Month: December 2023

Domain brokers are mediators that ease the process of selling and acquiring domain names. They are an effective means to buy or sell valuable domains at the best price possible. Although they charge a commission, their expertise and industry connections are worth the fee.

When it comes to choosing a domain name, you will discover that the web address that best fits your business has most likely been taken by an individual or firm. This means trying to get it off them will require some form of research, negotiation, and sale.

But how do you go about this if you’ve never had the experience? How nice would it be to find someone who could just handle that, while you concentrate on running your company?

Luckily, there is a group of industry experts called domain brokers whose job is to facilitate the buying and selling of domain names. So in the rest of this piece, we will be looking at who domain brokers are, the pros and cons of using them, and an overview of some of the best domain brokers in the business. Let’s dig in!

What is a Domain Broker?

A domain broker is an individual or firm that performs the role of a middleman in the buying and selling of domain names. Over the years, domain names have graduated from simple web addresses to business names and brands that could hold the key to online success.

Because of this, domain names have become a critical piece of online marketing and brand recognition, they have also shown the ability to rise in value over time. For instance, Cars.com sold for $872 million in 2014.

With the potential for a lot of money to be exchanged, domain brokers help in the search, valuation, negotiation, and sale of these domains. Typically, domain brokers are experts with years of experience and numerous connections in the domain industry. So what do they do?

How do Domain Brokers Work?

Purchase/Sale of Valuable Domains

Whether you’re trying to sell or buy a valuable domain, domain brokers make the process easier by doing all the paperwork and due diligence required for a smooth transaction.

Negotiation

Due to their vast experience in the domain industry, these brokers can effectively negotiate on your behalf. By doing so, you are positioned to get the best possible deal when you’re either trying to purchase or sell a domain name.

Facilitate Anonymous Transactions

When it comes to huge financial transactions, anonymity can be a great asset. Domain brokers can help you stay anonymous when you’re either trying to sell or buy a valuable domain name.

Appraisals and Valuations

Valuable domains usually command a high fee and how much they sell for could be influenced by many factors. Domain brokers are very good at appraising a domain name and determining its value. This way you won’t lose money or pay too much.

Host Domain Auctions

As experts and authorities in the domain industry, some of these domain brokers host auctions where interested parties can bid on valuable domain names up for sale.

Consultancy

Choosing a domain for your business could prove trickier than you might have anticipated. Domain brokers can use their wealth of experience to offer consultancy services when you’re trying to select the best fit for your business.

But then, you shouldn’t just engage the services of a domain broker from the get-go. These are some of the scenarios that would warrant getting a domain broker.

When To Use A Domain Broker

Complex Negotiations

Negotiations with a domain owner can be challenging especially if you’re unfamiliar with the market. In situations like this, it is wise to employ a domain broker’s expertise for an easier negotiating process.

Valuable Domains

Valuable domains usually cost a lot of money, and the key to either making a profit or paying the right price depends on accurate valuation and negotiation. Domain brokers can ensure a domain name is bought or sold for the right price.

Time Constraints

The process of buying and selling domain names can be time-consuming. So if you cannot patiently follow the procedure, it’s best you employ a domain broker to handle the task for you.

Confidentiality

If you prefer doing business anonymously, then getting a domain broker to buy or sell a domain name for you is perfect. Since the broker is negotiating on your behalf, your identity is completely left out of the picture.

Domain Portfolio Management

If you have an extensive portfolio of domains, you can engage the services of a domain broker to manage them on your behalf. This streamlines the selling or buying process which helps maximize profit.

But what if you don’t want to use a domain broker, what are the alternatives you can use to buy or sell a domain name? Let’s find out!

Alternatives to Domain Brokers

Direct Negotiation

If you don’t fancy paying a commission to a domain broker and you’ve got the time, skills, and understanding of the market, you can negotiate directly with a domain owner or buyer.

You can research the domain value and handle the transaction process yourself. The address and phone number of a domain owner can be found on the WHOIS database, so if you’re selling, make sure you’re accessible based on the information you put up there.

