Difficult for Me to Buy via Broker
There are quite a few exceptional domain brokers who work diligently on behalf of their clients. There are many great reasons why a person should use a domain broker to sell a domain name. As someone who buys domain names regularly, I find it difficult to buy domain names from brokers though.
The majority of excellent domain brokers I know spend a great deal of time contacting prospective end user buyers. They call on the phone, they send emails, they meet in person…etc. When they sense a prospective buyer is preparing to make an offer, they do whatever it takes to answer prospects questions and ensure the prospect understands why the domain name will add value. In short, the best brokers do what it takes to sell their clients’ domain names for as much money as possible.
As someone who invests in domain names, these excellent brokers make it tough to get good deals.
The greatest issue for me is that a great broker will contact everyone that could have an interest in the domain name. He or she will use all of their expertise to find buyers, and they contact anyone that is qualified who might even have a slight interest in the domain name. What makes a broker great is their ability to make connections and close a deal. If all of these people have been contacted, who am I going to sell the domain name to when I am ready to sell?
Another major issue is that if I agree to a deal, it likely means other people who regularly buy domain names likely passed on the same deal. Yes, this happens in auctions every day, but when I spend 4 or 5 figures on a domain name that my peers passed on, it makes me wonder if I am missing something.
A final issue that I see is that a great broker may set their client’s expectations too high. They may tell a client they believe they can sell a name for $100k. When an end user doesn’t materialize, a domain name buyer may offer $10-20k for that name. It’s hard for a domain broker to convince a client to sell a name for 80% less than he originally thought he could get. Unless there are urgent cash needs, the domain owner will likely hang on to the name.
Of course, there are exceptions to this. Some brokers have clients who value a quick close rather than making the most money. Knowing the business, I can make a purchase decision and execute a deal within minutes. Brokers know there are people in the domain business who agree to good deals in a matter of minutes and can fund escrow shortly thereafter. There is less hand holding, and they can almost be certain the deal won’t have complications.
I have bought quite a few domain names via broker, but this channel is probably the most abundant channel I barely use to buy domain names. I like working with domain brokers, and it’s a tribute to their
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