Domain brokers -- plz explain?

[denniss]

Hi all,

I was looking into domain brokerage, but I didn't quite get all the essentials...

Let's imagine that I have a portfolio of 10 sites to sell at once, and I think a domain broker would be of help because my reach is limited to a number of forums and auction sites.

#1 - How does the brokerage process work? Are there any papers to sign, do you need to transfer your domains to the broker before he can start selling them? Who gets paid after the domains are sold?
#2 - Do you establish the selling price yourself or let the broker pick it?
#3 - Is there a "standard" industry rate for brokers? What is it approximately?
#4 - Is it possible to have more than one broker at a time?
#5 - In a case when you have a lot of sites, is it better to offer them as a portfolio to the broker, or go one-by-one?
#6 - Are there any "specialized" brokers? For example I have some domains with .uk extension, do I need a special broker that deals in UK market for that? Likewise I have some domains that relate to financial business sector, do I need to find a broker that specializes in that?
#7 - How do I know that the broker is good and actually doing something? Do you stop advertising your domains after you've got a broker?

I know it's a lot of questions, but I'm really new to this, so I'd really appreciate your help.

 

[katherine]

#1: Simply put the broker is a third party between the owner (you) and the buyer. He will pitch the name and find buyers on your behalf.
It is always better to formalize agreements with a contract. Written agreements are easier to enforce and more secure for both parties.

The process works like this:
When a buyer is found the broker will secure payment from buyer then he will transfer ownership of the domain to the buyer with your assistance. Until then you remain the owner and do not have to relinquish control of the domains.
Finally the broker will release the funds to you (minus their fee) when the domain(s) have changed ownership.
So the broker is usually doing the escrow. Sometimes an additional trusted party like a lawyer may be used for that purpose.
#2: First step prior to selling is to determine fair market value. The broker can help you determine fair value. You can also ask on this forum for honest opinions from domainers.
You will usually set two prices:
- desired price: your target price simply
- reserve price: the minimum amount at which domain could be sold
#3: From 10 to 25% (depending on amount of commission too)
#4: Yes but depends on the terms that will be agreed upon. Obviously brokers will often want a period of exclusivity.
#5: It really depends. If the names are very closely related or the same keyword in different extensions it would make sense to sell as a whole.
#6: Obviously a broker is not familiar with all industries or domain extensions. So yes they are often more or less specialized. It also depends on their connections with the industry.
#7: Word of mouth for example. Good reputation and strong ethics is paramount in business, including domains.

 

[Rockefeller]

And contrary to popular belief, you can't sell ANYTHING through a domain seller. Just because you see someone selling domains and you can't sell your crappy domains, doesnt mean that we can or will. That's not towards you, but I get PMs alot asking to sell domain names for $200,000 and they were created yesterday.