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With strong demand for brokerage services more and
more people are interested in becoming brokers themselves. So
we also wanted to know what skills and/or
qualifications leading brokers think a person needs to
have in order to succeed in the brokerage business
today?
To get answers to all of those questions we invited
all 13 of the brokers who were nominated
for the 2012 T.R.A.F.F.I.C. Broker of the Year
Award (that will be handed out at the conference
coming up October 7-10 in Fort Lauderdale
Beach, Florida) to weigh in on those topics. More
than two thirds of them took time out of their busy
schedules to reply and we are hopeful that what they
had to say will help you sell more domains, or
possibly even taken advantage of the brokerage boom to
get into the business yourself. One company, DomainHoldings.com,
specifically asked us to pass along the word that they
have current job openings for brokers (email [email protected]
for more information on that).
Joe
Uddeme, DomainHoldings.com
|
Joe
Uddeme
DomainHoldings.com |
Joe Uddeme of DomainHoldings, one of the
brokers nominated for the T.R.A.F.F.I.C. Award, had
this to say about the profession - "Domain
brokerage, like any career is extremely challenging.
We consistently are on the “battle grounds” and
really have a thankless profession. Competition in any
space keeps us honest. People think domain brokerage
is an easy business. I would tell them to make sure
they understand the full spectrum of the
Internet marketing component before they get into
brokerage. My background of marketing including PPC,
SEO and Development of sites has allowed
me to understand the business like no other. Domain
brokerage, like any other profession can be rewarding
if you are dedicated and willing to work 24
hours a day, seven days a week.
As for the attributes a domain seller should
look for in a broker. Uddeme said, "Persistence,
and a consistent knack |
| for making a match. Some
brokers wait for buyers to come to them, the key to
successful brokerage is to go out and make the
match. Find the buyer that really has need for the
asset and make them understand the true value of the
domain in question." |
Uddeme also offered some advice on what you need to
do to have the best chance of selling your domains.
"Pricing is the number one component of
any sale," Uddeme said. "If an asset is
priced well, it has a higher chance of moving in the
current market. Domains are only worth what someone is
willing to pay for it. It’s important to remember
that we continually strive on a daily basis to find
the best premium assets at the best possible prices to
present value to the buyer and make it a win/win
situation for both sides."
Dave
Evanson, Sedo.com
| Sedo's
Dave Evanson is one of the most consistently successful
brokers in the business, one who had a headline
grabbing string
of six-figure sales this summer including Bra.com
($165,000), Metal.com ($140,000) and Designers.com
($118,000). Asked what he would look for in a
broker if he was a seller himself Evanson said, "It
starts with reputation and track record.
The broker must be smart, well-versed in domains
including valuations, connected to buyers such as end
users – or at least able to find them –
aggressive, diligent, persistent, persuasive,
confident, obedient, honest, loyal, and driven to close
deals. They also need to know how to leverage
multiple sales channels such as phone, email, social
media, newsletters, blogs, etc., in a coordinated,
systematic way."
Evanson added, "The seller and selling broker
should have the same objective: maximize price
under the best possible deal terms. At Sedo, brokers
and sellers work as a team, leveraging
synergies where possible. The seller should be honest
and informative about the domain(s), covering history
around ownership and usage, pricing expectations and
preferred |
Dave
Evanson, Sedo.com |
| timing. He should also be clear when
authorizing the broker to negotiate on his behalf and
set expectations upfront regarding his desire
to be involved in the brokerage process, as well as
the degree and frequency of feedback required." |
When asked what attributes set him apart from other
brokers and make him the best choice for someone
looking for help in selling a domain or domains
Evanson said, "Let’s call it the gray hair
factor with a touch of wisdom. I feel it is fair
to say I bring a who’s who end user database to the
table from over 35 years of high-level Fortune 500
corporate marketing and professional consulting
experience. Having served as Senior VP of
Marketing for two of the nation’s largest financial
institutions before toiling for 20 years as president
of an international strategic planning management
consulting firm I founded in 1991, I still maintain an
active rolodex of business leaders and decision
makers across several industries. I think I have a
solid foundation in domaining in part because I’ve
been buying and selling domains since before the turn
of the century. Additionally, I’m able to tap into
Sedo’s extensive database of known buyers by
industry, type of domain, and dollar amount plus team
up with 30 internal brokers who do business in over 20
languages across 150 countries."
