How Safe is ESCROW.com for sellers

[heavend]

Hey guys,

I wanted to ask your opinion about escrow.com and what are they charging this big money for.... For a long time now, I have a reservations when it comes to selling domains and using escrow.com as a method of transferring the funds and domains securely. On the other hand as a buyer you dont' have this issue.
Other things, purchasing cars, etc via escrow.com is completely different animal, but domain names, due to their nature is not ideal.

So simple scenario:
1. Buyer is somewhere in China. (The ONLY reason I am using China - is it's less traceable spot, where a lot of domainers including myself do business these days)
2. You set up escrow.com transaction for your domain sale.
3. Buyer transfers the funds.
4. You as a seller, push the domain name to the buyer.
5. Buyer then immediately pushes somewhere else and set's up the privacy whois.

The rest is very simple. Basically you can have a problem and the details can be different...

Back about 7-8 years ago when I first came across an idea for this kind of scam, I was surprised how easy it is to setup and execute. I was selling a domain name for over $100,000 + my buyer wanted to use escrow.com ONLY, I talked to escrow.com representative to try to figure out is there any protection from this. At this time, the representative was surprised at my idea (they never thought of it), and told me while it potentially can happen - they never heard of it.... Needless to say - in this case, I was worried for no reason and my transaction ran without a glitch.

Now, for years I was trying to use moniker escrow.com because of this specific potential issue. Yes, it takes a little longer, but moniker takes a possession of the domain and the funds, before releasing domain and the funds. This is a true escrow services. What escrow does is pretty interface without real services. Why do people love it so much and why there aren't other alternatives like moniker escrow is odd. Sedo escrow is similar, of course, but they charge you and arm and a leg.

I never used DN escrow, heard about it recently.
Was wondering if people who are using it come across similar issue or if it's a true escrow services just like moniker or sedo?

What other true escrow services people can recommend which they used with success and without this potential risk?

All best,
Alex

 

[Haris]

Never used any escrow service because I have never made a big sale, but read here on NP 3 tips to protect domain from getting stolen.

1) Change the WHOIS before push so it's impossible for the new owner to transfer the domain out without having to wait 2 months first.

2) Take screenshots of WHOIS before push.

3) If domain was at GD then contact: [email protected]

 

[heavend]

1) Change the WHOIS before push so it's impossible for the new owner to transfer the domain out without having to wait 2 months first. - excellent idea - of course, but privacy can be set still.. I am not saying you would not get your money - you could potentially loose a lot of sleep over it ...

 

[Rajnish Prasad]

I would say nothing is safe & secure.

You are safe only till you get cheated.
Thumb rule is be cautious & alert.

 

[Argentum]

So what escrow.com will do in case if buyer immideately push domain to another account and name and then deny to confirm domain receipt? What will do escrow.com in this case?

 

[Megist]

Sedo is SAFE. Because you push your domain to Sedo username. Not to buyer's account!

Sedo take payment from buyer, take your domain to their username at any registrar and push domain to buyer and send money to your account

That is the best way !

 

[heavend]

Well, they claimed there is NOTHING they can do.. I mean they said you would have "legal" documents and "legal" case against whoever, but when it comes to China for example - or other international trades - Legal options are expensive and / or impossible... but expensive at best.
Plus it can work both ways. The company you are trying to go to court with (even if one exists and not fake) can claim you did the scam on them. You simply sold this domain name to someone else and split the profits. and now you are trying to get the money from escrow. In fact why would escrow.com believe you? They are there mostly to protect the buyer, and buyer's interest, even through they can claim different in their disclosures.
Btw, I am not saying I never used them successfully as a seller. I did, probably over 50 times over the years and as a buyer about 250 times. All transactions went fine. I just never feel safe when I am selling.

 

[premkumar]

If such thing happen, i think you can go through whois history and see that at 1 point whois changed from your name to buyer. Paid service for Whois history are availble and for some $10 you can get such detail and prove it

 

[heavend]

well, you prove you owned the domain name and now you see iwhois - it as having privacy on. That is about it I think? You will not be able to prove that you transferred the domain to the correct person.? I think the only way to do it, is go through the registrar and they have all the IPs recorded. You have to get those details, and using them somehow prove that in fact it was you who delivered the domain and to the right person. If the domain name is with ename.com (in china) for example - they will NEVER listen to you. I dealt with them before. This registrar - is horrible.

 

[21x20]

I name my transactions on Escrow.Com as "Push to XXXX at YYYY registrar"... So as long as I have a confirmation of the push, I've fulfilled the agreed upon transaction terms. (XXXX being the account name, YYYY being the registrar name.)

 

[Argentum]

Seems like Sedo really more safe service as escrow.com, but their fees is crazy. Any Sedo alternatives on market? Escrow which receives domain on their escrow account and only then process payment, etc, without direct push or transfer within seller and buyer.

 

[Megist]

Seems like Sedo really more safe service as escrow.com, but their fees is crazy. Any Sedo alternatives on market? Escrow which receives domain on their escrow account and only then process payment, etc, without direct push or transfer within seller and buyer.

