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Domain names identify unique web sites and email addresses. They are also referred to as “URLs”. The specification includes entire domain structure in host.site.domain.name format. “Site” refers to sub-domain, “domain” refers to second-level domain, and “name” refers to top-level domain. The host is a computer, router, or workstation that uses a protocol of Internet Protocol family to transport hypertext documents across Internet. Hyper Text Transport Protocol (HTTP) is an example.

The World Wide Web is the sub-domain, and is a hypertext-based client/server model for finding and accessing resources on the Internet. It is a computer network consisting of a collection of Internet sites featuring information through text format, graphics format, sound and animation form. Users access these sites through hypertext transfer protocol. Domain names link to web sites on the World Wide Web.

A second-level domain represents an actual domain, which is the company or the owner’s name, and is unique. Top-level domain (TLD) is the end part the web address, such as .com, .net, or .org. Also called the “”extension”", it indicates the core activity of the organization. The Internet Assigned Numbers Authority (IANA) currently classifies top-level domains in three types: country code, generic, and special domain names. Country-code top-level domains such as .in, .uk, .ca, and .fa end with two-letter extension. A particular class of organizations uses generic top-level domains. The third is the infrastructure top-level domain.

Computers record or identify websites numerically with IP addresses. Since it’s difficult to remember IP addresses, a system called Domain Name system (DNS) was created to translate IP addresses to domain names. Domain names are not case-sensitive.

To build a successful online business, it is essential to own a domain name. It increases a website’s visibility. Customers or targeted prospects can locate the company online and reach out for its services. A highly relevant domain would establish credibility and professionalism.

By: Richard Romando

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Investing in domain names can have a big payout if you’ve chosen your name wisely. Once you’ve bought you name, the next step is determining how long you want to hold on to it. You may get an offer immediately for a decent price, or you may need to wait years for it to be valuable.

Purchasing the name is the first critical step, because choosing the name will give you bargaining power, the second most critical step of investing in domain names. The sale of the name is the whole point right? So negotiation skills are of the utmost importance. This can often be the most challenging part because the seller may think the name is more valuable than the market allows. The buyer thinks the name is not as valuable so the seller and the buyer could have two totally different numbers in mind.

The seller at this point needs to step up their business skills and make the purchaser believe it is as valuable as you think it is. Most times, the sale is done over e-mails and it can be hard to know what the buyer is thinking, therefore the seller needs to be able to read between the lines through the purchasers writings and vice versa.

If the seller thinks the name is worth more than it is, they might not be able to sell it at all and would need to come down on price to adjust with the market. The market sets the selling price, just like when selling a house. You can get the house appraised and ask for a certain amount from it, but if you don’t get any offers, obviously the house isn’t worth as much as you think it is even if you believe its worth more. You have to be willing to come down on price as well as stay firm on a price for the more competitive names such as creditcards.com. That domain name sold for millions of dollars and the person selling that name had to find the right buyer and be willing to negotiate to that price.

Only one person can own a name, but there can be dozens of similar names that can be just as valuable. Again, just like a house. A buyer may really love that house, but if it is overpriced, they will move on and look for a similar house with a more affordable price tag.

If a seller begins to feel ripped off, they will not only not buy your domain name or give you repeat business, they may also spread the word about you and tell others not to buy from you. Earning a bad reputation in any industry is just bad business. Be reasonable in your pricing and never take advantage of someone just because you think they have lots of money to spend on a name.

If you purchased a valuable domain name from the start, you shouldn’t have any problems selling it at a reasonable price. If you don’t like someone’s offer, you don’t have to accept it. It’s okay to hold on to a name until you do get a reasonable offer.

If you start out with an unreasonable offer, be prepared to not get any offers at all. Some buyers don’t even want to mess with you when you do that.

By: R. Scott Hall

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