Why a Domain Broker Keeps Sales Private
Most domain brokers and brokerages are happy to report a successfully closed sale, and some report acquisitions as well. Each week, we see dozens of sales reported from some of the well known domain name brokerages. A solid public sale reinforces the aftermarket value of domain names, and it can also augment a domain broker’s reputation as someone who is able to get deals done at a high level.
Despite the fact that domain brokers can benefit from publicly announcing sales, there are important reasons for them to not disclose sales.
- Don’t want to reveal private clients – When a public sale is announced, it let’s observers know who bought a domain name and who sold a domain name. The broker may not want to give competitors opportunities to poach clients. Additionally, other domain investors may approach either or both parties to the transaction to try and sell or buy domain names without a broker.
- Harm acquisition attempts because people know who they represent – Discretion is important for some domain buyers, especially those who have significant amounts of money or have significant funding. If a domain owner is approached by a broker that is known to represent certain clients, it makes acquiring domain names more challenging, even if the wealthy buyer is not being represented.
- Shows they can be discrete – When a deal goes under the radar and is not reported, it shows that the broker can be trusted with private information. Since it can help a broker to have public sales reported, a buyer or seller involved in a private transaction can know that the broker values discretion over publicity, even if that publicity can help the broker acquire future business.
- In the middle of other deals – If a broker is in the middle of several acquisitions (or sales) and doesn’t want to risk the other sales from falling through, they may opt to keep individual deals private.
Some people wonder why there are so many unreported private sales. Not only does it often benefit a buyer or seller that requests a non-disclosure agreement, but the broker may insert a NDA in their sales agreement to protect their interests as well. It may seem counter intuitive for a domain broker to request privacy on deals, but it can actually help their business.
Separately, if you are looking for a domain broker, here is a list of domain brokers.
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