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Buying and selling

Payment plan

A payment plan is an agreement where the buyer pays for a domain in installments instead of one lump sum. The seller usually keeps control of the name until the last payment clears.

Why it matters

Payment plans make high-priced names reachable for startups. Common structures hold the domain at escrow or under the seller's control until the final payment. The buyer may get use of the name through DNS during the plan. Sellers carry the risk of non-payment, so they often charge a higher total price. Buyers should confirm what happens after a missed payment. Common mistake: using a plan without a written contract and an escrow agent. That leaves both sides open to a dispute over ownership.

Source: escrow.com

Read nextDomain Lease-to-Own and Payment Plans: How They Work

Where we use this term

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