Web hosting services, on the other hand, run servers that are typically assigned only one or a few addresses while serving websites for many domains, a technique referred to as virtual web hosting. Such IP address overloading requires that each request identifies the domain name being referenced, for instance by using the HTTP request header field Host:, or Server Name Indication.
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.
While numbers like the ones seen above are impressive, most domains sell for significantly less extravagant prices and are generally in the two or three-digit range. Not long ago, those who were able to secure general terms (like icecream.com or pizza.com) not protected by trademark rights often found themselves sitting on virtual gold mines. The glory days of this boom have long since passed, and those looking for a profit in today’s market need a keen sense for coming trends.
Registries and registrars usually charge an annual fee for the service of delegating a domain name to a user and providing a default set of name servers. Often, this transaction is termed a sale or lease of the domain name, and the registrant may sometimes be called an "owner", but no such legal relationship is actually associated with the transaction, only the exclusive right to use the domain name. More correctly, authorized users are known as "registrants" or as "domain holders".
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.
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 email@example.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.
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.