July 9, 2024

What Is the GoDaddy Domain Broker Service, and Is it Worth It?

written by

Joe Uddeme

Joe Uddeme

What Is the GoDaddy Domain Broker Service, and Is it Worth It?

Everybody’s heard of GoDaddy, whose services include quick, cheap registration of available domain names. In this post, NameExperts.com Director Joe Uddeme explores their other services – and whether they’re the right option for premium domain name buyers.

 

GoDaddy is the world’s largest domain registrar, with over 90 million domain names registered and counting. Thanks to never-ending marketing, the average person likely thinks of GoDaddy when they want to buy a new domain.

It’s common for people to visit GoDaddy, type the domain they want to buy, and see that someone else has already taken it. But GoDaddy doesn’t leave the user hanging– it suggests an alternative domain name or advertises its domain broker service, as seen in the image below:

Screenshot of GoDaddy broker page

The box on the right suggests an alternative domain to the one already taken, and the left shows a broker service and a ‘See More’ button to click on to get additional information. But what exactly is the GoDaddy domain broker service, and how does it work?

This article covers all that and more.

Key Takeaways

  • Domain brokers can help you buy seemingly unavailable domain names
  • GoDaddy offers this service for a fixed fee
  • There are limitations to the GoDaddy service
  • Understand what to look for if using an independent brokerage service

 

GoDaddy Domain Broker service

Domain brokers are professionals who specialize in buying and selling domain names. They’re the internet’s version of real estate agents, connecting domain name buyers to interested sellers for a fee.

It’s common for people to think of a domain name they really want for their business but find out that it’s already registered. If you fall into this category, GoDaddy offers a domain broker service to help you acquire a domain name from its existing owner. If you pay for the service, you’ll be assigned a personal domain broker to reach out to your target domain name’s owner, negotiate a sales price, and facilitate the domain transfer. Your identity remains anonymous throughout this process.

However, there’s no guarantee of getting the domain name you want. If the owner insists on not selling, GoDaddy can’t force them to say otherwise; this is where it gets interesting. The GoDaddy Domain Broker Service fee ($119.99 per domain) is non-refundable, and your assigned broker has 30 days to negotiate a deal.

You’ll forfeit the fee if 30 days lapse without your broker clinching a deal. But, if the broker successfully negotiates a deal, GoDaddy collects an additional 20% of the sale price before transferring the domain.

GoDaddy’s $119.99 non-refundable fee plus 20% commission is rather steep for small to midsize businesses. The commission is understandable, given that most domain brokers charge between 10% and 20%, but the initial non-refundable fee discourages smaller companies from using the GoDaddy Domain Broker Service. If you’re in this category, you’ll be happy to know you can choose alternative domain brokers that charge low initial fees or, if at all.

Name Experts is a good example of a domain broker service having reasonable fees. We can help you acquire premium domain names without hassles. Like GoDaddy, we find the target domain’s owner, negotiate a deal, and transfer the domain to you.

To make things better, we don’t have GoDaddy’s 30-day limit, which can force you to forfeit significant fees. If you’re a new business looking for a great name, check out our guide to securing a great brand name for your startup.

 

Why should I use a domain broker service?

Privacy

A domain broker protects your privacy during negotiation. The owner won’t know you’re the one who is interested in their domain. All they know is that someone represented by the broker wants to buy their domain, and they negotiate directly with the broker.

Without privacy, domain owners can easily exploit intending buyers, especially when the buyer is a well-known company with significant funds. An opportunistic owner can hike their prices if they discover the buyer is a prominent company, but seasoned domain brokers shield their client’s identity to prevent this situation.

Cost-effectiveness

Domain brokers are skilled and experienced digital property appraisers. Based on their knowledge and past deals, they know the optimal price for a premium domain. In contrast, you likely don’t know the optimal price and could underbid the domain, causing the owner to reject your offer or overbid and get taken advantage of. Handing the negotiation to a domain broker helps you save money even when accounting for the broker’s commissions.

