NewAppIdea - Frequently Asked Questions
Question: How does Escrow protect App Idea People and App Developers?
Answer: Escrow is a system designed to protect both App Idea People and App Developers.
Services like escrow.com allow milestone or lump sum payments to be made by App Idea People upon satisfactory receipt of work and provides App Developers with the security that it will paid for its work.
This is how it works:
i. App Idea Person accepts an App Developer's quote to develop its idea
ii. App Idea Person transfers funds into an escrow account held by escrow.com / similar escrow entities.
iii. The App Developer can begin work with the security that the App Idea Person has the funds to pay for the project and cannot unilaterally withdraw the funds after work has begun
iv. The App Idea Person knows that the App Developer will not receive payment until the final app idea has been delivered
v. Once the App Developer delivers the app idea and the App Idea Person is satisfied, the App Idea Person authorizes the escrow to be released.
In the event that the App Idea Person does not approve of the App Developers final work product, Escrow.com will retain the funds placed in escrow until it receives joint instruction from the parties.