In the Domainers group on LinkedIn, someone was asking about buying a domain name when the Whois email address was not working. In a comment in response to the query, Domain Holdings broker Joe Uddeme offered to help the buyer get in touch with the owner of the domain name. Not only is this smart networking, but working with a domain broker on the buy side of a deal can be a smart way to acquire a domain name.
Most of us know a domain broker as someone who can help a domain owner sell a domain name. Many domain brokers can also help a buyer acquire a domain name. I want to share some insight into this aspect of a broker’s job and discuss why using a domain broker to acquire a domain name might be something to consider when you are looking to buy a domain name.
Over the years, I’ve learned a lot of tricks to enable me to get in contact with a domain name owner. Most successful brokers are also good at this. They know a variety of ways to contact a domain name owner, and that can save a buyer time and effort. Sometimes getting an offer in front of the domain owner is the biggest challenge, and if a buyer is going to make a fair offer for a domain name, a broker can use all of his or her tools to ensure the offer is seen. Using a broker to contact a buyer can save time.
In addition to having the ability to connect with a domain owner, a broker can help with the negotiation. I believe most domain brokers are experts at negotiating, and they can help their client get a good deal. It may also be beneficial to have a third party interact with both parties. This can take some of the emotion of negotiations out of the equation. In addition, a domain broker can advise a buyer on an offer that may be perceived to be low. For example, a broker can tell a prospective buyer that a $50,000 offer for a 2 letter .com domain name is severely deficient and probably won’t yield a response.
Covert negotiations are also possible when using a broker. Confidentiality is important, and a domain broker can keep the buyer’s privacy ensured. The only issue with this is that many domain owners automatically assume a massive company with deep pockets is being represented by the broker, and that might cause the price to be higher from the outset. The broker should be able to help overcome this if it is possible.
I don’t use a domain broker on the buy side very often, but I do think this is something that should be considered. Having a buy-side broker may be helpful to buyers at most price levels.
(Keep in mind that most brokers will only do this on deals at a certain price level.)
See the domain broker guide to learn more about domain brokers.