Reseller? Purchase domain for someone else.

[tlink211]

With my business model I want to purchase a domain name for my customers.
As in I would own the domain name.
Then build and host their site for a year.

Then, if all goes well, transfer ownership to them.

The idea is, all the hosting details would be transparent to them. It would make the site easier to sell for me.

Once they are acclimated to having their own website I would make the transfer and begin normal billing.

I have been told that this model runs amuck of ICANN guidelines/rules.
As in, I own the domain but someone else's name and contact information is on the site, not mine.

Since I don't want to spend the rest of my life reading ICANN's website I thought I would ask here.

I would start out with the Aluminum plan. I specialize in Joomla and Zen Cart sites.

I am not very well acclimated in the hosting/reselling business, I just want to sell websites to local folks for small business and stores.

Any answers, suggestions or links to appropriate information would be greatly appreciated.

Thank You
Tom

Here is one example:
http://www.communitynewslinesville.com/

[striddy]

Originally Posted by tlink211

With my business model I want to purchase a domain name for my customers. As in I would own the domain name. Then build and host their site for a year.

Then, if all goes well, transfer ownership to them.

What if "it" doesn't go well? Not sure what you mean by "go well".

Originally Posted by tlink211

The idea is, all the hosting details would be transparent to them. It would make the site easier to sell for me.

But if you are creating a site for a specific customer what relevance does this have?

Originally Posted by tlink211

I am not very well acclimated in the hosting/reselling business, I just want to sell websites to local folks for small business and stores.

So do just that, sell them a domain up front, discuss their site requirements, create the site, bill them for it. Job done.

Sell a customer one or more domains, sell them hosting and sell them your design work. Bundle it up some way if you want but the customer needs to know what they are getting or they will feel uneasy about doing business with you.

[tlink211]

Thank You, David, Very helpful reply.
Tom

[Goddess Dix]

well, the registrant info is the legal "owner" of the domain. you can have someone else for the billing and tech contacts.

if i were trying to do it this way, i'd have myself as the registrant, with my own contact info, leave client as billing and probably have myself as technical. and when you're ready to switch to the customer, change the registrant to their info.

i'd also put the legal ownership and time for transfer in writing and make sure the client was clear on it. i assume you're wrapping up the domain registration costs into your development costs. i would not charge them seperately for this if they don't own it as purchase time.

as an aside, i would also advise any of my clients that asked me about such an arranagement strongly against it. no offense to your business model. i've just seen domains held hostage when things "didn't go well" leaving a client with a domain they've invested in that they don't have control over.

[tlink211]

Thank You, Dix, for your reply. I have been struggling with this business model for a couple of weeks now and beginning to see the pitfalls of it.

I decided in the beginning, as a matter of personal ethics, to give domain names to the people I have purchased them for.

I'm thinking an affiliate program might be more in line with what I really want.

[tlink211]

OK, I bought the aluminum plan this evening.
I'm going to take a run at it.

[Dwight]

Originally Posted by tlink211

Thank You, Dix, for your reply. I have been struggling with this business model for a couple of weeks now and beginning to see the pitfalls of it.

I decided in the beginning, as a matter of personal ethics, to give domain names to the people I have purchased them for.

I'm thinking an affiliate program might be more in line with what I really want.

As a matter of course, we buy the domain name in our name on behalf of the client.. we pay for the renewal each year, and then bill the client for hosting and domain name at the same time.. with a small profit built in... If the client has control of the domain name, they will either forget to pay for it, or be might become victim to scam artists and lose the domain... We've had both these happen in the past which is why we do it the way we do now.. If the client leaves us, then we just transfer it to them and wish them well..

We've had maybe one or two clients in 9 years complain about the domain name being in our name.. so we transfer it to them at that time and they are happy.. most couldn't care less, as long as their site is up.

[tlink211]

Thanks, Dwight. Keep it simple for the client.
Most of the people who I deal with start the first conversation with something like "....I don't even know how to turn a computer on...".

I want to offer a package where we discuss content and the size of the site and how much is in their budget for it.

