Pros and Cons of Non Disclosure Agreements (NDAs)
I prefer to do my domain name deals with a non-disclosure agreement in place, or an agreement with the other party to not disclose details about a domain name deal. People in this business tend to feel strongly one way or another about using NDAs.
I thought I would put together a list of pros and cons about using non-diisclosure agreements on domain name sales. Since a non-disclosure agreement may impact the buyer and seller differently, I set it up from a buyer’s perspective and from a seller’s perspective. There is some overlap.
As always, I would be interested in reading what you have to say about using a non-disclosure agreement on a domain name sale. I am sure I left out some of the pros and cons.
- Can keep a purchase private to not reveal what you are paying for a specific type of domain name.
- Prevent others from learning about the domain names you are buying so the prices don’t get raised and you can continue buying them.
- Keep competitors unaware of a product or service launch or a chance of strategy.
- Don’t let others know what you paid in the event of a quick resale.
- Reduce spam from people who might want to sell you other domain names.
- Unable to announce a large investment by sharing the amount of money spent.
- May not be offered similar domain names from other domain name owners.
- Can keep revenue and profit information private.
- Prevent others from learning about client and what client is spending on domain names.
- Strategic divestments that competitors shouldn’t know about can be kept private.
- Prevent others from seeing an “undersold” domain name.
- Can’t get public credit or additional credibility for a large domain name sale.
- Can’t announce a deal that might increase value of other domain name holdings.
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