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Brokerage Agreement Should Detail Everything

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Over the years, I’ve witnessed and heard about many disagreements between domain brokers and clients. There have been accusations of double dealing, poor representation, frontrunning, and everything in between. Many of these issues could have been resolved or clarified with a signed brokerage agreement.

Domain name sellers and buyers who are going to work with a broker should execute a domain brokerage agreement that outlines expectations and requirements. I imagine every professional and legitimate domain broker will have a standard agreement that can be used and modified based on the situation. The buyer or seller should have an attorney review the agreement to ensure their interests are covered.

Check Price History on Acquired Domain Names

Timing is critical with domain name sales. I may have a domain name for 10 years, let it expire, see it picked up by another investor, and it sells within a week. It’s that idea that keeps me renewing domain names I might otherwise consider dropping. A domain name may not be in demand until that one buyer wants it. This business can feel so random sometimes.

One thing I’ve heard and probably experienced is that some domain name buyers pay close attention to domain name pricing. They will track a domain name over the years and hope to buy it at a better price. That sometimes doesn’t come, but they’ll periodically check on a domain name. If they see the price drop to a comfortable level, they may purchase it right away.

Don’t Delay Registering Trending Domain Names

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I regularly see people discuss the possibility of domain registrar front running. In fact, I’ve written about this topic before. By and large, I can’t imagine any reputable domain registrars doing this today for many reasons.

Front-running accusations often stem from someone searching for a domain name at a registrar, seeing that it’s available, choosing not to register it, and later finding it has been registered when they check again. Whois privacy complicates this because the actual registrant may not be shown. In fact, with some Whois privacy services, it can look like the domain name is owned by the registrar itself. In addition, default registrar landing pages can also muddy the waters.

Cut Down on Spam Calls with Google Voice

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My general preference is to register my domain names without Whois privacy enabled. The downside to that is my business phone number is exposed, and it leads to many spam phone calls. This happens frequently after winning domain names at auction and companies send emails trying to sell web development and related services.

One thing I’ve done in an effort to reduce the volume of spam phone calls is use Google Voice for Whois. I don’t forward the phone to my mobile number, so the calls go straight to voicemail. I check Google Voice on occasion to ensure I didn’t receive any phone calls or texts that need to be returned.

LTO Usage Can Pose a Risk

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Lease to Own deals have become much more normal in the domain space. LTO deals give buyers the opportunity to use a domain name at a lower upfront cost, and it gives domain name sellers a source of consistent monthly income. There is some risk with LTO deals for a domain investor. I was asked about this today on X.

If a lessee engages in deceptive or illegal practices with the domain name – anything from phishing schemes, email spam, selling counterfeit or illegal products/services, or hosts other illegal activities on the domain name, there can be problems for the domain name and domain name registrant.

Consider Removing “WHOIS” from Domain Name Contracts

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I use several different domain name purchase or sale agreements depending on the situation. Each of these agreements references “WHOIS” as a means of confirming ownership of a domain name before or after a sale.

With the sunsetting of WHOIS in favor of the new RDAP, it might make sense for domain investors, brokers, and escrow agents to update their contracts. This was the advice of IP attorney John Berryhill, who works extensively within the domain name industry:

He subsequently some of the larger companies in the space adjust their purchase agreements:

As WHOIS records become obsolete and no longer a requirement for domain registrars, referencing WHOIS in a purchase agreement as a means of confirming ownership will be outdated. It may also “open up a can of worms,” as John put in his post.

I hadn’t thought about this until seeing John’s post, but I am going to send my purchase agreements to John for modification. I also think it’s a good idea to have him (or other attorney) give these agreements a once-over every once in a while to ensure they remain protective of my company and align with its needs.

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