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A Day In The Life Of A Broker

Thursday, March 31, 2011
By admin

 

 

 A good few of you reading this will already have brokered domain sales for friends/clients etc. A good few more will be considering getting into brokerage. Well one thing I can say is that if you have desires to broker you will have to work hard, very hard. Brokerage is a tough Business and not for the faint hearted or for the quitters of the world.

If you’re an experienced Domainer you should have a good head start as you will be savvy enough to know a few things about how to negotiate. Everyone has their own style but there are some unwritten rules as far as I am concerned. Pushy is good, overly pushy isn’t. Digging your heels in can be effective but flexibility often works wonders. Knowing when to act and when to step back is crucial too.

I’m not setting myself up as a Superbroker, far from it, but I’m not that bad either. Although I’ve been Domaining for 10 yrs or so I’ve only been brokering for just 16 months. Life is a learning curve from cradle to grave and everyone has something to learn every single day, otherwise you’re in trouble.

Before I discovered the Internet I earned a living from the following ~ Playing in bands, Finance, Construction, Care work but mostly a hell of a lot of sales work. I like buying but I love to sell. Good sales people are born to be sales men/women but if it doesn’t come naturally you can work at it.

Just like some people are scared of numbers other people have an irrational fear of negotiating. I don’t get it. Life is all about negotiating. We negotiate with our partners, our spouses, our friends, our siblings. Hell life is one big negotiation ~ unless of course you happen to be an autocrat in a totalitarian state.

What attributes are required to become a successful broker?

  • Tenacity
  • Professionalism
  • Great communication skills
  • Patience  
  • An ability to not get personal
  • A strong command of negotiation skills
  • A natural ability at Poker (or even better Chess!)
  • An ability to network
  • A good grasp of Human nature

 

BTW I love Chess, especially speed chess. I play online and I have to say I’m not bad. I have played a little Poker too but Chess is my game. If anyone loves speed chess (1 minute each) drop me a message but be warned I’m hyper competitive.

Just this week we had a $70 000 plus sale fall through. I can’t mention the domain but I will say it was a cctld. Clearly I need to respect my client - even if the potential buyer thinks it acceptable to renege on his pledge. Negotiations have been ongoing for months over this domain. Some sales are smooth and completed quickly, most don’t if at all. I finally got this potential buyer up from low to mid xx xxx range to the sellers target price. He agreed to pay all escrow fees. Literally minutes later he backtracked and dropped back down to the low to mid xx xxx range. Well this is rare but it’s not that rare. Will I quit on neogtiations? Nope. Will I chase him? (the bidder) Nope. His actions are very unbusinesslike but I will leave the door open as long as I think appropriate. Sometimes it’s better to do nothing than to do something and this is such as instance.

I would say that out of all brokered negotiations the following is a pretty accurate guide

~ 70% fail at the first hurdle as buyer and seller are irreconcilible regarding ever being able to agree to a mutually acceptable price point. A good broker will endeavour to reconcile buyer and seller at this point but oftentimes a broker is wasting his time and time is a precious commodity. Why persevere with mission impossible when there are other deals to be had. 

~ 20% fail at the next level. Buyer and seller are finally in the same ballpark but neither will budge. This is where the brokers crucial role as a facilitator comes in. Buyers and sellers do not like to lose face so this is where any broker worth his salt will intervene. Good interpersonal skills are required for this phase. It is vital to liase professionally with both buyer and seller and this requires tenacity and a whole load of patience.

~10% go to escrow (incl those who claim they are ready to undergo escrow) I would say that around a third of buyers (and sometimes sellers) fail to complete escrow for one reason or another.

Still fancy trying your hand at brokerage? It’s a level playing field, though not everyone is cut out to be a broker everyone who wants to can give it a try.

Have a great day, and feel free to leave a comment or drop me an email

 

thanks for reading,

Andy Kelly 

C.O.O NameCake.com 

C.E.O UpMarketURLS.com



5 Comments »

  1. by TeenDomainer |  March 31, 2011, 8:04 pm  

    It is like a big game of chess and thats what keeps it fun every day.

    Brian

  2. by Michael |  March 31, 2011, 8:16 pm  

    great post, you really mention everything!:D

  3. by Toni |  April 1, 2011, 4:20 pm  

    Hi Andy,

    nice post, I find it a lot easier to sell my own names LOL but I still fancy to become a real broker someday (so far I had only moderate success trying it for friends - lot’s of wasted time as mentioned in your post), I think I will stick to my native tongue/native market though (.de)…

    Regarding chess and thats why i am leaving a comment, hehe, I usually play 3 minute blitz at chess.com (rating around 1700) - if that sounds like your rating range then we can meet up and play :)

    Cheers
    Toni

  4. by admin |  April 7, 2011, 10:10 am  

    Hey Toni

    How about a compromise? 3 mins would drive me crazy ! How about 2 mins with no lag??? Which site do you play on mainly?

    re .de thats a market that interests me. I have no experience in .de whatsoever but I am well aware it’s a very buoyant market. I come across folks wanting me to broker .de all the time, I’m good to refer all over to you.

    add me on skype anytime ~ andy.j.p.kelly

    best

    Andy

  5. by Toni |  April 13, 2011, 8:27 pm  

    Cool, I will try 2 minutes :)… I play at Chess.com only (the dream domain of every chess playing domainer LOL), haven’t really tried playing elsewhere, let’s discuss the rest while playing, adding you to skype now :)

    Toni

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