Buying Domain Names

When a domain broker represents a domain owner by selling a domain name, the broker receives a previously negotiated percentage of the sale as compensation for a successful deal. When a broker is working on behalf of a buyer, the compensation structure can not be set up in the same way, as that would pit the broker’s interest against the interest of the client:

I don’t discuss my proprietary compensation model publicly (it was developed in consultation with my clients) but you are on the right track. What I suggest, in general, is that the broker’s compensation model ALWAYS be aligned with the client’s objectives.

— Bill Sweetman (@BillSweetman) December 11, 2019

Performing due diligence is a critical task before buying a domain name in the aftermarket – both private acquisitions and even on auction purchases. With GDPR in force, doing the necessary due diligence is more difficult, and as time goes by, it will become even more challenging. One area of due diligence that should not be overlooked is related to the registrant’s email address.