Securing the right domain name is big business. Knowing what a Domain Broker do is as important as choosing the right domain name for your business. In fact, there has already been a seven-figure domain name sale in the first quarter of 2021. Christmas.com sold for $3,150,000 in February. In March, Blade.com sold for just over half a million dollars in a private sale. These types of domain name sales are often made possible via the hard work and expertise of the best domain broker services. But negotiating a final price is only one aspect of their valuable services. The question is what does a domain broker do?

What Does A Domain Broker Do:

This is what the best domain broker services do in order to satisfy both the buyers and the sellers:

Domain Brokers Help People Acquire & Sell Domain Names

What do you do when you need a specific domain name for your business, but someone else owns it? What about the reverse experience? You own an in-demand domain name. You know it’s valuable, but you’ve been unsuccessful in securing its sale at fair market value. These are the problems that a domain broker works to solve.

In a nutshell, a domain broker sells and purchases domain names on behalf of their clients. They can perform these transactions while maintaining the anonymity of the buyers and sellers. This can be helpful when brokering for well-known entities.

What Does A Domain Broker Do For Buyers?

If you are trying to acquire a domain name that is already owned by another entity you may need a buyer broker. In this case the broker works for you not the seller. What does a domain broker do to help buyers.

Their main goal is to purchase the domain name for you at a good price. But they often provide other related services. For example the value of the domain name you are seeking may be far outside your budget. So you need to explore other options.

An experienced buyer broker can help you choose other more affordable names. Their knowledge of the market domain name value and the branding aspects of domain names are essential assets in this strategic process.

What Does A Domain Broker Do To Help Sellers?

The seller broker mission is to connect with motivated buyers to negotiate a lucrative deal for your domain names. What does a domain broker do to help sellers? Their experience in this field allows them to find those potential buyers. Moreover they can protect your privacy and even require a non-disclosure agreement to help ensure confidentiality. 

You must agree to an exclusivity period with your seller broker. They invest a great deal of time and hard work in their efforts for you. So this protects the broker in case a seller tries to enter into a domain name sales agreement without them.

Compensation

Seller brokers typically work on commission, earning a percentage of the sale. This helps to motivate a good price. Buyer brokers may charge an hourly fee for some of their services. A flat fee is another option.

Domain Brokers Help Establish The Price Of Domain Names

The raised question is what does a domain broker do. As noted above, some domain names have extraordinary monetary value. Million-dollar names aren’t commonplace. But most popular or in-demand domain names still command a respectable price.

Domain Name Valuation

Determining the value of a domain name is somewhat of an art form. The process is complex, and it requires extensive knowledge of domain names, branding, the market, and other criteria. That’s one of the core reasons that the services of a domain broker can be quite valuable.

Here are a few things that influence the value of various domain names:

• The .com extension remains the most popular.
• It includes high-ranking keywords, though this is an evolving criterion. For example, the keyword “health” has maintained worldwide popularity over time. But it experienced about a 25-point surge in March of 2020. Google trends are helpful in this area.
• Simple and direct is often preferred, i.e. contentcreator.com instead of content-creator.com or youronlinecontentcreator.com.
• Brandable domain names are valuable to related businesses.
• Longevity plays a big part in value, especially if it’s earned a desirable Google ranking.
• Domain names with established traffic are typically in demand.

There’s no simple formula to calculate what a domain name is worth. But professionals, like the best domain broker services, are adept at this process.

Why You May Need A Domain Broker

As we’ve already discussed, the best domain broker services can help acquire a desired brand name or find a buyer. But what are some reasons that you should use a broker, rather than attempt the purchase or sale on your own?

• You realize that the domain name in question has high value. For example, you have received an offer of $10,000 for a domain name you own. Or as a buyer, you’re willing to pay as much to acquire a desired name.
• You’re not sure how to identify the owner of the domain name you want.
• You need someone who’s familiar with the value of the domain name, and any associated websites.
• There may be established trademarks linked to your desired domain name.
• Price negotiation is an important part of this acquisition.

A domain broker can provide many additional benefits, as well. Your stake in the sale can adversely affect negotiations. But a broker negotiates the deal with objectivity. Your broker can help ensure legal compliance. This is a vital part of any contract. They’ll also facilitate domain transfers.

So, when answering the question, “What does a domain broker do?” you see it’s not as simple as “buy and sell domain” names. They guide their clients through an often-complex process. Your domain broker protects your best interests, assessing many different facets of the deal. The services of a domain broker can help you realize the best possible price for your domain name assets. Or they may help you secure a hard-to-acquire domain name for a desirable price.