

Ask YC: Would you partner with a domainer for your startup? - FiReaNG3L

Let's say I have an offer from a domainer to use a very, very good domain (worth &#62;1 million) to develop a site. The logic is, it's easier to sell a developed website than just a domain; we would share the profits. I already developed the technology; it would be almost plug and play.<p>The problem is, he controls the domain, so nothing would stop him from putting his own website full of ads or something once the traffic gets high, leaving me with nothing. It's an issue of trust mainly - I'm not really familiar with contracts and stuff like that.<p>The startup would require about 5000 USD per month of fixed costs, so it would require VC capital. Do you think this kind of partnership would be seen as problematic for getting VC funding?<p>Thanks for your help :)
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noodle
write up a good contract and have it signed, possibly with some sort of clause
to revisit the agreement after a year to see where things are. if its broken,
take legal action.

if you're going to require a VC deal, then this won't be a simple case of him
letting you use the domain, as most any company worth its salt won't allow
such an easy failure point if the domain name plays such a big part of this
working. there will be some legal bindings in there for at least some length
of time.

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ideas101
you should contact a lawyer and put everything on paper ... you will form a
company and company will own all the stuff (including domain) - you and your
partner will own the shares of the company - it will also say how to split the
revenue and who will get how much if the domain is sold out - it will also say
about the other exit strategies ... so don't worry, just do it legally with
good lawyer involved.

