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Domain Brokers!! Buys yours for $5000, but 'sells it on' for $30,000!! -SNEAKY!! Can they do this ?

by entry
26 replies
If you use a domain broker to sell some domains for you, as they act as the third party, and they sell on to their potential list of buyers, who have purchased domains before from the broker,


Then can the broker be sneaky, and 'hide' the real value of the domain (keeping it to them selves)

- lets say you tell them the domain you want to sell, and the domain broker knows that some of his list of buyers will be willing to pay is $30,000 for the domain)

but the broker gets sneaky and gets back to you saying that the domain is getting a value of $5000 from a buyer, ($25,000 less)

and then when you sell it to the broker for $5000, they they secretly sell it on to the buyer who originally is willing to pay $30,000 for it?
- and the broker gets a $25,000 profit for themselves!

(so the broker has known that the domain will get $30,000 from a buyer, but JUST tells you that it will fetch JUST $5000)

1) Have you used a broker - what was your experience?

2) Have you used a broker, and they have and they have done exactly this to you ? (told you it is worth less, and they sell it on for MUCH higher)

3) How can you check if the broker does NOT operate like this?
(so that you basically will get an honest value of $30,000 from the broker)

4) Do you have experience in using a domain broker, who does NOT operate like this?

What are your opinions on 1) 2) 3) and 4) thanks.


ADDED: I am on about the domain brokers who take a cut/commission of say 15% per sale of your domain,
#$30 #brokers #buys #domain #ells #sneaky
  • Profile picture of the author TonyMontana1
    TBH it is what it is.

    A broker is an intermediary between a buyer and seller. Plain and simple. How they operate differs from trade to trade. Some work on commission, ie of final sale price. That's the best way to do it IMO.

    Its not sneaky, its just good business. They are there to make money just like you are, just like we all are.

    The major lesson to learn is to know the value of your product before using these guys. I use brokers, and broker myself, all the time. Not domain brokers, just normal offline business. However I know what my products are worth, that's the key.
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    • Profile picture of the author BigFrank
      Banned
      Originally Posted by TonyMontana1 View Post

      The major lesson to learn is to know the value of your product before using these guys.
      A domain is only worth what someone is actually willing to pay for it. If a broker is willing to pay you $5k after he has found someone willing to pay $30k, the domain is worth $5k.

      After you sell it to the broker, if he has a legitimate buyer at the higher price, only then is the domain worth $30k.

      The only way a domain is worth $30k is if YOU find someone that will actually pay $30k for it, otherwise, it's only worth what YOU can get for it on your own.

      The trick is to find the guy willing to pay $30k without using an intermediary. Oh, and until you actually sell it for something, it's worth nothing. Everything else is 'perceived value.' which means absolutely nothing.

      I believe this post was worth $100. You think it was worth squat. See how that works. lol

      Frank

      P.S. Please PayPal me $100.
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  • Profile picture of the author Frank Donovan
    Originally Posted by entry View Post

    ADDED: I am on about the domain brokers who take a cut/commission of say 15% per sale of your domain,
    Hold on - this doesn't make sense. If the broker is charging you a percentage of the sale price, then you must be selling the domain to the actual buyer, rather than the broker, who is acting as the middleman in the transaction.

    On the other hand, if the broker pays you the full sale price he is, in effect, your only buyer - so there should be no percentage commission on the sale.

    Either way, you'll know who the actual buyer is (whether it's the "broker" or another buyer) because you'll have to transfer the domain to the new owner.
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  • Profile picture of the author Rahman Colson
    Know the value of what you have. The broker has high end buyers, cuz he has probably put lots of time and effort in building his list of buyers. Your probably getting quite a mark up selling for $5000. Spend the time researching your market, and promoting your domains in the correct locations. If they are buying for $30,000, you could offer it to them for $20,000 and under cut him. Dont worry about what everyone else is getting after you sell. Get familiar with a concept called "arbitrage". Its a very valuable word. If you want more info on where to market and sell domains let me know. I have a solution for you. Hope that helps.
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  • Profile picture of the author rritz
    I wouldn't have thought ANYONE buys a domain for $5K, let alone $30K
    LOL what a strange world
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    • Profile picture of the author OptedIn
      Originally Posted by rritz View Post

      I wouldn't have thought ANYONE buys a domain for $5K, let alone $30K
      LOL what a strange world
      Many domain names sold in the millions of dollars.

