You found the domain you want, and you are wondering whether hiring a domain broker is worth the fee. It is a fair question. Here is how domain broker fees work, how ours work in detail, and when paying one makes sense.
Short version: a buyer’s broker costs a percentage of the price, and it only pays for itself if it keeps the price lower, gets the deal done, or saves your team real time. We think it often does. But you should be able to check that yourself, so let’s go through the numbers.
What a domain broker fee actually pays for
A buyer’s broker works for you, not for the seller. That is different from a marketplace or a seller’s agent, who gets paid to close a sale at the best price for the owner.
For the fee, you get a few specific things:
- Anonymity. The owner negotiates with us, not with you. Sellers who don’t know a funded startup or a known company is behind the request don’t price it that way. This is the biggest reason buyers hire us.
- Finding and reaching the owner. Many owners sit behind privacy services, ignore contact forms, or simply don’t reply. Reaching them is work, and it takes time.
- Negotiation by someone who does it often. Most companies buy a premium domain once. A broker negotiates these deals all the time.
- A safe close. Payment and transfer go through an escrow service, so money is released only when the domain is in your account. Escrow.com is our default.
Here is what that can look like in practice. Earlier this year, a client wanted one specific domain very badly. The owner never replied. We sent many emails and two physical letters, made purchase requests through marketplaces and tried calling. Nothing.
So, as a last resort, we hired a licensed private investigator in the US to reach the owner in person.
It worked, sort of. The owner first thought we were scammers. Then he believed us. But he still wouldn’t sell.
Some owners simply won’t sell, whatever you try. Our job then is to say so honestly and move on. In this case, we acquired a much better domain for the client. It cost a lot more, but it was the better name.
How our fee works
There is no upfront fee. Every acquisition starts with a free, confidential consultation, where we tell you what we think the name is worth and whether the approach is realistic. You pay us only if the domain is acquired.
When it is, you choose one of two ways to pay:
- 5% of the final price, plus 15% of the savings we negotiate. Savings means the owner’s first asking price minus the final price.
- A flat 10% of the final price.
The fee is added to the same escrow transaction as the domain price, so there is one payment and one paper trail. The escrow fee itself is paid by the buyer unless we agree otherwise.
Which option is cheaper? A worked example
The answer depends on how far the owner’s first price is from where the deal ends. Here are two made-up examples, with round numbers, to show the mechanics. They are not real deals.
Example 1: a modest gap. The owner asks $50,000. The final price is $40,000.
- Savings: $10,000.
- Option 1: 5% of $40,000 ($2,000) + 15% of $10,000 ($1,500) = $3,500.
- Option 2: 10% of $40,000 = $4,000.
Example 2: a big gap. The owner asks $100,000. The final price is $30,000.
- Savings: $70,000.
- Option 1: 5% of $30,000 ($1,500) + 15% of $70,000 ($10,500) = $12,000.
- Option 2: 10% of $30,000 = $3,000.
The rule of thumb: Option 1 costs less when the savings are smaller than one third of the final price. When the owner opens very high and we bring the price far down, the flat fee is cheaper for you.
Option 1 ties our pay to the savings we create. Option 2 gives you a number you can budget for from day one. Neither is better in every case, which is why you choose.
“Why not just email the owner myself?”
You can, and for a modest name you don’t mind the owner connecting to your company, you should consider it. Our earlier guide on how to buy a domain that is already taken covers the do-it-yourself route step by step.
But compare the real cost of doing it yourself:
- The price effect. If the owner finds out who you are, the asking price can change. You can’t see the price you would have been quoted without that, but it is the most common reason buyers come to us.
- Your team’s time. Finding the owner, writing the first message, chasing replies for weeks. That time has a cost, even when it doesn’t show up as an invoice.
- The risk of getting it wrong. A clumsy first email can end the conversation. A bad payment method can lose the money.
Against that, a fee of 10% or less of the price is a known cost. For a name that will sit on your packaging, your ads and your investor deck for years, many teams decide it’s reasonable. If the name is cheap and not central to your brand, many decide it isn’t. Both answers are fine.
What the fee does not include
So there are no surprises:
- The domain price itself. The fee is on top of what you pay the owner.
- Escrow fees. The buyer pays them unless we agree otherwise.
- A written appraisal report. Our view of what a name is worth is part of the free consultation for acquisition clients. If you want a formal written report, that is a separate domain appraisal, $89 per domain.
Questions to ask any domain broker about fees
Fee structures differ between brokers, and we can only speak for ours. Whoever you talk to, ask:
- Do I pay anything before the domain is acquired?
- Is the fee a percentage, a flat amount, or a mix? Of what exactly?
- Does the broker work for the buyer or the seller? Who actually pays them?
- Who pays the escrow fee?
- What happens if the owner won’t sell?
If the answers aren’t clear before you start, they won’t get clearer later.
Frequently asked questions
Do you charge anything if you can’t get the domain?
No. There is no upfront fee, and the success fee applies only if the domain is acquired.
Who pays the broker fee, me or the seller?
You do. We represent the buyer, and the fee is added to the same escrow transaction as the price.
Which fee option should I choose?
Use the rule of thumb above: the mixed fee tends to cost less when the owner’s first price is close to the final one, and the flat fee when the gap is large. You choose the fee model before we start, during the free consultation, and we walk through both options with you so you can decide with real numbers.
Do you need to know the domain before we talk?
No. Some clients come with a specific name, some with only a need and a budget. Either way, the first conversation is free and confidential.
Does the fee change if the owner never replies?
There is no fee unless the domain is acquired. We keep working on tough cases, and sometimes keep following a domain for a long time. The fee still depends on the outcome.
Thinking about buying a domain that is already taken?
Tell us the name you want, or the kind of name you need, and a rough budget. We’ll give you an honest view of what is realistic, with no upfront fee, and you only pay if we acquire it. Start a confidential inquiry, or read more about our stealth domain acquisition service and domain acquisition process.
