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Domainers as a group for Escrow Fees

Labeled as debate in General Domain Discussion started by MapleDots, Mar 11, 2018.

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  1. MapleDots

    MapleDots Domain Properties 2010 - 2018 VIP

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    escrow.jpg

    Domaining seems to be a massive chunk of the Escrows business and when I look at some of the sales statistics I cannot help but think that as an industry we are leaving too much money on the table.

    I wonder if there is an option that could save us a percent or so if we banded together as a group? Very similar to how group insurance plans work and go down the bigger the group.

    Example....

    namePros is the group and if you are a member the escrow fees are cheaper because namepros is a larger group member.

    Just a thought here because in total domainers seem to be spending an awful lot on Escrow fees.
     
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  2. garptrader

    garptrader Top Member VIP ★★★★★★★★★★

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    Escrow fees are much lower than SEDO or Godaddy commissions. The primary issue domain investors face is getting developers and end users to recognise domains as branding tools - a means of attracting customer attention and mindshare. We all see companies use a variety of alternative advertising methods (tv, print, billboard, radio, PPC) which are far more expensive and yet less effective than a memorable domain name. These companies will spend five or six figures on website development and marketing but cannot fathom spending more than $75 on a domain name.

    Without a sale escrow fees are irrelevant.
     
  3. MapleDots

    MapleDots Domain Properties 2010 - 2018 VIP

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    You are correct but Sedo and Godaddy are a sales vehicle where escrow is merely a method of collecting (assuring) payment.

    The question being.... can we drive the cost of the sales down by banding together as a group?
     
  4. ramkumaritrvs

    ramkumaritrvs RapidNames.com PRO VIP

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    use epik.com for escrow. Pay only ~ 2% while cashout or use all your funds with them at 0% escrow fee.
     
  5. hookbox

    hookbox Active Member VIP

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    Why would any escrow company give a discount to domainers when they know that domainers have no other alternative. These companies have already monopolized the process so no reason to give a discount when we as a group have no other choice. Different situation when there are many players in the field trying to get your business.
     
  6. stub

    stub Top Member VIP ★★★★★★★★★★

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    There are quite a few escrow companies for domainers to use. But maybe only 1 trusted by buyers.
     
  7. SpareDomains

    SpareDomains Jay VIP ★★★★★★★★★★

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    Good idea if you're paying them. I've only paid sales commissions or escrow fees a few times since 2003 as most of my sales come direct 90%+ and the buyer pays the escrow fees.
     
  8. Kate

    Kate Domainosaurus Rex VIP ★★★★★★★★★★

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    I don't think the fees are exorbitant at all.

    The problem is that there are not many escrow services that are well-known and trusted by end users.
    So far I have never had an end user declining to use escrow.com. Americans trust the company because it is established and it is an American company.
    Even the end users from abroad have no reservation, because when you have a name like escrow.com you command instant trust. It is very unlikely that a company running on a premium, category-defining domain like this is going to scam people or disappear.

    The problem at the present are the compliance and KYC rules. Procedures are becoming more intrusive.
    Many people are reluctant to upload ID to a website, no matter how established it is. They are completely right. Websites are breached every day, every Equifax-type incident increases the likelihood that your personal data will leak and be used for identity theft.

    The whole process is a put-off for an end user, for a one-off transaction.

    If you make regular sales, you could get your own merchant account. But you will still pay fees, and you will have to carry the chargeback risk.
     
  9. MapleDots

    MapleDots Domain Properties 2010 - 2018 VIP

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    I sell almost everything under 5k using my own merchant account.
    I had a chargeback but it came back to me no problems.

    Bill of sale and a contract signed by both parties, one cannot argue with that. I sent it in, money came back, process took a few days but was seamless.
     
  10. biggie

    biggie Top Member VIP ★★★★★★★★★★

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    buyers have paid majority of escrow fee's, so to me it's irrelevant.

    or sellers can add the cost of the fee to price of domain, so nothing is left on the table.

    there are a lot of "middlefolks", laying in between you and what you need to do, to get what you want done.

    and some of them, have to get paid for the service they provide.

    imo....
     

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