With respect to aspiring brokers we asked Evanson
what skills and qualifications he thinks a
person needs to succeed in the brokerage business
today. " Domain brokers come from varied
backgrounds. Some were brokers in other fields
such as real estate, mortgage, or stocks. Some
were in sales or operations in other businesses.
Some were domainers or in support roles in the domain
industry. I’ve worked with brokers with all
types of backgrounds, and seen them succeed as long as
they work very hard, stay focused, uphold
high ethical standards and get deals done,"
Evanson said. "The smarter ones build strong
relationships with experienced brokers to shorten the
learning curve. As for a career in domain
brokerage, there is plenty of demand and the future
looks bright. The market is dynamic with plenty
of opportunity to do deals at different price points.
Longer term, the skills domain brokers possess will be
transferable to other online categories including
brokerage of websites and possibly lead gen and search
functionality most likely at the local level."
Toby
Clements, TobyClements.com
|
Toby
Clements & wife Stephanie at
the
2012 Domaining Europe conference in
Spain |
While Evanson thrives in the corporate environment
at Sedo others, like Toby
Clements, have found success as
independent brokers. Asked how he has done so well
with fewer bodies to share the workload, Clements
said, "There is no secret that we have one of the
largest subscriber bases in the industry. The size
is nice, but more importantly it’s the quality
that counts. Our database was built over many years of
working in the domain space. We held auctions, ran
tradeshows as well as reaching out to countless end
users, therefore we were able to capture real
qualified people and companies that are truly
interested in domains."
"Another plus is we do our best to bring
premium names to the masses on a daily basis,"
Clements said. "Five days a week, our newsletter
is jam packed with premium names at great prices. This
keeps everyone on their toes. When we send out our
newsletter, people react quickly and buy names on the
spot for the most part. If they don't, a lot of time
the name is already sold. An active buyer pool
is one of the most important ingredients with our
success." |
When you start looking for someone to broker your
domains, Clements offered this advice - "Focus on
four important items: Experience, Knowledge,
Ability
and Track Record. Is the broker experienced? Does he
have an overall knowledge and firm grip on what
domains sell for? Does he have the ability to move
them on a solid platform that produces sales on a
consistent basis? Does he have a proven track record
year after year? If you ask these questions about
TobyClements.com,
the answer is yes, four times in a row."
Brian
Kleiner, The AfternicDLS
|
Brian
Kleiner, AfternicDLS |
Another brokerage star from the corporate world, Brian
Kleiner from NameMedia's
AfternicDLS,
sees the business from another perspective and can
effectively argue that size matters. "Being an
employee of Afternic gives me access to a marketing
and a distribution network of over 100 worldwide
partners that is unparalleled in the
industry," Kleiner said. "The Afternic
marketplace gives domain sellers the most exposure to
buyers, for the greatest chance for a successful sale.
I also benefit from a database of historical domain
buyers developed from 12 years in the industry.
Afternic’s sales acceleration program, optimized
‘for sale’ templates, performance-based parking
and monetization platform, fast transfer capabilities
and a simplified escrow process are just some of the
factors that contribute to my success."
when you are looking for a specific broker to work
with Kleiner said, "In order to be a successful
domain broker, I believe that it’s important to have
strong understanding of the value of a premium domain
to the end user. Understanding the fundamentals of
digital marketing, branding, driving site traffic, and
the
|
| economics of generating leads in various
businesses are all essential elements in closing a
domain sale. But before you can even get to that
point, I believe it’s important to have a broker who
knows who to talk to at the target company, who
can identify and connect with the decision maker, and
who can persuasively communicate the value of the
domain." |
Landing a broker is just half the battle though. As
a seller Kleiner said you have to do your part
too if
you want to see a sale happen. "My answer may not
make me popular with some domain sellers, but having an
asking price that reflects the economic conditions
today is really important. Just because a
domain was worth a high number in the past does not
necessarily mean that value still holds today, and
realistic expectations for a sale in today’s market
are important. Pricing a domain is also important
because it provides a level of credibility and
transparency to the end user, and gives the domain
a better chance of selling."
