Domain Names

What is a domain name? Do I need a domain name to start an Internet business? Do I have to pay for it? Can I resell it?
Rose Winters

A domain name is a Web address. Every computer has an IP address in four part number format like 23.01.19.64. However it is difficult to remember pure numbers. So, alphabets and numbers are used. The domain name is the same as an IP address (which represents a physical point on the Internet), except the domain name is letters and numbers that make sense to humans, while the IP address is a series of numbers and makes sense to computes. Thus a domain name locates an organization or other entity on the Internet. When someone types a domain name into a Web browser, the requested Web page will open. For example, when you type www.yourdomain.com in your browser, the domain name system locates an Internet address for "yourdomain.com" and displays the webpage.

A domain name consists of a top-level and a second-level domain. The "com" part of the domain name generally reflects the type or purpose of the organization or entity and is called the top-level domain (TLD) name. The part of the domain name located to the left of the dot — "yourdomain" in this case — is called the second-level domain (SLD) name.

The second-level domain name — being the "readable" part of the address — refers to the organization or entity behind the Internet address. Second-level domains must be registered through an Internet Corporation for Assigned Names & Numbers (ICANN) accredited registrar. WWW means world wide web.

The Internet domain name system (DNS) consists of a directory of all the domain names and their corresponding computers registered to particular companies and persons using the Internet. When you register a domain name, it will be associated with the computer on the Internet you designate during the period the registration is in effect. If the registrant (that is you) elects to, a domain can instead be registered and parked. A parked domain name does not need a DNS affiliation.

Some internet service providers give you free names such as yourname.xyz.com. They are not good for serious business. If you want to do some serious business on the web and make some money you must have your own domain name.

After you register a domain name, if your Web site is complete, follow these instructions to get your site on the Internet: (1) Acquire a web hosting account (2) Modify your domain name servers (DNS) to the addresses provided by your hosting provider.(3) Upload your Web site to the Internet. Most companies give clear instructions about how to do these tasks. If you don't have a website yet, most registrars will automatically display 'Under Construction' page.

You have to pay a license fee for your domain name every year. The annual fees for names that end with .com, .net and .org ranges from $9 to $35. Do not pay more than $14. Godaddy offers registration for $9 per annum. 

The prices for other extensions such as co.uk, .in, and .ie varies form country to country. Do a good research on web and you will find a great registrar offering services for a low price.

When you register, make sure that the domain name is registered in your name. Use whois tool to get this information. if the domain name is not registered in your name, ask for refund. During the period of registration, you are free to transfer the domain name to others.

Domain names can be a great investment. If you have registered a good domain name that you are not using, maybe someone else can. A few years ago Internet.com was sold for a sum rumored to be around the $100,000 mark. A couple of weeks later business.com was sold for a staggering $150,000. But these are exceptions.

These two cases triggered a mad rush for domain names. Now almost all meaningful names have been captured by cyber squatters (people who hold names without using them) and offered for sale at exorbitant prices. Do not go for such names. For $9 you will certainly get a good but slightly longer name. You may make some money if you pick a good domain name, but you are not going to get rich by selling domain names. A few years ago, I bought a domain name for $13 and sold it for $750 within a few days. But, you will find it difficult to do it as a business.

If you want to make money through domain names, either become an affiliate of domain name registrars or work as a domain broker. To become an affiliate, visit different domain name registrars and read the affiliate section in their websites.

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