Marijuana.com Deal Made Possible By Escrow.com Domain Name Holding Transaction | DomainInvesting.com

Marijuana.com Deal Made Possible By Escrow.com Domain Name Holding Transaction

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At the end of November 2011, I learned that Marijuana.com had been purchased by WeedMaps Media, Inc., an entity of the publicly traded General Cannabis, Inc. The reported acquisition price was $4.20 million.

At the beginning of the year, additional details emerged about the transaction, and Mike Berkens reported (via George Kirikos) that there was more to the transaction. According to Berkens, “the down payment was only $125,000. The balance is payable under a promissory note for $4,125,000. The promissory note calls for 69 payments of 60,658.55 each starting on January 18, 2012.”

This morning, I learned a bit more about the transaction, and the news will benefit other domain owners who wish to purchase a domain name and pay over an extended period of time.

The Marijuana.com deal was consummated using the Domain Name Holding transaction at Escrow.com. This escrow service is designed for high dollar transactions (generally $75,000 and higher), where the buyer and seller agree to hold the domain name or names in escrow while the buyer makes scheduled payments. This type of transaction had been available before in private, but now it is publicly available.

The minimum term to do a deal like this is three months, and payments can be made for up to 5 years, although it could possibly be lengthened by speaking directly with Escrow.com.

I asked Justin Hartfield, co-founder of WeedMaps, why his company chose to use Escrow.com for the deal, and he said, “they were one of the few escrow companies that offered domain holding at a reasonable price. They are also one of the largest and local to our company — just down the street.” Escrow.com is the recommended escrow service for large Ebay transactions and Cars.com purchases.

To set up a sale or acquisition with Escrow.com using a Domain Name Holding transaction, you can select Domain Name Holding as they type of transaction and then select the holding period. After Escrow.com has signed contracts and secured the first payment with the escrow fee, they request control of the domain.  All domain names are held in the company’s secure account at Go Daddy with privacy for the entire term.

In my business, there have been many times where a domain name is priced beyond the means of a buyer. Offering payment terms is a tool for domain owners to help close a deal, and with a respected company like Escrow.com offering the service, it might help you close a deal.


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 (8)

    Tony

    DomainNameHoldingService.com
    DomainNameHoldingServices.com

    both available for registration

    January 13th, 2012 at 1:26 pm

    Andee Hill

    Thanks for the tip, Tony. We just bought those! :)

    January 13th, 2012 at 1:36 pm

    Adam

    This is a great way to do transactions. We work with Escrow.com to provide an additional domain use monitoring service to ensure that domains are not misused during the monthly payment term. We also have started a free brokering service for this specific type of deal. Check us out: http://www.Zenscrow.com

    January 13th, 2012 at 2:31 pm

    david

    Congrats Andee,

    You now have 2 domain that are worth nothing.

    January 13th, 2012 at 5:06 pm

    adam strong

    Curious about the arrangements on terms. Like what happens when the buyer backs out midway through the deal ?

    January 13th, 2012 at 5:13 pm

    Andee Hill

    We refer to contract which normally states the domain would be returned to the seller.

    January 13th, 2012 at 7:50 pm

    Andee

    @David..and it only cost us $20. :)

    January 13th, 2012 at 7:53 pm

    Mike

    Marijuana.com as the name itself isn’t much worth but the website is great, with thousands of pages and established list of advertisers and much much more.
    But in my opinion websites topic is a bit doubtful but I am not the one who has to judge! :)

    January 14th, 2012 at 6:03 am

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