Escrow Services

When you agree on a fee with an interested buyer or seller, it is advisable to use an escrow service (link to piece) to ensure a secure transaction process. Escrow services ensure a smooth and fast transfer of ownership thereby eliminating the need for a domain broker.

Domain Marketplaces

There are a lot of online marketplaces that facilitate direct domain sales. You can easily check for available domains for purchase or put up yours for sale. This takes out the need for a domain broker and that pesky commission. Platforms like GoDaddy and Sedo are a good place to start.

Should you choose to hire a domain broker, what are the things you look out for to make sure they are the best option?

How to Choose The Best Domain Brokers- Factors to Consider

Performance History

In the domain industry, experience is key, so before engaging a domain broker, you need to check how well they’ve performed in the past. Take a look at the clients they’ve worked with before and how big the transactions were. If they were successful with those deals, chances are they will succeed with yours too.

Expertise With Domains

One of the reasons why you’re looking for a domain broker is because you want expert hands handling the transaction. You can know their level of expertise by checking previous transactions they’ve done or the company history.

Reviews

When an organization is good at something, people will talk about it. By checking reviews, you get a clearer understanding of how they handle transactions based on other people’s experiences. However, these firms will only post the best reviews on their websites, so you should consider checking third-party review sites for unbiased opinions on the broker.

Customer Service

Take time to ask the questions directly to the broker you’re considering. Most of them have round-the-clock customer service, and depending on how they respond, you will have an idea if they are reliable or trustworthy enough to do business with.

Terms and Conditions

Every domain broker has their unique terms of business, so before you get into any contract, you should read through it first. Usually, it will contain any charges that may apply or rules that may result in a cancellation of the contract. Do not skip any pages, every tiny detail matters.

Now that you’re aware of what to look out for when picking a domain broker, what are the advantages and drawbacks of using them?

Pros and Cons of Using Domain Brokers

Pros

Time-saving

Because the domain does all the documentation, prep, and legwork for you, it saves a lot of time that you would have spent trying to do things yourself.

Expertise

Most domain brokers are experts in the industry, and using them gives you access to people that will help you make better decisions when it comes to domains.

Industry connections

Domain brokers usually have a vast network of buyers and sellers, so using them plugs you into that network.

Stress-free negotiations

By negotiating on your behalf, they handle the back-and-forth of negotiations to get you the best deal possible.

Secure transactions

Domain brokers usually have a secure means of carrying out transactions. By using them, you worry less about possibly losing funds to scammers.

Anonymity

When you’re carrying out a big domain deal, it is in your best interest that news stays private. Domain brokers do the business on your behalf thereby preventing any release of transaction details to the public.

Accurate Appraisals

Due to their experience and expertise in the market, domain brokers can give you an accurate valuation of your domain or the domain you want to purchase. This could be the difference between making a profit or losing money.

With all these in mind, using domain brokers has its drawbacks. Let’s find out!

Cons

Costs

Because of the advantages they carry, using domain brokers comes at a cost. They usually charge commissions while some even charge an upfront fee before the service even begins.

Time Frame

When you engage a domain broker, the contract usually lasts for a certain period—mostly 30 days. If you’re not able to secure a purchase or sale by then, you will have to renew the contract which usually comes with a fee.

No Regulations

Domain brokers aren’t governed by any real market regulations, so they are free to conduct business without proper checks and balances. This is a scenario some might not be comfortable with.

Strict Terms and Conditions

Domain brokers usually have strict terms and conditions that must be adhered to. Some of them might stop you from selling your domain elsewhere during the period of the contract, while others only take up domains that are valued in thousands of dollars.

Then there are domain brokers that only agree to sell domains with a certain top-level domain (TLD). That’s why it’s important to read through the terms and conditions before going into a contract with any domain broker.

You can now make an informed decision on whether a domain broker is right for you. To make things easier, here are some of the best domain brokers in the business.

Who Are The Best Domain Brokers?

