Sedo charges 10% for Escrow

[Ronald Regging]

I was wondering if anyone ran into this situation?

I found a buyer for a domain and negotiated a sale. The buyer wanted to use an escrow service in order to feel secure. I suggested that we use Sedo's Escrow service. Buyer emails Sedo indicating that he would like to initiate an escrow process for the purchase of my domain. Sedo emails us both informing us that the fee will be 10% instead of 3% since the domain was listed for sale on Sedo.

As far as I am concerned, this is absolutely ridiculous. *I* found the buyer, *I* led him to their escrow service. Why would I pay them an additional 7% when they've done nothing to earn it? The buyer didn't even know Sedo existed before I suggested it.

Regardless, I have removed the domain from my Sedo account and emailed them trying to get this straightened out. If they refuse to provide the escrow service that they advertise at the rates they advertise, I'll just use another service and they'll get nothing.

Just wondered if anyone else ran into this problem.

 

[SiberForum]

I do not know SEDO very well ... But if you should sell that through SEDO maybe that worth to sell that in two steps: customer pay you directly and then say $1 for this domain name through SEDO. Just my thoughts

 

[Name Trader]

I thought there was a flat fee or minimum charge if your domain was parked at Sedo. but if only listed there, not parked, I think it's 10%. Use Escrow.com instead. I think Escrow is better than Sedo for Escrow anyway. Generally, you'll get your money is in less than 1 week. With Sedo, it generally takes at least 3 weeks or more.

 

[SpareDomains]

Using Escrow.com I have had ACH payments straight to the bank in 2-4 days which is generally quicker than Sedo handles them, I would only let Sedo handle it if the sale actually occurred from them and you don't know who the buyer is.

 

[Domagon]

Sedo is a listing service - you listed it there, and hence the 10%.

It doesn't matter if you find the buyer or they do, the point is you utilized Sedo's service to promote your domain for sale - that's how Sedo is justifying charging the 10%.

You may be able to negotiate the fee down to 3%, but be very careful, because after they get the money / domain, they may then charge 10% anyways; good luck trying to get that resolved.

At this point, escrow.com is likely your best option.

Moniker escrow may be ok too, especially if you're seeking an escrow that both holds the domain and funds, but BE SURE the buyer pays via BANK WIRE ONLY.

Reason is that Moniker doesn't guarantee the funds from the buyer are good; Moniker seemingly doesn't fully understand the concept of escrow. If the buyer pays Moniker via PayPal, you may potentially be left liable and/or the buyer later losing their domain, and then coming back on you! In short, if using Moniker, insist the buyer MUST pay with bank wire only.

And on a related note, to be clear, the PayPal issue is regarding Moniker - with Escrow.com it doesn't matter how the buyer pays, escrow.com will guarantee the funds are good. Moniker does not.

Oh, another alternative, though I'm not that familiar with them, is EscrowDNS.com, which holds both domain and funds - some have reported good success using them.

Ron

 

[funpage]

I've used Sedo's escrow service once, and they only charged me 3%. It was about 2 years ago so I'm not 100% certain, but I believe I had the domain listed for sale at Sedo at the time.

 

[MattheP]

From what I have read, sedo escrow is more secure then escrow.com - sedo holds both domain and money during the transfer proces (like EscrowDNS), and looks like there where couple of chargebacks (after domain was transfered) on escrow.com.

 

[DotWeekly]

If the domain is listed with Sedo, as you stated your domain was, even though you contact them for the 3% escrow... they are only right to charge the 10% because your domain is listed with them. They do state this as I had read it before.

Your best bet is to remove the domain like you said you did. Wait a couple days and then resend your contact about using 3% Escrow and provide the info they request. It is about the only way around it.

 

[SpareDomains]

Domain Name Wire » News » Escrow.com Rated Top Domain Name Escrow Service - The Domain Industry's News Source

 

[John Baron]

I do not know SEDO very well ... But if you should sell that through SEDO maybe that worth to sell that in two steps: customer pay you directly and then say $1 for this domain name through SEDO. Just my thoughts

hua ? so whats the use of escrow here ?

 

[Archangel]

This isn't justification for gnawing 7% more from the sale. SEDO did jack-sh*t nothing to find the buyer. They may have done their job with having it listed but they didn't do a damn thing to FIND the buyer, thus 10% is unjustified in every sense of the term.

Sedo is a listing service - you listed it there, and hence the 10%.

It doesn't matter if you find the buyer or they do, the point is you utilized Sedo's service to promote your domain for sale - that's how Sedo is justifying charging the 10%.

 

[Carlton]

10% is not justified since they did not deliver the buyer. They're lucky to get your escrow business at 3%. Simple as that.

 

[lincolndsp]

use escrow.com if sedo does not agree to get their 3%. BTW, by using sedo you risk to have the escrow lasting very looooooong. just my 2c.

 

[DotUSDomains]

I've done it a few times with sedo.com

as long as the domain is not currently listed there then you might get it for 3% fee.

before hand just make sure to remove all traces of the domain from sedo.com if it has been listed.
They were pretty qucik with me the last 2 times.

it's where i try to get all my escrow services done, as long as it's not through sedo finding the buyer.

saves 7% on most other services. (that 7% is better in my pocket than anyone elses,)
Plus you have the option of making the buyer pay the fee's) < I dont like this practice myself> Just saying.

 

[DnEbook]

i think 3% external , 10% internal ....... but you know that by now i guess , live and learn

 

[TheRogue]

neah, i called about 3 days ago just for this, and there's a minimum of $50, so it's a no go, there's no difference if you use the escrow service or sell it directlly through sedo

 

[globegenius]

On another note why are my English language parked domains at Sedo being hosting on a server in Spain?
No wonder my traffic dropped big time after their upgrade. Thats a good way to wreck my web exposure for my domains I think. In firefox the home page is always displayed in Spanish and I have to use my translator. Now I just use google to view the site. Not really impressed with the server issue.

 

[labrocca]

I was wondering if anyone ran into this situation?

I found a buyer for a domain and negotiated a sale. The buyer wanted to use an escrow service in order to feel secure. I suggested that we use Sedo's Escrow service. Buyer emails Sedo indicating that he would like to initiate an escrow process for the purchase of my domain. Sedo emails us both informing us that the fee will be 10% instead of 3% since the domain was listed for sale on Sedo.

As far as I am concerned, this is absolutely ridiculous. *I* found the buyer, *I* led him to their escrow service. Why would I pay them an additional 7% when they've done nothing to earn it? The buyer didn't even know Sedo existed before I suggested it.

Regardless, I have removed the domain from my Sedo account and emailed them trying to get this straightened out. If they refuse to provide the escrow service that they advertise at the rates they advertise, I'll just use another service and they'll get nothing.

Just wondered if anyone else ran into this problem.

I think you're right to be outraged. Unless this was Sedo bidding and negotiated they have no right to charge 10%. If you don't get this sorted out I suggest you pull all domains and start an FU campaign. I think Sedo just keeps getting worse and worse every year and recently it's just gone to complete garbage.