April 6, 2020

What Is A Domain Name and Why Do I Need One?

written by

Joe Uddeme

Joe Uddeme

What Is A Domain Name and Why Do I Need One?

Domain names are one of the foundations of every global brand – they’re your calling card online. In this post, domain name expert Joe Uddeme explains how they work and how to secure the right one for your business.

 

You probably know more domain names than phone numbers these days. Think of all the news sites you know the address of – plus Amazon, Apple and all those big brands whose website URLs you can guess because nine times out of ten, it is their brand name + .com.

While the world of domain names is easy and familiar at face value, behind the scenes, there’s a lot more going on.

If you’re getting ready to buy a premium domain name – one costing in the thousands that will be memorable and potentially valuable for a business in the long term – you need to have a solid grasp of what you’re getting into.

To stop you from confusing domain names with websites or even website hosting services, this post is a great place to start.

Key Takeaways

  • What is a domain name
  • How does a domain name work
  • How to choose the right name for your business
  • Securing a name that will keep your business on track

 

What Is A Domain Name?

To put it simply, a domain name is the address of your website. It is the phrase or word that you will type into your URL bar of your browser to find your website. For example, our website is https://nameexperts.com/

You can purchase domain names through a domain registrar, through a hosting provider, or let a domain name broker help you.

What is the DNS?

You can’t really answer the question, “What is a domain name?” without addressing DNS. Domain names are part of a large network called the Domain Name System (DNS) and it is managed by the Internet Corporation for Assigned Names and Numbers (ICANN). The ICANN is a non-profit organization responsible for management and maintenance of the DNS, as well as regulating domain registrars.

How Does the DNS Work?

When you type a domain name into your browser, your computer will check if you’ve previously looked at that domain. If not, then your browser will contact the local DNS server to pull it up.

Your local DNS server breaks down the domain name into sections. We’ll use our name again as an example. There are three parts to nameexperts.com – www., nameexperts, and .com. The .com is known as a top level domain (TLD) and the local DNS server will search for this section first, and then serves to find all the details of your domain name and send that information back to the browser you’re using.

There are obviously a lot more technical steps to it, but that’s the basics of how the DNS works. Let’s talk more about what you really need to know – what types of domain name extensions are available.

 

Different Types of Domain Name Extensions

All domain names are made up of a website name (nameexperts), and a top level domain (.com). Though the extensions can vary, we think it is useful to know the differences between the types of top-level domains available so that when it’s time to choose your domain name, you choose the right one.

The two types we are going to talk about today are Generic Top-Level Domains (gTLDs) and Sponsored Top-Level Domains (sTLDs).

Generic Top-Level Domains (gTLDs)

Normally, the best course of action is to choose a reputable TLD like .com, .net, or .org. But because these are so popular, there are millions of domain names that have been registered to date. So the name you want might be taken (read our post: “How to buy a domain owned by someone else”) – or it may be hard to find a name that works.

Here are some of the most generic TLDs:

Sponsored Top-Level Domains (rTLDs)

In addition to gTLDs, there are also some top level domains that are sponsored by organizations or agencies for very specific and often exclusive use.

Here are some examples you’ll recognize:

  • .gov (used by the US government)
  • .edu (used by educational institutions)
  • .int (used by international organizations)
  • .mil (limited to US military entities only)

US Government website screengrab - an example of a .org site.

Subdomains

We thought we should also mention subdomains. A subdomain is also known as a third level domain and is an extra part of a domain name. They are viewed as separate websites by the search engines, so creating subdomains can help improve your site’s SEO. Specifically, a good time to use a subdomain is for a blog. It might look like https://blog.nameexperts.com.

 

How To Choose The Right Domain Name

Now that we’ve answered what is a domain name, we want to help you choose a strong domain name that accurately reflects your business. Ideally, you want to be easy for your target market to remember and be something that is timeless.

Your domain name broker can help you find the perfect domain name and get you started with the process that goes along with it.

Begin by doing some research on keywords that are relevant for your business. Whether it’s the name of your business or another keyword that relates to your business and you want to rank for it, this type of domain name will help improve your site’s SEO (search engine optimization).

Another tip is to keep your domain short and memorable. You want it to stand out but be easy to remember – try to keep it to three words or less.

You also want to make sure you avoid numbers and hyphens. People won’t remember where they go and they might mistype. Which leads us into another tip for choosing your domain name, make sure it is easy to spell.

Shy away from words with multiple spelling variations or one that might be difficult to pronounce. Think long term. You want a domain name that supports the growth of your business and will last for years to come. Changing your domain name later can really hurt your business.

Alphabet from A-Z to denote avoiding hard to spell domain names

 

Working With A Domain Name Broker – The Easy Solution

Getting your domain name right is crucial for your business or organization. It can help define your brand and form a lasting impression on your audience.

Do your research, and then if you’re serious about securing a seemingly unavailable name, reach out to a domain broker. We can help you buy and register a name – even if it belongs to someone else.

We can also advise on strong alternative names for your business. NameExperts.com has a selection of highly commercial names available for sale at any time. At the time of writing, these included eight.com, proud.com, fate.com and nickel.com.

