Pitfalls of Brokering?

[Rocket2Uranus]

ok, here's the deal...

*NEW* see sample contract below!

A few people here have approached me about brokering their movie-related domains on my site. I am interested in doing it as there seem to be a few solid benefits (commissions, added value for visitors) but I am cautious as well (secretary.com scenario)

Is there a smart, simple way to do this that protects me from liability? It seems like a good idea, but I want to be intelligent about it.

[Duke]

I think you are very wise to research the issues involved MovieDomains. I had seriously considered opening a domain brokering business if and when WLS rolls out. In a WLS world everyone will be trying to buy directly from owners, opening a business opportunity representing bewildered owners who don't understand the domain market. However after seeing the trouble brokers have gotten into with secretary.com and other domains I have decided the potential headaches would not be worth it to me.

[Rocket2Uranus]

Thanks for the post Duke. I hadn't even considered WLS implications. I just think it makes sense as I represent a niche market that I offer an opportunity for others to leverage my market position for their relevant domains.

I just want to be sure there is a way to do it without opening myself up to more headaches than it is worth. For instance, is there a fairly simple contract in existance that could protect all sides?

[Rocket2Uranus]

Here is my first crack at a simple agreement. I'd welcome suggestions on improving it or adding missing points. Anyone?

Brokering Agreement for MovieDomains.com

If MovieDomains.com is to represent your domain to the marketplace, the domain owner agrees to the following statements in their entirety:

1) I legally own 100% of the domain, and there are no disputes or alternate claims on it at this time.
2) I agree to sell the domain at the advertised price on the MovieDomains.com site, or at a lower price as agreed to via email negotiations.
3) Any sales initiated from MovieDomains.com will be lump-sum sales only. I will not accept installments.
4) Once a deal involving my domain is successfully negotiated, I understand MovieDomains.com will complete the transaction and pay me the full amount negotiated less a 15% commission. Immediately prior to payment, I will transfer the domain to MovieDomains.com via free registrar push or by setting up a free account and placing the domain in it. I understand MovieDomains.com will transfer the domain to the buyer.

List domain(s) here








Date __________________________________________________ ________

Seller __________________________________________________ _______

MovieDomains.com _____________________________________________

[Rocket2Uranus]

anybody? I could really use some suggestions here...

[WebCat]

A serious contract should address the responsibilities and potential liabilities on both sides, as well as remedies avail to both parties such as arbitration.

I produce some very large events where hundreds of thousands of dollars are on the line. My contracts are quite specific and protect both parties from fraud, errors, omissions and (since I often put very valuable equipment at risk) even security!

My suggestion is- if you really want to do this by contract, take the time and develop this into a real, binding contract with some teeth which would hold up in a court of law. I'm not an attorney, but I have developed some contracts, so if you want some help, let me know!

WebCat

[Rocket2Uranus]

Thanks WebCat. I am trying to walk the line between doing enough and overdoing it, as I don't expect this to be very big for me (maybe hundreds over time, but not thousands). I just want to set some ground rules and have a clear understanding with any potential partners, as well as protecting myself from getting into a secretary.com situation. I think I accomplish that here.

Hasn't anyone else here tried to do this? Maybe this wheel has already been invented... I would be willing to pay for a pre-composed contract on this topic.

[Mr Webname]

Nothing ideal but at only $5 a pop to download there might be something here you could use as a basis for your needs:-

http://www.industrycontracts.com/