When done right, the domain trade is an enterprise that lends itself to particularly lucrative deals. The tactic is simple: domain names are purchased with the prospect of reselling them for a wide profit margin. But the trick of this trade lies in securing domains that may later be valuable to well-endowed buyers, such as a large company. We have laid out all the important facts and terms on the topic, including some of the highest sale prices on record for a publicly traded .com domain.
The suffix identifies the name as belonging to a specific top-level domain (TLD). As of late 2016, when this article was written, there are numerous TLDs available for general purchase, including .com, .edu, .game, .green, .hiphop, .net, and .org. The most popular of these by far is .com, which is supposed to indicate commercial sites, but in reality has come to include almost everything.
Most people assume a domain name ends in .com so if you buy a domain name with one of the other extensions (.net, .info, .org, etc.), you’ll have some extra work to get people to remember that your site has a different extension. Don’t automatically assume you should only buy domains with .com, though. Many sites have done quite well with other extensions. (Look at us!)
Perspective buyers are able to directly contact domain holders in cases where the desired domain is no longer available. Most registries openly publish the names and contact data of domain holders. Once this information is gained, buyers can get in touch with domain holders and make an offer for the name. Sales are also known to occur in instances where the original domain owner had no prior commercial ambitions
Yes. We recommend buying not only your domain name with your favorite extension (eg. .com), but also additional, alternative domain extensions (eg. .net, .info, etc). The reason is simple. Having more than one domain extension strengthens your online identity, secures your brand name and improves your online presence. Buying more than one domain extension also protects you from your competitors registering your additional extensions and enticing away your customers.
Critics often claim abuse of administrative power over domain names. Particularly noteworthy was the VeriSign Site Finder system which redirected all unregistered .com and .net domains to a VeriSign webpage. For example, at a public meeting with VeriSign to air technical concerns about SiteFinder, numerous people, active in the IETF and other technical bodies, explained how they were surprised by VeriSign's changing the fundamental behavior of a major component of Internet infrastructure, not having obtained the customary consensus. SiteFinder, at first, assumed every Internet query was for a website, and it monetized queries for incorrect domain names, taking the user to VeriSign's search site. Unfortunately, other applications, such as many implementations of email, treat a lack of response to a domain name query as an indication that the domain does not exist, and that the message can be treated as undeliverable. The original VeriSign implementation broke this assumption for mail, because it would always resolve an erroneous domain name to that of SiteFinder. While VeriSign later changed SiteFinder's behaviour with regard to email, there was still widespread protest about VeriSign's action being more in its financial interest than in the interest of the Internet infrastructure component for which VeriSign was the steward.
Domain names are often simply referred to as domains and domain name registrants are frequently referred to as domain owners, although domain name registration with a registrar does not confer any legal ownership of the domain name, only an exclusive right of use for a particular duration of time. The use of domain names in commerce may subject them to trademark law.
Premium domains (also known as aftermarket or pre-registered domains) are short domains, often just one word or even just 3-5 letters. Most of them have a .com extension but many premium domains end with .org, .net, and .biz. These domains include common words and are generally the most memorable. Because companies value short domains that match their company name or products, these domains are typically the most desirable. Additionally, certain domains sold by different registries are considered premium and therefore have a higher price point. In some cases, the renewal costs of these higher-priced domains are also quite expensive. Some high-priced premium domains, though, renew at a regular (lower cost) rate, giving you a better value in the long term. Make sure to research the overall cost of the domain plus renewal to find the right domain for your budget. You can browse Namecheap's premium domains in our Marketplace.