GoDaddy Domain Brokerage

Founded in Phoenix Arizona (1997), they are the ideal place for people who want to purchase domains but don’t want to blow through their budget. GoDaddy goes after domains for their clients irrespective of the cost. So if you don’t want to spend six figures on a domain, this is your best option.

They don’t broker sales but have an auction site you can use to sell a domain. They also offer a free domain appraisal tool.

However, they charge an upfront fee of $60.99 and a 20% commission if the deal goes through. Some of their past clients are Wolfpack.com, Merch.co, and iBuild.com.

VPN.com

For those who love to remain anonymous, VPN.com can help broker the sale or purchase of a domain without disclosing your identity. Because of this, their clientele usually consists of wealthy individuals, large companies, and founders who would rather not disclose their identities.

They are also patronized by politicians, celebrities, and athletes for whom secrecy is of utmost importance. Aside from domain brokerage, they also provide virtual private networks (VPNs) for secure use of the internet.

They mostly take on clients willing to spend the big bucks, they don’t charge an upfront fee but will take a 15% commission when a deal goes through.

Sedo

Sedo is a domain name and website marketplace that was founded in 2001. Since their inception, they have made over 700,000 domain sales, and have over 2 million customers worldwide.

They can help you get appraisals, negotiate on your behalf, and transfer the domain name. The platform also allows you to buy, sell, auction, and park (keeping a domain currently not in use) domain names securely.

They do not charge an upfront fee but will take a 15% commission when the sale goes through. You can also park your domain for free and they will fix a price for it based on their expert appraisal.

However, they will charge a 10% commission should the parked domain be sold. Some notable websites brokered by Sedo are Call.com and Desktop.com.

Final Thoughts

Domain brokers are the agents that facilitate the sale and acquisition of domain names. Beyond that, they offer appraisal services and use their industry connections and expertise to make this process seamless.

We learned about how domain brokers work and the factors to consider when engaging them. We also learned about the advantages and disadvantages of domain brokers, and we then discovered some of the best brokers in the business.

Although they will charge a fee, buying or selling a domain name is a lot easier when backed with their expertise.

Premium domain names are the most valuable domains on the market. However, with their hefty price tags, you may be wondering if they are actually worth investing in. They absolutely are, if you know what to look for – and this piece shows you exactly how to go about buying a premium domain.

In the world of digital assets, premium domain names are the crème de la crème of domain names. Premium domain names are extremely valuable because they are memorable, catchy, short, and exceptionally marketable.
However, premium quality usually means stiff competition. Most premium domain names are either already registered by someone else who may or may not be looking to resell, or registrars who have marked these domains as ‘Premium’.
And what’s more? Premium quality means premium prices. Some premium domain names can go for between 5-7 figures. Now the question is – are premium domains worth it?
In the rest of this piece, we’ll discuss exactly what premium domains are, what makes a domain premium and stand out from a regular domain, the benefits of premium domains, where to find and buy a premium domain, and important considerations to make before you checkout. But first…

What is a domain?

A domain or domain name is the website address you type in a browser when you want to visit a website. For example: Amazon.com, Facebook.com, etc., are both domain names.
A domain name is basically the website name and is a crucial component that contributes to a website’s overall performance.

What are Premium Domains?

Premium domain names are domain names that are particularly catchy, short, memorable, relevant, keyword-rich, and unique. In the sea of generic domain names that are either too similar, unexciting, and just ‘one of the others’, premium domains make sure to stand out.
A premium domain’s value lies in its ability to resonate with a business’s audience, generate more clicks, and become a powerful brand that everyone associates with the particular business.
The best premium domain names are either extremely descriptive or so unique, that website visitors can’t help but connect emotionally with them. But what makes a premium domain ‘premium’ and how are they different from regular domains?
Let’s find out.

What Makes a Domain Premium?