      Power.com $1,261,000
      eBet.com $1,350,000
      Cameras.com $1,500,000
      Russia.com $1,500,000
      Ticket.com $1,525,000
      DataRecovery.com $1,659,000
      Auction.com $1,700,000
      Dating.com $1,750,000
      Seniors.com $1,800,000
      Computer.com $2,100,000
      KK.com $2,400,000
      Youxi.com $2,430,000
      Investing.com $2,450,000
      Social.com $2,600,000
      CreditCards.com $2,750,000
      Shopping.de $2,858,945
      Candy.com $3,000,000
      Vodka.com $3,000,000
      Whisky.com $3,100,000
      IG.com $4,700,000
      Medicare.com $4.8 million
      Clothes.com $4,900,000
      Toys.com $5,100,000
      Slots.com $5,500,000
      Z.com $6,784,000
      Diamond.com - $7,500,000
      We.com $8,000,000
      Porno.com $8,888,888
      Porn.com $9,500,000
      Fund.com $9,999,950
      Sex.com $13 million


      Thank you.
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  • Profile picture of the author Steve B
    Originally Posted by entry View Post

    What are your opinions on 1) 2) 3) and 4) thanks.

    I'm sorry, but you're choosing the "victim" mentality here.

    Bartering, brokering, and selling happen every day in real life in every industry.

    Think about this: you hold all the cards. You are not the victim ... yet. The domain is registered to you. No one is holding a gun to your head forcing you to sell your domain to anyone for less than it's worth.

    If you don't like the $5,000 offer, then don't accept it.

    If you think, or know, that the domain is worth $30,000, then go sell it yourself for $30,000.

    If you believe or even mildly suspect that the broker is ripping you off, don't do business with him.

    What ever happened to personal responsibility? You know, buyer beware?

    I'm not condoning brokers lying or cheating anyone out of their money ... but honestly ... you hold all the cards and if you don't like the game, don't play it. Go find a broker that you can trust - or go find your own buyer.

    Steve
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  • Profile picture of the author AffiliatePrograms
    We have to make some important distinctions here:

    1. Buyer's Broker, or...
    2. Seller's Broker

    If the broker is acting as the buyer's broker, then his/her client is the buyer, not you. If they are acting in good faith toward their client, they are seeking to get the best price they can from you. However, if they are practicing "arbitrage" toward their own client, then they are engaging in gross corruption, fraud and wrongdoing. E.g., they get it from you for $5,000, but then lie and tell their own client they got it for $20,000 and the client must pay $20,000 if they want the domain.

    The same thing applies in reverse. If you as the seller are the client of a seller's broker who is supposed to be acting in good faith on your behalf, then any reverse scenario like the above is also a gross form of fraud and corruption.

    Indeed, the problem is that we often have no way of knowing whether a broker is lying to us or engaging in any such corruption.

    I was contacted by a broker in 2015 about a certain domain, acting on behalf of their secret buyer client. This broker was very persistent over a long period of time to get the domain for $10,000. We almost did a deal for $15,000 at one point as well, which fell through. It was a bit comical even. I had a very strong hunch they were turning around and getting a much better price from their secret buyer client, but I had no way of knowing who, what, where or when. So when you are in a situation like that, you have to take stock of yourself and all the facts involved. Yes indeed, I would love to have the contact myself to engage in a direct sale. However, the reality of the situation was that this particular domain even for $10,000 was an amazing, very unexpected, and from my point of extremely improbable development to begin with, let alone $20k or more. So frankly, suddenly being able to sell it for $10k was still amazing. It was a domain I would not even have bothered spending time on trying to sell that way frankly. The transfer was also very "cloak and dagger," so to this day I don't really know who bought it and it is still not even being used last I checked. I did have a hunch about the buyer though, so perhaps time will tell whether my hunch was correct.

