Who owns your customers?

[333]

Very interesting post for any domain name resellers over at WP.

The WP post mentions a clause(s) in the VentraIP Wholesale Reseller Agreement that essentially says that a reseller's customers are not the reseller's should they decide to sell their domain reseller business.
(clauses 16.1(b) and 17.2)

http://forums.whirlpool.net.au/forum-replies.cfm?t=2248596#r16

 

[nt81]

So basically if you're selling your business and want nothing to do with your customers, the customers aren't yours?

*insert shocked expression here*

Probably to protect the customer from the hosting reseller cowboys that dump clients without notice. I see it every day of the week!

Disclaimer : I take anything on Whirlpool with a large grain of salt. I can see why they nickname it "Whine-Pool"

 

[helloworld]

Nfw. It's to protect their bottom line. Why would you guess they do that to protect the non customer?

 

[nt81]

The customer of your customer, is also your customer.

When your customer flees the country, there are a lot of their customers left hanging. Ask me how I know about this...

 

[helloworld]

My customer sells vacuums? I sell vacuums now?

If like you to continue with your story tho

 

[nt81]

1. We're not talking about vacuums, were talking about web hosting
2. Tell me more about how you would have customers if your reseller customers had no customers...
3. Tell me more about your experience in the industry as a hosting reseller.

 

[helloworld]

1. Actually we're talking about domains aren't we?
2. If I had a reseller who had no customers I would still have 1 customer
3. I can tell you who not to deal with that is for sure.

 

[nt81]

 

[helloworld]

English isn't your first language?

 

[333]

Maybe I should have explained my post a little better..

It seemed a *very* strange thing that there would be such a thing in a reseller's contract/t&c.

Not hard to imagine a scenario where a domain reseller is running a business for years buying adwords ads, building site/business profile/links, customer goodwill, and then they find themself in a position where the worth of the business is compromised by not being able to transfer the customers..

IANAL, but isn't that a kind of clause(s) a "restriction" to the trade of the business?

To avoid any issues with talking about a particular company, maybe one of the lawyers on the forum could give an opinion/shine some light on this sort/kind of clause(s), if not the actual clause..

Thx.

 

[MelbourneDomainer]

Any word from VentraIP on this? Seems very strange to offer a service, to only have a clause "if you succeed, we take everything"?