Domain names are often seen in analogy to real estate in that domain names are foundations on which a website can be built, and the highest quality domain names, like sought-after real estate, tend to carry significant value, usually due to their online brand-building potential, use in advertising, search engine optimization, and many other criteria.
Domain names put a friendly face on hard-to-remember numeric internet addresses. Every computer on the internet has a unique internet protocol (IP) number. A domain name represents one IP number or more. For example, the IP number for the domain name whitehouse.gov is 104.109.178.94. The whole purpose is to give users an easy-to-remember handle so that when sending an e-mail to, let's say, the President of the United States, you can type president@whitehouse.gov instead of the more unwieldy president@104.109.178.94.
Registrars offer a wide variety of registration durations—one year, three, five, and even ten. Be careful about registering for more than a year, though. First, there might be restrictions on your ability to transfer the domain name should the registrar give poor service. Second, the registrar could go out of business, leaving your domain name without a host. Check the policies closely.
Keep in mind, however, that free domain names are usually free only for one or two years, after which the registrar will bill you for the annual or biennial fee. In other words, the provider of the free domain name pays only for the first billing from the registrar. Also take note of whether or not the provider charges a fee for setting up a domain name. Most services offer to transfer an existing domain name to their servers at no cost, but sometimes you'll find a setup fee over and above the registrar's fee.
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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.
As always, we welcome all verifiable sales reports from companies, private sellers or individuals with knowledge of an important sale made through any channel. To contribute information and help make this column better,  just drop a note to editor@dnjournal.com. We truly appreciate the industry leading companies who share their sales information with us to help everyone in the business get a handle on current domain values. 
A few companies have offered low-cost, below-cost or even free domain registration with a variety of models adopted to recoup the costs to the provider. These usually require that domains be hosted on their website within a framework or portal that includes advertising wrapped around the domain holder's content, revenue from which allows the provider to recoup the costs. Domain registrations were free of charge when the DNS was new. A domain holder may provide infinite number of subdomains in their domain. For example, the owner of example.org could provide subdomains such as foo.example.org and foo.bar.example.org to interested parties.
Namecheap — This company provides .com domains for $10.69 (plus 18 cents) per year ($9.69 if you transfer from other registrars). Along with your domain, you get free email forwarding, free web redirection (where anyone going to your domain is automatically directed to another address of your choice), free domain name parking, etc. For the first year (or at least, at the time I checked their prices), you can also have their WhoisGuard (where your particulars are masked from public view) for free. They have a wide variety of domain name extensions available, including .net, .org, .biz, .info, .us, .co.uk, .co, .de, etc. You can use either a credit card or PayPal for your purchases.
Hostwinds remains a user-friendly option for registration and hosting, even if you're transferring from another service. It lists out all the extensions to create your domain name with prices to register, transfer, or renew for each extension, unlike some services that bury these within the website. You simply enter the domain name you want and check the availability, and can theoretically get going in a few clicks (if it's available or taken). It will then tell you if it is available or taken. They've also got live chat, email, and phone technical support before purchase too, which is rather rare.

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