Dnforum.com Escrow Service - Discussion Mode

[Adam Dicker]

Ok, here's the next topic for major discussion.

I will be launching an Escrow service to benefit members.

I have looked a how Excrow.com works and feel we could skip some steps without decreasing security.

Example transcation between Adam ( Seller ) and Sue ( Buyer )

Here's how escrow.com:

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

Here's how Dnforum could do it:

Sue starts transaction and pushes domain to dnforum holding account at registrar.
Adam agrees to transaction and sends sue the money once confirmed Dnforum has control of the domain.
Sue confirms to Dnforum that she has the money.
Dnforum releases thy domain to Adam.

The beauty of this is there are NO fees involved.

Now this can be also used for a special sales forum:

Dnforum.com Escrow Sales, this section would be a place where people posted names for sale that they had already pushedto dnforum so the buyer knows the chances of an issu with this type of doman is minimal.

Just some thoughts people, nothing written in stone.

What do you guys want to add or take away from this process.

-=DCG=-

[Varchar]

Yes, is there anything you can do to protect the buyer and seller from withdrawing from the transaction? Maybe you can penalize the withdrawal party from using the service by suspending their account for a period of time.

[yesonline]

Sue confirms to Dnforum that she has the money.

what if Sue does not confirm she has the money but actually she did has?

[Adam Dicker]

what if Sue does not confirm she has the money but actually she did has?

We can also add in that the buyer faxes or emails us proof of payment at the time he pays it.

If we have a copy of the transaction we will know if its paid or not.

In the event it's a real issue, ie the bank wire went to the wrong account, that can be easily recified.

-=DCG=-

[tekz999]

What if the domain is the stolen domain? How can escrow protect against this? Indeed 2 very important questions for discussion.

[Blarian]

I think the dnforum holding account is a CRUCIAL part of the security in giving DNForum an edge over competiting escrow services such as Escrow.com. It ensures that nobody gets any "free traffic tests."

I think it would be great if DNForum provided some kind of generic contracting services like Escrow.com does, so there are no disputes and nobody is wrongfully held liable (DNForum) or even the buyer/seller in the event of a dispute. Basically a form that has various inputs to select amounts, time frames and what not, and then the contract is automatically generated. This saves the forum from any issues, the buyers and sellers. Then, even people who do not buy and sell on the forum regularly may come here to use the contracting service. Well, just an idea I'm not sure if it puts DNForum into a bad position legally or not.

[Adam Dicker]

What if the domain is the stolen domain? How can escrow protect against this? Indeed 2 very important questions for discussion.

If its a high profile name we can say we need a mandatory 2-3 day holding period to make sure it is not stolen.

I am sure based on experience we will here from the owners at my whois info if it is stolen.

-=DCG=-

[JEsports]

We can also add in that the buyer faxes or emails us proof of payment at the time he pays it.

If we have a copy of the transaction we will know if its paid or not.

In the event it's a real issue, ie the bank wire went to the wrong account, that can be easily recified.

-=DCG=-

I do like this idea alot, however ... as with anything, this can be potentially frauded/faked as well. Is there away for DNForum to hold the money and the domain as a complete transaction middleman?

[Adam Dicker]

I think the dnforum holding account is a CRUCIAL part of the security in giving DNForum an edge over competiting escrow services such as Escrow.com. It ensures that nobody gets any "free traffic tests."

I think it would be great if DNForum provided some kind of generic contracting services like Escrow.com does, so there are no disputes and nobody is wrongfully held liable (DNForum) or even the buyer/seller in the event of a dispute. Basically a form that has various inputs to select amounts, time frames and what not, and then the contract is automatically generated. This saves the forum from any issues, the buyers and sellers. Then, even people who do not buy and sell on the forum regularly may come here to use the contracting service. Well, just an idea I'm not sure if it puts DNForum into a bad position legally or not.

We can also provide confirmed stats fo any domain for sale that is with us. So for those 'I want to test your stats' sales threads, we may add another option where you push the domain to us and we report real stats. We can also report the countries and the sources.

-=DCG=-

[Blarian]

I do like this idea alot, however ... as with anything, this can be potentially frauded/faked as well. Is there away for DNForum to hold the money and the domain as a complete transaction middleman?

