Domain Escrow

September 29, 2013  |     |     |   0 Comment

In a website sale, the domain name is one of the many key assets that must be transferred from seller to buyer. As such, domain escrow is an important component of the transfer process.

Domain Escrow refers to a process in which a third-party escrow company receives the domain name from the seller and the funds from the buyer. Then, the escrow service provider transfers the domain name over to the buyer and funds over to the seller. The escrow company deducts a commission from the funds for providing this service. In this way, both buyer and seller can rest assured that they will receive the asset they seek in return when they transfer their assets.

Different escrow service providers offer different levels of service. For example, Sedo receives the domain and funds in escrow while only receives the funds in escrow. Many other escrow services are available for domain name and website sales.


Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.

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