When I learned that Escrow.com was offering domain holding transactions where a buyer could pay over time, I was excited. This type of transaction allows a buyer to pay for a domain name in installments without having to seek financing. The one issue I found was that if a deal wasn’t for high five figures or more, it was quite expensive to transact in this way.
According to Escrow.com CEO Brandon Abbey, the price structure for this type of deal has changed, and it is now much more competitively priced. The lower price structure is now in effect on the Escrow.com website, and you can price out a transaction by clicking the “fee calculator” link and selecting “Domain Name Holding” for the type of transaction.
Previously, the fee was structured off a minimum $75,000 purchase price and the minimum fee was $1,167.50. Now the fee is calculated by using the standard escrow fee plus a monthly holding charge. If the buyer is managing the DNS (via GoDaddy control panel) the monthly charge is $25, if Escrow.com manages the DNS, the monthly charge is $40. Now, the fee on a 12 month, $20,000 transaction with the buyer managing the DNS is $501.50. The initial contract may include three domains for no additional fees. For transactions that include more than three domain names, there is an additional yearly fee for each additional domain name (either $100 or $125 depending on who is managing the DNS).
According to Abbey, the reason for this change was due to customer demand. “We have always been about providing a valuable service for a reasonable fee. I had an opportunity to speak to a number of customers earlier this year at Namescon and one of the things they asked for was a more competitive offering for the lower priced domain name holding contracts. I want to thank those who worked with us putting this together.”
On lower value domain transactions with a payment plan, Escrow.com now has a very competitive offering, and I expect to use it soon.