Pros & Cons of Using a Domain Broker
There are many advantages of engaging a domain broker to sell one or more of your domain names. Companies like Sedo, Afternic, MediaOptions, and others sell millions of dollars worth of domain names a year, many of which are sold privately with non-disclosure agreements preventing the sales prices from being released.
Like everything, there are also downsides to working with a domain broker. I want to give you some pros and cons to using a domain broker to sell your domain names. Feel free to add any I missed.
Pros of Using a Domain Broker
- They have experience selling expensive domain names.
- They know who the biggest buyers in the domain space are and most brokers have an extensive mailing list.
- Brokers should know the market well, and they can give you an idea of what you can expect for your domain name.
- Domain brokers will know how to get your domain name in front of the right person/people at a company when selling to end users.
- You won’t have to worry about negotiations because they will work out a deal on your behalf.
Cons of Using a Domain Broker
- Commission rate may be high simply for sending an email to client list.
- No “real” market regulations, so you may never know if they’re 100% working on your behalf when they sell to another domain investor.
- You may have to give them exclusivity for a period of time, which will prevent you from selling the name elsewhere.
- If you have a name that’s listed exclusively with a broker and you receive an offer elsewhere, you may have to pay a commission anyway.
- Broker may not do more than email his client list, and may not reach out to end users on your behalf.
- If your domain name isn’t as valuable as others under contract, it may not receive as much attention as it should.
Reach out to Elliot: Twitter | Google + | Facebook | Email