After months of private beta testing, Escrow.com just publicly launched its long awaited broker product. The video above explains how it works, but essentially, it allows a domain broker to seamlessly and privately originate a deal between a buyer and seller, with Escrow.com acting as the intermediary.
Andrew Rosener of Media Options, a successful independent domain broker, has been testing out the product for a while and shared some insight with me:
“The Escrow.com broker tool has been critical in our business since we started using it and helping Escrow.com to develop it around our needs. It has truly been tailor fitted to what a broker needs in order to help both a buyer and seller complete a transaction seamlessly and transparently, or in some cases privately when either buyer or sell does not want their identity to be known by the other party. The broker tool allows us to hand hold individuals who are not familiar with the online escrow process and may be seeing Escrow.com for the first time. We’ve been able to much more efficiently close deals with less man power and less emails between parties in order to explain the escrow procedures.”
One benefit that might cause some additional discussion is that the broker can set one purchase price for the buyer and a lower price for the seller, allowing him to keep the commission amount private. Instead of working on behalf of a buyer or seller, the broker could be working more as a middleman and could possibly make a far greater profit on a deal than if it were transparent. However, at the end of the day the cost of this transaction is actually lowered, since in the past the broker would have to pay two escrow fees, one on the buy and one on the sell.
For instance, a broker may be able to acquire a name for $10,000 and immediately sell it for $25,000. The broker would be able to agree to buy the name from the owner for $10,000 while the buyer is agreeing to the deal at $25,000. The broker would earn $15,000 on the deal, minus the Escrow.com fee. There are a number of people that buy and flip names, and this shortens the timeframe on transactions.
The broker product was just launched today. To start a transaction, visit Escrow.com and log in, click “Start a transaction,” select domain name, and choose your roll as “broker.”