Escrow.com Domain Holding Service Growing More Popular
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Escrow.com Domain Holding Service Growing More Popular

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I think the Domain Holding Service offered by Escrow.com is an excellent tool that can help close deals. The way it works is that buyer and seller agree on a price and a payment plan, and Escrow.com holds the domain name in escrow as the buyer pays using the agreed upon payment schedule. Having this option gives an additional tool to a domain owner when a buyer is enthralled with a domain name but can’t afford the asking price.

According to a tweet from Escrow.com embedded above, it looks like it’s becoming very popular. I reached out to Escrow.com CEO Brandon Abbey to ask about the growth in this line of business, and he sent me this reply:

Domain name holding and leasing has become a substantial part of our business. We started this offering at the request of a customer over 5 years ago and the Domain Community has really embraced it. We find ourselves doing not only the 6, 7 and 8 figure deals, but figuring out ways to accommodate customers no matter what their unique situation might be.”

One improvement I’d like to see is to have an automated email sent to the buyer to remind them about a payment. As far as I understand, the buyer is on his own when it comes to making payments, and I could see it being a challenge for a buyer to remember to submit the payment. Right now, it seems the onus is on the seller to ensure the buyer remembers to pay.

If a buyer doesn’t want to (or can’t) finance a payment using a company like Domain Capital, and the seller is willing to accept a payment plan over time, the Domain Holding Service is a great option.


About The Author: Elliot Silver is an Internet entrepreneur and publisher of DomainInvesting.com. Elliot is also the founder and President of Top Notch Domains, LLC, a company that has sold seven figures worth of domain names in the last five years. Please read the DomainInvesting.com Terms of Use page for additional information about the publisher, website comment policy, disclosures, and conflicts of interest.


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Comments (31)

    Francois

    Competing service eCOP.com take care of this, he sends many reminders to ensure the buyer do not forget to pay in time each installment.

    October 17th, 2013 at 2:42 pm

      Ron

      I found ecop had limitations on credit card payment caps, and a more complicated user interface. Getting paid seems like a bit of an issue as well.

      In reply to Francois | October 17th, 2013 at 3:41 pm

      Francois

      Not sure to understand what you say about payment when you can withdraw your balance at will.

      In reply to Ron | October 17th, 2013 at 3:46 pm

      Ron

      This is one of my biggest hurdles when trying to get clients to use ecop to pay, the limitations on CC payments, if you can up these to $10K you will get a lot more business…

      Fees when you pay ECOP
      We allow credit card payments for amount up to 1,000 USD (3,000 USD for verified members) but need to add 4% to cover processing fees.

      We allow PayPal payments for amount up to 1,000 USD (3,000 USD for verified members) but need to add 4% to cover PayPal fees.

      In reply to Francois | October 17th, 2013 at 5:09 pm

      Francois

      The problem is how easy is to cancel a credit card payment, and how difficult is after to get the domain back. So allowing larger payments with credit card you are potentially opening the door to more and larger problems. This issue touch all escrow services, not only eCOP.com
      Now, most of the time people are limited with the amount they can pay with their credit card, so the limitation is not a real problem as people willing to pay with credit card over $3K is a minority.

      Sometimes we have authorized larger credit card payments but to protect us the domain has been left in escrow 6 months (the time a charge back is no longer possible).

      In reply to Ron | October 18th, 2013 at 5:50 pm

    Andrew

    At first I thought this was a story about Domain Holdings doing more transactions through Escrow.com…the name can be confusing.

    October 17th, 2013 at 2:42 pm

      Elliot Silver

      Hadn’t thought about that, but it is interesting.

      In reply to Andrew | October 17th, 2013 at 2:43 pm

      Andee

      You are correct Andrew…with all the companies out there with the word “domain” in their name, we might want to think about renaming the product

      In reply to Andrew | October 17th, 2013 at 2:49 pm

      Andee

      On second thought, maybe my friends at DomainHoldings should thank me for the free advertising. :)

      In reply to Andee | October 17th, 2013 at 2:54 pm

      Andrew

      I understand why Igloo.com changed its name :)

      In reply to Andee | October 17th, 2013 at 3:00 pm

      Andee

      I do too.

