Buyer Brokerage vs Buying From Domain Brokerage – What’s the Difference
When we talk about buyer’s brokerage vs buying from a domain brokerage, you should be aware of a few key differences!
If you want to purchase a domain name that most accurately represents your brand identity, you can easily get overwhelmed with where to start. Usually, you have two choices: you can find (hopefully) a good domain using a domain brokerage, or you can turn to a buyer broker who knows the ins and outs of the domain industry and will protect your company’s interests. But when we talk about buyer’s brokerage vs buying from a domain brokerage, there are a few key differences you should be aware of that we will discuss in this article.
What’s the Difference between Buyer Brokerage and a Domain Name Broker?
Domain platforms are popular companies like GoDaddy, Namecheap, Bluehost, and many others where you can purchase a domain name. They sell domain names to the public and represent the seller and his/her interest, not yours as a buyer. Most people use this domain brokerage service, and there is nothing wrong with that; it just might not be time and money-efficient, especially if you are trying to acquire a high-value domain name.
Why? Because when you want to purchase a domain name from a domain brokerage, you are a single individual who is undoubtedly very clever and insightful, but you probably have no idea about the trends, history, and common traps of the domain market. And in most instances, the thing your domain brokerage company cares about the most is the commission they will receive relative to what you pay for your domain (because in most instances the domain brokers working for the domain platform will have an additional commission from the domain seller for closing the sale at a certain price point).
So the price you as a buyer will have to pay might not be fair for you and you might end up overpaying for an asset. And this would never have happened if you used a domain broker who represents your best interests. A buyer brokerage company (like Domainer), has a reputable and skilful domain broker, who represents the buyer and facilitates the sale of a domain name. He/she contacts the domain owner (or their broker), negotiates the deal, and makes sure that the transaction is processed securely. Most importantly, buyer brokerage companies will always have your best interests at heart.
See, why it’s so important to have someone protecting your interests?
What are Domain Brokers, and How Do They Work?
Think of a domain broker as a real estate agent. When you are buying a house, you consult an expert, right? And that’s what a domain broker is – an expert helping a company, entrepreneur, or start-up acquire a domain name.
Imagine you find your perfect domain name, the one that most accurately represents your brand identity, and then find out that someone else grabbed it and their information is protected.
Game over, right? Fortunately, you can reach to a buyers brokerage company (like Domainer) and use the expertise of a skilful domain broker who has the knowledge and tools to find and contact the domain name owner and negotiate the sale even when you run into a dead end trying to acquire the domain name on your own.
When you hire a domain broker , that broker will help you acquire a domain (or multiple domains) within your budget and always act with the client’s best interests in mind.
Why Should I Consider the Services of a Domain Broker?
While you might have certain knowledge and expertise, using a buyer brokerage company can always be advantageous, especially if you are dealing with a high-value domain name.
Let’s imagine this scenario. Your company just closed a very successful and public deal for $10 million and you are now in the process of acquiring a domain name. Instead of using a domain broker’s services, you decide to contact the seller of the domain name on your own. They will most likely do some research on you and find out that you just raised $10 million. And now they will be tempted to add an extra 0 to their asking price just because they know who you are.
And that’s one of the most notable advantages of using the services of a buyer broker – anonymity. A domain broker can keep your identity hidden during the negotiation and acquisition process, ensuring a fair price is paid. The broker contacts the domain name’s owner using their identity and reputation.
Are There Any Other Advantages?
Using a reliable buyer broker to facilitate the purchase of your desired domain name will help you reduce the unknowns and significantly increase the chance of win-win negotiations. Here are some of the greatest benefits of using the services of a trustworthy domain broker.
- Experience in the market
One of the greatest benefits of using the services of a buyer broker is that the experts have a wealth of experience in the industry. A trustworthy broker will offer valuable insights, and because he is aware of how the industry works will avoid some common traps and mistakes. This will help you both save time and money.
- Better negotiation skills
Dealing with domain names involves a great deal of negotiating. And if you don’t understand the value of a particular name, you might end up paying more. Plus, when you want to acquire a certain asset, there are always emotions involved. That’s why it’s always advisable to focus on your core business and let the experts who understand the domain industry handle the sale. This will significantly increase your chance of acquiring the desired domain name at a fair price.
- Networks and connections
A domain broker usually has an industry connection that will facilitate the purchase of your desired domain name. The broker will work with you to find out what your company does, what your brand is, what you are looking for in a domain name, and what your budget is. And then he will start looking for options that most perfectly suit your needs. He will also contact the seller on your behalf, ask for a fair price and will, purchase the domain on your behalf, and send it over to you.
Why is Buyer Brokerage the Better Option?
As you can see, using the services of a buyer brokerage company is in the buyer’s best interest (money and time wise) to choose rather than purchasing the domain from a domain brokerage company.
When considering a domain broker, be sure to engage with one that understands your business needs and asks the right questions. This will ensure you get the best value for your domain and help you enjoy a seamless process that will save you time and money. If you are looking for a reliable domain broker, you can contact us here.
Frequently Asked Questions
If you are on a hunt for the right domain name, you probably have millions of questions swimming in your head. Below we have summarized some of the most frequently asked questions. If you don’t find the answer of what you are looking for you can always contact us.
🤔 What’s buyer brokerage and how is it different from purchasing from domain brokerage?
A buyer brokerage company (like Domainer), has a reputable and skilful domain broker, who represents the buyer and facilitates the sale of a domain name. He/she contacts the domain owner (or their broker), negotiates the deal, and makes sure that the transaction is processed securely. Most importantly, buyer brokerage companies will always have your best interests at heart. If you purchase from a domain brokerage, in most instances they will account for seller’s interests not yours. Read more here.
❓Do I need a domain broker?
It really depends on your individual situation. If you are looking for a domain name that is catchy, short and memorable and that will most acuratly represent your brand, then using a buyer brockerage company (like Domainer) might be exactly what you need. Learn more what is a domain broker and how it can be of service to you here.
🌟 What are the advantages of using a domain broker?
There are many advantages, but the most notable is the anonymity you get. You also get access to an individual with a lot of industry connections, great negotiating skills, a wealth of experience, and deep knowledge of the history, trends, and common traps that might happen. Learn more here
🙄 Ok, so what’s better for me – buyer brokerage or purchasing from domain brokerage?
If you are a buyer, you will want to have a person with great industry knowledge and expertise to represent your best interests. If that’s the case, the better option for you is using the services of a buyer brokerage company (like Domainer). You can learn more here.