Moving a domain to a new Web ID

I've been working with my church to help them get a more dynamic web presence, and we're just about ready to go. I've registered a new domain for them and we've been testing things. Now we're ready to launch it.

I want the church to own the domain and to be able to manage the billing. They will sign up for their own hosting plan and pay for it themselves. All I want out of the deal is for them to list me as the referer, for the small reward.

When they go to signup for a plan, they are asked for a domain. When they enter the one I registered for them, Dreamhost won't let them proceed. How do I handle this?

As I see it, there are a few options:

Church creates a new, separate Web ID. I update the domain registration information so they own it. But then how do I transfer control of that domain to the other Web ID? And how then do they sign up for hosting?

I create a separate account under my Web ID for the church, with separate billing. They then signup for hosting and we transfer the domains registration as above. How then do I get the reward for referring them, if this is still under my Web ID?

Anybody dealt with something similar for a client?

In your control panel go to HOME>REWARDS, find where it says how to refer people. There is a link that you use the put in a web page. Give this link to the church and let them sign up by clicking on that link. Then they will have their own web id and you will be rewarded for it.
Silk

We've done that. But on the second screen, Dreamhost asks for the domain that will be hosted with them, and that's one I have already registered myself. The form won't let them go any further; they apparently can't sign up for hosting with a domain that another Dreamhost account has already registered.

I need to give control over that domain to the church's Web ID, and they need to be able to use their free domain as well. Funny thing is, if I transfered the domain to another registrar, I could then transfer it back to Dreamhost under the church's Web ID, but Dreamhost apparently has no way for me to do this internally.

I think someone else tried doing this before and it ended up being a job for support.

It wouldn't matter who the registrar is and nothing needs to be done there since the nameservers are already set to DH's.