How to Sell Your Domain Name Safely: Escrow, Transfer Order and Scams
By Thomas Lovas Lokoy — researched and drafted with AI assistance, then fact-checked and approved by Thomas before publishing · Editorial policy
To sell a domain name safely: list it on a marketplace or answer an enquiry, agree the price, then run the payment through a licensed escrow service that you choose (or the marketplace's own payment system). Transfer the domain only after the escrow confirms the buyer's funds are held, send the authorisation code through the escrow or marketplace, and do not change the registrant details before the transfer. Never move the domain or accept the money on trust.
The part that actually goes wrong
Most advice about selling a domain is about pricing and listing. Those matter, but they are not where first-time sellers lose money. The losses happen in the last ninety minutes of the deal: the moment the domain leaves your account and the moment the money arrives, and in what order.
This page is about that. If you want the valuation groundwork first, how domain names are valued covers what buyers price on, and our tutorial on pricing and listing a domain covers building the listing itself. Come back here for the transaction.
The one rule that prevents almost every disaster
The domain and the money never move on trust, in either direction, at any price.
That is the whole discipline. Every scam described below is a variation on persuading one side to move first. A seller who never moves first cannot be defrauded by any of them — the worst outcome available is a deal that falls through, which costs nothing.
Where sales actually come from
There are three routes, and they behave very differently.
Inbound enquiries are the most common and the most valuable. Somebody wants your name specifically. The price ceiling is higher because you are not competing with anything, and the risk profile is worse because you have no platform sitting between you.
Marketplace listings put the name where buyers already look. The platform takes a cut and, in exchange, handles identity, payment and often the transfer itself. For a first sale that trade is almost always worth it.
Outbound approach — you identify a business that would want the name and contact them. Lowest hit rate, and the one with the most legal care required. If the business already holds a trademark on that word, an unsolicited offer to sell it to them is the exact fact pattern the dispute policy treats as evidence of bad faith. Read what happens in a UDRP dispute before you send that email, not after.
Getting paid: the mechanisms, ranked
Escrow, which is the default answer
A licensed escrow service holds the buyer's funds, tells you the money is confirmed, waits for you to transfer the domain, lets the buyer confirm receipt, then releases the funds. Neither party is ever exposed.
What to check before choosing one:
- That it is actually licensed as an escrow provider in its jurisdiction, and that you found it yourself rather than being sent to it by the buyer. Fake escrow sites are the single most common domain-sale fraud, and they are professionally built.
- That it handles intangible goods. Not every escrow service does, and one that does not will not protect you on a domain.
- Who pays the fee, and how it is split. Agree this before you agree the price, because it is a negotiation item and buyers will raise it late.
- The release conditions. What exactly counts as delivery, and how long the buyer's inspection period runs.
Marketplace-handled payment
If the sale happens through a marketplace, the platform usually runs its own escrow-equivalent. Take it. The commission is the price of not thinking about any of this, and for a first sale that is a good deal.
Commissions vary by platform and by listing type, so read the current schedule on the platform's own fee page before you list, and read it again before you accept. As one dated example, Sedo's own seller page, read on 16 October 2026, describes a commission of 10% up to a maximum of 20%, with sales through its SedoMLS partner network at 20% rather than 15%, and a separate transfer service for deals agreed outside its marketplace at 3% of the price.
A worked example. On a USD 5,000 sale, those published rates mean:
| How the deal is done | Fee at the published rate | You receive |
|---|---|---|
| Marketplace sale at 10% | USD 500 | USD 4,500 |
| Marketplace sale at 15% | USD 750 | USD 4,250 |
| Partner-network sale at 20% | USD 1,000 | USD 4,000 |
| Private deal, transfer handled by the 3% service | USD 150 (who pays is negotiable) | USD 4,850 to 5,000 |
The higher commission buys you the buyer; the 3% service only buys you a safe transaction with a buyer you already found. That is the real choice between the routes, and it is why an inbound enquiry is worth so much.
Direct bank transfer
Acceptable in exactly one situation: the buyer is a company you can verify independently, the amount is small enough that losing it would not matter, and the funds have cleared and settled, not merely appeared. "Appeared" is not the same as "cleared" — reversible payment methods can be pulled back weeks later, after your domain is long gone.
Everything else
Cheques, money orders, "I'll pay you back" arrangements, anything involving an overpayment and a refund of the difference, and any payment method the buyer insists on and you have never used. All of these are the setup, not the deal.
The transfer itself, in the right order
This is where sellers who did everything else right still get hurt.
- Confirm funds are held or cleared first. Not "sent". Not a screenshot. Held by escrow, or settled in your account.
- Unlock the domain and disable any transfer prohibition at your registrar.
- Disable DNSSEC if it is enabled. A signed domain moving to a registrar that is not expecting it is the classic way to take a live site offline mid-sale.
- Generate the authorisation code — the EPP or auth code — and send it through the escrow service or marketplace, not over an unsecured channel.
- Turn privacy off deliberately if it would interfere with the transfer approval email reaching you, and remember to consider what that briefly publishes.
- Do not change the registrant details "to help". More on why in the next section; this is the trap.
- Confirm the transfer completed before releasing anything, and keep the domain's login credentials secure until it has.
Our full transfer walkthrough has the registrar-side detail if any step is unfamiliar.
