Hi,
Could you assist me in understanding the distinction between Escrow and Flippa Escrow? From what I gather, Escrow charges a fee for buying/selling a domain, with a minimum of $25, even if the domain is inexpensive (e.g. $1-2). Conversely, Flippa Escrow seems to be a free service that doesn't charge any fees. Is my understanding correct or have I missed something?

Both services serve as intermediaries during the transaction process. With Escrow.com, you pay for their service, whereas with Flippa.com, you pay for Flippa Escrow's service.

In the case of Escrow, the party that initiates the transaction has the option to choose who pays the commission, and the other party must agree to it.

In contrast, when using Flippa Escrow, the commission is taken by Flippa Escrow rather than the card-holding bank. This is clearly indicated during the payment process.

I recently sold a domain name through the assistance of domainagents.com, an American broker who acted as a mediator for the sale, and utilized escrow as the payment intermediary. However, during the transfer process, a list of restricted countries was discovered, which prevented the buyer from making a PayPal or wire transfer to my bank account.

I had to negotiate with both the escrow and the broker to resolve the issue. Eventually, the broker transferred the funds to me via PayPal, which I suspect is not the norm. Otherwise, I most likely would not have received any compensation since the escrow service itself would not complete the transaction, citing the registration terms and conditions that I agreed to beforehand.

Escrow.com is a well-established service that provides a secure platform for buying and selling domains and other online assets. They charge a fee for their services, which is typically around 3.5% of the transaction amount, but they have a minimum fee of $25. This means that even if you're selling a low-value domain for just $1 to $2, you still have to pay that minimum fee, which can seem pretty steep.

On the other hand, Flippa Escrow, which is part of the broader Flippa marketplace, often advertises itself as being free for users. However, this can be a bit misleading because while they might not charge a direct fee for certain transactions, they may have other cost structures built into their service. It's also important to note that Flippa's marketplace fees can come into play when you sell a domain through their platform.

Additionally, the level of service and security you receive might differ between these two options. Escrow.com has a long track record of handling high-value transactions safely, while Flippa's escrow service might be optimized more for users who are already engaged in their marketplace.

Your understanding is partially correct: Escrow.com has a clear fee structure that might not be ideal for cheap domains, while Flippa Escrow might seem free but could involve expenses elsewhere. It's always a good idea to read the fine print to know what's included in any service you choose to use.