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Escrow.com sees transactions dip by $30 million in Q2 2020

Labeled as domains in Domain Industry News, started by equity78, Jul 29, 2020

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  1. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Escrow.com is out with their domain investment index report for Q2 2020. Business was down according to the report. The lowest since 2018. Escrow.com Domain Investment Index Q2 2020 highlights: Total transacted domain names amount dropped from US$85.8 million to US$55.2 million, the lowest seen since 2018. We saw a drop in transactions as the COVID-19 pandemic started to affect domain … [Read more...]
     
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  2. Way3

    Way3 TheMainDomains

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    Would love to know how that correlates to actual number of domain transactions (i.e. is number of domains sold/brokered down by the same percentage, or is it that domains are selling for less...)
     
    Last edited: Jul 29, 2020
  3. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    I thought Adam's comment at TheDomains was interesting:

    It may be that escrow.com wants to point at the health and economic crisis to blame for this, but they should take a minute and do some self-reflection.

    They have come under fire in many circles for their support issues and I wonder how many deals have moved away from them as a result.

    Surely Dan, with their seamless payment plans and Epik with their ever- constant presence and CEO who Hans holds transactions have chipped away at their once dominant position.

    Escrow can find those “Signs of recovery” inside their organization too.
     
  4. John Bates

    John Bates Restricted (50-70%)

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    Yes, a back story would provide more context to what is actually occuring.
     
  5. John Bates

    John Bates Restricted (50-70%)

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    If sales are dropping due to Covid-19; I wonder what if there has been a shift in the type of domain names that people purchase.
     
  6. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Well here is the thing, no marketplace or entity has the total picture. Many think @DAN.COM and @epik @Rob Monster are cleaning Escrow's clock. Many have left due to not wanting to give Escrow their personal information requirements.

    So Escrow.com is seeing less business that does not = the domain industry.
     
  7. Internet.Domains

    Internet.Domains Account Closed (Requested) VIP

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    Escrow.com got worse and competition got better. Simple as that.
     
  8. John Bates

    John Bates Restricted (50-70%)

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    It is always unsettling when companies start demanding too much personal information. I guess they are trying to use Covid-19 as cover...
     
  9. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    No John this has been going on for years under KYC rules. Many have been upset for close to 3 years now.
     
  10. CraigD

    CraigD 360promo.com VIP

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    Remember, this is just one company.
    There must have been an increase in escrow elsewhere.
     
  11. John Bates

    John Bates Restricted (50-70%)

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    I never tried to use Escrow. The concept seemed too good to be true.
     
  12. Internet.Domains

    Internet.Domains Account Closed (Requested) VIP

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    Other companies are resourceful and are able to conduct business more efficiently and effectively. Escrow.com is analog while others are digital.
     
    Last edited: Jul 29, 2020
  13. John Bates

    John Bates Restricted (50-70%)

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    They may not even realize this fact themselves. They may be inflating their own importance/thinking that people have no other options.
     
  14. Internet.Domains

    Internet.Domains Account Closed (Requested) VIP

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    Well yes! Historically they are known to not self reflect. Its been documented that Escrow.com spent their valuable time telling regulators to go after their competition instead of improving their own inefficiencies.
     
  15. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    Uniregistry. One of their biggest customers still used them (due to specific offshore Cayman Islands location obviously, it was not easy to move USD $$$ in- and out- without U.S. intermediary). After GoDaddy acquired Uni, it is likely that a lot of sales are now processed by GD directly, at least for domains previously owned by Frank Schilling.

    And, of course, many sellers would rather not sell the domain at all than touch escrow .com for any purpose.
     
    Last edited: Jul 29, 2020
  16. equity78

    equity78 Top Member TheDomains Staff TLDInvestors.com PRO VIP ★★★★★★★★★★

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    Very good point on Uniregistry.
     
  17. Jurgen Wolf

    Jurgen Wolf Top Contributor VIP ★★★★★★★★★★

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    No, Uni has its own escrow.
    Escrow.com is just optional there, you can enable/disable it in your UniMarket settings.
     
    Last edited: Jul 29, 2020
  18. tonyk2000

    tonyk2000 Top Contributor VIP ★★★★★★★★★★

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    Jurgen, remember prices Frank Schilling asked for his domains? All 5 or 6 figures. To be paid by bankwire. In many cases, banks would simply refuse to send such wires to offshore Cayman Islands:
    EU puts Cayman Islands on tax haven blacklist
    ( https://www.bbc.com/news/business-51484393 )
    So, US-based intermediary like escrow .com was inevitable.
    Now, imho, escrow .com lost this piece of pie... and it was tasty. Very tasty...
     
    Last edited: Jul 29, 2020
  19. Jurgen Wolf

    Jurgen Wolf Top Contributor VIP ★★★★★★★★★★

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    Uni escrow is called Uniregistry Secure Exchange (USE).
    It is suitable for all TLDs where Uni acts as accredited registrar, and it was always there.

    Escrow.com is just their 2nd option for some unsupported TLDs like .ST etc.
     
    Last edited: Jul 29, 2020
  20. Jurgen Wolf

    Jurgen Wolf Top Contributor VIP ★★★★★★★★★★

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    Regarding Cayman issue...
    It can be easily fixed by switching to another bank.
    I don't see a big problem there.
     
  21. DN_Hunter

    DN_Hunter Top Contributor VIP ★★★★★★★★★★

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    I'm just taking a moment to understand the numbers.

    $55.2 MILLION in domain name transactions during the PEAK months of an unprecedented world-wide pandemic (with riots and natural disasters in some parts of the world). Should $55.2 million in domain name transactions, during all the terrible things that happened in Q2, be considered "weak" numbers?
     
  22. NLP

    NLP Top Contributor VIP ★★★★★★★★★★

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    This. I've only used Escrow as a seller, and it not in the last two years, so I was surprised to see the paperwork and personal info required. I understand the need for security measures and verifying people's identity, but they've made it such a headache for even smaller sales that it really isn't worth it.
     
  23. Internet.Domains

    Internet.Domains Account Closed (Requested) VIP

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    If your trading a used diesel truck, use Escrow.com. If your trading a domain, there are much, much better options.
     
  24. karmaco

    karmaco Top Contributor VIP

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    That’s because you can have an easier and smoother transaction just about anywhere else over escrow com. I avoid them and will continue to do so.

    Its not just the prove your identity stuff. They are slow to pay and full of excuses. Poor communication between them and their bank etc. Every deal I did there had some payout issue on their end and slow as hell. Never again.

    I do suspect the big dogs transactions are handled in a hands on fashion and personal attention and thus they never have to complain. But they do not care about excellence with your garden variety domainer.
     
    Last edited: Aug 4, 2020
  25. golan

    golan GolanMedia.com VIP

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    Too bad that instead of taking the path of improvement, they are taking the path of unfair pressure on their competitors.
     

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