[larrys]

(I do this and work buying domains for people.)

There is a problem with that.

That system only works in the case of names that you don't care if you get or not. In the case of a domain that you really need (and most buyers that I've dealt with really want the name or names they have decided on) you run the risk of pissing off the seller and having him play all sorts of games that can result in paying more or deciding to not sell at all. The broker stands less to lose than the buyer does. They only lose their commission but a deal screwed up means you don't get your domain name.

But most importantly an incentive like that assumes that every seller is the same and can be manipulated with effort. I can assure you that is not the case.

[kkwok]

These are all good points I hadn't thought of. It's clear you have a lot of experience in this--what have you found to be the best structure?