Domain Brokerage: Buying Through Intermediaries

## Domain Brokerage: A Complete Guide to Buying and Selling Through Intermediaries Not every domain transaction happens in a public marketplace or auction. The most significant deals in the domain industry — those involving six- and seven-figure Premium Domain (Registry Premium) acquisitions — are typically arranged by professional Domain Broker intermediaries who work behind the scenes, negotiating between anonymous parties with competing interests. Understanding when brokerage is the right approach, how the process works, and what it costs can save you money and accelerate transactions that would otherwise take months of awkward direct outreach. ## What Domain Brokers Actually Do A domain broker serves as a specialized intermediary between domain buyers and sellers. Their value proposition differs depending on which side of a transaction you occupy: **For buyers**, a broker provides confidential acquisition. If you want to acquire a specific domain without revealing who you are or what you intend to pay, a broker contacts the owner on your behalf. This anonymity prevents the "startup tax" — the phenomenon where domain owners dramatically inflate asking prices the moment they identify a well-funded buyer. **For sellers**, a broker markets the domain to their buyer network, qualifies prospects, handles negotiation, and manages the paperwork. For valuable domain Domain Portfolio assets, brokers can often achieve higher sale prices than direct marketplace listing because they reach motivated buyers who are not actively browsing auction platforms. In both cases, the broker earns a commission — typically a percentage of the transaction value — paid at closing. ## When Brokerage Makes Sense ### You Need Confidentiality The most compelling reason to use a broker on the buy side is identity protection. When a major technology company, venture-backed startup, or public figure contacts a domain owner directly, the owner recognizes the leverage they hold and prices accordingly. Brokers approach owners without disclosing the end buyer, maintaining negotiating power throughout the process. ### The Domain Is Not Listed Anywhere Many valuable domains are not for sale on GoDaddy Auctions, Sedo, or Afternic. The owner is holding the domain passively — perhaps Domain Parking it for modest ad revenue, or simply sitting on it as a long-term investment. There is no public listing to bid on, no contact form, and often no obvious way to even reach the owner. A broker with industry relationships can navigate this situation, locating the actual decision-maker and opening a conversation where cold WHOIS outreach would fail. ### The Transaction Is Complex High-value domain acquisitions involve legal review, structured payments, and sometimes creative deal arrangements like Domain Leasing or installment purchases. Brokers experienced with these structures can propose and negotiate deal terms that an inexperienced buyer might not know to request. The transaction also typically involves Domain Escrow through a service like Escrow.com, which a broker will coordinate. ### You Lack Negotiation Experience [[Domain-valuation]] is an opaque discipline, and experienced domain sellers have negotiated hundreds of transactions. If you are buying your first premium domain, you are at an information disadvantage. A broker who has closed similar deals has calibrated intuition for what a realistic starting offer, counter, and final price look like — knowledge that prevents you from either insulting the seller with a lowball or anchoring too high and overpaying. ## How the Brokerage Process Works ### Buyer-Side Brokerage You engage a broker by specifying your target domain(s) and your budget range. A reputable broker will: 1. **Research ownership.** The broker identifies the actual registrant through WHOIS data, registrar inquiry, or existing relationships. For privacy-protected registrations, they may reach out to the privacy service, which forwards the inquiry. 2. **Make initial contact.** The broker reaches out as a "representative of an interested buyer" without disclosing identity. Initial outreach is typically by email, with a follow-up phone call or secondary email if there is no response. 3. **Gauge interest and gather pricing.** Some owners respond with firm asking prices; others respond with questions or simply do not engage. A broker will usually attempt contact three to five times over two to four weeks before declaring an approach unresponsive. 4. **Present an offer.** Once communication is established, the broker presents an offer based on your budget authorization. First offers are typically well below your ceiling — you want room to negotiate upward. 5. **Negotiate.** Most transactions involve three to five rounds of offer and counter. The broker advises you on the credibility of the seller's stated reasons for their price (comparable sales, recent inquiries, long-term holding costs) and recommends counter-offer amounts based on deal mechanics. 6. **Close through escrow.