Trading a domain for services.

[Onward]

I own a domain for which a web development company is seriously interested in but want to trade their development services for this domain instead of purchasing it. I would put about a 10k price tag on this name.

It just so happens that this may be of real interest to me as I am in need orf a developer for many projects, but one in particular.

Has anyone ever done something like this? What type of a contract did you set up? How would you go about valuing the domain name in a trade situation.

I would appreciate info from anyone with experience with something like this or similar.

Thanks.

 

[acronym007]

This is very tricky, your going to have to establish clear service deliverables that cannot be disputed by opinions.

For them it is easy, they clearly get a domain worth $10k, for you to establish an equal value will take allot of effort on your end. My concern is that you get stuck, they hand you over what they "feel" is worth $10k and your going to court to dispute it.

I would seriously recommend an attorney for this project. Good luck.

 

[dnalias]

cash is king

 

[Onward]

cash is king

Yes...I am having my doubts about this type of a transaction.

 

[DN BROKER]

if the development is incomplete, what happens to the domain.. do they now get ownership of %%

 

[melmunch]

Can you get 10k for it without waiting years for an end user? Is yes, then run away. If not, and reseller value would be far lower, then it sounds like it might be a good deal.

 

[dnalias]

you loose negotiation leverage, and the service can be churned.

unless you can define a specific project, place all aspects of this project on paper and as acronym stated do it through a bullet proof contract it can get very tricky.

 

[ciperl]

Set up the contract with the following stipulations:

1. The webhost company will issue you $10,000 in credit notes... not services. This is a semi-gift certificate. You then can hire/purchase their services at your own time under a completely separate contract, and pay for the services using the credit notes. (Plus, if you have to you can sell the credit notes to someone who actually needs some of their services (so you can get cash out of the deal).
2. You could also stipulate in the contract that the domain is transferred as a temporary lease, until they fulfill their end of the bargain. Once they fulfill their end of the contract the domain is fully transferred. (You keep ownership of domain but allow them to stipulate redirect / DNS information until they fulfill their end.)

Personally, I've done the #1 option I listed above. I did some development work (with domain) for a printing company... and in exchange I got printing services. But I was paid in credit notes, so that I'll be able to use them whenever I want. I even found a local organization that uses them as a printer and sold them some of my credit notes.

It does help that I have a law background and am not afraid of writing up contracts.

 

[dnalias]

lease it to them, with an option to buy with cash

 

[Onward]

Set up the contract with the following stipulations:

1. The webhost company will issue you $10,000 in credit notes... not services. This is a semi-gift certificate. You then can hire/purchase their services at your own time under a completely separate contract, and pay for the services using the credit notes. (Plus, if you have to you can sell the credit notes to someone who actually needs some of their services (so you can get cash out of the deal).
2. You could also stipulate in the contract that the domain is transferred as a temporary lease, until they fulfill their end of the bargain. Once they fulfill their end of the contract the domain is fully transferred. (You keep ownership of domain but allow them to stipulate redirect / DNS information until they fulfill their end.)

Personally, I've done the #1 option I listed above. I did some development work (with domain) for a printing company... and in exchange I got printing services. But I was paid in credit notes, so that I'll be able to use them whenever I want. I even found a local organization that uses them as a printer and sold them some of my credit notes.

It does help that I have a law background and am not afraid of writing up contracts.

I like this idea...although this may end up being more trouble than it is worth.

Can you get 10k for it without waiting years for an end user? Is yes, then run away. If not, and reseller value would be far lower, then it sounds like it might be a good deal.

I have been offered 5k for the name (last summer)...I think from an end user who went with another name after I declined. I think the end user potential is real high with the name...reseller is most likely low xxxx...

 

[melmunch]

With any deal you strike, you should try to keep control of the name until after they deliver at least some of the services, and you are more confident that you are on the same page. You can keep the name and just point it to their nameservers.

Despite all the scams out there, there are plenty of honest companies and this could wind up a very good deal for you.