Domains are nonmaterial goods. When sold, the only transaction taking place is transfer of domain rights from one user to another. Barring any form of copyright or trademark violation, virtually any domain name can be bought or sold. Generic domain names, such as car.com or computer.com, are not legally protected and can therefore theoretically be reserved by anyone.
A domain name consists of one or more labels, each of which is formed from the set of ASCII letters, digits, and hyphens (a-z, A-Z, 0-9, -), but not starting or ending with a hyphen. The labels are case-insensitive; for example, 'label' is equivalent to 'Label' or 'LABEL'. In the textual representation of a domain name, the labels are separated by a full stop (period).
When you buy a Premium Domain name, you are also buying strong branding potential, high recall, and the ability to attract more traffic to your site. Finding a relevant domain name to your business will provide you a storefront online, allowing your customers the most access to your products as possible. Your domain name is an investment that is easy to map back to success, and the perfect available domain name is just around the corner.
Second-level (or lower-level, depending on the established parent hierarchy) domain names are often created based on the name of a company (e.g., bbc.co.uk), product or service (e.g. hotmail.com). Below these levels, the next domain name component has been used to designate a particular host server. Therefore, ftp.example.com might be an FTP server, www.example.com would be a World Wide Web server, and mail.example.com could be an email server, each intended to perform only the implied function. Modern technology allows multiple physical servers with either different (cf. load balancing) or even identical addresses (cf. anycast) to serve a single hostname or domain name, or multiple domain names to be served by a single computer. The latter is very popular in Web hosting service centers, where service providers host the websites of many organizations on just a few servers.
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
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.