    So even though I had a hunch they were getting much more themselves from their "client," $10k was still great for me regardless for that particular domain. In fact, I'm confident most people in the industry would also have considered $10k not only great but a very unexpected price for that one as well.
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  • Profile picture of the author agmccall
    You said Broker Right? Well a broker is someone that is supposed to broker a deal between seller and buyer. So, he should have told you there was a buyer for a certain amount. I would think if you sold to the broker then oh well, too bad. but if the broker told you the offer was for 5k and he pocketed the extra 25k then there might be a legal issue here. Although, I am not a lawyer nor have I, or anyone else, seen the agreement you signed with the broker

    al
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    • Profile picture of the author AffiliatePrograms
      Originally Posted by agmccall View Post

      You said Broker Right? Well a broker is someone that is supposed to broker a deal between seller and buyer. So, he should have told you there was a buyer for a certain amount. I would think if you sold to the broker then oh well, too bad. but if the broker told you the offer was for 5k and he pocketed the extra 25k then there might be a legal issue here. Although, I am not a lawyer nor have I, or anyone else, seen the agreement you signed with the broker

      al
      You make a good point about possible legal/contractual ramifications, but realistically it may either be impossible to know what really happened or cost much more than it's worth if one finds out. Also see my post above about how the broker is obligated one way or the other.
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  • Profile picture of the author EPoltrack77
    Buy low and sell high! Do not break any copyright or all that lawyer stuff and yea... Have you seen Jamie Lewis's product. He's tap into that niche and had done very well...

    Key with anything I have learned is to surround yourself with the best and eventually you will start to think differently giving you different results as you do things.... If that makes sense!
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  • Profile picture of the author ChrisBa
    Originally Posted by entry View Post

    If you use a domain broker to sell some domains for you, as they act as the third party, and they sell on to their potential list of buyers, who have purchased domains before from the broker,


    Then can the broker be sneaky, and 'hide' the real value of the domain (keeping it to them selves)

    - lets say you tell them the domain you want to sell, and the domain broker knows that some of his list of buyers will be willing to pay is $30,000 for the domain)

    but the broker gets sneaky and gets back to you saying that the domain is getting a value of $5000 from a buyer, ($25,000 less)

    and then when you sell it to the broker for $5000, they they secretly sell it on to the buyer who originally is willing to pay $30,000 for it?
    - and the broker gets a $25,000 profit for themselves!

    (so the broker has known that the domain will get $30,000 from a buyer, but JUST tells you that it will fetch JUST $5000)

    1) Have you used a broker - what was your experience?

    2) Have you used a broker, and they have and they have done exactly this to you ? (told you it is worth less, and they sell it on for MUCH higher)

    3) How can you check if the broker does NOT operate like this?
    (so that you basically will get an honest value of $30,000 from the broker)

    4) Do you have experience in using a domain broker, who does NOT operate like this?

    What are your opinions on 1) 2) 3) and 4) thanks.


    ADDED: I am on about the domain brokers who take a cut/commission of say 15% per sale of your domain,
    If you have a problem with this then don't deal with them.

    It's like dealing with a pawn shop or something like that.

    If you have an issue with it, then spend your own time (and money) to properly promote it and sell it yourself.
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  • Profile picture of the author Julio
    To the OP it is up to you to know what the value or what you think the value of your domain name is. Do your research first before talking to a broker and make sure you know what is worth.
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  • Profile picture of the author Andrew Stevens
    I've sold through brokers before and made way more money then I could have made on my own. If they happened to make more money on top that's thier deal as long as I was happy with the amount I received.
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    • Profile picture of the author AffiliatePrograms
      Originally Posted by Andrew Stevens View Post

      I've sold through brokers before and made way more money then I could have made on my own. If they happened to make more money on top that's thier deal as long as I was happy with the amount I received.
      As turned out with my example above, that's more or less how I felt. But there is one problem with that - it only works if they actually do get you a desirable deal. If their act of trying to serve themselves instead of acting strictly in good faith on your behalf and being content with whatever earnings that would produce makes the difference between a deal you would have been happy with vs. no deal at all, then that is a major problem and consequence.
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  • Profile picture of the author shmol
    You must remember that they are in the business of making money.
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    • Profile picture of the author AffiliatePrograms
      Originally Posted by shmol View Post

      You must remember that they are in the business of making money.
      If you build a reputation for acting with good faith, integrity, and good results, then that could be worth far more money than any dishonest short cut could achieve. If one is a person who operates the opposite in a shady manner, then all those self-serving shortcuts may wind up costing you far more money than you think you got away with from that kind of behavior. Moreover, if one thinks there are no consequences to genuine wrongdoing and fraud in the name of the love of money, even if those consequences don't show up soon or you think you got away with it, then that would be a mistaken assumption. The love of money is a root of all sorts of evil, and evil is not only really evil but also has consequences no matter how much one deludes oneself otherwise. No one ever really "gets away with" anything no matter how much it appears that oneself or some others have.
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      • Profile picture of the author BigFrank
        Banned
        Originally Posted by AffiliatePrograms View Post

        No one ever really "gets away with" anything no matter how much it appears that oneself or some others have.
        That would be wonderful, if true, but unfortunately, you are simply stating a personal belief, which has no basis in fact.

