Flippa & Escrow

[eqz13489]

I tried to specifically find this here somewhere and failed so I'll ask.

I have not used flippa yet but I really really want to learn it.
Right now I am puzzled over escrow and payment - I have just a few basic questions.

1. What is the general approach to using escrow after a sale is made with flippa?

Does the buyer typically pay for the escrow?
Does the seller typically pay for escrow?
Or do they most often split the cost.

I assume these terms would be written out before the sale is made and agreed upon, and I know it's done all three ways in different cases from time to time - but what is the default mannerism to approach it? Is there one way that is default most appropriate unless otherwise specified?

2. What is the most popular form of payment when a sale is made? Credit Card? Cash? Bank Transfer? Paypal?

and lastly....

3. Do people ever find that after domain is released from Escrow that a buyer after the fact attempts to cancel the transaction with their CC or Bank etc?

(I've sold a few, never had the payment problem, but I am just curious because I've never used flippa or escrow---every transaction I ever made was actually in cash or paypal)

THANK YOU! :D

 

[domainicate]

Z3roThr33,

I will give some answers based on my experiences at Flippa.

<<1. What is the general approach to using escrow after a sale is made with flippa? >>

I am one of those hardcore "use Escrow.com" folks, unless I have already worked with someone or going through a 3rd party like Google auctions.

<<Does the buyer typically pay for the escrow?
Does the seller typically pay for escrow?
Or do they most often split the cost.>>

Like most sales, everything is negotiable. If I am buying from someone who hasn't used it before and it's a low priced domain, I will offer to pay the fee. If I am selling, I offer to split the fee to show good faith.

<<I assume these terms would be written out before the sale is made and agreed upon, and I know it's done all three ways in different cases from time to time - but what is the default mannerism to approach it? Is there one way that is default most appropriate unless otherwise specified? >>

Yes, a sales agreement should always be used because that way everything is spelled out. I'd say there is no default; everyone has their own methodology.

<<2. What is the most popular form of payment when a sale is made? Credit Card? Cash? Bank Transfer? Paypal?>>

Good question. I have only done bank transfer with Escrow.com.

<<3. Do people ever find that after domain is released from Escrow that a buyer after the fact attempts to cancel the transaction with their CC or Bank etc? >>

Never had this happen, but I don't trust PayPal to no reverse a transaction which is why I use bank transfer.


I hope that helps.

Anthony

 

[HeyNow]

From "Quick Chat With CEO of FLIPPA."

6) Does Flippa allow employees to bid on auctions ?
“We do allow our staff to bid on auctions as long as the bidders are clear about this with sellers, however we’re usually so busy working with Flippa, that our staff of 12 doesn’t have the time to be buying more sites."

http://www.hybriddomainer.com/2012/11/quick-chat-with-david-slutzkin-ceo-flippa.html


Still want to bid on names at Flippa? If their employees are bidding against me, I certainly don't. That would mean their employees are driving up prices. As long as the SELLER knows, it's okay with FLIPPA. You think the SELLER is going to complain if FLIPPA's employees are bidding and driving up prices?

Now that you are better informed, you are able to make a more thoroughly thought-out decision.

 

[domainicate]

I don't see most auctions being bid up at Flippa. If anything, people would be happy to see their bids driven up. :D

I see good domains and websites commanding good value, and low quality domains closing with no bids. It has not been a problem from my perspective, but I'd love to hear any feedback to the contrary.

 

[HeyNow]

If anything, people would be happy to see their bids driven up. :D

If you're the Seller you'd be happy to see bids driven up. But if your a bidding, potential buyer, then you'd feel different.

Perhaps the lack of bids at Flippa is a direct result of their policy which allowed employees to bid against customers.

Top-notch auctioneers like Sotheby's and Christie's don't allow such nonsense. In fact, employees of top-notch auctioneers have been prosecuted in past years for such shenanigans. The domain auction business has a lot of catching-up to do in the quest to garner trust, but the will doesn't seem to be there to do it. As long as there are plenty of sheep waiting to be sheared, nothing will change.

 

[eqz13489]

thanks guys!

ive been interested to try flippa for some sales recently, but have zero experience doing it (obviously because i never used it before).

haha

I appreciate the info!

 

[HeyNow]

thanks guys!

ive been interested to try flippa for some sales recently, but have zero experience doing it (obviously because i never used it before).

haha

I appreciate the info!

I'd be too scared to use Flippa, as Buyer OR Seller.

My personal opinion is that companies that allow employees to bid against outside customers will one day find a way to take advantage of the Sellers' ignorance too. .

 

[domainicate]

There isn't much to lose in trying, but it seems that selling domains or websites with revenue will get more realistic bids / sales than just domains. I'd love to hear how well others have done with just domains at Flippa, but I have only sold sites with revenue there.