As a seasoned website host and domain registrar, I’ve observed a common and critical misunderstanding among business owners during acquisitions—the confusion between transferring a domain between registrars and transferring domain ownership. This mix-up can lead to significant issues, including the sudden disappearance of a business’s online presence if not handled correctly.
Let’s clarify these two distinct processes to ensure you, as a business owner, are fully equipped to maintain your online domain without hiccups.
Transferring a Domain Between Registrars
This process involves moving a domain name from one registrar (the company where you initially registered your domain) to another. This might be done for various reasons, such as seeking better pricing, services, or customer support. Here’s how it typically works:
- You request a transfer from your new chosen registrar.
- They will ask for an authorization code (EPP code) from your current registrar.
- Once you provide the code, your new registrar will initiate the transfer.
- The current registrar will need to approve the transfer, which may involve an email confirmation.
- After approval, the transfer is executed, and the domain is managed by the new registrar.
This process does not inherently change the owner of the domain; it simply changes the service provider that manages the domain registration.
Transferring Domain Ownership
On the other hand, transferring domain ownership is about changing the registered owner of the domain. This is a critical step during a business acquisition, as failing to do so means the digital asset you thought you purchased isn’t legally yours. The steps include:
- The current owner initiates the change of the domain’s registrant information to reflect the new owner’s details.
- The new owner must provide appropriate documentation to demonstrate their right to own the domain, especially in Australia, where the .au domain requires a close or exact connection to a business or trademark. For .au TLD (top level domain) domains, you must meet certain requirements as laid out by auDa
- Once the documentation is verified, the registrant information is updated, including ABN if required, and the new owner is now the official owner of the domain.
Potential Gotcha for Business Owners
The potential pitfall here is assuming that transferring a domain to a new registrar is the same as transferring ownership. During a business purchase, if you only transfer the domain to a new registrar without updating the registrant details, the previous owner retains legal ownership of the domain. This can become a significant issue if the previous owner cannot be reached or is unwilling to cooperate in updating the registrant information.
In the worst-case scenario, the previous owner could even take the site offline, demand additional payment, or let the domain expire. As the business owner, you could lose access to the domain, the website, and all the associated email addresses.
Alternatively there is a scenario where a domain has been registered under a previous business owner and the old ABN has expired, and then website has gone off-line until it can be resolved.
When you believe you own a digital asset but actually don’t, it can lead to unforeseen complications. For instance, in Australia, securing a .au domain demands a direct link to a sole trader name, registered business name or trademark. This means the new owner must validate their entitlement with appropriate documentation. Once confirmed, the registrant information gets updated, officially transferring ownership.
A common oversight by business owners is equating domain transfer to registrar switch with ownership transfer. Merely changing registrars without updating ownership details leaves the previous owner in control. Or, gaining control of the website, without gaining full ownership of the domain. These kind of oversight can result in loss of access, site takedown, or even domain expiration. To avoid such pitfalls, ensure both transfers are completed during acquisitions and verify updated registrant details to safeguard ownership.
Another critical distinction is between website hosting and domain registration. Many mistakenly merge these services, while they are separate entities. Recognizing this difference and managing them distinctly can prevent confusion and potential ownership disputes. Opting for a unified account for domain registration and hosting, like Margaret River Websites, streamlines management while maintaining clarity and control over your online assets.
Key Takeaways
- Always ensure that both the registrar transfer and the ownership transfer are completed during a business acquisition.
- Verify that the domain ownership transfer is fully processed and that all registrant details are updated to reflect your ownership.
- If you are not technically confident, it can be worthwhile to keep your website hosting and domain registration under the same roof to avoid confusion.
- Recognise that transferring a domain between registrars is not the same as transferring ownership. Both processes must be completed for a secure and undisrupted online presence.
By understanding and actioning these crucial differences, you can avoid the “gotcha” that has trapped other business owners. Protect your online assets by ensuring both the domain registrar transfer and the domain ownership transfer are on your acquisition checklist.
Terminology for Domain and Hosting Management
Registrar: A domain registrar is an organization or commercial entity that manages the reservation of internet domain names. A registrar must be accredited by a generic top-level domain (gTLD) registry and/or a country code top-level domain (ccTLD) registry.
Registrant: The registrant is the individual or organization that registers a domain name. The registrant has the right to use that domain for a specified period and is responsible for its renewals.