Transaction security and ease

A professional domain broker service makes buying a domain as seamless as possible. They handle the hectic negotiation process and arrive at a final price with the owner. Then, they handle the legal documentation required to take ownership of the domain. Lastly, the broker uses an escrow service to acquire a domain, escrow meaning the funds aren’t released until you confirm ownership of the domain.

Acquiring a premium domain name by yourself can be complicated and leaves you vulnerable to being cheated. However, domain brokers are experienced in closing deals safely and handling legal documentation in case of future disputes.

If you want to acquire physical real estate, you’ll offload the headaches to a licensed broker for a fee. The same applies to digital real estate– professional brokers make buying domain names painless.

French bulldog relaxing on the grass to deonote the ease of using a domain name broker

 

Considerations for choosing a domain broker

Cost

Cost is a critical consideration when choosing a domain broker, as choosing one whose services you can afford is necessary. The main drawback of the GoDaddy Domain Broker service is the non-refundable $119.99 fee. GoDaddy customers must pay this fee whether the broker negotiates a successful deal, which can be daunting to a small business. There’s also a 30-day cap, after which customers forfeit their fee if no deal is formalized.

In contrast, some domain brokers charge only commissions, meaning you’ll only pay when a deal is successfully negotiated. Some charge initial fees that are refundable if no deal closes. No matter what, you can find a more cost-effective deal than GoDaddy’s in one of many alternative brokers.

Track record

You can evaluate a domain broker’s credibility by checking their past deals. What high-value domains have they acquired in the past, and what do customers say about them?

The good news is that most domain brokers provide testimonials and general information about past deals. At Name Experts, we’ve successfully closed over $90 million in domain name sales, including premium domains like Link.com, 20.com, Monday.com and Connect.com.

Payments security

Domain name acquisitions involve sizable sums you can’t risk losing. Hence, a good domain broker must utilize a secure payment infrastructure for both buyers and sellers. Payments processing platforms like PayPal, Wise, and Square make it easy to pay the required fees. We’ve also mentioned online escrow services, i.e., a third party that holds the payment and only disburses it to the seller after you confirm receipt of the domain.

Negotiation skills

Domain brokers are salesmen at heart. An ideal broker needs ample negotiation and persuasive skills. Some owners may be reluctant to sell, but a skilled broker can convince them to change their minds.

 

Selling a domain name via a broker

Remember, a broker works for two parties: the buyer and the seller. You might own a valuable domain you want to sell but don’t know how to find a buyer willing to pay your target price. A domain broker helps you market the domain to prospective clients for a fee.

Name Experts helps businesses buy valuable domains and domain owners to find interested buyers. Don’t hesitate to contact us if you’re in either category.

 

