Setting Up an Online Escrow Account to Sell Digital Assets (Domain Names, Social Media Accounts, etc.)

Digital escrow services allow merchants the peace of mind to conduct high-value transactions over the digital landscape with all the bells and whistles of traditional escrow. A key feature of these digital escrow services is that they are often easier to set up and comparatively low-cost than their physical counterparts since most of the payment infrastructure and mechanisms are virtual and mostly automated via complex algorithms.

Some of these high-value transactions that require a digital escrow service or platform are the sales of digital assets. These include anything from domain names, email lists,  to social media accounts.

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However, given that digital assets essentially encompass anything that can be stored digitally and uniquely identifiable, how does one go about selling digital assets and how can one create an online escrow account to sell these assets?

Looking for Buyers for Digital Assets like Domain Names & Social Media Accounts

A digital asset, as mentioned earlier refers to anything that can be stored digitally and uniquely identifiable. In layman’s terms, anything that can be consumed or used in a digital format from music, images, video clips, to domain names and social media accounts are digital assets¹. As with any other asset, to sell a digital asset one must first look for a marketplace to sell them.

Fortunately, there are plenty of marketplaces that cater to specific types of digital assets online, with online merchants also opting to create their own websites or online stores to sell their assets. The very nature of digital assets and eCommerce means that the upfront cost of starting up an online business or putting up digital assets for sale on an online marketplace is low because there is little or any need for a physical storefront or presence.

However, if the digital asset in question is sensitive in nature or high in value such as blueprints, domain names or social media accounts, then a merchant may require the use of a digital asset management system² (DAM) and a more secure means of conducting transactions–escrow.

Why Use Escrow when Selling High-Value Digital Assets?

Escrow is generally hailed for its security and reliability in conducting high-value transactions due to how payments are processed. There are several benefits to setting up an online escrow account to conduct high-value digital asset transactions. Namely, the reduction of non-payment risk.

Any transaction conducted with escrow must have both transacting parties settle upon a set of terms that they agree upon, thereby holding both parties accountable for delivering the product and sending over the funds owed.

The risk for fraud is also low when transactions are done via escrow since there’s not only the aforementioned agreement between the transacting parties, the escrow itself serves to be a third party mediator between the parties to ensure that both fulfil their obligations in accordance with the agreement. In addition, none of the funds will be released by the escrow until there is verification of the completion or delivery of the product involved, so the probability of fraud is greatly reduced.

When it comes to digital assets like a domain name or social media account, the process of conducting a transaction via escrow is about the same as any escrow transaction though normally done with digital escrow platforms such as Tazapay.

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Secure Your Funds Using Escrow

The first step to using escrow to sell your high-value digital assets is to first look for a digital escrow platform that is legitimate and credible. Escrow may be a safe and reliable means of conducting high-value transactions but fraudulent digital escrow platforms do exist and it is important to ensure that the platform of choice is one that is certain to be legitimate.

Once you’ve settled on a digital escrow platform, you should create an escrow account in accordance with the platform’s requirements and instructions. This process should generally be simple and easy to follow.

Once this is done, settle upon an agreement for both parties before proceeding with the transaction. It is important to ensure that the terms in the agreement are fully understood by both parties before proceeding to minimise the occurrence of any potential disputes down the line.

If the agreement is satisfactory to both parties, then the transaction can begin in earnest.

To better illustrate this process, here’s how the sale of a digital asset may look like:

• Buyer and seller reach mutual agreement on terms of transaction
• Buyer makes payment to escrow
• Seller hands over the digital asset’s credentials, be it the domain name, social media account, etc. to buyer
• Escrow verifies that this transaction has taken place and releases the payment to the seller

Armed with this knowledge on digital assets and how one sells them with digital escrow platforms, you can make better informed decisions in deciding on selling digital assets of your own. If you are looking for a digital escrow platform to use for your next transaction, why not consider Tazapay? With no hidden charges and amendment fees, and fully digital from the start, Tazapay is well-suited for handling transactions involving digital assets.

Interested to find out more? Contact us today!

Sources:

1. Digital Asset Management: What it is an Why You Need It (Content Marketing Institute)
2. What are Digital Assets (OpenAsset)