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Can I use escrow inspection period to rent a domain at no cost?

Located in Domain Beginners, started by ChrisHarrison, Dec 29, 2016

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  1. ChrisHarrison

    ChrisHarrison New Member

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    I've used the escrow service at escrow.com before to sell but not to buy domains.

    I am wondering if their 30-day inspection period will allow me to "test drive" a website before I buy it.

    Here's a plan

    1) Make offer to owner of website. Offer will be much higher than I actually think the site is worth - I am just putting in a high number so he will say "yes"

    2) Put money in escrow at escrow.com. Buyer puts domain in escrow and emails me site files.

    3) I set up site on my server. I operate it for a month, see how much money it makes me, find all inbound links, etc.

    4) I never release the funds from escrow.

    5) At the end of the one-month inspection period, I cancel the deal. Owner gets the domain back. I have got some money from operating the site for a month and some deep knowledge about this competitor's site. I have spent no money.

    6) If I want, I can then offer the owner what I think the site is really worth.


    This scheme is not ethical and I would not do it. But I wonder if it is possible using escrow.com.
     
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  2. deez007

    deez007 The More I Learn The Less I "Know" VIP

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    It could be done using the inspection period.....

    I know you said you wont do it but if anyone does do something like this then unethical is an understatement, you would essentially playing with a persons livelihood. You don't know what the circumstances are for the person wanting to sell the site. It could be severe and the last thing they would need is a phony buyer leading them on and adding more stress to what could already be a stressful time for them.
     
    Last edited: Dec 29, 2016
  3. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

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    No seller would agree to it, so it is not plausible.

    You have a disturbing mind

    Always 1 day on domains, unless 6-7 figures and Lawyers are involved then 3 days.

    Otherwise no deal for thought processes such as this.
     
    Last edited: Dec 29, 2016
  4. Adam h

    Adam h Established Member

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    If a seller agreed to an inspection period then more fool him. Due diligence should be done by the buyer for traffic and revenue stats prior to payment agreement.

    As a seller Escrow would be used as a safe mediation for the transfer of the assets and thats it. As a buyer if I had purchased a site which didnt perform as described then I didnt do a good enough job of assessing who I was buying from and the site i was buying.
     
  5. deez007

    deez007 The More I Learn The Less I "Know" VIP

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    I agree that it's up to the buyer to due full due diligence, although when it comes to websites it's common for sellers to allow an inspection period (I have seen like 10-15 days inspection periods allowed before), however it's rare for it to be as long as 30days unless it's a substantially sized deal and the potential buyer has enough proof/reputation to show that they are legit and the terms of the inspection period are clearly stated. In which case I would expect that the seller would request an additional "non refundable" deposit to be made in to escrow to cover the profits generated for the 30 days inspection period... none the less it is all still possible...unlikely but possible.
     
    Last edited: Dec 29, 2016
  6. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

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    The 10-15 days on websites are usually ones that make abstract claims, of revenue, and traffic to verify the results:

    For a domain, there is no need for such lengths on inspection.

    The Chinese were adding 7 day escrows when chips were hot, locking in prices the flipping between the lock periods, if unable to flip them they would abandon ship.

    This got old real fast.
     
    Last edited: Dec 29, 2016
  7. deez007

    deez007 The More I Learn The Less I "Know" VIP

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    Yep, for a domain there is no need at all for an inspection period...totally agree. The Op was referring specifically to a website transaction that's why I replied about website inspection period. :)
     
  8. alcy

    alcy Top Contributor VIP

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    bank robbers usually come up with plans too
     
  9. Adam h

    Adam h Established Member

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    In the last 10 years I've sold my fair share of sites in the 5 figure and above ranges and I can't remember ever agreeing to an inspection period during the money/asset transfers, or being asked for one.

    Yes requests for access to analytics and a rare occasion where the buyer has asked to put their Adsense code into a particular site ( as it was adsense as primary revenue ) for a couple of days as well as video proof of an adsense account, sometimes even a meeting prior to completing a sale.

    But never has there been an explicit request for an inspection period after domains and files have been transferred.

    Maybe that's the case with higher values I'm not sure. I know if it was me though in higher ranges id be wanting a meetings , NDA's and contracts, not an inspection with Escrow.
     
  10. deez007

    deez007 The More I Learn The Less I "Know" VIP

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    Yeah when it comes to Adsense sites then there is generally no need for an inspection period. From my experience it's mainly when it comes to sites that are not aged and claiming revenue from providing services or product sales. Especially when it comes to sites earning money via Paypal payments...
     
  11. Adam h

    Adam h Established Member

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    Ah I see, yes on these sites you see on Flippa that have been online 2 months and generating xxxx revenue I can understand it.

    I assumed we were talking about solid, long term established sites :D Silly me lol
     
    Last edited: Dec 29, 2016
  12. deez007

    deez007 The More I Learn The Less I "Know" VIP

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    Lol... Cool bananas.. :)
     
  13. DomainVP

    DomainVP DomainVP.com VIP

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    Then why even put it out into the universe?

    What a shady thing to devise then post.
     
  14. Nerevar

    Nerevar Top Contributor VIP

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    It is my impression that the topic starter has confused the "30-days time to pay before transaction is cancelled" with the inspection period.
     
  15. johnn

    johnn WeSellName.com PRO VIP ★★★★★★★★★★

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    Very creative thinking to rip people off.
     
  16. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    even though you know it's not ethical and you say you wouldn't do it.....
    conceiving of such "schemes" could cause one to question whether they would do business with you, just for posting it.

    imo.....
     

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