About the author

Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

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Open the dictionary and pick a word – the .com of that word will almost certainly be gone. So, where do you begin when choosing a domain name that will help your business grow? NameExperts.com Director Joe Uddeme walks you through the whole process.   One of the most important decisions you’ll make about your business is the domain name you choose to acquire. The domain name you give your business is crucial because it becomes your identity on the web. You want it to reflect your brand and fit your business, but you also need it to be easy to find and promote. Acquiring a premium domain name is definitely the way to go, but choosing one can be difficult. What criteria should you be following to make sure you end up with the very best when you buy a domain name? This post is a little different to the others on the NameExperts blog – it’s a list of six key pointers to consider when choosing a domain name.   1. Pick a Short Name When You Choose a Domain What You Want to Avoid: When you’re just starting out playing with domain names to choose it can be tempting to combine all your ideas into one long domain name – like UsedCadillacsInTexas.com. However, while that may make it unique and descriptive, it may hurt your branding. What to Do Instead: A short name is easy to remember, easier to spell, and thus, has a better chance of becoming a household name. It also makes it easier when you want to branch out into branded items, or you want to create a logo, etc. Unfortunately, all the very easy 3-letter names were all taken as early as 1997, but there are plenty of others available that are appropriate. The shorter your domain name is, the easier it is to share through word of mouth. It’s also easier to type into your search bar, especially if you’re using a phone.   2. Pick Something Easy to Spell, Pronounce, and Remember What You Want to Avoid: A name that is difficult to spell can negatively impact your traffic because it can mean that users don’t land on your page. They might even end up with a competitor instead. You’ll also want to avoid using multiple spellings and the use of hyphens, numbers, or special characters. Your customers will often misunderstand numbers or misplace hyphens. People who hear your web address might not know whether you’re using a numeral or if it’s spelled out. What to Do Instead: This name needs to be easy to remember. Your customers need to be able to spell it correctly and pronounce it easily, so that they can easily share it with others (check out our guide to choosing a strong brand name for your business). Imagine you’re naming a child – you want something unique for your site, but you also don’t want a name that will create difficulties because of spelling or pronunciation. Every ‘Steve’ whose parents opted for ‘Steeyve’ or ‘Stëeve’ will tell you that being ‘clever’ with a name rarely works. If you absolutely need to include special characters or terms that are more difficult to spell in your domain name, make sure you register different variations of it to be safe. Some of the most famous and brandable names out there are extremely simple: Google. Facebook. Amazon. Apple. These are giants who created an excellent product or service, but who also knew how to brand themselves by acquiring premium domain names.   3. Use Relevant Keywords What You Want to Avoid: A word of caution here – if your domain is entirely made up of keywords, you run the risk of creating a brand that sounds too generic or unrecognizable. Especially if you’re starting a blog or a personal page, you need something with a bit of personality. What to Do Instead: You’ll notice that a lot of the heavy players have names that are composed of two words, and one of them is usually a keyword. That is a very clever choice, because a) it’s descriptive of your business, b) it majorly contributes to SEO, and c) it makes your name easy to remember. So, if you’ve got an interior design business, for example, you’ll want a premium domain that ideally includes a relevant keyword, like “design”, “interior”, “decorator”, “home”, “style”, etc. That will tell your potential customers all they need to know about your business. Your name is also likely to pop up in whatever Google search they try for “interior design” or similar keywords. If your business is local, you might consider including your city or state in your domain. That way, customers in your area can find your name and remember it easier. Often, when doing keyword research for your business, you’ll find that city and state will most likely be included.   4. Avoid Anything Confusing or Inappropriate What You Want to Avoid: You want to pay attention to not pick a name that is confusing (either because of spelling or sheer peculiarity), awkward, or inappropriate. If the initials of your business make up an inappropriate word, scrap the name immediately. What to Do Instead: Pay attention to what a domain looks like when you spell it out, if it’s made of multiple words. You’ll be surprised at how many other words you may inadvertently spell. Example: your name is Marc and you’re a rapper. www.marcraps.com isn’t great, is it? The other thing to look out for is picking a name that has no relation to your line of business. That can be very confusing.   5. Avoid Names that Already Exist or Are Trademarked What You Want to Avoid: Don’t go ahead with a name that is extremely similar to an existing one or that is trademarked, because a) that is confusing for your customers and you risk losing traffic, and b) you may, someday, be served with a legal notice that may create problems. What to Do Instead: However, there is a caveat here. If the name is already trademark-protected, that’s a bit of a dead-end. There can’t be another Burger King, for example. If, however, the domain name you want is just taken by someone else, there are ways around that, and you are still able to buy a domain name that is already owned.   6. Choose a .com TLD, but Purchase All Available Extensions What You Want to Avoid: If you only acquire the domain name you want and no other similar ones, you run the risk of having someone else purchase other variations of your domain. They will get the traffic that should have been directed towards your page. 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Alarming image of a piece of paper stamped with 'scam' for an article about domain name scams
Understanding the Domain Name Scam