Mike
Robertson, DomainGuardians.com
Domaining is a global
business and there are good brokers based
around the world. Australia's Mike
Robertson of DomainGuardians.com
is one of the most widely known, highly
experienced and well respected brokers
in the business. He sums up what you should
look for in a broker in one word - a
word he considers so important that it bears
repeating - "Connections, Connections,
Connections!," Robertson declared.
"Two other very important qualities are
trust and reputation. Trust that
the broker will act in your best interests and
verify they have a proven track record of
buys/sales by reviewing their industry and
domain sales experience (see LinkedIn,
forums, etc)."
"You should always engage a broker
that matches your needs. On the
seller’s broker side, some sellers require a
quick liquidation, whilst others have
category-defining domains that are aimed at
the end-user market; there are brokers that specialize
in each of these areas," Robertson said."Whilst
we have an extensive network of “wholesale
buyers,” Domain Guardians’ sales brokerage
focuses on matching top-shelf domain names
with corporate buyers. That process
isn’t about speed or volume of inventory;
rather it’s about fostering relationships
with real buyers and achieving real
results."
|
Mike
Robertson
DomainGuardians.com |
Robertson added, "We should
also recognize that brokers don’t just sell domains,
and often companies/individuals will contract a
buyer’s broker to help them acquire their
“dream domain.” If you are seeking a buyer’s
agent, they should ideally have close ties to the main
players in the domain space (sellers), a thorough
understanding of domain values, and of course a proven
track record, including testimonials."
"It is important for buyer
clients to appreciate that their “dream domain”
might be out of reach. In this case, buyers should
consider finding a brokerage firm that can help
provide creative alternatives. We pride
ourselves on delving deeper than just connecting
buyers and sellers by providing conceptual naming
services, as well as global brand research and
protection."
|
Image
from Stuart Miles/FreeDigitalPhotos.net |
Robertson talked about something
sellers need to consider before they even look
for a broker. "Values are very
subjective, but when a broker has engaged the
best prospects, along with the right decision
makers at these companies, amounting to the
perfect buyer, the market will provide
the liquidity value of the
domain."
"Maybe Adobe won’t pay as
much as a newcomer to the space, but if all
the best candidates have been tapped, the
seller needs to consider what the market has
determined and discuss these options with
their broker, realistically. A
seller’s broker doesn’t want to sell your
domain for less money, but they do want to sell
your domain, so if you can’t accept the
market determining the value of your domain,
you may want to reconsider engaging a
broker," Robertson said. |
"Domain Guardians doesn't
take on brokerage for domains that we find to be overpriced
or don't believe the market will find appealing.
Why waste your time, our time or the buyers we
contact. We gauge the market as best we can but
there's a great deal of unpredictability that
sellers need to be aware of. Buyers might not be
in the market to purchase at a particular time, might
be engaging in another deal, might be closing their
operations or might be cash strapped. There are
a variety of situations that prevent deals at this
level and sellers need to be prepared to act fast.
We've seen many sales opportunities slip away from
sellers who want to wait things out."
Andrew
Rosener, MediaOptions.com
|
Another international
broker, Panama based Andrew Rosener
of MediaOptions.com,
has a similar perspective, noting "Not
all domain brokers are created equal. Some
brokers have a great network among domain
investors, which can be leveraged to sell
domains quickly, but at reseller or
wholesale prices. Some domain investors
have a track record in specific niches or
verticals. First and foremost I think
it’s important for a domain owner to identify
their own objectives. Are they
looking for quick cash or are they ready to go
the distance and give a broker a longer term
contract to try and maximize the sale
price?" Rosener said.
"Any broker who is
willing to work without an exclusive or
is willing to “market” your domain for
only a very short period of time is probably
not going to have the same objectives as the
domain owner. It takes a lot of time
and effort to sell a domain name, never mind
to an end user. You need to be willing to commit
to a single broker for a period of time,
which is appropriate to the level and price of
the domain name you are selling. No good
broker is willing to spend their time and
resources marketing a domain for which they
are not protected via an exclusivity
agreement," Rosener said. |
Andrew
Rosener
MediaOptions.com |
Rosener candidly added, "I
don’t think we are the best choice for all domain
names. Media Options is a boutique brokerage
service and we have certain niches in which we
are very strong, stronger than most; such as
the standard lead generation categories like:
insurance, debt, credit, home security, consumer
products & services and education. We also have a
very successful track record in the short domain space
(2 & 3 letter domains), primarily because it is an
area in which we ourselves have invested heavily.
