CloudBroker 'Opportunity'

Did anyone else gag after reading about the ‘opportunity’ that Squadhelp is affording domain owners to offer a commission to vetted brokers to help market their domains???

If I earned a 30, 40 or 50 percent commission on my IP then I certainly would consider offering 1/3 of that amount to a broker. But Squadhelp takes 80 percent of most domain sale profits and wants ME to give away 1/2 of my remaining 20 percent.

There is something really wrong when you only collect 10 percent of the value of your own IP.

So, with the permission of individual domain holders, why doesn’t Squadhelp pay 10 percent of its 70-80 percent commission to the broker/s and leave the IP holders to earn the rest??? That’s my suggestion.

And the e-mail apparently was in earnest…

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By ‘rest’ I mean the usual commission - i.e. Squadhelp loses 10 percent and still has the lion’s share profit plus better chances for sales.

Can you clarify something please: are you talking about having SH registered domains and paying them that much commission? For those (I have many as well), it is probably not worthwhile to do cloud brokering. But you make a good point on those SH registered domains that they should pay most of the cloud broker commissions.

I just wanted to clarify because people who own their domains are not paying SH 80% commission.

Yes, I only have Premium domains suggested by me and purchased by SH, with me earning a diminishing return or commission each year from about 30 to 20 percent of the sales price. That’s a big return for SH and I was affronted to be invited to give away more! // Really a separate topic but I also have sold two domains on the touted ‘payment plan’ method, only to have the purchasers stop payment in 2-3 months. Squadhelp simply says there is nothing to be done in terms of honoring the contract (the domains simply are re-listed for re-sale), while they’ve pocketed a healthy bit of coin! I also receive no credit for selling those domains, even though they were sold!

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To be honest, I wouldn’t worry about it. I’m at a loss to understand how SH think cloud brokering would work here.

The sort of person that knows how to buy, list, then reach out to potential end users with domains are not listing those names here (at a 30% commission), there are plenty of landing pages out there with a 7-12% commission or they are using the WLM.

If, by a quirk of owner lack of knowledge, there are target domains here (and in fairness, there are loads), who would do the outreach on them? Not those people that know what to do, they are busy doing their own to make $x,xxx instead of $xxx on someone elses domain. And even if someone decided to make a go of it, being able to work on only one portfolio is a major restriction. Plus the added disadvantage of your target not clicking on ‘your link’. I hardly ever click a link in an email, if there is an option to go direct. Would SH accept that you emailed a target as proof that you got the sale if the domain just sells? Who knows, and if the sale was a month after your email, then probably not.

I would ask SH to rethink this program. They either need to employ some staff on a wage to constantly do outreach on all domains in the marketplace or they need to set an affiliate program where everyone gets their own link for all domains in the marketplace and then promote the affiliate program.

Employing some dedicated staff is probably going to be the best option, staff are unlikely to spam everywhere and will have a dedicated set of rules to follow with standard outreach emails etc. This is likely to be the most profitable option for SH too, as real personal outreach is very successful and these staff should pay for themselves and make a healthy profit on top. Outreaching using a SH email with a fancy email with images would increase the success rate over the rest of us too.
Personally, with a little software assistance, I can email several hundred people a day when I’m dedicating my time 100% to outreach, or I spend my day on LinkedIn or Facebook reaching out.

A while a go there were 100s of spammers pushing “join SH and make $5,000 a day” in an attempt to get $30 (or whatever it is) referral fee (as they didn’t realize people had to buy a domain for them to get the referral fee). These same spammers (and many of us here) are much more likely to promote affiliate links, but I’m not sure many of them would do real outreach to a targeted end user. SH would also have a lack of control over these people, we’ve already seen what spam can be produced in the past.

Anyway, I’ve just woken up and these may be grumpy mumblings since I’m only on my first cup of coffee of the day. However, the point of this post still stands. I can’t see how the cloud broker program is going to be successful.

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