Domain Escrow Explained: How to Sell a Domain Safely
Domain escrow holds the buyer's money until the name is transferred. Learn how it works step by step, who pays the fees, and how to avoid common scams.
PitchName Team7 min read
You've agreed on a price, and now both sides have the same worry. The buyer doesn't want to pay and receive nothing. You don't want to transfer the name and never get paid. Domain escrow solves this problem by putting a neutral company between you.
If you've never used escrow, it can seem like one more complicated step at the end of a deal. It's actually simple once you've seen it, and it protects you just as much as the buyer. This guide explains how domain escrow works, what it costs, and how to spot the scams that imitate it.
What is domain escrow?
Domain escrow is a service that holds the buyer's money while the domain changes hands. The escrow company only releases the money to the seller after the buyer confirms they have the name.
The order is what makes it safe:
- The buyer pays the escrow company, not you.
- You see that the money is secured, and then you transfer the domain.
- The buyer confirms the domain arrived.
- The escrow company pays you.
At no point does either of you have to trust the other with both the money and the domain. If the deal falls apart before the transfer, you still have your name. If you never transfer it, the buyer can seek their money back under the service's terms.
When should you use escrow?
Use escrow for most direct sales, especially when you've never dealt with the buyer before. That's nearly always the case with end-user sales, where a business owner answers your outreach and may never have bought a domain from a stranger.
Offering escrow also helps you close. A small business owner may like your name but feel nervous about sending money to someone they found in their inbox. "The payment goes through Escrow.com, and the money is released to me only after the domain is in your account" removes that fear in one sentence.
You may not need a separate escrow service in these cases:
- The sale closes on a marketplace. Afternic, Sedo, Atom and similar platforms handle payment and transfer through their own checkout. Our guide to marketplaces and outbound sales compares the two routes.
- The sale is very small. On a low-priced name, escrow fees can take a large share of the price. If you skip escrow, use a payment method you're comfortable with and understand the risks described below.
- You know the buyer well. A repeat buyer you've closed deals with before may be happy to skip it, though escrow is still a sensible choice for a large sale.
How a domain escrow sale works, step by step
The screens differ between providers, but most sales follow these steps. We'll use Escrow.com as the example because it's one of the best-known services for domains.
1. Agree on the terms in writing
Before anyone opens an escrow account, confirm these points by email:
- The exact domain name
- The price and currency
- Who pays the escrow fee
- How long the buyer has to inspect the domain after receiving it
If you're still working out the price, read how to negotiate a domain sale first. A short sale agreement is also useful at this point, particularly for a larger sale or a payment plan.
2. Start the transaction
Either side can usually start it. Enter the domain, the price and the terms, then both of you review them and accept. Check that the buyer's email address is correct, and read every detail before you agree.
3. The buyer pays the escrow company
The buyer sends the money to the escrow service. Payment options and limits depend on the service and the size of the deal, and large sales often use a bank wire.
Don't transfer anything yet. Wait until the escrow company's own website shows that the payment has been secured.
4. Transfer the domain
Log in to your Escrow.com account directly and confirm the status there. Then move the name to the buyer. There are usually two ways to do it:
- Push to the buyer's account: if you both use the same registrar, you can move it from your account to theirs. This is often the fastest option.
- Registrar transfer: unlock the domain and give the buyer the authorization code, so they can start the transfer at their own registrar.
A recently registered or recently transferred name may be locked for up to 60 days, which can delay a registrar transfer. Check for this before you agree on a timeline, and tell the buyer early if it applies. An account push at the same registrar is sometimes a way around the delay.
5. The buyer inspects the domain
The buyer checks that the name is really in their control. The inspection period is set in the transaction terms, and for domains it's usually short. Don't assume a particular length, because it depends on what you both agreed to.
6. You get paid
Once the buyer accepts, or the inspection period ends without a dispute, the escrow company releases the money to you. Then record the sale, including every fee, so you know what you really earned.
How much does domain escrow cost?
Escrow fees are usually a percentage of the sale price, and the rate often falls as the price rises. There may also be a minimum fee, which matters most on small sales. The exact amount depends on the provider, the price and the payment method, so check the provider's current fee calculator before you quote a number to a buyer.
The fee can be paid by the buyer, by the seller, or split between you. There's no fixed rule, so treat it as part of the negotiation. Many sellers offer to split it, or to cover it in order to close a deal. Whatever you decide, include the fee in your calculations before you accept an offer. A sale near your floor can drop below it once the fees are counted.
Common domain escrow scams, and how to avoid them
Most escrow problems aren't caused by the real services. They come from people pretending to use them.
Fake escrow websites
A "buyer" insists on a little-known escrow service that you've never heard of. The site looks professional, and it soon shows that your money has been secured. Then you transfer the domain, and both the buyer and the site disappear. Choose an established provider yourself, and be very suspicious if the buyer refuses every well-known option.
Fake payment emails
You receive an email saying that the payment has cleared, with a link to log in. Never trust the email or the link. Type the provider's address into your browser yourself, log in, and check the status there.
"Transfer first, and I'll pay right after"
There is no good reason to agree to this. Whatever the story, transfer the domain only after the payment is secured.
Overpayment
The buyer "accidentally" pays too much and asks you to refund the difference. The original payment later turns out to be fraudulent, and your refund is gone. Keep the money inside the escrow process, and don't send anything back on your own.
Reversible payments
Direct payments by card or some payment apps can sometimes be disputed long after the domain has moved. If you accept one of these on a meaningful sale, understand that the risk is yours. This is one of the strongest arguments for escrow.
What to do if something goes wrong
Stay calm, and keep every conversation in writing. If the buyer goes quiet after paying, the inspection terms usually determine what happens next, so check them before you act. If the buyer raises a dispute, contact the escrow company through its official support channel and share your evidence, such as the transfer confirmation. Don't move the domain again until you understand the next step.
Also make sure the name you're selling is one you can safely sell. A name built on someone else's brand can cause problems long after the sale. Read the UDRP trap if you're unsure.
How PitchName helps you close safely
- Sale Agreement: create a ready-to-sign contract with the price, the closing platform, the payment method, who pays the fees and the transfer steps. It can include monthly installments too.
- Deal emails: send ready-made messages that explain how escrow protects the buyer and what happens next.
- AI Reply Writer: paste the buyer's email and say something like "price 2500, escrow only" to get a clear, professional reply.
- Profit Calculator: enter the sale price and the escrow fee to see what you'll keep before you accept an offer.
- Buyer Pipeline: keep each buyer's status, notes and follow-up dates in one place while the deal closes.
New to selling? Start with our domain flipping guide for beginners, or learn how to sell a domain to an end user.
The bottom line
Domain escrow is simple: the buyer pays a neutral company, you transfer the name, the buyer confirms it, and you get paid. Agree on the terms in writing, confirm the payment by logging in yourself, and never transfer a name before the money is secured. Those habits will protect you from most of the ways a good sale can go wrong.
