Announcing: Installment payments for Marketplace Domains


#1

We are pleased to announce the ability for buyers to purchase domains from our marketplace on monthly installments.

This is a Beta offering, and we may decide to make changes to this offering in future.

You can learn more about the details here:

If you do not wish to offer installments on your domains, you can disable this option from your marketplace dashboard.


#2

@grant First of all, thanks for continuing to consider improvements to the platform. I’m not against the concept of installments, however the way it’s currently implemented is very problematic in my opinion. My issues with it:

  1. Expecting sellers to wait up to 6 months to get their commission while SH collects the money, instead of dispersing it every month, is very problematic from a seller’s perspective.

  2. SH defined the default setting as ‘enabled installments’ instead of making the default setting ‘disabled installments’ and let people opt in if they want to opt in. So I just had to spend a few minutes going over all my domains to cancel the option for installments.

Again, I’m not against the concept of installments since it can help get more sales. But I find the current way it’s implemented extremely flawed.


#3

I read the FAQ more thoroughly. I think you guys have a contradiction in the FAQ:

On the one hand you guys state “If the buyer is unable to pay the remaining installments on the domain, Squadhelp will forfeit any installments payments that have been paid until that time.”

On the other hand you say that the money collected till then will be distributed (I missed that part before).


#4

@moretal

  1. The paragraph that says ‘forfeited’ is poorly worded and probably needs to be tweaked. Further down, it says "If the installment plan is cancelled for any reason, Squadhelp will pay the creative as per the approved commission rate (based upon the amount collected so far)… " so the funds paid so far are not forfeited. Edited to add, you posted the same time as me.

  2. Agree.

  3. Personally, I’m not bothered either way.

@grant thanks for this, hopefully it won’t be used that often but a great addition for buyers who don’t have available cash right away.


#5

@ablebrands Thanks. Yeah, I missed the part about disbursing the funds that were collected and it contradicts what was written prior to that about SH forfeiting the funds which was what I first saw. It’s good that the funds that were collected will be disbursed, but personally I feel that waiting 6 months to get money while SH collects it… is only good for SH, not creatives. I hope they’ll disburse funds as they collect them on a monthly basis.


#6

@Grant, can you tell us what happens if the domain is set to renew during the installment payment period? Because… why would a creative want to pay the renewal on behalf of the CH who technically already owns the name? And why would we want to do installments if it is going to end up costing us more money because someone wants to make payments? Is the renewal fee in this case added to the CH’s cost or no? Thanks.

Edit for another question. The guidelines say this:
In case of any chargebacks or refunds, the creative will not be eligible for any compensation for the refunded portion of the payment.

Under what circumstances would refunds apply and after how long? I am trying to imagine the scenario… and I can’t think of any.


#7

That’s a good point, @commulinks. And just saw your edit and it’s another good point. Curious to hear the responses. In the meantime, SH corrected the mistake in the FAQ from ‘Squadhelp forfeits’ to ‘buyer forfeits’ so now it makes sense. For now, I’ll be using the installment option for more expensive domains because installments might help clients drop bigger sums. If SH starts paying on a monthly basis, I may add more. I don’t think anybody wants to wait 6 months for a few hundred bucks while money is being accumulated and can be paid sooner.


#8

The reason I turned off this option on almost all of my domains is that creatives don’t get the money at the same rate as it is payed to SH. Is it a bookkeeping / technical issue? It is stated clearly “No Refunds”, so it is a win-win situation for SH no matter what happens.


#10

Hi All,

Thank you for your questions and feedback. Here is some additional information:

  • If you want to allow the installment option on your name, choose Enable.

  • We set the default to enabled for all domains in the Marketplace because we believed that most creatives will want this features turned on, as it has the potential to increase the likelihood of any given name being purchased. However, if most creatives do not want this enabled, we can change the default to disabled.

  • This initial phase is a beta test of the installment plan option. At this point, we do not have the necessary abilities and accounting tools to handle the distribution of moneys to Creatives on a monthly basis during the installment process. If we see this feature being used often by buyers, we will build additional capabilities and move towards that model. As of now, we still need to test this new feature and make sure it is used. Also, the management of installment payments does require significant resources on our end. Once we gather learnings, we will make further decisions and updates.

  • If the domain renewal falls within the installment plan, the Creative will not be required to pay for that renewal. The amount will either be paid by Squadhelp or the buyer. If this changes in the future, we will make an announcement.

  • As per our policy, a buyer is not entitled to a refund on installment plans. As with any business, there may be some exceptional scenarios where we are required to issue a refund. While we do not expect this to happen, we need to account for that possibility in our terms.


#11

Thanks for the clarifications. Personally I would love to use installments, but for almost of all my domains I’ll have to wait until SH figures out the payments on a monthly basis.

I wish you guys would have figured out this issue before launching the installment feature because I’m sure you guys realize that waiting 6 months to get money that’s accumulating at SH doesn’t make much sense for sellers. Life is short, money from sales can be used for reinvestment or renewals and this current system is a win for the buyer and SH, but puts the sellers in a state of limbo for up to 6 months. Though using the installment option will probably generate more sales- for most of my domains I just can’t go along with a system that accumulates money and leaves me out of the loop.

Either way, I do like the option and the potential and happy to be able to use it for more expensive domains, so thanks for the addition and hopefully you guys will be able to tweak it so it would make more sense to use.


#12

I would like to know how the installment payments go for other creatives as time goes on. Could SH update us on how many people use installments and could other creatives post here about their experiences please? I have turned mine off for now because up to 6 months seems like an incredibly long time to wait, especially for names that don’t bring high commissions. I could see it if I had super premium domains in the marketplace. Thanks y’all.