I get a few emails a day asking different questions and a good one I received a few days ago asked me how I handle the payment and receipt of payments for my domains. Here’s some simple rules I follow for my domain transactions
1. If it’s through a big auction house there are no worries. When I say big, I mean Sedo, Afternic, or Godaddy. I don’t worry about getting my domain or money from these guys. Never had one issue or deal fall through with them. Domains that are private offers but domain the domain is on Sedo, I usually just have them put their bid through Sedo.
2. All transactions over $2K go to Escrow.com unless I know the person personally. It just keeps things safe and simple. The buyer and seller don’t have to worry about anything and the price is more than fair for safety.
3. If I am buying the domain and it doesn’t go to escrow I want the domain transferred to me before payment. I feel that I am a public enough figure that I can be trusted. I am not hard to find and screwing someone over would not be very good for my public image. You can easily link me to my nursery, my website, and can easily find my phone number. On the contrary, I have no idea who is on the other side and I don’t want charge backs or to take my money. Someone has to be trusted I’ve decided I can trust me.
4. When I receive payment via paypal I try and get masspay. Masspay gives the payee the full amount without taking out fees. Fees add up for larger amount. While paypal is safe they in no way care or protect you from fraud. They consider domains a service and service is not covered against fraud. But…..
5. When I pay via paypal I ALWAYS pay with a credit card. I do this because my credit card gives me the protection that paypal doesn’t. I always throw in an extra 2.5% to cover my fees. When I agree to a price I feel I should pay them that full amount. I wouldn’t be paying the full amount if I didn’t and I think paying the extra in fees more than compensates for the extra protection.
When I follow these rules I have had nothing but success. The two times I’ve had troubles somebody in the transaction got impatient and in once case, I got burned for $500. Never again. If you are patient and use your head you shouldn’t have any problems either.