Business of Domains is Insane

Things to keep in mind when selling your domain name. The business of domains is insane. First, be sure that your domain is sellable and that you have marketed it correctly to potential purchasers. Then be very clear as to how you will want to conduct the transaction for selling it to a buyer. It would seem that the most straightforward way to sell the domain name is to invoice the prospective purchaser, after having agreed on a price. Upon receiving payment for same one should transfer the domain name. This seems logical and simple. But there are many potential complications.

Trust is a factor in business transactions. If the prospective buyer pays the invoice, what surety do they have that you will transfer the domain name? Should you be able to include additional fees that you will incur in transaction to the initial agreed upon price? How do you reply when the buyer insists that they want to involve a broker in the deal? A broker will impose a fee on the buyer for acting on his behalf. If you domain is at auction, then you will incur a fee, ranging from 10% and upwards, depending on the listed price of the domain name.

There are also potential issues for transferring the domain that the buyer should be made aware of, including up to seven days to process the transfer and a hold on the domain. The hold would prevent the domain name from being transferred to another registrar for up to sixty days or more, depending on when the domain name was initially purchased and according to the remaining days for the sixty hold.

Therefore, it would be the most logical process for the owner of the domain name to transfer it to the successful buyer, whereby the transfer would be instantaneous and many unnecessary additional fees could be avoided. Options for a transfer that could be employed for a smooth transition include the buyer paying the invoice through E-transfer to your bank account, whereupon you would receive payment via e-mail, and only telling you the key word or answer to the security question once you transfer the domain name to his account.

There are possibly many other options for sale of a domain name, but the main component for the transaction to be completed is trust. For without this key ingredient the business deal is not appealing. While the buyer will potentially obtain the item they want and the seller is paid the fee they requested, if there is not good feeling that each person is being treated fairly and with respect, then the transaction is not lucrative to either party.

Originally posted 2013-08-30 12:24:22.

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