The sixty-day trap
Here is the mechanical fact that ruins more domain sales than any scam: changing the registrant's name, organisation or email address triggers a sixty-day inter-registrar transfer lock under ICANN's Transfer Policy. A seller who "updates the owner details to the buyer" before the transfer has just made the transfer impossible for two months.
The order that works is: transfer the domain to the buyer's registrar account first, and let the change of ownership follow. If you must do it the other way round, the opt-out from that lock has to be exercised before the change, not after. We cover the whole mechanism, with the policy text, in the 60-day lock explained.
A change is coming, but it is not here yet. ICANN's GNSO Council voted at ICANN 82 in March 2025 to accept a Transfer Policy working group's final report recommending revisions that would remove this change-of-registrant lock and move change-of-registrant rules into a separate policy, as reported by Domain Incite; the same report estimated it would be at least 18 months before the changes went live. Until your registrar confirms the new rules are in force, plan the sale as if the lock still applies.
Scams to recognise on sight
- The fake escrow. The buyer proposes a service you have not heard of, with a convincing site and a real-looking dashboard showing funds "deposited". You choose the escrow provider, always, or the deal does not happen.
- The overpayment. They pay too much, apologise, and ask for the difference back. The original payment reverses; the refund does not.
- The appraisal fee. A buyer or "broker" is keen but requires a certified appraisal from a specific company first. The appraisal company is theirs. There is no buyer.
- The urgent lawyer. Elaborate documentation, tight deadlines, a request to move off the platform "for speed". Every step off a platform is a step away from recourse.
- The polite fisherman. A stream of low offers from different addresses, designed to find out whether you will move first. Answer the same way every time.
Negotiating without inventing a number
Some honest guidance that costs nothing to follow:
- Do not name the first number if you can avoid it. The enquiry itself is information; make them spend some too.
- Never quote a price you would resent accepting. Whatever you say becomes the ceiling, immediately.
- Counter, do not reject. A low offer proves a buyer exists, which is the scarce part of this market.
- Silence is a legitimate move. Domain negotiations run on weeks, not minutes, and urgency almost always favours the other side.
- Decide your floor before the conversation, in writing, and do not revisit it during. The whole purpose of a floor is that it was set while you were calm.
What we will not give you is a script with numbers in it. Illustrative negotiation figures read as market data, readers anchor on them, and they are invented. Comparable sales from a real sales database are the only anchor worth having.
After the sale
- Cancel auto-renew on the sold name so you are not paying for someone else's domain.
- Remove it from your DNS provider and from any monitoring, certificates or mail routing that referenced it.
- Keep the records. The listing, the correspondence, the escrow receipt and the transfer confirmation. If ownership is ever questioned, this is the file.
- Expect the tax question, and ask locally. A domain sale is a disposal, and how it is treated — trading income, capital gain, something else again — depends entirely on where you are resident and how you hold it. Any figure or rule we published here would be wrong for most readers. Take it from a professional in your own jurisdiction.
The counter-argument: maybe do not sell
Worth saying plainly. If the domain is one you would have to buy back at any price should your plans change, the sale price has to compensate for the fact that you can never repeat it. Domains are not fungible; there is exactly one of each. Sellers who regret a sale almost never regret the number — they regret that the name is gone and the buyer is not selling.
If you are selling because the renewals feel like a drain, do the arithmetic before the deal. A modest renewal, weighed against a name that a real business will eventually need, is often the cheaper side of the trade.
Where to go next
Domain flipping puts buying and selling into one workflow, the domain auction guide covers selling through auction rather than negotiation, and how to buy a domain name that is taken shows you the same transaction from the other side of the table — which is the fastest way to get better at this one.
Before you list, look up your own domain on our WHOIS tool to confirm its registrar, expiry date and status codes. A buyer will check the same record, and a name that expires next month or carries a transfer prohibition is a harder sale.
Frequently asked questions
How can I sell a domain name safely?
To sell your domain name safely, ensure the domain and the money never move on trust in either direction. Use a licensed escrow service that you choose yourself, confirm funds are fully held or cleared before transferring the domain, and follow the correct transfer order to protect against fraud.
What is the sixty-day transfer lock?
Changing the registrant name, organisation or email address triggers a sixty-day inter-registrar transfer lock under ICANN policy. This makes transferring the domain impossible for two months, which is why you must transfer the domain to the buyer account first and let ownership changes follow.
Which payment mechanisms should I use?
Use a licensed escrow service or marketplace-handled payments where the platform manages identity, payment and transfer. Direct bank transfer is acceptable only if the company is independently verified, funds have fully cleared and settled, and the amount is small enough that losing it would not matter.
What scams should I recognise when selling a domain?
Common scams include fake escrow services with convincing dashboards, overpayment schemes asking for a refund before the original payment reverses, certified appraisal fee demands from a specific company, and urgent requests to move off the platform. Always choose your own escrow provider to avoid these traps.
How much does it cost to sell a domain name?
Listing is often free; the cost is the commission when it sells. Sedo's seller page, read on 16 October 2026, describes 10% up to a maximum of 20%, so a USD 5,000 sale nets USD 4,000 to 4,500 there. For a deal you agree privately, an escrow or transfer service charges far less; Sedo lists 3% for that service.
Should I sell through a marketplace or privately?
For a first sale, a marketplace is usually worth its commission, because it handles identity checks, payment and often the transfer. A private sale to an inbound enquirer can achieve a higher price, but then you must arrange escrow yourself.
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