For a buyer, create a goal and set a budget.
There are also many options for a premium seller. If choosing to use major websites to list your assets, we recommend setting a fixed price for faster resale at that time. If marketing domain names via end-user outreach, still employ someone to help with the closings. Even newsletters, blogs, forums, social groups, and other networks can help bring an offer. For the best chance of success use the established domain brokerage networks.
First ask your domain broker: Are you a licensed business broker? A licensed business broker may be more qualified to handle your asset. These professionals take a more systematic approach to valuations, they have well defined professional networks, and they better protect through defined agency relationships. Each can refer qualified professionals for all other needs that arise down the road. Take care not to assume that the best domain brokers are licensed because only a handful in the industry have one. A few of these domain brokers have massive networks and know how to get the job done on the buy or sell side, but do not expect too much from the guy you met on a forum or just wait until buyers come to you.
How are you paid? Some brokers charge a retainer or upfront flat fee to be a domain buyer’s agent or domain seller’s agent. The buy side broker may get a fixed fee on a deal for a stealth domain name acquisition which the client has been eyeballing for years. The sell side broker may want to cover the costs of a press release, advertising campaign, or end-user marketing plan. Most domain brokers in general can charge between 5-15% of the transaction. A rule of thumb for a good domain name could be around 15 percent commissions with no costs to you. Business sales would have a much lower percent perhaps; common structures similar to real estate industry guideline.
Is the relationship exclusive? A good domain broker will want an exclusive listing, which is fair because they put in the work and deserve to be paid. A buyer may want to know the agent works on a client’s behalf exclusively, preventing hidden dual side commissions. Some brokers are happy with the opportunity to help a client buy or sell and need no exclusivity at all. Some clients refuse the EBA so many brokerages can sell it. This is fair arrangement but does carry the risk that no domain broker will put in the real hard work of end user phone sales. Each scenario is different; so please take the time to make sure your relationships are properly defined.
How do you market assets? We like to send out a press release so that in that way all the keywords are optimized. The release notifies our competitors, and even sometimes the buyers, with Google Alerts. This helps when we begin the end user outreach which begins by hitting our social network of investors, domainers, and more. Then we pick up the phone and dial the 10 specific people our research determines to have the best chance of buying the asset. This process is also done via email, social media, physical mail deliveries, and other niche campaigns.
How do you find opportunities? The best opportunities we see are the ones no one else have seen yet. We get domain submissions to our website, social networks, and sales floor. Some are good, some are great, and some are highly amusing. We also have domain inventory knowledge from years of watching the industry, doing the research, and staying active in the business. We have a good feel for each of the domain brokerages, website brokerages, and private inventories, as well with daily updates. In addition, once a client brings a mission to us, we can brainstorm new opportunities for that niche or specific vertical. We pass this knowledge to our current investors in the form of great opportunities.
With what names do you work? We prefer to sell ultra premium generic one word domain names and revenue-producing ecommerce websites. Sometimes we sell two words or more, if it has high search paid advertisers and CPC’s. These names are mostly purchased and sold on behalf of another with which we have an agency relationship. Occasionally, we will buy or sell for our small portfolio as well. Names we cannot manage are redirected to best services or rejected. When dealing as a domain buyers agent, we can help acquire a specific asset desired and even properly manage seven figure budgets.
How are deals managed? Many questions can arise regarding deal management. Do you have a purchase and sales agreement? Do you have exclusive brokerage agreements? Do you have co-brokerage agreements? How is the deal done exactly? What about price? Who will handle the transfers? What is included in the sale? Are there any other hidden costs? What are my full rights? What are the risks? Recommendation: Hire a professional to help accomplish your goals; the value of our service exceeds the fee.
Do you have in-house escrow? Make sure you know all of your asset transfer options. We are a licensed brokerage business and have in-house escrow, if desired. We are comfortable using internet escrow services available on the market per negotiated request. Third party vendors normally have a fee of near 1%. Our services can include vanity phone number escrow, trademark transfers, domain or software lease options, varied capital financing options, and/or even real property transfers.
How else can you help me? We can build a relationship that endures. Domain management is lifecycle and similar to real estate investing. That is why you need real estate brokerage. We can help you invest, vest, or divest. Whatever step you want to take, we are there. Let us be your first phone call, dial 1-855-TO-DIVEST to speak to a domain or website broker today.