The bigger the domain name purchase price, the more attractive it is to scammers and fraudsters. Global domain name broker Joe Uddeme shares his top tips for staying safe when buying or selling premium domain names. It’s essential to understand the different types of domain name scams to protect yourself and your online identity. Domain name holders must be vigilant about renewing their domain names to retain exclusive rights. Domain name scams can be difficult to spot, but there are ways to identify them, such as recognizing phishing emails. One domain name renewal scam typically involves urgent phone calls or emails pressuring you to renew your domain names immediately and pay or risk losing your domain. This domain name renewal scam tries to trick people using phishing scams and deceptive tactics when registering names. Awareness and reporting are crucial to protect yourself. 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Regularly monitoring domain status and using secure payment methods for renewals are also crucial steps in prevention.   Domain Registry and Scams Domain renewal scams: fake notices and invoices Domain scams are a common tactic used by the scammer to trick the owner into paying for unnecessary services or transferring their site to a different registrar. These scams typically involve sending fake notices or invoices that claim the domain name is due for renewal. Often involving inflated prices, notices often appear to be from a registry or a legitimate company, but they are actually from fraudsters posing as an internet registry. Swindlers use various tactics to make these notices or invoices appear legitimate. They may include the domain owner’s contact information and registration details, creating a sense of urgency by claiming that the domain names will expire or be lost if the renewal fee is not paid immediately. They may ask for you to renew your domain and pay an exorbitant fee. This pressure can lead the holder to act hastily without verifying the authenticity of the notice or link. They may also try an inflated price on the renewal scam for your website or use a scare tactic and tell you your name is about to expire if you don’t pay a fee. To avoid domain scams, website owners should be cautious of unsolicited notices or invoices. Always verify the authenticity of the sender by contacting the current registrar directly or checking the domain name holders registration information online.     Domain Scams – How to Stay Safe To protect yourself from domain scams, it’s crucial to be vigilant and take proactive steps. Here are some tips to help you avoid falling victim to domain scams: Keep your domain registration information valid, up to date and secure so it never expires. Simply renewing ahead of time. Set a calendar reminder to be a step ahead Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Verify the authenticity of the email or letter by contacting your domain registrar or reseller directly. Use secure payment methods when you register and renew your site or domain name. Avoid Mail that contains your physical mail address. Address customer concerns by contacting customer support. Monitor your domain name registration and renewal dates to avoid missing important deadlines. Consider adding auto-renew as a double check for registering your asset before it expires. Use domain locking to prevent unauthorized transfers of your registered assets. Keep some money in the registrar account in case you have an issue with your credit card when you pay. Keep your contact information private by using a domain name privacy or proxy mail service. By following these tips, you can reduce the risk of falling victim to domain scams and protect your online website identity for your domains.   Reporting Domain Scams to Your Domain Registrar If you suspect that you have been a victim of a domain scam, it’s essential to report it to the relevant authorities. Here are some steps you can take: Report the scam to the Federal Trade Commission (FTC). Share the information about the scam on social media to warn others. Use the social media links provided to share the post. Report the scam to your domain registrar company such as Network Solutions. Contact the Internet Corporation for Assigned Names and Numbers (ICANN) Complaint department and let them know about the letter or email. File a complaint with the Better Business Bureau (BBB) if the scammer is a business. 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Professional looking man (on right) and woman (on left) studying computer as if in conversation about domain names
A Premium Domain Name Makes All the Difference

