Introduction
In this guide, we cover 4 services delivered by professionals, mainly to assist buyer and seller in a domain transaction.
These services are usually offered by all the major marketplaces, as a kind of one-stop shopping.
In addition to these marketplaces, they are also available from many specialized professionals.
Here are these 4 services:
1. Escrow
This service allow to secure the change of owner of a domain consequently to its sale.
Practically, an owner change procedure can be initiated from several domain operations:
an owner change
a transfer
an account change
The actual operation to be used depends on the domain extension as well as whether a registrar change is already to be done.
Depending on the escrow provider and the domain extension, an escrow transaction can either be completed in 3 steps or 4 steps.
Here is the 4-step flavor:
the buyer provides the funds to the escrow provider
the seller push the domain to the registrar's account belonging to the escrow provider
the escrow provider transfer the domain to the buyer (via one of the 3 owner change procedures)
the escrow provider release the funds to the seller
Here is the 3-step flavor:
the buyer provides the funds to the escrow provider
buyer and seller complete the owner change procedure
the escrow provider release the funds to the seller
The 4-step flavor is the most convenient but some domain extensions do not support the account change operation, which is required in the step 2. In such case, the 3-step flavor is to be used.
Both parties are protected in such transaction:
The buyer will receive the funds back if the seller does not transfer the domain to him.
The seller is guaranteed to receive the funds if the domain is transferred to by buyer.
2. Brokerage
Aliases: domain broker service, domain agent service
A broker acts on behalf of his client (i.e. the buyer or the seller) in order to arrange a domain transaction between the two parties (buyer and seller).
There are two sides in any transaction:
the buying side or acquisition side
the selling side
A broker is either on one side or the other but a transaction may involve two brokers when both the buyer and the seller are represented by a broker.
Buying side activities
On the buying side, the broker leads the negotiations with the seller.
During the negotiation, the identity of the buyer may be kept anonymous by the broker.
Selling side activities
On the selling side, the activities may be divided in 3 groups:
Pre-sales activities with the domain owner: price expectations, selling strategies, portfolio review
Marketing: advertise that the domain is available on the market (landing page, contacting potential end-users, etc.)
Follow-up of all leads: answering buyer requests, etc.
Actual delivered services may very depending on client's needs.
3. Appraisals
Aliases: domain valuation, domain value
A domain appraisal is the estimation of the value of a domain.
Such appraisal may be used by buyer and seller in a domain transaction.
The seller may use an appraisal in order to define the selling price of a domain.
The buyer may also an appraisals in order to help defining his budget.
Automated vs Professional appraisals
Appraisals can be generated instantly based on algorithms using key metrics and historic sales. These are automated appraisals.
Appraisals can also be made by domain brokers, along with brokerage services or not.
4. Consulting
Your questions are above and beyond standard services? Consulting services may be the right answer.