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.