Flippa Announces Plans For Integrating An Escrow Service

[daveslutzkin]

<split from this thread>

What does this mean? The actual development to integrate escrow is in progress or merely discussing it?

Sorry, I was cryptic because we haven't really announced this. Let's do it now, then. We're currently integrating the Escrow.com service into Flippa - I anticipate having it ready for launch by mid-Feb.

Before anyone mentions it, I accept that Escrow.com is still not perfect for website transactions, but they remain the biggest player, and I hope you agree that it's light years ahead of what we have at the moment.

[hooperman]

That's good news!

How do you plan to implement it? Will users be given the choice of using escrow.com or another method (just thinking about the escrow fees on smaller sale).

[daveslutzkin]

How do you plan to implement it? Will users be given the choice of using escrow.com or another method (just thinking about the escrow fees on smaller sale).

Definitely a choice, but one that we'll recommend, especially for larger sales. We'll be able to provide much better dispute resolution on escrow transactions, obviously.

[Clinton]

Excellent news, Dave.

I'm glad you recognise that escrow.com doesn't provide escrow services for websites. That's my main gripe against people earning money off escrow.com's affiliate program - they promote a service they claim is for websites when it offers nowhere near that level of protection. I'm sure you won't mislead your sellers and buyers on this. Escrow.com fees are based on the full price of the site but their escrow protection covers only a small fraction of what's being sold - the domain name.

You used to have a nice escrow service in Australia (even eBay used to recommend it) but it seems to have been swallowed by the escrow equivalent of the GORG.

[3Six]

Thanks, Dave. Can I ask if the charging is going to be at a flat rate per Flippa listing?

[benitez17]

That's a great decision. If you are going to stick with the success fees, you need to have access to each step of the entire transaction.

[3Six]

Listing fees?

It isn't a complete solution to protect success fees as using their escrow service won't be compulsory.

[tke71709]

It's still a step in the right direction as far as actually being able to tell whether a sale is actually a success or not...

[benitez17]

Listing fees?

It isn't a complete solution to protect success fees as using their escrow service won't be compulsory.

Sorry 3Six, I meant success fee, not listing fee, and I corrected the post above to read as I intended. I wouldn't be surprised if they required everyone to use escrow.com at some point down the road.

[Clinton]

I don't know how they could force anyone to use escrow.com. If both parties are happy to go elsewhere they'll simply tell Flippa it didn't work out and they're cancelling the transaction. If Flippa needs a reason for cancellation, there's always some flaw you can find in the website that wasn't disclosed in the listing.

The only way Flippa could force escrow is by requiring prepayment of the full listing price at time of bidding. Would work for BIN offers. What about the rest?