Eligibility Requirements: These are the criteria set by domain registries that a registrant must meet to register or maintain a domain name. For example, .au domains require registrants to be an Australian citizen, resident, or a registered Australian business with a direct connection to the domain name.
Domain Transfer: This refers to the process of changing the designated registrar of a domain name. Domain transfer is typically done when a domain owner decides to switch to a different service provider for domain management.
Domain Ownership Transfer: This is the process of changing the ownership of a domain name from one person or entity to another. This is particularly important during the sale or acquisition of a business to ensure that the new business owner gains legal control over the domain.
Domain Hosting: Domain hosting is a service that provides domain name registration and management. This service allows individuals and businesses to reserve a website domain name, such as ‘example.com’.
Website Hosting: Website hosting services provide the technologies and resources needed for a website or web page to be viewed on the Internet. This includes server space, bandwidth, and security features.
DNS (Domain Name System): The DNS is like the phonebook of the internet, translating human-friendly domain names (like ‘example.com’) into IP addresses that computers use to identify each other on the network.
EPP Code (Authorization Code): An Extensible Provisioning Protocol (EPP) code is a security measure used to authorize the transfer of a domain name from one registrar to another. It’s often referred to as a domain transfer code, domain key or an auth code.
WHOIS Information: WHOIS is a query and response protocol used for querying databases that store the registered users or assignees of internet resources, such as a domain name. It can provide information about the registrant, registrar, and the status of the domain.
ccTLD (Country Code Top-Level Domain): A ccTLD is a two-letter domain extension, such as .au for Australia, assigned to a country, sovereign state, or territory. ccTLDs are typically regulated by a specific country and have varying eligibility requirements.
gTLD (Generic Top-Level Domain): A gTLD is a top-level domain category that is not tied to a specific country and includes familiar extensions like .com, .org, and .net.
Terminology for Domain and Hosting Management
Registrar: A domain registrar is an organization or commercial entity that manages the reservation of internet domain names. A registrar must be accredited by a generic top-level domain (gTLD) registry and/or a country code top-level domain (ccTLD) registry.
Registrant: The registrant is the individual or organization that registers a domain name. The registrant has the right to use that domain for a specified period and is responsible for its renewals.
Eligibility Requirements: These are the criteria set by domain registries that a registrant must meet to register or maintain a domain name. For example, .au domains require registrants to be an Australian citizen, resident, or a registered Australian business with a direct connection to the domain name.
Domain Transfer: This refers to the process of changing the designated registrar of a domain name. Domain transfer is typically done when a domain owner decides to switch to a different service provider for domain management.
Domain Ownership Transfer: This is the process of changing the ownership of a domain name from one person or entity to another. This is particularly important during the sale or acquisition of a business to ensure that the new business owner gains legal control over the domain.
Domain Hosting: Domain hosting is a service that provides domain name registration and management. This service allows individuals and businesses to reserve a website domain name, such as ‘example.com’.
Website Hosting: Website hosting services provide the technologies and resources needed for a website or web page to be viewed on the Internet. This includes server space, bandwidth, and security features.
DNS (Domain Name System): The DNS is like the phonebook of the internet, translating human-friendly domain names (like ‘example.com’) into IP addresses that computers use to identify each other on the network.
EPP Code (Authorization Code): An Extensible Provisioning Protocol (EPP) code is a security measure used to authorize the transfer of a domain name from one registrar to another. It’s often referred to as a domain transfer code or an auth code.
WHOIS Information: WHOIS is a query and response protocol used for querying databases that store the registered users or assignees of internet resources, such as a domain name. It can provide information about the registrant, registrar, and the status of the domain.
ccTLD (Country Code Top-Level Domain): A ccTLD is a two-letter domain extension, such as .au for Australia, assigned to a country, sovereign state, or territory. ccTLDs are typically regulated by a specific country and have varying eligibility requirements.
gTLD (Generic Top-Level Domain): A gTLD is a top-level domain category that is not tied to a specific country and includes familiar extensions like .com, .org, and .net.
auDA (.au Domain Administration): The governing body that oversees the .au country-code top-level domain (ccTLD) for Australia. It establishes policies for the registration and use of .au domains, licenses registrars, and implements consumer protections to ensure the stability and integrity of the .au domain space.
Understanding these terms is crucial for anyone involved in the management, transfer, or acquisition of domain names and hosting services, ensuring a smooth and secure online presence.
