Being a domain name broker seems like it could be lucrative, and for the best domain brokers, it is a great job. Domain brokers represent domain name owners who are trying to sell their valuable domain names and they make a commission on successful sales. Aside from their time and marketing expenses, brokers rarely have a financial stake in the domain names they are selling, but the potential reward on a large sale may be considerable.
I am not a domain broker, and I want to share the three primary reasons why I am not interested in becoming a broker or working with other domain owners to sell their domain names.
There are many possible ways for a deal to go bad, and I have no interest in exposing my company to any additional legal risk. If a prospect takes legal action (UDRP or Lanham Act lawsuit) after the broker makes contact, the seller may sue the broker. If the seller decides against selling the domain name after a deal is consummated, the buyer may include the broker in a lawsuit.
There are many reasons someone can be sued, and I have no interest in exposing my company to this risk. Keep in mind that there are ways to mitigate this risk via contractual means, but there is always a risk of litigation.
When I left my corporate marketing job nearly 7 years ago, I was happy that I would not have to work for someone else. I am self-motivated, and I enjoy being able to make my own business decisions and plans. When brokering a domain name, the broker can be at someone else’s behest. Should the owner decide not to sell a domain name after the broker works on selling the asset, it can be difficult for the broker to force the seller to sell. I wouldn’t want to do a good job and potentially lose the listing because a domain owner decides not to sell.
A broker may be able to encourage someone to sell a domain name at a fair offer price, but the decision is someone else’s to make. I don’t want my income to be determined by someone else.
Many brokers give status reports to domain owners to let them know how the sale process is going. I don’t want to have to report to someone else or have someone checking in on me. It’s a luxury to be able to make my own schedule and basically do as I please, and I don’t want to change that.
Although I don’t have a huge domain name portfolio, I have several hundred domain names at any given time. I have been doing less end user outreach this year due to some larger sales and the desire to await inbound inquiries. If I were to spend time trying to sell domain names, I should spend my time selling my own company’s domain names. It wouldn’t make sense for me to spend time selling someone else’s domain names when I have my own to sell.
In addition, selling domain names takes quite a bit of time. I have a blog to write and other websites that can use improvements and additions. Instead of spending my time working on brokering names, I should spend it on my own business.