Offer a Payment Plan to Close Domain Deal | DomainInvesting.com

Offer a Payment Plan to Close Domain Deal

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I don’t necessarily like it when a buyer stretches out payments for a domain name, but offering it can be a smart move. I recently sold a domain name, and during negotiations, the buyer indicated that funds were a bit tight at the moment, but he wanted to buy the domain name. To keep the negotiation opened and to ensure that I was able to get my asking price, I offered him a payment plan, and we were able to come to an agreement.

Here’s what I recommend if you offer a payment plan or are asked to offer one:

  • Consider using an escrow service that Moniker offers or Escrow.com offers (need to contact them directly) to ensure both parties live up to their end of agreement with an impartial company acting as an intermediary.
  • Domain owner should keep possession of the domain name (or see above) until final payment is made. Owner can change DNS if necessary and asked.
  • Make sure everything is in writing so buyer and seller have the same expectations. I recommend having a domain attorney write the agreement, especially if it involves a considerable sum of money.
  • Be clear on what happens if buyer stops paying. In my opinion, the domain owner should keep all previous payments and the domain name.

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 (5)

    BF

    I wish more sellers would offer payment plans. I recently bought a name and the seller offered me a payment plan when I mentioned that funds were tight. Well, funds were tight for him too, but he knew I really wanted this particular name so he was willing to work with me. I paid off the domain in 6 months and we’re both happy with the outcome.

    Related to this, I recently contacted Buydomains to see if they still offered payment plans but got no response. Oh well.

    May 5th, 2010 at 5:00 pm

    Tim

    I think Escrow.com requires the domain sale to be $75,000 or higher before they will do a payment plan.

    I’ve always thought that hurt sales since financing is a very attractive tool.

    What is Moniker’s minimum? I’d like to know.

    May 5th, 2010 at 5:14 pm

      Elliot

      @BF
      I do not believe they do, but you should email sonia@buydomains.com and ask her.

      @ Tim
      Off the top of my head, I am not sure what either company’s minimum is. IMO, it should be a high”ish” ticket sale to make it worthwhile if you need to involve an intermediary or attorney.

      May 5th, 2010 at 5:17 pm

    DoTmainer

    But depending from which country you are there could be some regulations regarding payment plans. Some countries only allow banks to give loan/credit/lease !

    May 6th, 2010 at 3:53 am

    Daniel Dryzek

    I used a payment plan couple of times and it worked really well. But us Elliot says – don’t change domain ownership unless you have 100% payment.

    May 6th, 2010 at 11:20 am

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