We only have limited resources and so we only take on
domains which we are confident we can sell and then we
put 100% of our efforts into selling those
domains. For us it’s not about how many
domains can we get under exclusivity, it’s about
getting names which we feel we can sell in order to
efficiently use our resources to generate the highest
return for the domain owner and ourselves."
For those who are thinking about
becoming brokers themselves Rosener has some advice on
what it takes to succeed in the increasingly crowded
field. "The most important criteria for a domain
broker, or any broker for that matter, are the gift
of gab, high energy, drive and
lastly, and most, importantly, integrity. Your
reputation is everything. You’ll never please
everyone, but as long as you continuously act with
integrity and act in the best interest of your client,
then your reputation will speak for itself over the
long run," Rosener said.
|
Image
from Pakorn / FreeDigitalPhotos.net |
"Selling a high value
asset, like domain names, is more than just a
sales job,' Rosener added. "It requires
far more than just sending out form
emails. It requires that you be able to tolerate
and adapt to all different personalities.
It requires that you can comfortably give a
pitch in a board room to a top executive as
well as make small talk with a small business
owner in West Virginia who cares more about
his trout fishing trip this weekend then the
domain name you are trying to sell him."
"Being a domain broker also requires a
high tolerance for hearing the word “no”.
You have to hear the word “no” 99 times
before you hear your first “yes”.
But the key is not to let that bring you down
or de-motivate you. When you close a big
deal it’s a great feeling and of
course a great payout. Those are the
pros of being a domain broker, but you have
got to love it to maintain the energy and
momentum. The cons of brokering are of course
that your next paycheck is only coming if
you close the next deal. For many, that
uncertainty is what stops them from
succeeding. You need to have a lot of confidence
in your abilities because your livelihood
depends on nobody but yourself." |
Bob
Olea, DomainSalesPlus.com
|
Commercial airline pilot
Bob Olea (who was profiled in our July
2012 Cover
Story) is one of those who was
recently attracted to the new opportunities
that have opened up in domain brokerage.
Already an experienced domain investor, Olea
has set up a new brokerage shop at DomainSalesPlus.com.
As a relatively new broker, the first question
one might ask Olea is why choose him over the
competition. "For me, I think it really
comes down to having a good rapport and
high level of trust and interaction
with the people that I work with. I'm very available
to my clients. This is a global business, and
I've done deals at all hours of the day
and night."
Having just hung out his
shingle, the background and preparation needed
to compete in the brokerage business in fresh
in his mind. "Always watch the state
of the market by knowing about current
domain sales. One of the best sources of sales
activity is the Wednesday DNJournal.com
weekly
sales report! It's an excellent
snapshot of the 'Tip of the Iceberg'. Since a
large majority of domain sales are never
reported (usually due to NDA's), it's one of
the best sources of real market data. It's
actually helped me justify pricing with
buyers (and sellers) a few times, based on a
similar reported sale." |
Bob
Olea, DomanSalesPlus.com |
Olea added, "If a person
wants to be taken seriously as a broker in the domain
business, it's very important for them to build
their network of connections. A big part of that
is attending industry conferences, and making
those invaluable friendships that facilitate growing
in the business. I still meet new and interesting
people at every conference that I attend. It's a people
business, and if you want to be in it, you need to
spend time with the people that are active in the
business."
"As you grow in the business
and you learn more about selling domains and domain
valuations you realize that it's one of the best and
most interesting businesses in the world! There's
still a very large knowledge disparity between
talented domainers/brokers and the rest of the world.
And in that disparity lies one of the biggest
opportunities of the digital age! As time goes on
and the rest of the world wakes up to the power and
value of a good domain name, smart domainers and
brokers are the ones that are right there to greet
them – with an appropriate price tag of
course!," Olea said.
