A domain broker is an individual or a business that stands in for you in handling purchases, sales, and transfers. You might wonder why it would be advantageous to work with a domain broker. Here are four ways people and businesses benefit from working with brokers.

1. Protection from Gouging

One of the biggest arguments for contracting with a domain broker is to discourage price gouging. If it's clearly based on the name of your business and the domain in question that you're highly motivated, other parties might pressure you to give them more. For example, a shoe company looking to acquire a footwear domain is likely to face added resistance from a seller because they may think they can get more money from them. The same applies to large companies, famous individuals, and anyone with significant wealth.

The domain name broker serves as an intermediary. They use a bland-sounding name that doesn't tip why they're interested in a domain, and that seemingly innocuous position can protect you from gouging attempts so you can pay a fairer price for your future domain.

2. Residency Requirements

Many internationalized top-level domains (TLD) have residency requirements. A company might want to use a TLD for a variety of reasons, such as creating a cheeky domain that employs the TLD. They might also want a web presence in a different country without putting down a store presence. The broker can hold onto the domain in an account that allows the buyer to use it as they see fit.

3. Use Their Knowledge

Sometimes it's just hard to make sense of what you should pay for a domain or sell one for. A domain broker has the experience. Many companies also use datasets to study how well certain domains are likely to perform. The broker can examine what similarly positioned domains have earned on the market, and they can then work backward from this information to give you a starting point.

4. Dealing with Transfers

If you don't have a ton of technical knowledge, a broker can lend you a hand with transferring and setting up a domain. This is especially important if you're trying to set it up with particular features, such as account name and address privacy. The broker can even set up an intermediate email address and telephone number. If someone sends a query to the domain based on the information, someone from the brokerage will then relay what the query is about.