If you are looking to sell or buy a domain, the probable solution is to find a domain broker. Alternatively, you can do the legwork yourself. In my experience, I have found domain brokers to be the most reasonable option (and profitable too).
So, let’s dig in deeper and find out exactly what domain brokers do and how you can go about choosing the right one for your online business.
What Does a Domain Broker Do?
A domain brokerage is a website that facilitates the buying and selling of websites. It is more like an auction or a home sale. If you have a domain name to sell, you can list on one of the domain brokerages.
Those willing to buy bid in each site and the price goes respective to each offer. In the end, the highest bidder gets to buy the domain name and the domain name broker takes 10-15% of the total sale price.
The whole process can take up to a couple of weeks to several months or years! It all depends on the price of the domain, traffic, malware vulnerability, and a lot more.
Why You Need a Broker
You can absolutely go about buying or selling your domain name without the help of a broker. Fair enough. But really, if you’re a serious site owner or business owner you already have quite a handful of daily activities going on.
To buy or sell a domain without a broker, you’ll have to do all the work yourself. If you are selling a domain, you need to prepare your website for sale and find buyers from whom I don’t know where.
Now, ask yourself these questions before you start marketing your website on social media (probably not the best place by the way):
- How well do you know about auditing a website?
- Can you properly evaluate your website or any other website?
- How many potential buyers do you have on your mailing list?
- How many domain names have you sold before? And at how much?
If in any of these questions you were like “uhmmm…,” then you definitely need a domain broker to help you out. A domain broker has all the access to resources that you’ve never heard of. They have both the experience and expertise to properly evaluate a website and properly price the domain to the right pull in the market.
The most useful weapon a domain broker holds is connections. They most likely know buyers and sellers and can use a whole lot of strategies to find them. You’ll really struggle in case you decide to go the DIY way. Brokers have the urge to sell high and will do everything possible to find the right value for your domain name. Even if you are buying, a domain name broker will break down all the intricacies of the domain without compromising or short selling the domain.
How to Find the Best Broker
Domain name brokers can be either agencies or individuals. A simple way to determine the right is through careful research. Make sure you go through every detail of the broker. To make sure no stones are unturned, we have compiled a list of concerns you can consider when looking for a domain name broker.
1. Is the broker registered to any large organization?
Since you might never get the chance to meet your broker, it is only right to make sure they have all the necessary certifications. In most cases, certified domain brokers usually deliver and are more trustworthy. You can go further and ascertain the kind of community these domain brokers belong to.
Domain name brokers registered with well-known organizations such as the International Business Brokers Association, or Certified Broker provides a better competency and professionalism.
2. How well is the Domain Broker Answering to Your Questions?
You want to go for a broker who has all the information you need: shy away from brokers who don’t seem to be sure of anything you ask them. Brokers with vague responses are susceptible to fraud and other malpractice.
Let the broker be clear on critical information such as track record, payable commission, their role in the whole process, among other things before you advance.
3. What Do Other Clients Say About the Broker?
You need to go hunting for red flags and other information that might discredit the domain brokers. Of course, no one is 100% pure, but most domain brokers rip off from unsuspecting clients. Check customer reviews and see what others are saying.
Community forums are also full of honest information from real customers who have dealt with the broker first hand. You’ll be surprised at how some large domain brokers are simply overrated and have thinkable mishaps like poor customer relations.
4. How many domain listings does the broker have?
Most domain brokers will use their sites to showcase the domain names they have for sale. If they have many active listings, then they are probably legit. On the other hand, fewer listings might indicate a red flag but with an exception of new domain brokers.
You wouldn’t want to deal with an inexperienced broker, especially when the stakes are high and you want to buy or sell a six-figure domain. Generally, a broker with 10 to 20 active listings is okay for me.
5. How anonymous are their listings?
Imagine owning a domain that earns $300k a month and close to 20 employees on board? Cool, right? Now imagine having to deal with employees who find out you’re selling the whole business? And, to make matters worse not from you but a broker website?
The most obvious scenario would be quitting without notice and a rather slack in performance. Luckily, most brokers never reveal full information until during the final stages of the deal. Your ideal broker should be able to do the same.
Finding the right domain broker will require a lot of deep research but once you’re through, the hard work is definitely worth it. Brokers will ease negotiations, do correct site valuations, and also save you a lot of time. Site brokers ease the process involved in website trade and make things more accessible for both parties. Whether you want to buy or sell, domain name brokers will optimize the amount of money you’re supposed to earn.