I know people often look for a cheap escrow service when selling domain names that are not that high in value. Paypal is not always the safest and it is always best to use a domain escrow service for both the buyer and seller security of the transaction. Here is a break down of the most popular domain escrow services and which ones are the cheapest to use and what you need to do in order to get the lowest price.

A break down of the cheapest domain escrow services that I could find:

• Sedo.com No Minimum ~ 10% of sales price IF the domain is parked at Sedo and listed as a Fixed Price (category I TLD)! (cheapest under $249 sale price)
• Escrow.com $25 minimum ($1-$769)
• EscrowDNS.com $25 minimum or 7% up to $5,000
• Moniker.com $50 ($1-$500.99)
• Afternic.com $60 Minimum or 3% (not listed on Afternic)

So if you are selling a domain name for $150, your best option is to have the domain name listed on Sedo.com, with the DNS set to ns1.sedoparking & ns2.sedoparking.com . Set the domains listing as a Fixed Price and enter a price of $150. Direct your buyer to the listings page and have them use the Buy It Now option of $150. Your fee (seller) would be $15 with escrow included.

Escrow.com, EscrowDNS.com and Moniker escrow, you would simply just start a transaction with the service of your choice and would not need the buyer to use a "buy it now". Based on the sale price you enter, will decide the fee based on the above mentioned.

If you plan on using Afternic’s escrow, be sure your domain name is NOT listed with Afternic. If it is, remove it and then start the transaction. If your domain name is listed with Afternic, you will be charged based on the service you have selected for the promotion level of the specific domain name. Basic is 10% and Expanded or Premium is 20%.

Based on the above information, you should be able to decide which escrow service will offer you the cheapest price for your transaction. Below explains the 3% Sedo escrow process as it is a bit tricky. You will also find below some payment tips for Sedo to avoid paying any "extra" fees as well.

Most people know that Sedo.com offers escrow but many do not know they offer really three different types that include the escrow service. One of those is the 3% (min $50) of the domain names sale price, another is 10%, $50 minimum (make offer listing and accepting an offer directly on Sedo or sending it to auction) and the other is stated above with the fixed price and parking with the service 10%, no minimum.

Understanding these and the fees that go along with each, can save you some money or help you decide which escrow service is the right choice for you or how you list your domain names for sale. All of the above escrow services are pretty easy to use, just by using the service in the normal way, but Sedo’s 3% ($50 Minimum) is a bit different and I wanted to be sure to explain that one a little bit more. So how do you get the 3% ($50 Min) domain name escrow service at Sedo? Again, the 3% can be deceiving, because Sedo charges a minimum of $50 for category I TLD’s. Minimum of $100 for category II TLD’s and a minimum of $150 for category III TLD’s (view TLD category listings here) so keep that in mind based on your domains sale price.

External Domain Escrow Service

Your domain name can NOT be listed on the Sedo marketplace. If it is, remove it BEFORE you email the below data.

You will need to email the following information:

• Domain name
• Agreed Price (USD/EUR/GBP)*
• Seller’s full name and Email
• Buyer’s full name and Email 
• Seller’s Sedo Login Name
• Buyer’s Sedo Login Name
• Which party has agreed to pay the Sedo commission fee (3% of the sales price)

The email address you need to mail the above data to is: transfers@sedo.us

If you are the seller (the likely one who will start this process), nicely ask your customer to open a free account at Sedo or simply create one yourself and provide your buyer with the login data. Once they have done this, they can provide you with their "Sedo Login Name" or if you do it, you will have that info. The rest of the data needed, you should have already. If you do not have a Sedo account yourself, sign up.

Once the information is emailed to Sedo, the transaction will all take place within your Sedo Accounts. Simply follow the directions provided in your Sedo account for payment and transfer of the domain name. Be sure to always only follow what is posted in your account. Never act on an email alone.

Paying tips at Sedo (share this with your buyer, because keeping them happy is key if they want to purchase from you again)

 Sedo doesn’t charge any more than 3% ($50 Min) of the domain names sale price but extra fees could come into play based on the payment option used! Understanding the payment structure ahead of time can save you (the buyer) money.

 Sedo accepts Visa or Mastercard payments for US and Canada buyers UP TO $500. What does this mean? If your purchase is $500 or under, paying with a credit card! No fees will be added on!

Sedo considers a Paypal payment as an "express payment option" and UP TO $500 does not add on a fee. You can pay via Paypal UP TO $5,000 but anything over $500 will have a 3% fee added on. (this basically covers "paypal fees" on there end which I personally think is BS, but that is the way it is.)

Sedo accepts Wire Transfer. No fees will be added on to the domain transaction no matter the price, but you may be charged at your bank to do a wire transfer.

Overview

Knowing the 5 escrow services above and the minimum fees should help you decide which service will provide you with the best price, yet still providing the secure transaction you are looking for on lower priced sales! Each transaction is a little bit different based on sale price and TLD, so you will have to decide which option is best for you to use. All 5 services that I have stated above are trusted services I have used in the past! Sometimes it is the way you list a domain name (sedo) which decides if you will get the lowest price. Having the knowledge of these prices will now allow you to make an easier choice of which service to use based on your sales price and TLD of the domain name you are selling.