        Frank
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  • Profile picture of the author AffiliatePrograms
    It is based on fact, but that debate tangent could easily fill many pages and this may not be the forum for it. Perhaps we can just agree to disagree. I do not intend to have that extended debate here, but if anyone wants to risk deluding themselves that what I said is not so, and which many others would attest to, suffice it to say I would call that a very perilous act of self-deception.
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    • Profile picture of the author BigFrank
      Banned
      Originally Posted by AffiliatePrograms View Post

      I would call that a very perilous act of self-deception.
      You could call it whatever you like, but it will still amount to nothing more than supposition that could never be quantified. :-)

      Frank
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      • Profile picture of the author AffiliatePrograms
        Originally Posted by BigFrank View Post

        You could call it whatever you like, but it will still amount to nothing more than supposition that could never be quantified. :-)

        Frank
        You're wrong. And I can use words like supposition and quantified too.
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        • Profile picture of the author BigFrank
          Banned
          Originally Posted by AffiliatePrograms View Post

          You're wrong. And I can use words like supposition and quantified too.
          I'm never wrong. Ask, around.

          I understand that you can mention words I have already posted. The question is, do you know what they mean? :-)

          Frank

          P.S. I NEVER agree to disagree. I'm much more interested in backing up anything I state as fact. People who use the term, "just agree to disagree" are basically admitting that they have nothing concrete to attest to or even bolster their flaccid assertions.
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          • Profile picture of the author AffiliatePrograms
            Originally Posted by BigFrank View Post

            I'm never wrong. Ask, around.

            I understand that you can mention words I have already posted. The question is, do you know what they mean? :-)

            Frank

            P.S. I NEVER agree to disagree. I'm much more interested in backing up anything I state as fact. People who use the term, "just agree to disagree" are basically admitting that they have nothing concrete to attest to or even bolster their flaccid assertions.
            With a reply like that, the funny thing is I was about to suggest you are a "narcissist" without even seeing what is in your sig now...
            Originally Posted by BigFrank

            "Total world domination. Anything less is totally unacceptable." - Me . . . . "Resistance is futile." - The Borg
            "You're not an ordinary narcissist, Frank. You're a very special type of narcissist." - Dr. Jennifer G. - VA Shrink
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            • Profile picture of the author BigFrank
              Banned
              Originally Posted by AffiliatePrograms View Post

              With a reply like that, the funny thing is I was about to suggest you are a "narcissist" without even seeing what is in your sig now...
              Honesty is always the best policy and it pays to advertise. :-)

              Like I stated, "Never, wrong!" It's a gift.

              Frank
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  • Profile picture of the author deepockets
    As with any broker you deal with do your due diligence. If your not careful they will live up to their name and make you "broker"
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  • Profile picture of the author DABK
    vacationrentals.com sold for $35,000,0000 (https://www.shoutmeloud.com/top-10-m...ever-sold.html)

    Originally Posted by rritz View Post

    I wouldn't have thought ANYONE buys a domain for $5K, let alone $30K
    LOL what a strange world

    OP, it does not seem that the sale took place with the help of a broker but that the buyer happened to be a broker.

    Yes, they could do that.

    Did they take advantage of the seller? We do not know enough to tell. Most likely, no.

    Do you also mind that the guy who makes your bread gets $1 for a loaf but the store sells it to you for $3.5? If you don't, you do not because you think there were costs involved in getting that loaf from the baker to the store... And I agree. But who says those costs have a value of $2.5?

    Yes, the difference from $5k to $30k 25k or 600% not 350%. Still, we do not know the broker's costs in acquiring his buyer. Might have been next to 0; might have been $23,575.

    If it cost next to nothing, more power to the broker! If it cost $23,575, the broker ain't doing too good selling at 30 when he bought at 5.

    As regards the seller? We only know he sold for $5k. What did he buy for? Did he/she/it/they buy from Godaddy, using one of Godaddy's 0.99/domain sales?
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