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

 

[Jackson Elsegood]

Hi Heavend,
The short answer is - extremely safe.
If the buyer did try to move the domain to privacy to avoid "receiving" the domain we're able to use our contacts at the registrar to find out the status of the push.
If it's an extremely small or remote registrar that we don't have contact with regularly, we rely on the paperwork of the push and the WHOIS records, as well as speaking directly with the buyer and seller to get to the bottom of it.

Hi Bannen,
The majority of our transaction are for or involve domains (domain names, websites with contents and web businesses). Our bread and butter is transferring domains safely, and without that valuable sale price data going out to a brokerage, so you can be sure that every one of the staff in our offices works fluently with domains.

Customers of Escrow.com have long been wanting the option of having us securely hold the domain during transfer and I'm happy to say that today we can offer that. We're currently trialling the service for international domain name transfers and expect to update the public site with the option today.

Hope this helps!
Jackson Elsegood

 

[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.)

 

[Bannen]

As for your original request in the beginning of this thread: I know some people use Escrow dot com exclusively and have no problems. I've actually never used them. Whenever a buyer has asked for some escrow service - or even for us to use escrow dot com - I always suggest Sedo. I tell them why, I say that I will use whichever they choose... and in the end they've always chosen Sedo.

Because:
1 - Sedo specializes in domains, nothing else. Everyone who works there is involved in the domain trade industry. At Escrow, most of their business is hard copy goods, not 'electronic goods' such as domains. It's true they have some employees versed in domains, but their company isn't built around domains. If you have a serious back injury, do you want to go to a general practitioner doctor, or would you prefer a back SPECIALIST? The GP might do just fine, but I'd PREFER a specialist. Sedo is a specialist in domains, Escrow isn't.

2 - Sedo gives you a human 'representative' for your domain trade. Every time. Even if it's only a $100 sale. The reps vary, some of them are Johnny-on-the-spot and seem to respond immediately to every step the buyer and seller make, other reps take a day or two to get around to each thing. But you've still got a human rep doing the steps between you. At Escrow, you don't automatically get a human rep for your domain trade.

3 - Sedo, if anything goes wrong, they'll usually know what's happening, and know what to do about it, and the human rep will at least try. At Escrow, if anything goes wrong with a domain deal... well, good luck finding a human rep who will answer your questions and try to do something to put the deal straight. Usually it's just a 'cancel' and then work out the mess later with a human rep only once you begin a support ticket. As I said, I haven't used escrow dot com, but I know many who do and I hear the stories of how problematic domain deals are dealt with: cancel, then work out mess with support ticket.

4 - Sedo is full escrow. They take ownership of the domain, and the cash. (Though I think occasionally they will speed things up if they are dealing with two solid traders, and will allow some sellers to push directly to a buyer's account - someone might confirm or deny that for me here) But Escrow is only a half escrow - they take ownership of the cash, but leave it to the buyer and seller to make the domain transfer.

So yes, I pay a big chunk of commission to Sedo for their escrow; but they provide a full escrow, with a human rep, who knows about the domain industry. Even Sedo has their problems and issues of course, every company does. But they're a specialist and a full escrow, and that makes a huge difference to my peace of mind in a transaction. I've never felt that confidence about Escrow so I've never tried to use them, and thankfully every buyer I've dealt with has been good about choosing Sedo for the reasons I stated.

 

[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.

 

[MisterSoft.com]

I've used many escrow services over the years:

• Escrow.com
• SEDO.com
• Godaddy.com (afternic uses that as well)
• DN.com (based in China)

1. Escrow.com is pretty reliable. Whenever the buyer drags his/her feet, simply pick up the phone and call the escrow.com customer support. They are very cooperative. I like them most as they are very affordable.
2. SEDO.com is extremely safe. You just have to PUSH the domain to SEDO escrow account and the funds are released right away. Only problem with SEDO is their commission fee: 15%-20% that is a lot!
3. Godaddy's commission fee is 20% as well. Most of the time, Godaddy has contacted me on behalf of the potential buyers. This is the best scenario where the seller will not pay any fee. For example, if the sale price is agreed upon $3000, then the seller will receive all of it.
4. DN.com is an escrow service based in China. I did few escrow transactions through them. Fist transaction was pretty scary as they are very picky on your proof of identity. The next hurdle was give them the proof of your WHOIS info. If you want to wire-transfer funds to your bank account, $55 will be levied as well. Once you are successful in the first transaction, the subsequent transactions are peace of cake If you want to do business with Chinese clients then you have to do a compromise. Chinese clientele prefer DN.com. Naturally, it is their comfort zone.

This the essence of my experience over the year in domain sale business. Please feel free to reach me should you have questions or comments. Peace!

 

[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 !

 

[21x20]

The problem with this is that many of these are not pushes at the same registrar. About 99.99% of mine are not like this, at least.

