Websites Escrow Transfers Are Safe Transactions
Ok so how you do manage the sale and transfer of an entire website?
From our own experience selling both Domain Names and Complete Websites, we are happy to advise that a change of ownership can be handled safely and securely by following a few easy steps.
In brief, the entire process of Websites Escrow which is outlined below, safeguards the interests of both Buyer and Seller in a way that can be trusted by all parties involved. The key to its success is the use of a neutral Third Party Escrow Company who responsibly manages the financial arrangements.
Option 1 : Transfer of Domain Only
When a Buyer buys a Domain Name only, via an Auction or Private Sale, without any Website Content, then the transaction is conducted as follows.
Transaction Summary
- Seller Advertises Domain For Sale
- Buyer and Seller Agree Price
- Buyer Transfers Payment to Escrow
- Seller Transfers Domain to Buyer
- Escrow Transfers Payment to Seller
This procedure can be extended when purchasing a Complete Website, see Option 2 below.
Option 2 : Transfer of Domain AND Content
When the Buyer purchases a Complete Website, which includes the Domain Name and its Website Content, there are 2 items to transfer and therefore 2 consecutive Escrow Transactions are required. The first Escrow Transaction is for the Website Content and the second Escrow Transaction is for the Domain. In general the total price agreed for the sale is split equally 50/50 between the 2 Transactions.
Transaction Summary
- Seller Advertises Domain For Sale
- Buyer and Seller Agree Price
- Buyer Transfers Both 1st & 2nd Payments to Escrow
- Seller Transfers Website Content to Buyer
- Seller Transfers Domain to Buyer
- Escrow Transfers 1st & 2nd Payments to Seller
A Full Website Is Not Just A Domain Name
A live website online is in fact a Domain Name PLUS some Content.
To be more accurate a standard website consists of:
- Domain Name (such as www.yourdomain.com)
- Website Content (Graphics/Code etc.)
The Website Content includes Files which have to be Hosted by a Hosting Provider (like www.hostgator.com). Included in these Website Content Files are the branding and appearance of the website, often defined by a WordPress Theme or Template. The Theme also controls much of the technical functioning of the website through its HTML and PHP Code.
Safe Payment Transfer Using Websites Escrow
After a Website with Content is sold to a new owner, via an Auction or Private Sale for example, the next step for the Buyer is to send the payment via Websites Escrow. Then the Seller can proceed to transfer the whole Website to the Buyer.
However before the transfer takes place, it is necessary for the Buyer to set up a Free Escrow Account to deposit the funds into. These Escrow Accounts are managed by a neutral Third Party in the form of an authorised Escrow Company (like www.escrow.com) who hold the money safely until the Transfer is complete. Once the Buyer has received all of the necessary goods, the funds are released by the Escrow Company to the Seller, thereby completing the purchase.
The Roles of Buyer and Seller in Websites Escrow
When a website is sold and transferred to the new owner there are specific actions that the Buyer and Seller must both take in order to facilitate the Websites Escrow process.
Buyer’s Role and Actions
- Buyer sets up an Escrow Account with Escrow.com
- Buyer sets up Hosting with a cPanel Account
- Buyer then shares the cPanel Login Details with the Seller
- Buyer sets up a Domain Account to hold the Domain
- Buyer then shares the Domain Account Login Details with the Seller
Seller’s Role and Actions
- Seller Transfers Website Content Files into Buyer’s Hosting cPanel Account
- Seller Transfers Domain into Buyer’s Domain Account
Transferring a Complete Website to the Buyer
A Complete Website Transfer to a Buyer is accomplished in 2 Steps.
The Websites Escrow Transfer Process is designed to enable the smooth hand-over of an entire website to a new owner. After the Buyer has deposited the payment for the purchase of the website with the Escrow Company, then the delivery of the goods takes place in 2 clearly defined Steps.
- Step 1 – Transfer of Website Content to Buyer
- Step 2 – Transfer of the Domain Name to Buyer
Step 1 – Transfer of Website Content to Buyer
GOAL: To Copy Website Content Files from Seller’s Hosting cPanel Account to the new owner i.e. the Buyer’s Hosting cPanel Account.
During this stage the Website is taken offline from the Seller’s Hosting and put online with the Buyer’s Hosting. This involves the Buyer setting up a receiving cPanel Account on the Buyer’s Hosting to enable the Seller to transfer the Website Content into. Next the Domain is re-directed from the Seller’s Hosting cPanel Account to the Buyer’s Hosting cPanel Account.
At that point the Website Content is previewed and tested to check that the files have been transferred correctly. The Buyer then acknowledges receipt of the Website Content Files and Step 1 is complete.
Step 2 – Transfer of Domain to Buyer
Step 2 involves the Seller Transferring the Domain Name to the Buyer. After the Buyer has received the Domain and acknowledges its receipt then Step 2 is complete.
NOTE: Step 2 can only begin after the Buyer has sent the confirmation of Step 1. So it is important that the Buyer firstly acknowledges receipt of Step 1 (i.e. Website Content) in order for the Domain Name to subsequently be transferred to the Buyer in Step 2.
Completion of the Websites Escrow Process
When the goods included in Step 1 and Step 2 have both been transferred, then the Websites Escrow Transfer process is complete.
What’s Next?
Here at Musical Songs Ltd. we provide bespoke Web Design services custom made to fit your situation. Whatever the circumstances we can offer you advice and design a website for your particular niche.
Contact Us
Contact us now with a description of your project and we will be happy to assist.