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

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ChrisHarrison

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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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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.
 
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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.
 
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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.
 
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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.

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.
 
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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.
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.
 
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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 the would abandon ship.

This got old real fast.

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. :)
 
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bank robbers usually come up with plans too
 
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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.

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.
 
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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.

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...
 
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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...

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
 
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I see, yes on these sites you see on Flippa that have been online 2 months and generating xxxx revenue and above I can understand it. I assumed we were talking about solid, long term established sites :D Silly me lol

Lol... Cool bananas.. :)
 
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This scheme is not ethical and I would not do it. But I wonder if it is possible using escrow.com.

Then why even put it out into the universe?

What a shady thing to devise then post.
 
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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.
 
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Very creative thinking to rip people off.
 
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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.



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

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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