Brokers’ Corner

Domain brokers also win with Domain Profit Sharing (“DPS”). The terrain of domain ownership is shifting under brokers’ feet, and ClickShops is happy to accommodate payment plans to brokers, as well. Traditionally, brokers have been compensated in relation to the total amount paid for an asset, and domain brokers are no different.

Generally, domain brokers receive anywhere between 5% and 15% of the total value of a domain name. It can be even larger where the domain name is not as valuable. When a domain name sells, the buyer provides cash, and a portion of that cash is used to pay the broker’s fees.

In a DPS arrangement, there is no pot of cash available at the beginning of a transaction to pay off the broker. Sometimes this causes brokers to shy away from DPS-type arrangements. However, DPS with ClickShops takes care of those problems.

ClickShops will agree to cut checks monthly to brokers, as well as to domain owners. This makes payment arrangements simple for both the broker and the domainer.

In addition, the total paid to domain brokers increases through DPS. Not only do the brokers get their percentage of the income received (subject to agreement with their clients), but they also receive a cut of the final purchase price if ClickShops acquires an option to purchase the URL. While much of the payment is delayed, if brokers have a solid clientele and do business consistently, this arrangement can be a benefit, since it ensures a steady stream of payments over time.

ClickShops is also happy to make any other reasonable arrangements to accommodate the needs of brokers who bring clients to the table. If you are a broker and need special consideration, we are happy to work with you in any way we can.