Domains for Startups #2: Pay for a domain over time using a domain name escrow service

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One of the roadblocks that I’ve seen many startup founders struggle with is how to get together the funds for a domain name they really want, but can’t quite afford at their current stage. A few months ago a founder that I know reached-out to me about a domain name they wanted to buy, they budget was $10,000 but the seller wanted $60,000. After going back and forth they got them down to $35,000…but the problem was the most they could spend was still $10,000.

This is a great example of a situation where using a domain name escrow service can mean the difference between getting your top choice domain name, and settling for your second choice. Popular domain name escrow services like Payoneer make it easy to buy a domain name and pay over time. Here’s a quick look at how the process works:

After the buyer and seller have agreed to the terms of the order, an initial payment is made by the buyer. This payment is held in escrow until the seller transfers the domain to Payoneer. Once the domain is confirmed to be held by Payoneer, the buyer’s DNS information is added to the domain and the initial payment is released. For the term of the agreement, Payoneer will hold the domain and continue to collect and distribute the installment payments. Once the full order total has been paid out to the seller, Payoneer will transfer the domain to the buyer and the order will be closed. (Source – Payoneer Blog)

It’s important to note here that not all Escrow services are created equal. Becoming a licensed escrow service, and being licensed in where you are doing business is critical to making sure you are actually getting the safety and security that comes with an Escrow service.

I have seen people get scammed in the past by using a third party escrow service that is not licensed and does not have the same security as a full-fledged escrow service. Payoneer raised $180M in funding last year, currently operates in over 200 countries, and has support for 150 currencies which makes them the most funded and extensive domain name escrow service out there.

So next time you think that the domain name you want is out of reach, think again, a domain name escrow service might just save the day.

{ 6 comments… add one }

  • Rod May 1, 2017, 9:40 am

    Thanks to this option, I was just able to begin a domain sale for $62,000 where a buyer was only able to go just over $20,000 right now.

    We only are.doing 3 months of payments, but payoneer escrow has been extremely helpful with getting us started and extremely responsive. Brandon Abbey has gone above and beyond any expectations.

    They are taking my business from the main alternative because customer service has been extremely lacking and processes have become long drawn and cumbersome where I used to conduct most transactions.

    Happy Payoneer jumped into the game. I have two transactions going through them right now and so far so good.

    Reply
    • Morgan May 1, 2017, 12:39 pm

      @Rod – that is great to hear on all levels!

      Reply
  • Eric Lyon May 1, 2017, 2:17 pm

    Sad that there are so many fake/unlicensed escrow services taking advantage of people. One should really take the time to research every aspect of their start-up and options prior to moving forward. I think some people jump the gun prematurely out of excitement and roll out before research is completed.

    Reply
  • Joe May 1, 2017, 2:25 pm

    What is interesting is that to pay in installments and work online website or ecommerce the Startup gives a margin of maneuver of interest.

    Reply
  • Escrower May 1, 2017, 3:04 pm

    Couldn’t find any mention of installment payments on the Payoneer website. I looked all over the place. Dumb that the info is not readily available. Min/max term is an obvious question. Also fee structure over the term should be explained.

    Reply
  • Brandon Abbey May 2, 2017, 8:57 am

    The website is currently being updated in the FAQ section, right now you have to be logged in to see the domain holding feature. Thanks for pointing that out. The maximum term is 60 months. The fee is our standard escrow fee which can be paid by either party plus a $20/month holding fee paid by the buyer. Unlike most other escrow companies our fee is prorated over the term of the contract not paid upfront. If for some reason the buyer defaults and the escrow is terminated there are no additional escrow fees. Please contact me directly with any additional questions. I can be reached at brandonab@payoneer.com or 1-949-444-3623. Thanks for your interest in Payoneer Escrow.

    Reply

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