Well... you do have some control over this as the seller with the negotiation process. There's very little good reason someone has to make the transaction include a registrar transfer... Unless you're using a really bad registrar that no one wants to keep?? Past that, it's for you to present account change only as part of your terms for the price you're agreeing to.

I've done a few dozen high value Escrow.Com transactions over the past 15 years and have never agreed to a registrar transfer... I'm old school to the point where I remember names getting lost or hijacked mid-registrar transfer, and so that's never something I would accept liability for. I almost walked away from one $300k sale over it, but in the end, the buyer agreed and we account pushed -- he wanted the name enough. For that transaction and others, I've always have placed it back on the buyer that "if you want to transfer registrars, as soon as I give you the auth-key, my part is done and the deal from my end is complete -- the key is the key to the castle and you then have control, not me." Presenting it that way, they often just agree to a push so they can then control both the sending and receiving end of the registrar transfer.

Now certainly, smaller transactions like here on NP, I typically do not use escrow.com... and I only deal with reputable sellers/buyers with existing feedback and longer term accounts... So here in the community, I'm willing to play by different rules for transactions say < $500 to $1k, including doing registrar transfers.

 

[Jackson Elsegood]

Sorry can you expand on this please.

Are you saying we can now transfer the domain to an Escrow account and then receive the sellers payment straight after that and you guys then handle relaying the domain over to the buyer?

Hi LucidDomains,
That's right. We've always offered secure domain holding as part of our Domain Name Holding transactions, where Escrow.com holds the domain on behalf of the seller while a buyer makes regular payments, and we are now extending that service to single payment transactions.

The service will provide an additional layer of comfort for those who want additional protection and more peace of mind for first time buyers who might need some additional assistance transferring the domain to their registrar.

Cheers,
Jackson

 

[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]

 

[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?

 

[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/

 

[Argentum]

Hi LucidDomains,
That's right. We've always offered secure domain holding as part of our Domain Name Holding transactions, where Escrow.com holds the domain on behalf of the seller while a buyer makes regular payments, and we are now extending that service to single payment transactions.

The service will provide an additional layer of comfort for those who want additional protection and more peace of mind for first time buyers who might need some additional assistance transferring the domain to their registrar.

Cheers,
Jackson

Hi Jackson. Is that service already offered on your website (escrow.com)? I mean full domain escrow service when seller push domain to escrow.com accounts and then only escrow realese domain to buyer? Or for that service you need contact customer support? If so, is there any extra charges for that?

 

[coconut]

Customers of Escrow.com have long been wanting the option of having us securely hold the domain during transfer and I'm happy to say that today we can offer that. We're currently trialling the service for international domain name transfers and expect to update the public site with the option today.

We've always offered secure domain holding as part of our Domain Name Holding transactions, where Escrow.com holds the domain on behalf of the seller while a buyer makes regular payments, and we are now extending that service to single payment transactions.

The service will provide an additional layer of comfort for those who want additional protection and more peace of mind for first time buyers who might need some additional assistance transferring the domain to their registrar.

That's excellent news Jackson.

 

[heavend]

@Jackson Elsegood - Hi Jackson, I just finished a $2K transaction and I didn't see that option. I was not worried this time as I knew the other party better, but please specify how to setup (initiate) this option, and if you a have to pay extra?

 

[bytedo]

Good you came to the forum Jackson. I was going through my spam folder today and saw a familiar name - yours. So i clicked to read and said yeah `He`s alright, I don`t mind mails from him`. You got upgraded bro

 

[Jackson Elsegood]

I'm happy to say that we are now at full release
Full info: https://www.escrow.com/services/domain-concierge
Fee calculator: https://www.escrow.com/support/fee-calculator

 

[Jackson Elsegood]

Does Escrow support Paypal?

Yes we do

 

[JudgeMind]

As a seller I prefer to use escrow.com for any sale over $1,000 and have used them without any issues for many 4 figure and 5 figure sales for many years. I haven't heard of this scam before and would think that if anyone was braisen enough to try it, that escrow.com would now have a process in place for dealing with this.

 

[james haw]

So hard to get a premier quote with the new fee calculator.

Additionally, the old one used to state something about being outside the US meant an additional $25 fee on top of the percentage fee.

@Jackson Elsegood
Is this still present? If so, would be nice for the calculator to state it, or allow us to provide our country to check if eligible and any additional fees


I love the quote from Michael Cyger - although, "I always find their staff to be available" of course you do, just like the staff/managers in clothes stores are when David Beckham walks in...

 

[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.

 

[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.

 

[heavend]

yes, of course, i tried. I mean I removed it prior to requesting an escrow service. They claimed that i am trying to cheat them or whatever. I ended up paying 15 % anyways, since the buyer really wanted sedo escrow.

 

[Jasonn]

yes you want "External Domain Transfer Service" from sedo for the lower fees when you are talking to a buyer via inbound email inquiry.