The news of the Escrow.com sale for $7.5 million dollars came down as a shock to many, on a Sunday, no less; it was Monday in Australia, where the buyer, Freelancer.com, is located.
Numerous domain investors – eponymous and anonymous – chipped in, some congratulating the Escrow.com principals for the sale, and others scratching their heads in disbelief over the selling figure.
Somehow, domain investors that are used to hearing numbers of large domain sales in the millions of dollars, expect to see a company that handles transactions to be a multiple of these sales.
That’s not how things work, however, and it’s almost certain that the Escrow.com sale to Australian Freelancer.com was in line with the company’s valuation.
The domain industry is composed of companies that vary in valuation; GoDaddy, is by far the biggest after the IPO.
As a domain escrow, Escrow.com ‘swallowed’ its primary competitor by acquiring Agreed.com, but has been facing healthy competition from other outfits, such as EscrowHill, Flippa Escrow, DN.com and other niche mediators, such as eCop, that can be used as alternatives in domain transactions.
Some commentators are pushing for the creation of a European escrow company, that adheres to principles and regulations of the European Union, which differ from those in the US.
That being said, it’s time to take the pulse of the domainer crowd with an informal poll about the selling price of Escrow.com for $7.5 million dollars.
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