** When parties agree on price and terms, the transaction moves to Domain Escrow. The broker coordinates both parties through the escrow process and ensures the domain transfer is completed before funds are released. ### Seller-Side Brokerage If you own a valuable domain and want to sell, a broker markets it to their buyer database and inbound inquiry network. The process: 1. **Listing agreement.** You sign an exclusive or non-exclusive listing agreement specifying the commission structure, listing period, and minimum acceptable price. 2. **Valuation consultation.** A reputable broker provides an honest Domain Valuation based on comparable sales, not flattery. Brokers who promise unrealistic valuations to win your listing are doing you a disservice — overpriced domains sit unsold. 3. **Active marketing.** Premium brokers reach out to specific companies likely to want the domain, rather than just posting it on a marketplace. If you own InsuranceSoftware.com, a broker will contact insurance technology companies directly. 4. **Qualification.** Brokers filter out low-quality inquiries, time-wasters, and unrealistic offers before involving you. You see only substantive negotiations. 5. **Negotiation and closing.** Same escrow-based closing process as buyer-side brokerage. ## Commission Structures and Costs Domain broker commissions vary by transaction size and broker reputation: | Transaction Range | Typical Commission | |---|---| | Under $10,000 | 20–25% | | $10,000–$100,000 | 15–20% | | $100,000–$1,000,000 | 10–15% | | Over $1,000,000 | 5–10% | Some brokers charge a minimum commission floor (e.g., $500 or $1,000) regardless of transaction size, to cover the work of outreach and negotiation. **Retainer models.** For buyer-side acquisition campaigns targeting multiple domains, some brokers charge a monthly retainer plus reduced commission at closing. This structure is appropriate for companies systematically building a domain portfolio. **Success-only models.** Most reputable brokers work on pure commission — no upfront fees unless significant travel or legal work is required. Be cautious of brokers demanding large upfront fees before any outreach has occurred. ## Choosing a Domain Broker ### Established Marketplace Brokers **Sedo Brokerage.** Sedo's brokerage service handles four- to eight-figure transactions with a global buyer network. Commission is 15% for standard transactions, with negotiated rates for large deals. **GoDaddy Domain Broker Service.** GoDaddy offers broker-assisted acquisition for domains not currently for sale, charging a flat fee upfront (approximately $69.99) plus commission at closing. It is effective for mid-range acquisitions. **Afternic/Dan.com.** Afternic (owned by GoDaddy) and Dan.com (acquired by GoDaddy) both have brokerage components. Dan.com in particular has a strong reputation for smaller premium transactions. ### Independent Brokers The domain industry has a community of experienced independent brokers who handle high-end transactions with more personalized service than marketplace brokerages. Brokers like David Castello, Soren Perselberg, and others have decades of experience and established networks. For major acquisitions, an independent broker with a track record in your target category (e.g., healthcare domains, fintech, brandable short names) can deliver better outcomes than a marketplace intermediary. ### Vetting a Broker Ask prospective brokers for a list of recent closed transactions (buyers and sellers they have represented), their typical timeline from outreach to closing, and their specific network for reaching decision-makers in your target category. Reputable brokers will have verifiable closed sales — you can cross-reference sale prices on NameBio for disclosed transactions. ## Risks and Protections **Dual agency.** A broker working for both buyer and seller has inherently conflicting interests. Understand who is paying the broker before beginning a negotiation. Some brokers disclose dual representation and reduce their commission accordingly; others do not. Ask directly. **Fake broker schemes.** Domain fraud includes "broker" scams where someone contacts you claiming to represent an interested buyer, requests payment of a fee to "secure" the inquiry, and disappears. Real brokers earn commissions at closing — they do not charge sellers upfront fees to receive an inquiry. **Information leakage.** Even well-intentioned brokers can inadvertently signal buyer identity or urgency through how they communicate. Brief your broker explicitly: never disclose who the end buyer is, never express deadline pressure, and always present alternative options as viable. ## Conclusion Domain brokerage is the professional tier of the Domain Aftermarket, designed for transactions where complexity, confidentiality, or relationship access justifies an intermediary. For acquisitions above roughly $5,000 — or any acquisition where the domain is not publicly listed — engaging a broker is often the most efficient and lowest-risk path to closing. Their commission, when viewed as the cost of professional negotiation and confidential outreach, frequently pays for itself in reduced acquisition price. Once a transaction is agreed, the broker will coordinate Domain Escrow to protect both parties — the mechanics of which are covered in detail in Understanding Domain Escrow.