Hi there! Am I correct in understanding how to sell domain names via an escrow service?
Here's how it works:
I initiate a transaction and give the buyer the transaction number
The buyer transfers funds to the escrow account
Once the funds are received by the escrow service, they notify me
I then transfer ownership of the domain to the buyer
The buyer confirms receipt of the domain to the escrow service
Finally, the escrow service releases payment to me, deducting their commission.
Escrow verifies that the domain transfer has been completed securely.
The commission is withheld from the outset, and can be split between the buyer and seller when transferring funds to the escrow account, or paid equally by both parties.
Prior to payment, the escrow service holds a fixed amount, depending on the method of payment such as a check, bank transfer, or PayPal.
Anyone involved in the transaction can initiate the deal.
The commission charged by Escrow is deducted at the time of payment for the domain, and varies based on the sale amount and payment method (bank transfer is cheaper while PayPal is twice as expensive). It can be split between the buyer, seller, or paid equally. Typically, the buyer pays this commission, so you as the seller can agree to pay through Escrow and inform the buyer of this commission.
Additionally, there are two other deductions that are not dependent on the sale amount. Escrow withholds $20-25 to transfer funds to your bank, while your bank also deducts the same amount for receiving the transfer. How long it takes to receive funds from the buyer depends on how quickly the domain transfer occurs.
Escrow verifies that the transfer has been completed within a day after the transfer, either via whois or contacting the registrar. Once verified, payment is transferred within 2-3 days.
Yes, your understanding of how to sell domain names via an escrow service is generally correct. Here's a step-by-step breakdown:
1. Initiate Transaction: You start by initiating the transaction and providing the buyer with the transaction number or details.
2. Funds Transfer: The buyer transfers the agreed-upon funds to the escrow account specified by the escrow service.
3. Escrow Notification: Once the escrow service receives the funds, they notify you about the completion of the transfer.
4. Domain Ownership Transfer: At this point, you transfer the ownership of the domain to the buyer. This usually involves initiating a domain name transfer process through your domain registrar.
5. Confirmation of Domain Receipt: The buyer confirms to the escrow service that they have received the domain successfully.
6. Payment Release: Finally, once the escrow service has confirmation of the domain receipt, they release the funds to you, deducting their commission or fees.
It's worth noting that the exact steps and processes may vary depending on the specific escrow service provider you choose to use. Additionally, it's always a good idea to thoroughly research and choose a reputable escrow service to ensure a smooth and secure transaction.
When you initiate a transaction, you should ensure that you're using a reputable escrow service, as trust is paramount in this industry. After you provide the transaction number, the buyer deposits funds into the escrow account. Upon confirmation of the deposit, the escrow service will notify both parties. You then need to transfer the domain using a secure method, ensuring that the transfer is initiated correctly to avoid complications.
The buyer must confirm the successful transfer, after which the escrow service releases the funds to you, minus their commission. However, relying solely on escrow without thorough due diligence can be risky, as some services may not have the best reputation.