Some Domain Brokers Use Co-Brokers

Some of the best  domain  brokers regularly do co-brokerage deals. This means that more than one domain broker from different brokerages is working on selling a domain name. Domain owners need to be aware of the potential for co-brokered deals when they agree to sell a domain name with a domain broker.

There are benefits to a setup  like this. The domain owner would get the benefit of having multiple brokers working their  connections to close a deal. Different brokers and different brokerages work with different segments of the domain buying market. Some brokers are experts when it comes to dealing with Asian domain buyers. Some brokers are well connected with huge multinational corporations. Most top  brokers have cultivated lists of domain name buyers. Having more than one domain broker working within their area of expertise can widen the net to find a buyer.

Even when more than one domain broker is working on a domain deal, the domain owner typically pays the same commission rate. It seems like a win win situation to have more than one broker trying to sell a domain name.

I do see one downside to this type of deal. A domain owner could agree to work with one broker exclusively and the broker, unbeknownst to the owner perhaps, agrees to split a commission to work with a co-broker. This can be problematic if the domain owner isn’t comfortable with the co-broker. In addition, if the original broker doesn’t sign a comprehensive agreement with the co-broker, the co-broker could theoretically go rogue and put the domain name at risk (ie emailing a trademark holder or acting in an  unprofessional manner).

On the rare occasion that I choose an exclusive broker, I have done so after doing my due diligence. I would not be comfortable with a broker agreeing to co-broker one of my domain names without my permission.

Some of the top domain brokers and brokerages allow co-brokered deals. If this is something you’re not comfortable with, you should make sure the broker knows about this prior  at the outset of your working relationship.

Elliot Silver
Elliot Silver
About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has closed eight figures in deals. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest. Reach out to Elliot: Twitter | Facebook | LinkedIn

16 COMMENTS

  1. To many middle men in this business think they deserve 15-30% for sending out some emails. Some don’t even want to pick up the phone. In the REAL world money does not come so easy, enjoy it while they can.

    • Well let’s be fair then and acknowledge too many sellers have no idea how much work and time is involved in end user prospecting.

      To get one big buyer you have to prospect hundreds of companies.

      At the end of the day, when you factor in all the time spent on propsects that don’t buy, and the names you handle that never sell, it’s not that lucrative unless you get lucky and catch some really big deals in the first group you present to.

      Brokers are skilled at researching and getting access to corporate buyers, negotiating, and closing deals. They are worth ever dollar earned.

    • That’s a valid point, and all of that goes into my decisionmaking when I hire a specific domain broker.

      If I hire you, someone I trust, to broker a domain name on my behalf, I would be pissed If I found out that some random inexperienced person is being permitted to try and sell the domain name. Not only could it put my name in legal jeopardy if there are trademark considerations, but if the person ends up being a jerk, it could make the owner of the domain name look bad.

    • And as I mentioned above (not showing yet), just remembered the three link rule > moderation, so divided it up here.

    • Everyone is entitled to their own opinion about other people.

      I only know of her from exchanging some emails on April 25. She submitted a few non .com domain names via Embrace.com, and I was a bit curt in my reply (I don’t buy anything but .com domain names and thought that was obvious). After she called me out for not being nice, I felt badly and we exchanged some emails about Florida. I thought the discussion ended on a friendlier note than where it started.

      Aside from a tweet she posted to my @ Twitter handle about selling a domain name on Saturday, I think that is the extent of my interaction with this person.

  2. Good points.
    As a portfolio owner I am ready and willing to work with any broker at anytime. About 400 keyword names from a few hundred dollars to five figures.

    Partners must be a real broker, know how to generate real prospects and how to move a sale to closure. I expect to be kept up to date on the progress.

    K.I.S.S. That’s all.
    Steve

  3. I’m just glad to see that Elliot is still dapper and looking good after my “hiatus” for the last 3 years. He’s darn smart too. And a nice guy. (no, buddy, not grooming for a loan 😉 )

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