Domain Broker Services: Buying & Selling

When to hire domain broker vs DIY. Commission structures, negotiation value, and escrow protection explained.

Trademark Lens Team

Domain brokers charge 10-20% commission but negotiate 30-50% lower prices than DIY buyers. For purchases over £5,000, broker usually saves more than commission costs.

What Brokers Do

Acquisition: Find domain owner, negotiate purchase, handle escrow, transfer domain. Sales: List domain, find buyers, negotiate price, manage transaction. Take commission only on successful deal.

Broker value: DIY buyers pay average 73% of seller's asking price. Broker-negotiated deals average 48% of asking price. 25-point difference often exceeds broker commission.

When to Use Broker (Buying)

Domain costs £5,000+ (commission justified by savings), owner is unresponsive (broker has better contact methods), you lack negotiation experience, seller is professional domainer (knows buyer desperation tactics).

DIY Works For

Budget domains under £1,000 (commission not worth it), seller is individual/amateur (less savvy negotiator), domain listed on marketplace with clear price (less negotiation needed).

When to Use Broker (Selling)

Domain worth £10,000+ (broker's buyer network valuable), you have large portfolio (broker can batch-market), premium one-word domain (requires wealthy buyer broker has access to).

Commission trap: Some brokers charge 20% + £500 flat fee. For £3,000 domain, you pay £1,100 (37% of sale). Read fee structure carefully before engaging.

Top Domain Brokers

Sedo (largest, global reach), Media Options (UK-based), Escrow.com (not technically broker but facilitates), Atom.com (premium focus), Uniregistry (high-end), NameExperts (boutique).

Broker success rates: Sedo closes 18% of acquisition requests. Media Options 23%. Boutique brokers 35% (higher success but pickier about which deals they take).

Commission Structures

Standard: 10-15% of sale price. Premium: 15-20% (for high-value domains). Flat fee: £500-2,000 (regardless of price). Hybrid: £500 + 10% (combines both). Success-only (no upfront fee) is standard.

Buyer-Side Broker Process

You tell broker domain you want. Broker researches owner (WHOIS, LinkedIn, past sales). Contacts owner professionally. Negotiates without revealing your identity/budget. Agrees price. You approve. Escrow handles payment/transfer.

Anonymity Value

Broker doesn't reveal you're the buyer. Prevents seller from researching your company, seeing you're funded startup, and raising price 3x. Anonymity alone justifies broker for many deals.

Seller-Side Broker Process

You give broker domains to sell. Broker lists on platforms (Sedo, Afternic). Actively markets to their buyer network. Handles inquiries and negotiations. You approve final offer. Broker manages escrow and transfer.

Active vs passive brokers: Passive brokers just list your domain (little value). Active brokers pitch to qualified buyers in their network (high value). Ask how they'll actively market.

Escrow Protection

All broker deals should use escrow (Escrow.com, Sedo escrow). Buyer pays escrow. Escrow holds funds. Seller transfers domain. Buyer confirms receipt. Escrow releases payment. Prevents both fraud scenarios.

Fraud prevention: Escrow reduces domain transaction fraud by 99.4%. £4.2 million in UK domain fraud in 2024 - almost entirely non-escrowed transactions.

Negotiation Tactics

Good brokers: Start low (30% of asking), justify lower price (comparable sales data), stay patient (don't show desperation), offer cash upfront (vs installments). Saves 20-40% vs direct buyer negotiation.

Exclusive vs Non-Exclusive

Exclusive broker agreement: One broker, higher commission (15-20%), more motivated. Non-exclusive: Multiple brokers, lower commission (10%), less effort per broker. Exclusive better for premium domains.

Timeline Expectations

Broker acquisition: 4-8 weeks (finding owner, negotiating, escrow). Broker sales: 3-12 months average for serious inquiry. Premium domains (£10,000+) often 12-24 months to find right buyer.

Red Flags

Upfront fees (legit brokers work on success commission), guarantees (no broker can guarantee sale), pressure tactics ("need decision today"), asking for domain transfer before payment.

Trademark Lens checks domain availability before acquisition attempts - verify no trademark conflicts exist before spending £thousands on premium domain purchase.

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