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OwnershipIndustry Reality Check

Are You Locked In? What Web Agencies Can Actually Do (And What's Just Scare Tactics)

Worried about leaving your current web provider? Here's what they can legally hold, what you're entitled to, and what to do if things get ugly.

January 6, 202612 min read

You're paying $300-500 per month to your "web guy." You're not sure what you're getting. You want to leave, but you're worried they'll hold your website hostage, tank your Google rankings, or make your life miserable.

Good news: most of what web agencies threaten is either illegal, against platform policies, or just scare tactics. Bad news: some of it is real, and knowing the difference matters.

The Bottom Line Up Front

Your domain is protected by ICANN rules—they must release it within 5 days. Your source code ownership depends entirely on your contract. Your Google rankings can survive a transition if handled properly. The scariest-sounding threats are usually the emptiest.

Domain Names: Your Strongest Protection

If you're worried about anything, domain names probably shouldn't be at the top of your list. ICANN (the organization that governs domain names globally) has clear rules that protect you.

Your ICANN-Protected Rights

  • 5-day release requirement: Registrars must provide your authorization code (AuthInfo code) within 5 calendar days of your request.
  • Transfer locks must be removed: They must remove the "ClientTransferProhibited" status within 5 days of your request.
  • ICANN complaint process: If they refuse, you can file a formal complaint with ICANN.

When They Can Legally Block a Domain Transfer

There are only a few legitimate reasons a registrar can deny your transfer:

  • 60-day lock after registration: New domains can't transfer for 60 days (anti-fraud measure).
  • 60-day lock after contact change: If registrant info was recently changed, there may be a brief lock period.
  • Active legal dispute: Court orders or UDRP proceedings can freeze transfers.
  • Evidence of fraud: If someone is impersonating you.

The Real Domain Risk

The danger isn't that they can legally keep your domain—it's that they might be listed as the registrant instead of you. If your agency registered the domain in their name (not yours), you're in a much weaker position. Check your WHOIS records to see who's listed as the registrant.

Contracts: Where the Real Lock-In Lives

If domain names are your strongest protection, contracts are often your weakest point. Many contractors sign agreements without fully understanding what they're committing to.

Common Contract Lengths

TermCommon InWhat to Watch For
Month-to-monthMaintenance-only plans30-day notice requirement
12 monthsMost common for SEO/marketing bundlesAuto-renewal clauses, early termination fees
24 months"Website lease" plans, aggressive agenciesIP ownership tied to completion, heavy penalties
36+ monthsRare, usually bundled with equipmentMajor red flag

Early Termination: What It Actually Costs

Most contracts include early termination fees. Here's what's typical:

  • Common formula: 50% of remaining contract value
  • Alternative: 2-3 months' fees as a flat penalty
  • Notice period: Usually 30-60 days written notice required

Do the Math

If you're paying $400/month with 8 months left on a contract, and the early termination fee is 50%, that's $1,600 to get out. Compare that to the $3,200 you'd pay by staying. Sometimes paying the penalty is the smart move.

Source Code: The Complicated One

Here's where it gets murky. Under U.S. copyright law, the person who creates the work owns it by default—not the person who paid for it.

Who Owns the Code?

You own it if:

Your contract explicitly assigns IP rights to you, or states it's "work for hire" with ownership transfer.

They own it if:

Your contract is silent on IP, grants you a "license" to use the site, or says ownership transfers only after full contract completion.

What You're Legally Entitled To

Even if they own the code, they typically must provide:

  • Content you provided: Photos, written content, logos you gave them
  • Domain access: As discussed above, protected by ICANN
  • Account access: Login credentials to platforms in your name

What they may not be required to give you:

  • Custom code: If the contract says they own it, they might keep it
  • Design files: Photoshop/Figma source files are often retained
  • Proprietary templates: Their reusable components

What If They Won't Cooperate?

Sometimes agencies play hardball, hoping you'll give up or keep paying. Here's your escalation path:

1

Document Everything

Save all emails, contracts, invoices, and screenshots of communications. You'll need this if things escalate.

2

Send a Formal Written Request

Put your request in writing via email or certified letter. Be specific: "Please provide the domain AuthInfo code and remove transfer locks within 5 days per ICANN policy."

3

Contact the Registrar Directly

If you're listed as the registrant, contact the registrar (GoDaddy, Namecheap, etc.) directly. They can help verify ownership and reset credentials.

4

File an ICANN Complaint

For domain disputes, file a complaint with ICANN. This often gets results quickly—registrars don't want ICANN problems.

5

Consult an Attorney

For larger disputes (significant money, business damage), a demand letter from an attorney often resolves things without court.

The Nuclear Option: Starting Fresh

If recovering your assets would cost more than rebuilding, it might be time to accept the loss and start over. We help contractors do this all the time—and it's often faster and cheaper than you'd think.

If You Have to Change Domains: The SEO Reality

The worst-case scenario: you lose your domain entirely and have to start with a new one. Let's talk about what that actually means for your Google rankings.

Domain Change Impact Timeline

Week 1-2

Google reindexes your new site. Expect significant traffic drop.

Month 1-3

Rankings begin to stabilize. You'll see gradual recovery.

Month 3-6

Most sites recover to 70-90% of previous rankings.

Month 6-12

Full recovery, often with improvements from a better-built site.

Minimizing the Damage

If you can keep your domain and set up proper redirects, there's good news: Google says 301 redirects no longer cause PageRank loss. Here's how to handle a domain migration properly:

  • Set up page-level 301 redirects (old URL → matching new URL)
  • Keep redirects active for at least 12 months (Google's recommendation)
  • Use Google Search Console's "Change of Address" tool
  • Submit updated sitemaps to Google and Bing

Silver Lining

A forced domain change is painful, but it's also an opportunity. If your old site was slow, had bad code, or wasn't mobile-friendly, a fresh start with a properly-built site often results in better rankings within 6 months.

Your Google Business Profile: Mostly Safe

Good news: your Google Business Profile is separate from your website. Changing domains or web providers doesn't automatically affect your GBP listing.

GBP Transition Checklist

  • Make sure YOU own the GBP login (not your agency)
  • Update the website URL in your profile immediately after launch
  • Your reviews, photos, and ranking history stay with you
  • Continue posting updates during the transition to show activity

If your agency set up your GBP and won't give you access, you can claim ownership through Google's verification process. It takes longer, but they can't prevent you from eventually getting control of your own business listing.

Our Approach: No Lock-In, Period

We built our business model specifically to avoid all of this nonsense:

  • You register the domain in your name—we never touch it. We'll walk you through it if needed.
  • You own the source code—it's in a GitHub repository with your name on it from day one.
  • No contracts—our management is month-to-month. Cancel anytime with 30 days notice.
  • Free hosting documentation—we provide instructions to deploy your site anywhere if you leave.

We think this is how it should work. You're paying for a website, not renting one. If we do good work, you'll stay because you want to—not because you're trapped.

The Bottom Line

Domains: You're protected by ICANN. If you're the registrant, they must release it within 5 days.

Contracts: Read the fine print. Early termination fees are real but often cheaper than staying.

Source code: Check your contract. No explicit ownership clause = they might own it.

SEO impact: Recoverable in 3-6 months with proper redirects. Sometimes unavoidable, rarely catastrophic.

GBP: Separate from your website. Make sure you control the login.

Ready to Own Your Website?

We build sites you actually own. One-time fee, your code, your domain, no lock-in. Let's talk about what you need.

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