own inventory at $5 to $20 apiece and selling 10% to 20% of them at $300 to $500 each than working for commission on other people's stuff while also competing for the same inventory and end users.

I couldn't agree more....my inventory at an "average unit cost" of $8.50 will be coming to an "end user" near you And best of all, my inventory will be free as long as the "end user" pays shipping, handling and storage

 

[karmaco]

The main use-case is EXPIRING DOMAINS.

It is LIQUIDATION.

For people whose alternative revenue scenario is ZERO due to the domain expiring or being liquidated, even $9 is material. There are folks who turn around and buy 4 .CO names this week for $1.99.

That said, we are keen to drive more engagement on Day 1 rather than on Day 7.

Anyway, I hear you but nobody is suggesting to list the crown jewels on NameLiquidate.

I would re-frame the decision to being one of "something better than nothing". What we are talking about now is how to make that something bigger by enlisting help in a timely and effective way.

its called NameLiquidate. I can liquidate any name for $10, $100 , $1000 whatever. Good to know to only put expiring names there.

 

[timestamp]

In case everyone missed it, it's all about using cheap labor for max profit and using empowerment as a disguise.

 

[7363824]

Fair point and I think the solution is Broker Exclusives. The first broker to fund the transfer fee gets a 7 day window to try to flip that domain that is trading at $900 for more than $900.

That may address one concern but there are others too. I don't think NL is the right way to accomplish this. But I think there may be a way to accomplish this with a separate platform dedicated solely to this. If I as a domain owner could list domains that I think could have outbound potential but do not wish to do myself Epik could review and rate the opportunity and connect with those who don't have the means to buy their own names but wish to try brokering the names. It would be done with the consent of the domain owner, be exclusive to one "broker" for say 60 days, have a predetermined split between the owner and the broker, and could be processed by Epik escrow (which btw I am hoping will become available in Washington soon).

 

[Rob Monster]

In case everyone missed it, it's all about using cheap labor for max profit and using empowerment as a disguise.

Nah, that is a really cynical view.

Speaking for myself, the goal of empowerment and value-creation is sincerely sincere. The folks that we work with in emerging markets will certainly attest that we have been far from exploitative. To the contrary:

- Help close deals
- Issue empowerment grants
- Issue interest-free domain loans
- Provide a free online course
- Treat with respect.

I could continue but will suffice it to say that your comment is nonsense, Shame on you.

 

[timestamp]

That photo you posted is very empowering. And bible quote. No shame in that.
Mentioning vultures, no shame in that either.
Storage wars term is pooper scoopers. But thats to harsh for this forum. Vultures is more appropriate, and woman getting leftovers is more appropriate.

Why would anyone risk $8.49 for 7 days, when they can register something and have 365 days to sell it for the same price.

Something that does not sell in a year, you know what, I will sell it in 7 days.

I know a guy who can pull that off. And you know him too. He does miracles for a living.
(Hint: bible)

 

[frank-germany]

Adam Dicker never called people. He hid behind his computer screen like a damn coward and a thief. He did not respond to emails, phone calls, etc. He knew damn well he was scamming people. If Rob ends up scamming people like Adam did then I will eat crow for y'all but these two men are night and day.

I was talking to Adam on skype
and kind of liked him

 

[frank-germany]

There is absolutely NO WAY to compare @Rob Monster with Adam Dicker, who stole lots of money from me (and many, many others), who LIED to our faces, even had his henchmen lie to us as well, stringing us all along for months over months to the point where it went past the credit card dispute time period. He knew precisely what he was doing to everyone. Money that he promised to multiply ten-fold.

look at the idea of "shoot to the moon"
the concept is to buy discounted domains
at epik
either from nameliquidate
or at reduced reg fee

look at the concept of "I like .org"
or
look at the concept of
"I like hyphens"

all this convinces people of buying domains
they haven't been convinced of before

the profit is at is epik.
the risk is yours

you are upset
ok
that's your right

I hope you are not upset that Rob likes Adam

 

[NicTraders]

Thanks @NicTraders

In case not clear, the logic here is that to get the Broker Exclusive they have to fund the transfer. So actually, it is reducing the risk since instead of waiting until Day 7 of the reverse auction to start the transfer, the transfer is already starting immediately. The broker then has 7 days to fund a transaction at the strike price of the option, effectively getting the registrant a higher price in about the same time. Worst case, they get a free year of renewal.

Ah yes, of course, I forgot the transfer was actually actioned immediately.

As for the idea of portal for brokers, ICYMI, we have NameBrokers.com under development as a dashboard for brokers to manage their transactions while allowing them to:

- Feature their inventory
- Manage broker profiles
- Manage broker exclusives so there are not multiple exclusives on the same name
- Feedback on brokers (see TrustRatings.com for what that might look like)

No, I didn't miss NameBrokers, but that's a platform for Brokers, and like all other brokers at present NameBrokers only cares about "high-value digital assets" with the listings starting at 6 figures. The platform I think we are all talking about is a platform that would be for SELLERS AND Brokers (well that's what I envisage anyway). Something much more like Upwork where you can hire a broker for a $x,xxx domain just as easily as you can hire one for a $xxx,xxx domain. Something very different from NameBrokers.

 

[oldtimer]

I also believe that they should be kept separate,

another solution is to allow brokers on Name Liquidate only while the domains are above lets say $500 dollars.

IMO

 

[targetpro]

The future of domain brokers is non-existent given enough time. As is the future of any middleman or broker of anything. Ultimately they are replaced by efficient technology. Which is a good thing. Notice how the respected people in this industry seem to be really old people, especially the brokers. It is not like there is industry specific knowledge required to be a domain broker.

 

[Rob Monster]

@Rob Monster your entire platform is designed to displace brokers. Again, this is a good thing.

Well, not quite.

The platform actually empowers connecting supply to demand. If brokers facilitate in that process then absolutely they add value and should be able to earn a return for doing so.

 

[Samer]

Rob, as i told you in DM...

Dont be like other Uni “brokers”

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

Samer

 

[Rob Monster]

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.

Now, try once more with your SELLER hat on.

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

 

[targetpro]

@Rob Monster your entire platform is designed to displace brokers. Again, this is a good thing.