      In reply to Andrew | October 17th, 2013 at 3:03 pm

      Donna Mahony

      I thought the same thing Andrew

      In reply to Andrew | October 17th, 2013 at 4:33 pm

      Patricia Kaehler

      Maybe – Instead of calling it “Domain Holding Service”

      Call it “Dot Holding Service”

      ~Patricia Kaehler — Ohio USA — DomainBELL
      .
      .
      .

      In reply to Andee | October 17th, 2013 at 10:02 pm

      Eric Borgos

      Yes, I thought the same thing until I read Andrew’s comment.

      In reply to Andrew | October 18th, 2013 at 11:07 am

    Andee

    Elliot, the scheduled payment reminders will be added to the service in the future. We will also be adding quite a few improvements to automate the process overall.

    October 17th, 2013 at 2:52 pm

      Jacob Fedosky

      Andee,

      Any chance this service will open up for smaller transactions? I have a low 5-figure deal that requires a 12 month payment plan and it would be great if we could use Escrow.com rather than a competitor.

      In reply to Andee | October 17th, 2013 at 3:24 pm

      Ron

      Yes, Same here many deals in the $10-25K range, that would work well with this, At the current time we use Epik as the best platform for the smaller deals.

      In reply to Jacob Fedosky | October 17th, 2013 at 3:26 pm

      Francois

      Use eCOP.com, there is no limitations for payment plans!

      In reply to Jacob Fedosky | October 17th, 2013 at 3:47 pm

      Elliot SIlver

      Keep me posted on that!

      In reply to Andee | October 17th, 2013 at 4:17 pm

      Andee Hill

      We actually take them at any dollar amount but we charge a fee based on a 75k transaction. Automation will help us lower the fees.

      In reply to Jacob Fedosky | October 17th, 2013 at 6:33 pm

    Ron

    I think escrow needs to lift the CC limit to $10K, $5K is getting sort of low in the marketplace, and hindering a lot of deals, as more deals get caught up in accounting departments, when employees can’t just expense it via their CC, and have to ask for a direct wire, just what I have come across in some recent $5-10K deals…

    October 17th, 2013 at 3:25 pm

      Andee

      @Ron, If we have a history with the buyer, we can open up the credit card limit. However, the higher fees tend to scare some away.

      In reply to Ron | October 17th, 2013 at 6:35 pm

    @Domains

    Nice to see more evidence of domain aftermarket sales or sales prices picking up at Escrow.

    October 17th, 2013 at 3:54 pm

    Domains

    Love it!

    October 17th, 2013 at 3:57 pm

    Reader

    Genius!

    October 17th, 2013 at 4:06 pm

    Patricia Kaehler

    Maybe – Instead of calling it “Domain Holding Service”

    Call it “Dot Holding Service”

    ~Patricia Kaehler — Ohio USA — DomainBELL
    .
    .
    .

    October 17th, 2013 at 10:10 pm

    excitemental

    Ecop in my opinion is not as good as Escrow.. Escrow seems to work well.

    October 18th, 2013 at 6:15 am

    Eric Borgos

    I love escrow.com and use them often, but for financing / lease type deals I always use ecop.com because all the deals I have done are $1,000 – $10,000 so escrow.com is not an option.

    October 18th, 2013 at 11:11 am

    Lda

    Has Escrow.com or eCop.com had any problems with CC chargebacks ?
    Are non-wire buyer-payment payouts to sellers delayed because of
    possible chargeback issues ?

    October 18th, 2013 at 2:01 pm

    eDomainer

    Will the domain be “usable” by the buyer during the holding period?

    October 18th, 2013 at 2:16 pm

    Eric Borgos

    eDomainer – when I do a financing sale or lease that uses escrow I switch the dns to the buyer’s info ahead of time, so they can setup their site. I have never done that type of deal using escrow.com, but with ecop.com you can also ask them to switch the dns while it is in escrow.

    excitemental – It is not so much an issue of which escrow service is better, ecop.com offers a bunch of things escrow.com does not offer at all such as financing/lease transactions for small dollar amounts. Sometimes I use escrow.com, sometimes I ecop.com.

    October 18th, 2013 at 2:32 pm

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