advice Help me with my domain/website marketplace hurdle

[pteracuda]

Hi I am designing a domain name and website marketplace. I'm trying to find things I can do to make it appealing to everyone and so far so good but I run into the problem that if anyone doesn't complete a transaction, I'll have to refund the money and I'll be leftover with a bill for the 3% transaction fees.

I'm thinking of saying that domains must be transferred over to my business account for holding so that domainers are subject to each sale as long as it sales here before taken down (such if a sale is made elsewhere). That seems a bit strict though but if I'm going to be at risk of losing money, I just can't have that happen.

It has domain / website verification, currently I'll be handling all funds so there's security there but I need to make a website where transactions are full proof basically and need ideas on making this happening. I'm working on a way also so that sellers are paid directly which would make Paypal become a third party for any dispute.

That's about as ideal as I can get with it but any more thoughts?

 

[bmugford]

Hi I am designing a domain name and website marketplace.

Are you talking about a marketplace for 3rd parties to list domains?

The main value of popular marketplaces like GoDaddy/Afternic is the massive amount of traffic and leads they drive.

As far as a marketplace in general, you are going to have a chicken and egg problem. AKA it is very hard to draw interest if you don't bring in traffic. It is very hard to bring in traffic if you don't have activity.

I'm trying to find things I can do to make it appealing to everyone and so far so good but I run into the problem that if anyone doesn't complete a transaction, I'll have to refund the money and I'll be leftover with a bill for the 3% transaction fees.

What service would you be using to take payment? Why would you be on the hook for a 3% transaction fee to refund a payment?

I'm thinking of saying that domains must be transferred over to my business account for holding so that domainers are subject to each sale as long as it sales here before taken down (such if a sale is made elsewhere). That seems a bit strict though but if I'm going to be at risk of losing money, I just can't have that happen.

Is this after a sale, like an escrow service, or before a sale? I really don't think many people are going to just trust some random person who is launching a new website when it comes to transferring domains to their account to hold.

It has domain / website verification, currently I'll be handling all funds so there's security there but I need to make a website where transactions are full proof basically and need ideas on making this happening. I'm working on a way also so that sellers are paid directly which would make Paypal become a third party for any dispute.

I think you have some big picture issues to think about first before you dig into the finer details.

What added service are you going to offer, or provide that makes your marketplace better than existing ones?

Why would you expect someone to use your service to close a deal? What track record when it comes to security and credibility can you point to?

I am not trying to be harsh, but this is how business is.

Brad

 

[pteracuda]

Not referring to you @bmugford you pose some decent concerns.

It is a 3rd party marketplace. Most of the concerns you pose would be left up to the people using the network or not using it.

I think I have at least a good start in features. Those will help drive traffic to the website.

Not sure if Paypal charges the fees for refunds or not but was using Stripe and they do charge.

And I'm not so much worried about the bigger picture, I just need help with this one specific detail. Maybe Paypal is just the way to go, but that's why I'm also looking for outside input, because I think I have my answer but I wanted to see what others thought.

And @HotKey using Paypal as a trusted third party is a good thing. Sellers would get payments directly, and yet here you are still complaining.

 

[BRANDERX]

Hi I am designing a domain name and website marketplace. I'm trying to find things I can do to make it appealing to everyone and so far so good but I run into the problem that if anyone doesn't complete a transaction, I'll have to refund the money and I'll be leftover with a bill for the 3% transaction fees.

I'm thinking of saying that domains must be transferred over to my business account for holding so that domainers are subject to each sale as long as it sales here before taken down (such if a sale is made elsewhere). That seems a bit strict though but if I'm going to be at risk of losing money, I just can't have that happen.

It has domain / website verification, currently I'll be handling all funds so there's security there but I need to make a website where transactions are full proof basically and need ideas on making this happening. I'm working on a way also so that sellers are paid directly which would make Paypal become a third party for any dispute.

That's about as ideal as I can get with it but any more thoughts?

I doubt this could be a one-man show, i'm assuming it is because you're referring to yourself, not even to a "marketplace name".

If you are serious about it, you'll need a business plan, a team etc etc etc.

imo

 

[pteracuda]

@BRANDERX.COM yes as it grows it would need more people to work it. The type of website I have built up, in the past in other models, has gotten me up to 10k unique visitors a month. I get to automate some things but others yes are manual and would take support, payments, etc.

 

[biggie]

Not referring to you @bmugford you pose some decent concerns.

Hi

I thought those were excellent point of concern, especially when an experienced domainer takes time to address each issue.

and, to brush it off as "decent", says more than you think.

imo….

 

[pteracuda]

@biggie I had someone else just posting crap on here, and wanted to let @bmugford know that what I had posted in reply (which was deleted along with the other's comment since) wasn't about his comment.

Added:
Definition of decent:

conforming with generally accepted standards of respectable or moral behavior.

 

[ecalc]

... I'm working on a way also so that sellers are paid directly which would make Paypal become a third party for any dispute. That's about as ideal as I can get with it but any more thoughts?

Your sellers may find Paypal’s seller protection policy to be less than ideal in dispute resolution.

What are the requirements for Seller Protection?
… The item sold must be a physical, tangible item that can be shipped. This means intangible items such as digital goods and services aren’t covered.

source

Good luck!

 

[pteracuda]

Thanks for input @ecalc