Like any other business, selling a domain name can be quite a challenge for many individuals especially if they have not adequately established their business name in the market. Often, you may find that you have advertised your domain name, but no buyer is demonstrating interest to purchase it since they are not confident about the genuineness of the seller and the product on sale. For this reason, there has emerged a group of individuals who do the brokerage of domain names on behalf of the seller or the domain owner in return for a commission. These individuals have some touch and knowledge about the market, and they are likely to land on a willing and able buyer more quickly than the owner of the domain. A Domain Name Brokerage has come to get popularity over the years since the individuals who do it have some special skills that they portray in the market that no ordinary individuals can.
When selling a domain name using a domain name broker, the seller has to enter into a substantial agreement with the broker on the terms of sales and the mode in which the commission will be transferred. This is to ensure that no party in the transaction screws the other in whatever way possible. There are different forms of agreements that these individuals can opt to get into. One of them is the simple agreement where they both agree that the domain name will remain in the hands of the domain owner while the broker finds a potential buyer. During this period, the domain holder can opt to sell it to another buyer who he may find before the broker gets his. In this case, the broker is entitled to no commission since it is assumed that the whole transaction has been conducted and closed by the owner without his involvement. After the domain name is sold, the contract between the seller and the broker ceases, unless they want to enter into a new agreement.
On the other hand, the domain owner and the broker may decide to get into a domain broker exclusive agreement. This contract demands that the broker receives full rights over the domain name and acts as the owner of the domain name. In this case, he is entitled to commission whether the domain is sold or not. A part of the commission in this kind of agreement is paid upfront when the two parties are getting into the contract to ensure that the domain owner does not screw the broker in case the domain name is not sold within a particular period.
Domain broker exclusivity can be preferred over the other form of agreement for some reasons. One of the primary reasons is the way in which the seller is restricted to sell the domain name within a specific time frame. This acts as an incentive to ensure that the broker expedites the selling process. On the other hand, domain name exclusivity is crucial in giving the broker a peace of mind while doing his selling process. He does not need to worry about the domain owner defaulting the payment of the commission.