So much easier for them to write one check.

Taking care of the technical details is my job.

Tom

[jean]

I actually had one client give me her domain as she is non-tech and didn't want to be bothered with the renewal etc. However, for all other clients I insist that they own their domain. At first, I did a whois, logged their renewal date and did another whois right after the renewal date, in the grace period. Trouble is, after you get a number of customers, this gets to be a real pain.

[tlink211]

This HostGator reseller plan is working out very well for me. It is everything I had hoped it would be.

As for the customers and domains. I am acquiring all domains through enom.

So much easier to get business, when during the first phone conversation and person to person meeting, I say "...I'll get you on the Internet. I'll take care of everything for the first year. Now, what do you want on your website?"

When it comes time to re-up their domain name I think I will transfer at that time.

If for whatever reason I am unable to perform my duties I have made arrangements with trusted others to distribute domains and cPanel credentials.

Thank You, all, for your input. It has been enlightening to me.

Tom

[Target2019]

I do much the same, purchase the domain initially, set up the hosting, and get things going asap. I have transferred a few domains to the clients eventually. Many people do not grasp the way things work, and that you can lose a domain name for lack of a $10 payment. I've become aware of resellers who use the domain ownership as a ball and chain to keep the client. That's not a good practice, IMO.

[wildweasel]

Originally Posted by Dwight

As a matter of course, we buy the domain name in our name on behalf of the client.. we pay for the renewal each year, and then bill the client for hosting and domain name at the same time.. with a small profit built in... If the client has control of the domain name, they will either forget to pay for it, or be might become victim to scam artists and lose the domain... We've had both these happen in the past which is why we do it the way we do now.. If the client leaves us, then we just transfer it to them and wish them well..

We've had maybe one or two clients in 9 years complain about the domain name being in our name.. so we transfer it to them at that time and they are happy.. most couldn't care less, as long as their site is up.

This is also the model that I use, I have found that most clients that want a web site developed don't have a clue about domain names and how to register them or change NS if they already have a domain.I'm going through this now with a client that has a domain through Yahoo, and doesn't remember how to get into his account.

[Dwight]

Originally Posted by Target2019

I do much the same, purchase the domain initially, set up the hosting, and get things going asap. I have transferred a few domains to the clients eventually. Many people do not grasp the way things work, and that you can lose a domain name for lack of a $10 payment. I've become aware of resellers who use the domain ownership as a ball and chain to keep the client. That's not a good practice, IMO.

I certainly agree with that.. the few that have left us, went with their domain, our blessings, and usually our sigh of relief... those are the clients you really don't want in the first place...

[Dwight]

Originally Posted by tlink211

So much easier to get business, when during the first phone conversation and person to person meeting, I say "...I'll get you on the Internet. I'll take care of everything for the first year. Now, what do you want on your website?"

That's our sales pitch exactly... and it works..

Originally Posted by tlink211

When it comes time to re-up their domain name I think I will transfer at that time.

That will work, but consider keeping it as your responsiblity... we send our client one bill a year for hosting and domain renewal and they are grateful to not have to worry about it.. and it protects them from the domain scam artists and possible loss of their hosting business... Our biggest chunk is from design, but the continuing fee from hosting can go on forever and that's doesn't suck..

[Goddess Dix]

Well, since I resell the domains via WHMCS, I am still managing it for them and still answer their questions and bill them for the renewals myself. I certainly understand clients who want you to manage things for them. For ethical service providers, it's usually not an issue.

I just consider it part of my personal mission to help educate my clients; hence, the advice to insist on being the registrant for their own domains. I also advise people that it can be a good move to have their domains and hosting at different places for the same reason. I've seen hosting companies refused to release domains when a client leaves.

But it doesn't mean I don't happily (and professionally) manage both for them.

[tlink211]

Wow, I was checking the site stats on my example URL at the top, I clicked the link and here I am.
My question was answered right away but I see the discussion has gone on. Glad I checked back. It really got interesting.

Thank You, All, again for the well thought out and professional advice.