Domain Escrow service -- what would you like to see?

[draggar]

I wish I had the education and backing to start this but unfortunately I do not. The scammer thread is starting to split off into the possibility of a domain escrow service and what it should have.

This is what I've come up with:

• Client verification (buyers and sellers)
  • Utility bill (electric, etc..) with all user's current address shown on it
  • Billing address must match the utility bill
  • Phone call verification or a card mailed to you with a access code (similar to what AdSense just did over the past few months)
• Payment vertification - verify the payment is from a legitemate source as well as they can (Seller's protection)
  • Credit card w/ billing zip code as a verification?
  • Billing address for the credit card MUST match the billing address on the account
  • Bank account's address must also match the billing address on the account
• Domain Verification - verify that the domain is lefitemate (buyer's protection)
  • Escrow service has an account with primary registrars (Moniker, GoDaddy, etc..)
  • Seller gives the authorization code to the escrow service, when the screow service verifies the payment, they request the domain to the seller's registrar BUT under the escrow's account - fees paid by the seller
  • Escrow service verifies the domain is what the seller claimed it to be (Like books.com and not b00ks.com. Possibly even contact the previous domain owner to verify this is the legit owner.
• After all information is verified as legit the escrow service pushes the domain to the buyer and the funds, minus any fees, to the seller.

One question, say it is a transfer from Moniker to GoDaddy. GoDaddy will charge a 1 year renewal fee. If it is transferred from GoDaddy to GoDaddy, will they also require another 1 year registration tacked onto the domain (doubling the domain registration fee)?

Fees:

• Buyer pays for the domain transfer fees on top of the agreed price. If the domain sells for $500, then the escrow service will add on $6-$10 for a one year renewal fee (depending on the registrar)
• Seller pays for any transaction fees, whether it is a % of the total sale (minus the reg fee) or a flat rate.

The escrow service could also include parking, auctions, etc..

Anything missing before someone runs off and devolops this?

[Onward]

Originally Posted by draggar

I wish I had the education and backing to start this but unfortunately I do not. The scammer thread is starting to split off into the possibility of a domain escrow service and what it should have.

This is what I've come up with:

• Client verification (buyers and sellers)
  • Utility bill (electric, etc..) with all user's current address shown on it
  • Billing address must match the utility bill
  • Phone call verification or a card mailed to you with a access code (similar to what AdSense just did over the past few months)
• Payment vertification - verify the payment is from a legitemate source as well as they can (Seller's protection)
  • Credit card w/ billing zip code as a verification?
  • Billing address for the credit card MUST match the billing address on the account
  • Bank account's address must also match the billing address on the account
• Domain Verification - verify that the domain is lefitemate (buyer's protection)
  • Escrow service has an account with primary registrars (Moniker, GoDaddy, etc..)
  • Seller gives the authorization code to the escrow service, when the screow service verifies the payment, they request the domain to the seller's registrar BUT under the escrow's account - fees paid by the seller
  • Escrow service verifies the domain is what the seller claimed it to be (Like books.com and not b00ks.com. Possibly even contact the previous domain owner to verify this is the legit owner.
• After all information is verified as legit the escrow service pushes the domain to the buyer and the funds, minus any fees, to the seller.

One question, say it is a transfer from Moniker to GoDaddy. GoDaddy will charge a 1 year renewal fee. If it is transferred from GoDaddy to GoDaddy, will they also require another 1 year registration tacked onto the domain (doubling the domain registration fee)?

Fees:

• Buyer pays for the domain transfer fees on top of the agreed price. If the domain sells for $500, then the escrow service will add on $6-$10 for a one year renewal fee (depending on the registrar)
• Seller pays for any transaction fees, whether it is a % of the total sale (minus the reg fee) or a flat rate.

The escrow service could also include parking, auctions, etc..

Anything missing before someone runs off and devolops this?

I think Rockefeller (on this forum) developed this last year...

[James]

perhaps this might help...but don't forget the thread is almost 2 years old

http://www.dnforum.com/f72/dnforum-c...ad-135472.html

jim

[Ehsan]

how about all of us doante say $10 and get some exclusive account in this escrow service and this money can go into developing of this escrow service etc while the features and policies can be decided by the donaters and members here on the forum ?

[Michael_Goldman]

What's wrong with escrow.com?

[ksinclair]

I would like to see a regrular update, perhaps daily, that has the status. Its frustrating to go for days without any status. The auctions are worse, it can be weeks from close of auction until receiving payment.

Daily updates are good. it can be configured for those who woudl prefer less frequent email.

For a company, email is good - sending out emails to your optin base is one of the best site marketing tools.

Kevin

[draggar]

Originally Posted by James

perhaps this might help...but don't forget the thread is almost 2 years old

http://www.dnforum.com/f72/dnforum-c...ad-135472.html

jim

Not a bad thread, what ever happened to it?

Originally Posted by Michael_Goldman

What's wrong with escrow.com?

