Interview with Jackson Elsegood - Escrow.com


Earlier today I had the pleasure of interviewing Jackson Elsegood from Escrow.com. Jackson shared very openly about some of the developments that Escrow.com has done this past year.

Jack will be attending NamesCon at Las Vegas in January and is looking forward to meeting domainers to discuss how Escrow can further develop their services.

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Interview With Jackson Elsegood - Escrow.com

Interview With Jackson Elsegood - Escrow.com

I recently had the privilege of interviewing Jackson Elsegood, the general manager of Escrow.com. During the interview we discuss all the latest news from Escrow.com of what they have been doing and what they plan on doing in the future.

Escrow services are a critical part of the domain ecosystem and Jackson expresses Escrow.com's ongoing committment to the domain space. I hope that you enjoy the relaxed interview and gain some new insights for your own domain business.

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Fallout From the DN.com Disaster

Fallout From the DN.com Disaster

One of the most important things that any escrow business needs to do is keep up and running for its customers. The whole essence of being an escrow company is that you are the trusted partner between two or more organisations that don’t really know each other. Providing an escrow service is all about doing trusted transactions.

It just so happens Thursday last week the Chinese escrow company DN.COM was taken off the air by the Chinese government. Clients who were midway through escrow transactions had no way of finding out what was going on and large sums of money were left in limbo.

Eventually, DN.com sent out an email that indicated the problem was caused by a change in the entity of the business.

dn.com email

I must admit that there is a frightening chain of events that really strike at the heart of being an escrow business. For a start, escrow is all about being really careful with other people’s money….and as I said in the opening paragraph, it’s about trust. It’s all about being very detailed, focused and losing sleep over a rounding error in a transaction.

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When is an Escrow not an Escrow?

When is an Escrow not an Escrow?

I was reading another blog recently (yes I do that) and was intrigued by the comments on an article about escrow. A viable, secure and reputable escrow service is absolutely key to every domainer if they are to safely buy and sell domains. So when is an escrow not an escrow?

I used three key words in my first paragraph and I would like to unpack them to help readers judge and escrow service.

Viable.
Is the business that is ultimately backing up the escrow service going to be there tomorrow? Do they have the financial ability to pay their debts when they fall due (ie. are they solvent)? My impression is there are too many people hanging out a sign saying that they can do escrow and actually have no idea what it means.

For example, I receive requests all the time from new monetisation companies wanting to get access to our large volume of traffic at ParkLogic. My problem is that for many of them I don’t know if they will be in business in the next 12 months. It’s the same for some of the start-up escrow companies, they just aren’t viable.

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Buying and Selling a Traffic Portfolio - Part 4

Buying and Selling a Traffic Portfolio - Part 4

So you’ve done your due diligence on the domain portfolio that you wish to acquire and everything looks like it’s good. All you have to do is part with your hard earned cash and wait for the authorisation codes so that you can transfer the domains into your registrar. So what’s the problem? A lot!

What happens if you send off your money and the seller decides not to transfer the domains. They now have your cash and the domains. What happens if you send your money and the domain statistics have been fabricated? What happens if you transfer your dollars and discover that the stats have been pumped up with purchased traffic? These are all good questions and I’ve heard story after story of people who have been burned by unscrupulous sellers…..so my advice is BEWARE!

Some buyers try and solve this problem with a contract. Personally I find that they are almost worthless. If you have a person that is prepared to steal your money then reneging on a signed contract is probably nothing big for them. So what’s the solution?

In a nutshell I would recommend using an escrow service. With a good quality escrow service both parties (ie. the buyer and seller) can agree to specific terms and a middle-man handles the actual transaction.

For example, you transfer your money to the escrow service and the funds are not sent onto the domain owner until the domains are under your control. This at least stops people from running off with your money and the domains. You can actually specify a variety of conditions that are agreed by both the buyer and the seller that the escrow company can verify before the seller can get their hands on your cash.

Seller financing has become very popular. The escrow company holds the domain in their account while the financial obligations are met. Say $12000 being paid in 12 monthly instalments of $1000. My only caution is can you imagine the headaches involved if the escrow company ceases to operate or becomes insolvent during a transaction of this kind. This wouldn’t be pretty!

There are a number of Escrow companies that domain owners use with Escrow.com being by far the most popular and the longest established. Over the years, they’ve spent a huge sum to ensure that they are in compliance with the various governmental authorities that manage the escrow industry and ensure that it’s clean.

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