They are easily memorable

Premium domain names are first of all, very memorable. A domain name that is easy to remember will generate far more visits than one user must always second-guess when spelling out.
Some of the factors that contribute to a domain name’s memorability are how short it is and how clear it is even just from the pronunciation. Premium domains are usually composed of short, real words that people use in everyday conversation – they are so easy, that not even a child will misspell them.
A premium domain name is also incredibly clear. They are easy to pronounce and are easy to spell by ear. The best measure of a domain’s clarity is the domain radio test. The radio test is simply a way to check how easily people can spell and find your website by just hearing it, without any prior knowledge of your brand.
Premium domains pass the radio test with flying colors and are easy to recall once a customer thinks of your brand.

They are short

We covered how premium domains are short above but we need to drive this point home. A premium domain very rarely contains more than one word in the main domain name and if it must include two words, usually includes them as the extension.
Single-word domains are quick and easy to type and therefore, ensure fewer visitors bouncing and more clicks and visits to your website or store.
Premium domains also tend to avoid unnatural word combinations with hyphens or underscores. Simple is the watchword. Finally, a premium domain will usually contain a maximum of two to four syllables.

They are easily brandable and unique

Brandable domains are domains that don’t necessarily describe what a business is about but make up for this with novelty and pure catchiness. These domains have the potential to turn into an incredible brand name and even become a household name.
Think of Google.com – ‘Google’ isn’t a real word but just sounds nice and catchy. Once you hear Google, the Google company and the popular search engine are what comes to mind. This is the power of brandable domains. They allow you to create a ‘niche of one’ and when users hear your domain name, they think only of you and not your industry in general.
Premium domains that aren’t keyword-rich, are incredibly brandable and ultra-unique. Their pronunciation and spelling stand out on their own and they may not necessarily be real words. Some premium domain names will combine a keyword or a variation of one to blend the best of both worlds – descriptiveness and uniqueness.

Keyword rich

While betting on a brandable premium domain can be a gamble, keyword-rich premium domains take no chances and guarantee that your customers will know exactly what your business is about even they visits and that’s why these domains get the most clicks.
A good example of a keyword-rich premium domain is Cars.com – no one needs to tell you what the website is about; everything about cars!
Most premium domains are valued for their keyword richness and may many times contain only the keyword itself. While the domain name isn’t a direct ranking factor on search engines like Google, if you were looking for generic information on cars, you are far more likely to click and remember cars.com than say another domain getcarinfo.io.
Cars.com looks and sounds incredibly trustworthy and there is something about brevity that speaks class and finesse, that appeals to people.

Highly relevant

As an extension of being descriptive, premium domain names are very relevant. Readers and visitors want to see the kind of content they are looking for and if what’s on your website is conflicting with your domain name, it can do more harm than good as people will begin to bounce.
A premium domain name that is descriptive will give users an idea of what they should expect even before they click. This will filter out your traffic to only highly relevant leads that are far more likely to engage and do business with you. And the more time they spend on your website, the better you perform in search.

They speak credibility – Trustworthy TLDs

A premium domain makes your business look credible and trustworthy. Premium domains also contain the most trusted top-level domains (TLDs) – the ‘.com’, ‘.net’, ‘.org’, and more recently the ‘.io’ TLD for tech-themed websites and companies, and these are what you will find in a premium domain.
By default, any user who hears of your business will assume the TLD is ‘.com’ or ‘.org’ when typing in your website address in a browser so it is important that the ‘.com’ TLD is what you go for. You can opt for the other two if the ‘.com’ is not available. The ‘.io’ TLD has become very popular recently in the tech community because it looks and sounds ‘geeky’.
Premium domains don’t contain TLDs like ‘.country’, ‘.xin’, ‘.gdn’, ‘.jetzt’, ‘.bid’, etc. because they just look and sound sketchy and can chase potential visitors off.

In excellent health

The best premium domain names, especially preowned domains, also have a healthy history. They have minimal or no history of penalities with search engines, excellent backlink profiles, good social media popularity, excellent ranking potential, and high search volumes, and have been around for a long while.

Benefits of a premium domain

Now we know how to spot a premium domain and some of its qualities, but how exactly can a premium domain help your website’s SEO and overall performance? Let’s see how:

Better SEO performance

Premium domains ensure better SEO performance and more time spent on your website thanks to their relevance. Premium domain names focused on relevance pull the best possible traffic – people who are interested in what you’re offering – to your website.
Poor quality visitors who are just browsing and may not necessarily be interested in your business won’t have to click as they know what to expect.
For example, a domain name called shoes.com is a premium domain that can have incredible pros for SEO if the website it’s hosted on is also about shoes.

