Buying a Domain Is Like Buying Flooring — Here’s What You Need to Know

In April 2021, my wife and I decided to buy a house in Florida. We walked into the one we live in now and she said (which she later denied), “I love this house! The best part is we don’t need to do anything to it!” Fast-forward: one new kitchen, a master bath, and new floors later.

During renovations, we started shopping for flooring. We visited a few local companies and also Home Depot. Here’s what I learned: at Home Depot, you can buy the same exact flooring the local shops sell. Then, Home Depot hires one of those local companies to install it. In other words, Home Depot isn’t doing the work—they’re acting as a broker.

The upside: if anything goes wrong, Home Depot’s brand stands behind it.
The downside: they sit between you and the contractor, take a cut, and you have no idea who these contractors are.

The Connection: Flooring vs. Domain Buying

And here’s the connection: the domain industry works in a similar way.

Scenario A: Barry Buyer Goes Through Multiple Brokers

• Barry searches at his preferred registrar but doesn’t see the domain available.
• He hires an agent at the registrar to help.
• The agent calls a marketplace where the domain is listed, negotiates, and closes the sale.
• The buyer’s agent charges 10–20% commission, the selling broker charges 10–15%.
• Everybody gets paid—but the buyer ends up covering those costs one way or another.

Scenario B: Myer the Buyer Finds the Perfect Domain

• Myer spots the perfect domain name listed at $3,995 (or $39,995, or $399,995).
• His first thought: “Wow, that’s a lot of money, and my business isn’t proven yet. Can I get this at a better price?”
• The answer is… possibly! Just like flooring, Myer has options:

• Option 1: Install Your Own Flooring — This is like reaching out directly to a domain owner. It could work fine, but you need to handle price negotiation, contracts, escrow, transfer, and risk management. One mistake could cost you more than you save.


• Option 2: Hire the Local Guy (Domain Broker) — A seasoned broker can solve problems and get creative: payment plans, trades, crypto, even equity deals. They protect your interests and ensure the process is safe.


• Option 3: Go with Home Depot (Big Marketplace) — Convenient, branded, and fast. But there are strict rules, higher fees, and less flexibility. It works fine for straightforward cases but isn’t always the best fit.

Scenario C: Mixing Brokers and Registrars

Barry finds a domain listed at Saw.com, then goes to GoDaddy to make the offer. Now there’s an extra middleman, more fees, and slower communication. While some buyers like the brand security, remember that escrow and a purchase agreement already give you better protection than registrars offer.

Lessons Learned from Flooring and Domain Buying

• Do your homework: research the track record of both brokers and marketplaces.
• You don’t have to buy from the registrar: domains are portable across registrars, hosts, and builders.
• Checkout vs. full brokerage: simple checkout might cost 3–5%, full brokerage can be 10–20%.
• Don’t confuse the seller: introducing extra parties can make prices rise.
• The minimum offer is not the price: sellers often set placeholders.

Final Thoughts

Whether it’s flooring or domains, you’re paying for more than the product—you’re paying for the process. Sometimes the big brand’s safety net is worth the premium, sometimes it isn’t. Get a free consultation from both sides before making your move. Know your options before you swipe the card or hit “Make Offer.”