That's what I was getting at, dnforum gets money from buyer, dnforum gets domain/website from seller. Everything is then verified through a process, then everything is released. The problem is, this would probably create mandatory fees as it would not be free for dnforum to get money back and forth to people, right?

[Adam Dicker]

I do like this idea alot, however ... as with anything, this can be potentially frauded/faked as well. Is there away for DNForum to hold the money and the domain as a complete transaction middleman?

The only problem with holding the money is ther are fees to do wires or paypal transactions, I am trying to eliminate fees.

But I am open to either way.

-=DCG=-

[Blarian]

2 methods would be great, if you could have a free one and a paid one. The paid one just makes it so the buyer and seller only deal with dnforum directly (after they agree to the terms that is.)

[JEsports]

Personally, Im open to paying fees for this ... as long as its competitive to other escrow services.

Maybe a discounted fee for Exclusive DNF members?

[James]

no wonder why I'm spending less time at other forums

jim

[KwelX]

i like the idea of pushing to a 3rd escrow holding account @ each registrar for all pushes. other escrow compaines don't always do this.

most registrars impliment a 7 day wait between pushes. this would allow for payment and domain to be verified as legit. thus lowering fraud and chargebacks.

this would be a great service.

[tekz999]

Some ways to proof the owner is the legal registrant.

1) Check "updated record date" in whois. If theres no update for months, then it means the owner has the name for months. That is often, a legal name with no conflict.

2) Check whois history for the previous owner of the domain, and verifies with him and ask him whether the current owner has purchased legally from the previous owner. Whois.sc has whois history service, and I must say I am in no affiliation with whois.sc

3) Request screenshots/proofs of the current owner of the domain to show that he has purchased legally from the previous owner, and the previous owner email is indeed, the domain email in whois.

4) Hold the names in dnforum registrar 0, 7, 30, or 30+ days, and release funds after 7-30 days of the transaction being completed. This can be an option. If the buyer of a domain wants more security, he can choose the 30 days option. So dnforum will release the funds to the seller only after 30 days of "no conflict" with the domain. If the buyer 100% trust the seller, then buyer can choose the instant delivery option where once a domain is pushed, and buyer confirmed. Dnforum will release funds immediately.

[xnx]

Well Adam I hope I was some help in making this suggestion in the verified stats thread, Good Job

[NameWolf]

What would DNForum be benefitting from the non-fee service ? I know Adam aims at helping DNF members and domain industry in general but as a principal, a business needs to receive some sort of compensation for devoting their resources into a specific area. Any sort of compensation/income/fee would also increase the businesses' service level as well.

Regards,

[denny007]

I think You can charge for this, it still would be best domain escrow service in the world. The only escrow which really verifies the domain has been transfered, is Moniker, but the domain has to be first tranfsered to sellers Moniker account and than pushed to buyers Moniker account. Which is not bad, but to be able to push i.e. to DNF Enom account would be best.

Escrow.com is a joke and I do not understand, why is it so videly used for domains, because scam would be very easy there (either change the whois back to seller and claim he never pushed it or change the whois to the buyers and claim I did push it).

[TheLegendaryJP]

I have one question and one comment

Question: What happens if a fee to push is a factor, will you not be covering that cost obviously. Will you be sure to have that fee paid by either party or hold back the fee if the seller agreed to pay it?

Comment: And please dont take this the wrong way at all. It is a wonderful service for dnf members.

Let's say to assure funds were sent if a dispute arises you ask for proof of payment and receive what you believe is and transfer the name to the buyer. It turns out the proof was faked/forged etc. I certainly hope you have a strong disclaimer in regards to liability. JMO

On a side note Adam I believe you will be going above and beyond. I know not just from a personal aspect but a professional/business point of view you honestly deserve a fee. Even half of normal escrow fee's, something. Again JMO, won't be popular but you are offering a service above and beyond. Will you get more sign ups ( generate income ) because dnf offers this service for free, likely not. If someone is joining it will not be why, they will oin regardless. Maybe I am too business minded but I also believe a worker is worth his wage. JMO