Can generate more clicks

It’s a positive reinforcement cycle. The more people stay on your website, the better search engines figure out what your website is about and the kind of audience to show your web pages to for queries related to your industry.
With better context, your website will be served only to visitors who care about what your business is about and will consequently get more clicks. More clicks mean more conversions and more business for you!

Better marketability and value retainment

Premium domain names are far more marketable than regular domain names thanks to some of the elements we saw above. But even more importantly, if you are in the business of buying and reselling domains, premium domains retain their value forever.
A keyword-rich premium domain, in particular, will always remain relevant for as long as the industry or service it is describing remains relevant.

Where to Find Premium Domains

Now where to find a premium domain?

Registrars

Domain registrars are your first place to look when searching for a premium domain name.
On these registries, you’d easily recognize them with a ‘premium’ badge or a star attached to them. While most premium .com domains will be taken, you can find closely matched variations, also trusted TLDs, tagged as premium domains.
Most premium domains that are not currently tied to a live website are owned by domain resellers looking to resell them for a profit and they will usually list their domains for sale on these platforms.
For example, the ‘gadgets.org’ premium domain in the photo above is only available for sale on a few registrars including Namecheap.

Auction sites

Domain auction sites are exactly what they sound like – marketplaces where people bid on domain names and then the highest bidder wins. Premium domain resellers flock to auction sites thanks to the promise of getting even more than what the domains are actually worth.
If you are looking to buy a premium domain, an auction site is an excellent place to find them but be careful with overbidding.

Domain listings

Domain directories and listings like expireddomains.com make it easy for you to find the best premium domains for the best prices possible. You have all the best domains, including the ultra-premium, brought to you.
Our list features links to the current auction pages for these domains, the number of bids, the current maximum bid price, and over a dozen other metrics. And the best part? You can filter the results to domains with a particular number of words, and brandability, based on the TLD – all the essential qualities that make up a premium domain!

Consulting a domain broker

Domain brokers or broker services deal exclusively with facilitating the sales of domains – especially pricier ones – to ensure you get the best deal possible. A domain broker will help you track the current owner of an already taken domain, make an offer, and negotiate a final price on your behalf.
Domain brokers will also conduct a market analysis to know the true value of a domain. If you choose to consult a domain broker, look for one with an impressive portfolio of high-profile deals and minimum commissions.

Buying a Premium domain name – factors to consider

Before buying a premium domain name, what are some boxes you should check?

Your budget

Premium domains are generally far pricier than regular domains so before you enter the market, make sure you have a budget in mind. So whether you decide to buy from a registrar or go the auction route, ensure to stick to your budget and dont overbid. And if you can’t find the exact domain within your budget, it may be worth it to look for something else.

Your brand

If you are going for a keyword-rich premium domain, then you need to consider your brand, what you stand for, your goals, your services, etc. so you can choose a domain that’s incredibly relevant to your industry.
Would your potential customers be able to take one glance at the domain and guess what your business is about accurately? If yes, then that may just be the one for you!

The domain history – for expired domains

If the premium domain is an expired or preowned domain, then it’s important to do a little digging into its history. How much traffic was the domain generating in the past, what are the metrics on social media popularity and search volume, and the Moz domain authority?
You can also check the wayback machine to see how the domains have evolved over time. These metrics will help you know the health of the domain and its potential to perform well in search.

FAQs

What is a GoDaddy premium domain?

GoDaddy premium domains are premium domains that are listed on GoDaddy for sale. These could either be native to the GoDaddy platform itself or were purchased by someone else and then listed on the GoDaddy auction platform.

Why are premium domains expensive?

Premium domains are more expensive than regular domains because they have the most potential to drive an online business’s success. They are short, catchy, memorable, and speak credibility and that’s why they are so sought after.