What Is Commission? Domain Glossary

Why it matters

Commission is how most domain brokers and marketplaces earn their fees. Rates differ by service and by price, and they are higher for small sales. Sellers should ask who pays, how it is taken, and whether it applies to a buyer the seller found. Escrow fees are separate. Buyers sometimes pay a commission to a buy-side broker. Common mistake: signing a broker agreement without checking the term and exclusivity. A long exclusive deal may owe a commission on a sale the broker did not make.

Source: escrow.com

Where we use this term

Related terms

Success fee: A success fee is a payment owed to a broker only if a sale closes. It is usually a percentage of the final price, so the broker earns nothing if no deal happens.
Domain broker: A domain broker is a professional who buys or sells domain names for a client. The broker finds the other side, handles negotiation and manages the deal through to transfer, usually for a commission.
Exclusivity agreement: A contract that makes one broker the only party allowed to sell or negotiate a domain for a set time. It usually states the term, the commission and what happens if the seller finds a buyer alone.
Escrow: A neutral third party holds the buyer's payment until the domain is transferred and accepted. It protects the seller from non-payment and the buyer from losing money without receiving the name.
Sell-side broker: A sell-side broker represents the domain owner. The broker markets the name, finds buyers, negotiates for the best price and manages the sale. The seller pays the fee only when the deal closes.

All 205 terms

Why it matters

Where we use this term

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