What is trending at Escrow? Domain Name Holding transactions are continuing to become a substantial part of our business.
— Escrow.com (@Escrowcom) October 17, 2013
I think the Domain Holding Service offered by Escrow.com is an excellent tool that can help close deals. The way it works is that buyer and seller agree on a price and a payment plan, and Escrow.com holds the domain name in escrow as the buyer pays using the agreed upon payment schedule. Having this option gives an additional tool to a domain owner when a buyer is enthralled with a domain name but can’t afford the asking price.
According to a tweet from Escrow.com embedded above, it looks like it’s becoming very popular. I reached out to Escrow.com CEO Brandon Abbey to ask about the growth in this line of business, and he sent me this reply:
“Domain name holding and leasing has become a substantial part of our business. We started this offering at the request of a customer over 5 years ago and the Domain Community has really embraced it. We find ourselves doing not only the 6, 7 and 8 figure deals, but figuring out ways to accommodate customers no matter what their unique situation might be.”
One improvement I’d like to see is to have an automated email sent to the buyer to remind them about a payment. As far as I understand, the buyer is on his own when it comes to making payments, and I could see it being a challenge for a buyer to remember to submit the payment. Right now, it seems the onus is on the seller to ensure the buyer remembers to pay.
If a buyer doesn’t want to (or can’t) finance a payment using a company like Domain Capital, and the seller is willing to accept a payment plan over time, the Domain Holding Service is a great option.