It’s impossible to overstate the power of a great domain name for a business. Get it right, and an endless flow of online traffic could be yours, as domain name expert Joe Uddeme explains.   The Internet evolves and is shaped by countless businesses, people, non-profits and an array of other entities looking for eyeballs in an ever-changing world. Buying a premium domain name is crucial in today’s clutter. Brands work hard to engrain their product or service in the public psyche and establish market positioning and relevance. Your domain name is part of the deal. Savvy brands understand the importance of creating something catchy and memorable. They need to separate themselves from their competition in ways that remain top-of-mind for their targeted audience. In this post, we’ll look at some of the reasons why companies large and small spend so much time and money acquiring a valuable premium name. And why you should, too. Key takeaways Proof that top brands have instantly recognizable domain names How a great domain name helps leverage your position in any marketplace Questions to ask when searching for a valuable premium domain name   What’s in a name? Let’s start by looking at the top ten brands, according to Wikipedia: Rnk Company Rev($B) FY Employees Mkt. Cap Location Founded 1 Amazon $232.9 2018 647,500 $802.3 Seattle 1994 [1][2] 2 Alphabet Inc. $136.8 2018 98,771 $791.01 Mountain View, CA 1998 [3][4] 3 JD.com $55.7 2017 137,975 $34.84 Beijing 1998 [5][6] 4 Facebook $55.01 2018 25,105 $486.39 Menlo Park, CA 2004 [7][8] 5 Alibaba $39.90 2018 66,421 $432.12 Hangzhou 1999 [9][10] 6 Tencent $36.39 2017 44,796 $434.66 Shenzhen 1998 [11][12] 7 Netflix $15.8 2018 5,400 $153.39 Los Gatos, CA 1997 [13][14] 8 Booking $12.7 2017 22,900 $92.94 Norwalk, CT 1996 [15] 9 Baidu $12.40 2016 45,887 $88.11 Beijing 2000 [16][17] 10 eBay $10.75 2018 14,000 $32.07 San Jose 1995 [18][19]   Each of these companies went out and acquired their core premium domain name – no matter what the cost. They also understood the value of having .com as their global brand. Let’s dig a bit deeper into the strategy of one of the major power-houses listed above. Facebook.com also owns many other valuable pieces of digital, beach-front real estate. Take for example, FB.com which complements the existing digital strategy that was already in place. Facebook has parlayed their web presence by building another piece of digital real estate alongside their own majestic piece of real estate. Another example is Booking.com, with more than $12 billion in revenues. They do a phenomenal job of attracting users with constant ad-driven messaging. They have partnerships with more than 660,000 hotels and provide a valuable service to their clientele.   Why Premium Domains? Let’s continue with the beach-front real estate analogy. For the past thirty years, brands have been swallowing up the short, brandable .com domains. These are the assets that provide the most upside, equity and long-term value to the brands. These assets can hold generic value, such as Booking.com, or be more brandable, such as ebay.com or Baidu – to name a few. Premium domain names have commercial appeal and are typically very memorable. 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Simply put, premium domain names come with the following instant upside: Brand-dominance and positioning Equity toward a long-term exit strategy Inability to build against – a defensive strategy against your competition Own the real estate before your competitors do! Most successful brands have identified the importance of the premium domain name. They have dedicated digital strategists or digital departments to handle the larger need for digital integration and social media components. Brands should spend wisely and methodically when securing a new brand or piece of beach-front digital real estate.   Get it right the first time with help from a broker Domain name brokerage services like NameExperts help businesses with their domain strategy and are in high demand. Whether or not they work with us, we always advise companies to use the following checklist to make sure they are not leaving money on the table: Conduct Research—who owns the asset and for how long have they had it? 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Due Diligence—dig for more information and market comparisons: it’s all firepower necessary to make the case. Timing—don’t hunt for a CBD-themed/Marijuana-type name when there is mass decriminalization and legalization occurring. The market is just too hot, and pricing will be inflated. Instead, names should be selected “ahead-of-the-curve”. Don’t fall at the first hurdle When buying a premium domain name, it’s important to ask the right questions – it can save the buyer tons of money in the long-run. A common issue relates to trademarks tied to a name/brand. Many companies secure a domain name for commercial use but never take the time to search the trademark database. This quick search can save clients thousands of dollars. Premium domain names make total sense for any emerging brand looking to scale their brand – and shortening the global domain name is still the foundation for successful growth. The top companies around the world continue to focus on the universally popular .com for brand growth. This validates the need for a superb, premium domain name for your company and brand. Get it right the first time and save money in the long run – while adding credibility and equity value while you’re doing it.   About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

Why Work with Name Experts

Name Experts offers personalized domain brokerage services, assisting clients in buying or selling premium domain names with expert appraisal, negotiation, and complete transaction management while ensuring confidentiality.

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