Are You Giving Your Domain Away?

When you sign up for a hosting account or website design, make sure you read your contract and the site’s Terms of Service (TOS) very carefully.

And if you find any gems like the following, run far, far away:

1. The company charges you coming and going.

Some companies will charge you high fees to transfer your domain name away from them — way more than you paid to register it through them. Personally, I think this is nuts. When my clients register with me, the domain is in their name and and they are free to transfer it away through any other registrar. All they have to do is initiate the transfer and follow through with the emails approvals required by the new registrar.

2. The company holds your domain hostage

One of my clients is experiencing this. According to her old hosting company’s site:

Domain names purchased by [web design company] and website designs, databases, stores, or programs created by [web design company] are the property of [web design company] until Client has paid all fees including one full year of monthly hosting. (See Domain Names Purchase/Hosting Agreement).

The company registers the domain name in its own name, so the client can’t take it anywhere else until after one year. And then the company provides crappy service — possibly in hopes that you’ll leave so they can either pocket your money, or add your domain name to their parked names that they place ads on.

Now, I agree that if you haven’t paid for something yet, you shouldn’t receive it.

That said, whoever is registering your domain name should charge you for at least one full year, you should pay up front and it should be registered in your name. If your web designer or host does not clearly state that your domain will be registered in your own name, then I strongly recommend you go to a registrar like GoDaddy for your domain name instead.

This brings me to the next domain name scam:

3. The company charges you for 10 years, but only registers the domain for 1.

This is great for the company, especially if you get fed up with their service and leave. With their no refund policy in hand, they keep your 10 years registration fees when you leave — and they don’t have to register the domain for the full amount of time you requested.

How to avoid these scams?

Read the Terms Of Service and any contracts you sign.