When a Broker Can Help

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I read Ray Hackney’s interview with DAN.com CEO Reza Sardeha, and he mentioned that the company is “setting up a brokerage division to provide integrated buyer/seller brokerage support.” I don’t typically need broker support when negotiating a deal, but I found myself in a situation where I think having third party assistance could prove beneficial in closing a deal.

I won a pending delete auction a week ago, and the domain name was provisioned to a registrar I have used maybe once or twice. I set the DAN nameservers but did not list a BIN price, so it showed a make offer field. I was unsure if I could even sell this domain name on DAN because of the 60 day lock on new registrations (it was deleted and re-registered before the auction), so I did not want someone to execute the BIN and end up not being able to do the deal.

As luck would have it, I received an inquiry and price request via the lander within a few days of owning the domain name. I proposed a mid five figure price, and the buyer countered with a four figure offer. While discussing the merits of the domain name, I was also having a side conversation with DAN about whether or not I could sell the domain name given the lock situation. Long story short, I can, as long as the buyer is cool with it sitting in the DAN holding account there or taking possession of it knowing it can’t be transferred for a few weeks.

After confirming that I could sell the domain name via DAN, I was a bit more flexible with my price but still have it solidly in the five figure range. The buyer indicated a willingness to improve his offer but there was still a pretty big gap. We exchanged a few messages and both seem fairly dug into our positions, unable to reach an agreement.

I would be willing to give a better price to make a quick flip on this, but if I go back and lower my price after indicating that my price is firm, the buyer will be in a position of strength. There is not really a great way for me to indicate I could be more flexible without losing considerable negotiating strength.

On the other hand, if a broker from the DAN platform gets involved in the negotiation (at my request), I would be willing to offer a concession and the buyer might be willing to do the same. Having a new perspective might be beneficial in this situation so neither party shows a weaker hand and we can reach a deal.

Since the negotiation has been done via the DAN platform, DAN is only getting its commission if a deal is closed, so they have an incentive to work with both parties to bridge the gap. After a long (and cordial) discussion between a buyer and seller, having new eyes look in on this to try and find common ground would be beneficial without much risk. This is a nice name, but it’s replaceable inventory to me. I am happy to make a fair deal on a quick flip, and getting a broker involved could help expedite the process without either party showing a weak hand.

2 COMMENTS

    • There is no way to know how something would have turned out if it was handled differently. Maybe I would be in the same spot. Maybe the broker would have steered the prospect to a different name he represents if he did not think the gap could be bridged. Maybe the deal would have closed at a fair price. You can’t choose one path and know how things would have turned out differently had you chosen another path.

      The only thing I know for certain is that if I made a decision to hand off many/most leads to a broker, I would be committing to pay 15% +/- commission on deals, even if the broker was completely unnecessary. I would rather own and manage the lead on my own, for better or worse.

      There are times when a broker might be able to help, but there are also times a broker would slow things down. On a lower-end deal like the one in the article, it would be a low priority for the broker.

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