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How Agencies Can Handle Ghost Clients, Orphaned Domains, and Abandoned Hosting

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Web agencies often face a 'ghost client' problem when clients stop paying but their websites remain live, consuming server resources and accumulating costs on the agency's accounts. Orphaned domains registered under an agency's master account can expose the business to ongoing financial losses, legal liability, and security risks. Agencies are advised to review their Master Services Agreement for clear terms on grace periods, suspension timelines, and data deletion before taking action. A documented communication cadence — spanning from a friendly reminder on day one to a final termination warning by day 45 — helps create a defensible paper trail. Experts also caution agencies against withholding domains or backups as leverage for unpaid invoices, as this can constitute breach of contract or unlawful withholding of property depending on jurisdiction.

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