Domain development partnership questions

[james2002]

I am in the process of developing one or two of my domains with an entrepreneur who is known to be successsful , making significant amount of money, about a quarter to half a million in a matter of few weeks just from one or two domains.

I am a part time domainer and work more than 48 hours a week as a full time job and don't have much time to develop them.

The proposal is for me to put my domains into the development and he would do development with his own money and then to split the profits hopefully after 12 months or so.

But he suggests to put the domain into escrow.

I have no experience whatsoever with business partnership like this.

I wonder how does escrow work in such domain development partnership. I have used escrow to buy/sell domains multiple times but never used it for domain devlopment.

I also wonder it is enough just for me to sign a contract with him rather then using escrow?

I appreciate your inputs.

Thank you

 

[Bill Roy]

James, I am somewhat puzzled 'why' anything should happen to the domain/s apart from allowing the developer access to sites? Escrow, as far as I understand it, is for the transfer of ownership - nothing to be gained by putting domains into escrow otherwise.

I hope others respond perhaps they can put a different perspective on this, but I would decline the offer if this 'escrow' was a condition.

 

[BostonDomainer]

I don't think he meant escrow but so much as a trust. Kind of like a secured deposit box at the bank that requires both of you guys key to open it. This protects him since he's doing the development since you'll technically be owning the name. I just read a story of a guy who owned the name and someone else built up the domain and the builders wanted the domain owner out of the picture so they hijacked the domain and a big legal battle pursued. (I'll try to find that story for you)

I you can have a lawyer act as a trustee with a contract. (but I'm no lawyer)

 

[james2002]

Thank you. I am also thinking about the necessity of escrow which is said to be very important for the entrepreneur.

I appreciate more inputs.

 

[SiberForum]

If you are actual domain name owner I suppose you are the one and only the one who can setup rules for partnership.

 

[james2002]

If you are actual domain name owner I suppose you are the one and only the one who can setup rules for partnership.

Yes, I am the owner of the domains. The person is naturally worried about me running away after he has developed the domain using thousands of dollars if the domain is under my ownership.

 

[Tim Schoon]

The proposal is for me to put my domains into the development and he would do development with his own money and then to split the profits hopefully after 12 months or so.

Why would he do this and not just buy some similar names, or even your domains?
Sounds a bit weird to me. Sounds like he might not have plans to keep the thing alive longer than a couple months..

Then when the revenue is back to 0 after a year you can finally have it. Strange way to do this IMO. I'd require a % from the day I'd change the DNS to his server.

 

[scanreg]

Does any percentage ownership imply rights to access user/pass of the domain?

What if one person is 70% owner and is the registrant and the other person is 30% owner but not the registrant?

Can the 30% owner force access in any way to the user / pass of the domain even if an agreement says otherwise?

Thanks

 

[Biggie]

Does any percentage ownership imply rights to access user/pass of the domain?

What if one person is 70% owner and is the registrant and the other person is 30% owner but not the registrant?

Can the 30% owner force access in any way to the user / pass of the domain even if an agreement says otherwise?

Thanks

Hi,

first, guess i should commend you on diggn this thread to find an answer

i would say common sense rules apply

the person who "registers the domain", does the "action of registration, therfore, they will/need all pertenent information required to complete that task.
the info includes whois info, as well as login and password for the "account"

IF, you are not there physically/virtually in some way to ensure/insure same info was entered as agreed...then you won't be sure your copy of info will be accurate, should you have to manage the domain.

but, 30% of a whole pie is not the majority, when 70% assumes more risk.

short answer is no.

imo....

 

[Puckerhuddle]

There is a lot more money and expertise than quality domain names. Ownership and control are 9/10ths of the law. You are in the stronger negotiating position. The investor developer has the court option if you do not maintain your end of the bargain. Once you give up any control over the domain, should any problem arise the party with the best lawyer may come out on top. There is only one....greatname.com....... so I would not risk loosing control over it. A strong legal agreement and patience should protect all parties. Thats my opinion anyways.

 

[scanreg]

Hi,

first, guess i should commend you on diggn this thread to find an answer

thanks

splitting ownership of the domain is a big worry, so far i haven't found any case law, the concern is that any percentage ownership could force disclosure of the access info from the registrar to the non-registrant co-owner, thus putting the registrant co-owner at risk