Be sure that all such these services fees are very crazy But anyway Sedo is safe. I sold many domains there. %0 issue

 

[premkumar]

I name my transactions on Escrow.Com as "Push to XXXX at YYYY registrar"... So as long as I have a confirmation of the push, I've fulfilled the agreed upon transaction terms. (XXXX being the account name, YYYY being the registrar name.)

This is fine for push but what about transfer. In transfer you don't know the registrar and account. you just give out the secret domain code.

 

[21x20]

This is fine for push but what about transfer. In transfer you don't know the registrar and account. you just give out the secret domain code.

I would require additional written terms for a registrar transfer. My rule is that I'll push and the buyer can transfer where ever they want after they have possession at the registrar.

 

[Argentum]

WOW just checked Sedo pricelist and seems like they are reduced seriously their prices..
Here is their prices:
Domain Sale Price (EUR/USD) Domain Transfer Service Rate
> 50,000 1.5%*
> 5,000 - 50,000 2.5%*
0 - 5,000 3%*

I thing it's even better prices than escrow.com and more safe. Is this price will remain same will use only them when selling domain, sure they work more slow but safe more inportant.

 

[heavend]

@Domain-Reseller - this is great news.

 

[Megist]

@Domain-Reseller - this is great news.

But attention for an important point. There are some different types of selling at Sedo. I do not know these fees for which type of selling but 4 months ago i sold 3 domains at sedo. Each 185 or 200 usd. Sedo got 60 usd fee for each domain
It was Very crazy fee for me.

 

[Argentum]

But attention for an important point. There are some different types of selling at Sedo. I do not know these fees for which type of selling but 4 months ago i sold 3 domains at sedo. Each 185 or 200 usd. Sedo got 60 usd fee for each domain
It was Very crazy fee for me.

We are talking here about escrow service only.

 

[Megist]

We are talking here about escrow service only.

But you said you checked sedo price list?

Maybe i misunderstood

 

[Argentum]

But you said you checked sedo price list?

Maybe i misunderstood

Sedo pricelist where mentioned escrow fees.

 

[Bannen]

WOW just checked Sedo pricelist and seems like they are reduced seriously their prices..
Here is their prices:
Domain Sale Price (EUR/USD) Domain Transfer Service Rate
> 50,000 1.5%*
> 5,000 - 50,000 2.5%*
0 - 5,000 3%*

Those are the commission percentages for when you use Sedo's escrow services but you do not have your domain listed for sale in their marketplace or parked with them. Those percentages have been the same for quite awhile. The commissions are MUCH higher if you make a sale via having your domain listed in their marketplace or parked with them - anywhere from 10 to 20%.

Here is the entire list of Sedo's fees:

https://sedo.com/us/services/price-list-for-services/

 

[21x20]

Those are the commission percentages for when you use Sedo's escrow services but you do not have your domain listed for sale in their marketplace or parked with them. Those percentages have been the same for quite awhile. The commissions are MUCH higher if you make a sale via having your domain listed in their marketplace or parked with them - anywhere from 10 to 20%.

Here is the entire list of Sedo's fees:

https://sedo.com/us/services/price-list-for-services/

For the record, I asked about this once and they said the standard escrow-only fees applied as long as the name wasn't listed at the time the escrow was started. They seemed to sorta hint you could just delete the listing shortly before opening an escrow transaction and you'd get normal fees. I never tested the theory, but if anyone wants to... Let us know the results in practice.

 

[Argentum]

Those are the commission percentages for when you use Sedo's escrow services but you do not have your domain listed for sale in their marketplace or parked with them. Those percentages have been the same for quite awhile. The commissions are MUCH higher if you make a sale via having your domain listed in their marketplace or parked with them - anywhere from 10 to 20%.

Here is the entire list of Sedo's fees:

https://sedo.com/us/services/price-list-for-services/

I know that and we are talking about escrow services only, noy about selling on Sedo, i'm not willing to sell anything on Sedo, only to use them as escrow services.

 

[heavend]

For the record, I asked about this once and they said the standard escrow-only fees applied as long as the name wasn't listed at the time the escrow was started. They seemed to sorta hint you could just delete the listing shortly before opening an escrow transaction and you'd get normal fees. I never tested the theory, but if anyone wants to... Let us know the results in practice.

Yeah, I am fairly sure this won't work. I had tried this many years back. I agreed on the sale outside of sedo, and I felt like I dont' need to pay sellers finders % to sedo, but wanted to use their escrow. They still charged me like 15 % or something.... In general their fees are probably the biggest in the industry. Maybe they adjusted them recently to accommodate the poor economy...

 

[21x20]

Yeah, I am fairly sure this won't work. I had tried this many years back. I agreed on the sale outside of sedo, and I felt like I dont' need to pay sellers finders % to sedo, but wanted to use their escrow. They still charged me like 15 % or something.... In general their fees are probably the biggest in the industry. Maybe they adjusted them recently to accommodate the poor economy...

Did you remove the name from your sedo portfolio first?