Domain brokers don't all charge the same way, and the model matters as much as the rate. Here's how fees typically work, and what to clarify before you sign anything.
Common fee models
- Success fee (commission): the broker is paid when the deal closes, usually as a share of the price. Common for selling, and for many acquisitions.
- Engagement or retainer fee: a fee to start the work, sometimes credited against the success fee. It covers research and outreach whether or not the deal closes.
- Fixed fee for defined work: for research, buyer lists, owner identification or negotiation advice.
Selling vs. buying
When you sell, the broker's success fee usually comes out of the sale price. When you buy through a broker, you pay the broker for working on your side; check that they aren't also being paid by the seller on the same deal.
Questions to ask
- What exactly do I pay, and when?
- What happens if the deal doesn't close?
- Is any upfront fee credited against the success fee?
- Who else is paying you on this deal?
- How will payment and transfer be handled? (It should be through escrow.)
At NameUpgrade, terms are always agreed in writing before any work starts. See how we work.
Questions
Do domain brokers charge buyers?
Brokers working for a buyer are paid by the buyer, typically through an engagement fee, a success fee, or both.
What does a domain broker charge when selling?
Usually a success fee taken from the sale price when the deal closes. Terms vary by broker and by the domain, so agree them in writing first.
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