On the flip side of that, Olea
noted, "It's a great business, but it's not
for everyone. The learning curve can be very
steep, has many potholes, and it can be very
expensive until you 'figure it out'. The rules of the
game and the players are dynamically changing every
year. It's part of the landscape. But for those
that are willing to stick it out with a methodical and
steady approach, and put in the time learning the
craft - the rewards are there!"
Kevin
Faler, GTLDVille.com
|
Image
from Salvatore Vuono / FreeDigitalPhotos.net |
Kevin Faler of GTLDVille.com
asked to preface his thoughts on the brokerage
business with what he called "my
two-cents worth on the so-called "Domain
Industry?" Faler asked,
"Really, who can define it?
Seriously? That is what I thought! So then,
since we cannot establish a solid point of
origin as it relates to the aforementioned
there have been successes along the way in
where the industry has been molded and formed
into what it is today. Again, I am not sure
what that mold or form is...but it looks as
though it has been a contiguous until
now."
"This brings me to brokering! There
are no requirements, certifications,
licensing or even a cracker jack box prize
submitted by anyone who claims to be a
so-called domain broker," Faler said.
"Those who do claim to be brokers have
nothing more than a set of weak contracts
either copied/plagiarized or authored by an
attorney which most of them are so cheaply
done my 17 year old domainer kid could argue.
LOL. And there you have it!" |
|
"What
else does a domain broker really possess?
Perhaps some previous sales experience?,"
Faler continued. "Yes, most do and that
is a great quality to have. Generally
speaking, it is obvious to most
buyers/investors whom I have spoken to realize
this same theory but mostly shrug it off as
they too are merely there to buy the domain
anyway. After all, just like going into the
new local car dealership you are merely there
to buy the car. Would you ever check the
certification/licensing of a car salesman? I
doubt you would - you are there to buy the
car. Here is the crux of the problem. A
lot of brokers are dishonest and that is the
main thing to understand when calling
yourself a broker....honesty. If
you cannot be honest...then you are disgraceful." |
Faler added, "I have a little
surprise for everyone in the industry as I have now
cornered the Spanish domain market with my business
partner George Verdugo. George and I have
a large portfolio which has been secretly complied
over time and now it is time to come out from the
underground world of domaining. We own several
of the top Spanish domain phrases such as
DomainForum.com, DomainNews.com, DomainBrokers - all
in Spanish We are bi-lingual and we are
embedded in several different countries around the
world. I look forward to doing business in an honest
way. This is how you broker - be honest, be yourself, be
real and people will know you are honest!"
Evan
Horowitz, HuntingMoon.com
|
After hearing from the
eight brokers above, you can see that there
are a lot of options to consider when
looking for someone to help sell your domain.
Broker Evan Horowitz of HuntingMoon.com
said that leads to him being asked the same
question over an over again, "Why should
a domainer choose HuntingMoon to broker their
domain versus one of the other
brokers?" Evan's answer to the
inevitable question - "I think the key
ingredient is attention.
Statistically, we know that not all domains
offered for sale will sell in a the near
term. Will your broker answer the
call? Of course it is easy to be
'the bomb' broker when names sell, but how
about when things are challenging? Test
brokers with emails and phone calls, and
you can see when the broker cares or is too
bothered to help out unless there is an easy
'kill'."
Horowitz wrapped things up
for us with some sage advice on the number
one thing you can do to help them any
broker you choose sell your name. "Set
a realistic price and accept the highest
offers 100% of the time," Horowitz
said. "This is why I love working with a
seller like Eric Borgos versus some
sellers that stick to their guns almost
religiously. Volume and |
Evan
Horowitz, HuntingMoon.com |
| throughput mean
everything. If an offer is in range and the
buyer will not come up anymore, then accept
and take a profit. In short, Take
Profits whenever possible instead of 'when
never!
" Horowitz laughed. |
Addendum:
After this story was published we learned that DomainAdvisors.com
President Jeff Gabriel, whom we also invited to
comment, never received the email we sent. As the guy
who brokered the most expensive domain sale ever
reported (Sex.com at $13 million) we
knew our readers would love to hear what Jeff had to
say so we compiled his thoughts in a separate article
that was published in our Lowdown section Oct.
2, 2012. You can read that here: More Tips on Choosing a Domain Broker From the Guy Who Brokered the Biggest Sale Ever Reported.
*****
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