One sided verification.
From the thread mentioned above:

Sue starts transaction at Escrow.
Adam agrees to transaction.
Sue sends money to Escrow.
Escrow confirms money received.
Escrow then tells Adam to transfer the domain.
Adam transfers the domain.
Sue receives the domain.
Sue tells escrow se received the domain.
Escrow sends money to Adam
Escrow closes transaction.

Current charges about:

$0-$5,000 3.25% ($25.00 minimum)
$5,000.01-$25,000 $162.50 + 0.26% of amount over $5000

High transaction fee for lower end domains (for me, $100 on a domain is a heck of a lot of money right now, that's 25% fee).

More security on the seller, the buyer can leave the WhoIs information in tact and claim they never got it. or it isn't what they agreed upon. (This can also happen with physical goods, too).

I think there should be a service that protects both the buyer and seller.

Originally Posted by ksinclair

I would like to see a regrular update, perhaps daily, that has the status. Its frustrating to go for days without any status. The auctions are worse, it can be weeks from close of auction until receiving payment.

A transfer manager, perhaps. Received domain, received payment, payment sent, domain sent, etc, and the ability to print out printer--friendly report.

Email updates as each step goes or daily, that isn't a bad idea, too.

[Michael_Goldman]

Originally Posted by draggar

One sided verification.
From the thread mentioned above:


High transaction fee for lower end domains (for me, $100 on a domain is a heck of a lot of money right now, that's 25% fee).

More security on the seller, the buyer can leave the WhoIs information in tact and claim they never got it. or it isn't what they agreed upon. (This can also happen with physical goods, too).

I think there should be a service that protects both the buyer and seller.

Many people mention that but I've seen anyone reporting any problems because of it

[draggar]

Originally Posted by Michael_Goldman

Many people mention that but I've seen anyone reporting any problems because of it

I can't afford to use Escrow now and I don't think anyone would use it to sell a domain for less than $900-$1,000 which is way out of my league at this time.

Paypal is one of my few options at this time which offers no protection. Lower the minimum, even something like $5 would get more traffic for them.

[Michael_Goldman]

yeah I agree, for transaction below $1k escrow fees are pretty high

[Yofie]

I have looked into an escrow service like this pretty deeply....

The problem is, there really is not much in it for the escrow company.

If you have let's say a $100 escrow. Credit card companies charge approx 3% to process the transaction. So that's $3 off the bat of a fee that has to be charged to the person using the escrow. Then the time factor for the escrow company's services, the insurance for covering Charge backs, site development, credit card machine, a system to payout the money to the seller, site development, maintance to the site, employee costs......

That's why escrow.com charges $25 min.

I also really wish there was an easier and cheaper way, but I have tossed around the idea many, many times... heck, I still do toss it around and try to figure out a way and I might of just figured one out, the problem..... it's not the fastest.

[sashas]

Moniker's escrow is good enough. You have to transfer the domain first to them, which pretty much means that there can be no fraud

[Yofie]

Originally Posted by sashas

Moniker's escrow is good enough. You have to transfer the domain first to them, which pretty much means that there can be no fraud

But min fees of $75...

[strategis2001]

Can someone list escrow services available on the net?

[BILLBO]

Escrow.com commission level of 3.25% actually kicks in at ~$770, so at this level you are looking at an escrow fee of only $25.03, that is a good service at a good price in my opinion.

[dnkid]

Originally Posted by draggar

• Domain Verification - verify that the domain is lefitemate (buyer's protection)
  • Escrow service has an account with primary registrars (Moniker, GoDaddy, etc..)
  • Seller gives the authorization code to the escrow service, when the screow service verifies the payment, they request the domain to the seller's registrar BUT under the escrow's account - fees paid by the seller
  • Escrow service verifies the domain is what the seller claimed it to be (Like books.com and not b00ks.com. Possibly even contact the previous domain owner to verify this is the legit owner.
• After all information is verified as legit the escrow service pushes the domain to the buyer and the funds, minus any fees, to the seller.

Is this process violating any terms and conditions set forth in the T&C and User Agreement of the various registrars? Having Seller A push to escrow account, then escrow account pushing to the buyer account. My guess is registrars will not allow this, but I'd like to get some of your interpretations.

[themandave88]

Originally Posted by BILLBO

Escrow.com commission level of 3.25% actually kicks in at ~$770, so at this level you are looking at an escrow fee of only $25.03, that is a good service at a good price in my opinion.

Definately agreed in the case of a transaction of that magnitude. The only problem is that the vast majority of domain sales are not at or above the $770 level.

As it was mentioned before, escrow.com pretty much rapes you if you are selling domains at $250 or less.

[petrosc]

Originally Posted by dnkid

[/list]Is this process violating any terms and conditions set forth in the T&C and User Agreement of the various registrars? Having Seller A push to escrow account, then escrow account pushing to the buyer account. My guess is registrars will not allow this, but I'd like to get some of your interpretations.

sedo does it