Why exclusively brokering is a bad thing
Brokering is the act of facilitating a transaction between two parties for a fee or commission. The idea of being a broker has become increasingly popular in recent years, with the rise of online platforms and the gig economy. However, exclusively brokering, or relying solely on brokerage services for income, can be a bad thing for both brokers and their clients.
- Lack of Control: Exclusively brokering means that brokers do not have control over the products or services they are brokering. They are dependent on the decisions of the parties they are facilitating transactions for and often have limited ability to influence those decisions. This lack of control can make it difficult for brokers to ensure that their clients are receiving the best possible deals, which can lead to dissatisfaction and loss of business.
- Conflict of Interest: Brokers who rely solely on brokering fees for income may be more likely to prioritize their own financial gain over the best interests of their clients. This conflict of interest can lead to brokers recommending transactions or products that are not in their client’s best interests. In addition, brokers may be tempted to steer clients towards transactions that will result in higher fees, even if those transactions are not the best fit for the client.
- Limited Earning Potential: Exclusively brokering can be a risky business model, as brokers are dependent on the volume and frequency of transactions to earn income. This can be especially challenging for brokers who are just starting out and do not yet have a large client base. In addition, brokers may find that they are unable to earn enough to sustain themselves if there is a downturn in the market or if there is a decrease in demand for their services.
- Lack of Expertise: Brokers who exclusively broker may not have the same level of expertise as brokers who specialize in a particular product or service. For example, a broker who exclusively brokers real estate transactions may not have the same knowledge or experience as a real estate agent specializing in a particular area or type of property. This lack of expertise can limit the broker’s ability to provide valuable insights and advice to their clients.
- Lack of Long-Term Relationships: Exclusively brokering can lead to a transactional relationship between brokers and their clients, rather than a long-term partnership. Clients may see brokers as a necessary intermediary, rather than a trusted advisor. This can limit the potential for repeat business or referrals, as clients may not feel a sense of loyalty or connection to their broker.
Exclusively brokering can be a bad thing for both brokers and their clients. It can limit brokers’ control, earning potential, and expertise, while also creating conflicts of interest and limiting the potential for long-term relationships with clients. Brokers who are considering exclusively brokering should carefully consider these potential drawbacks before committing to this business model.
Furthermore whilst exclusively brokering potentially can mean more money in the pot for the broker, if a domain sells, stating you are exclusively brokering will burn bridges because other brokers will be reluctant to share the information to spread brand awareness. Only loyal followers of the broker may help by sharing the content but other brokers will not find it in their best interest to help their competitors. It, therefore, makes more sense to partner with a few brokers and share the commission, that way it helps to widen the gap in spreading brand awareness.
Remember if you do decide to jointly broker your domain names, you must get the person to sign a joint broker commission agreement so that there are no misunderstandings down the line, (we have an agreement should you not have one which we can send to you free of charge).
A domain name that is simply listed on a marketplace will just be sucked into a saturated list of domains and unless the domain name has some marketing and SEO the likelihood of the domain name being found will be limited unless someone actively is looking for it by typing the domain name into the search bar of their browser. Therefore it is imperative to have a landing page and perform SEO and marketing for the domain name in order for it to be found. Sales pages on marketplaces do not do any SEO and will simply rely on someone to search for the domain name for the user to land on that page. Here at UK Domain Brokers we write content and optimize meta descriptions so that people can find domain names in a number of ways.
If you want us to help you get your domains on the first pages of search engines and write content to help the prospective buyer, then reach out to us. Listing your domain names with us is free, however marketing and SEO costs from £20.00 or $25.00
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