Selling Your Web Site? Get A Lawyer!
The ultimate dream of many online entrepreneurs is to build a
successful web site and then sell it for thousands, perhaps
millions of dollars. Example: Sergey Brin and Larry Page, the
original creators of google.com probably had no idea they would
become so rich by creating a search engine web site. Hey, stuff
happens right?
Selling a domain name is easy. Selling a site that you have
poured months or years of your life into building, promoting and
nurturing, is a bit more difficult. If you care about what
you've built and want to see it continue to succeed and grow, it
can be as difficult as selling one of your own children.
Scenario: You are approached by someone who is interested in
purchasing your web site. Your first thought is that it's some
joke but you find it to be a genuine proposal. An offer is made
and negotiations begin.
Stop! If the sale involves more than a couple thousand dollars,
it is in your best interest to get an attorney. Do this before
any contracts are signed or any money changes hands or you could
lose the proverbial "shirt off your back" AND the web site you
built so carefully.
In most cases, the sale will include all intellectual and
virtual property. This means everything; the software, the
domain name, the page copy, the clients/customers and the
traffic. All rights to any of the material on the web site will
transfer to the new owner as well as the responsibility for the
future success or failure of that web site.
During negotiations, a contract (should) be drawn up which
contains every detail of the sale. This contract may include: *
A non-compete clause, meaning you can not go out and build the
same type of web site within a specified period of time; * Final
sale price including fees and expenses; how they will be paid
and by whom; * Terms of transfer: when the transfer is to be
completed, how the transfer will be handled etc.; *
Inclusions/Exclusions: this will state exactly what is and what
is not included in the sale; * Rights of the buyer and rights of
the seller during and after the sale process.
If you are not an attorney, I advise you to get one because if
you sign a binding agreement, you're stuck with it. Make sure
you know what the contract says; I mean really understand it
from a legal point of view. Make sure there are no "loopholes"
which could cause problems down the road and that your rights
are protected and clearly specified. Make sure you completely
understand each and every paragraph, including the small print!
Being presented with a considerable chunk of change in exchange
for selling all rights to your web site could be a dream come
true. Don't let those dollar signs in your eyes cloud your
vision. Think clearly about what the site means to you and how
you will feel about it after you no longer own it. If you're
sure you still want to sell it, get an attorney to preview any
contracts or forms BEFORE you sign them.