Domain Sales is Overdue for a Shake-up – Part 2

The brokerage model needs to change.

In the previous article in this serious I took aim at the two major marketplaces of Sedo and Godaddy/Afternic. I then proposed a business model that solved the problem of the marketplaces being full of bad domains that must reduce the likelihood of sales transactions for potential buyers. You can read more about this hear: Part 1

I now want to propose a business model to help unclog the domain brokerage arm of the aftermarket.

From a high-level perspective, the state of the domain aftermarket is as follows:
1.    Massive over-supply of domains – courtesy of the new gTLDs.
2.    Same demand.
3.    Anyone can put a shingle out and say they are a broker.

The vast majority of “brokers” aren’t brokers at all but are really “order takers”. What they do is take on lots of domains and then respond to inbound queries. These “order takers” just do what every serious domain investor does, with one exception, they didn’t pay for the domain they’re selling. So who do you think is more likely to sell the domain? The investor or the “order taker”? I’ll leave this up to you to work out.

On the flip-side of the coin there are the REALLY good brokers that know how to sell and pitch domains to prospective sellers and these people get the job done. They are worth their weight in gold and on the whole do an outstanding job for their clients.

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