 

About the author

Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

 

Subscribe for More Domain Buying & Selling Advice

Related posts

Bustling concourse and escalator, full of busy people
Premium Domain Brokers

Ever wondered what a premium domain broker does? NameExperts.com Director Joe Uddeme outlines the role of a domain broker – and explains why having one onside when searching for a great name can be invaluable.   As super-premium domain brokers specializing in .com names, it’s fascinating to see the large number of people who have no idea what domain brokers do for a living. The domain name business is a lot like real estate, although there is no tangible piece of property. The inventory is digital in nature and typically consists of intellectual property (IP). Domain names can be a fantastic alternative investment for someone looking to diversify their portfolio. As a long-term strategy, they tend to increase in value. They also have very small renewal fees. There are many domain brokers in the domain name space. Many focus on all of the top level domains (such as .com, .ai, .org and so on). Others tend to skew towards one specific tld or just only a few.

Default alt text
Most Expensive Domains Ever Sold

If you’d had the foresight to register a domain name like golf.com or hotels.com when the internet first started, you’d have been sitting on a goldmine. Domain name valuation expert and broker Joe Uddeme investigates.   What Are The Most Expensive Domains Ever Sold – An Expert Analysis In the vast landscape of the internet, domain names serve as the digital addresses that guide users to websites. Think of a domain name as the online equivalent of a physical address; it’s how people find you in the vast expanse of the web. Whether you’re a business, a blogger, or an individual, having a memorable and relevant domain name is crucial for establishing your online presence. Domain names are not just about being found; they are about being remembered and trusted by your audience. Domain names sell for a wide range of prices, from just a few dollars to millions, reflecting their value and market demand. A relevant domain name can improve a site’s visibility and attract organic traffic by aligning with users’ search behaviors and preferences in different search engines. In this guide, we’ll look at some of the many factors behind domain name values and explore those that sold for the highest prices. Key Takeaways Serious bidders always assess the potential return on their investment before bidding. The most expensive domain name ever sold for just under $1 billion. Short, memorable names command a higher premium than ever. Domain names can be traded like shares – with fortunes being made (and lost)! What Makes Valuable Domain Names? A domain name’s value is influenced by several key factors. First and foremost, rarity plays a significant role. Just like rare collectibles, domain names that are unique and scarce tend to be more valuable. Demand is another critical factor; a domain name that is highly sought after by businesses or individuals will naturally command a higher price. Revenue potential is also a major consideration. A domain name that is easy to remember and directly relevant to a business or brand can drive significant traffic and, consequently, revenue. Brand recognition and online presence further enhance a domain name’s value, as a well-known name can attract more visitors and establish trust. The concept of an ’empty domain’ highlights that true value lies in memorable and brandable domains rather than random letter combinations. The length and structure of a domain name are also important. Shorter domain names, especially those consisting of a single word or a combination of two words, are generally more valuable. Avoiding hyphens, underscores, and other punctuation can also help maintain a domain name’s value. Market conditions, however, can make seemingly meaningless combinations valuable, as seen with some of the most expensive domain names sold in 2023. Lastly, the domain extension, or top-level domain (TLD), can impact value. The most valuable TLDs are .com, .net, and .org, as they are widely recognized and trusted by users.

Close up of a man signing a piece of paper with a laptop in the foreground.
5 Things to Consider When Buying a Domain Name

Looking for some quick tips about securing and buying a domain name for your business? Here’s our expert guide to domain buying, covering everything from hidden fees to privacy protection.   Purchasing a domain name is an exciting thing for a new business, but there’s much more to it than simply finding the ideal name. Before you begin, there are a few things you ought to know. It’s always worth remembering that not all businesses selling domains (known as domain registrars) are the same. Some use tactics like hiding fees or promoting your data to earn more cash, which may have an enduring influence on your enterprise. In this post, Name Experts Director Joe Uddeme – a seasoned domain name broker – flags up some common things you should watch out for.   1. Look out for hidden charges As with any purchase choice, cost can be a big element. It is easy to be tempted into buying a domain at a really low cost. But don’t be fooled: a few domain registrars provide promotional pricing at an extremely low price but then hide a lot of fees in the contract, lock you in, and charge high renewal prices. Generally, be aware that registrars offering rock-bottom domains may have additional, less-than-ethical techniques to make money. These strategies include: Adding in hidden prices: Many registrars rely on the fact that most individuals do not read the fine print. Before you make a domain purchase, review the Buyer’s “Terms of Service” for any questionable terms, duties, or fees. Be sure to check what the renewal rates will be, and be certain you are only buying what you need and want. Making you pay to edit your WHOIS or RDAP listing: Watch out for registrars that charge an “administration fee” when you need to edit your WHOIS or RDAP records. Registrars will often try to “upsell” or “cross-sell” you items you don’t require. For example, they might recommend you purchase extra domain endings that are extraneous instead of helpful (for instance, .info or .co). Or, they might offer to package your domain with a bunch of other services you might never use. Charging transfer charges: Make sure the “Conditions of Service” don’t have “transfer-out” charges for moving your domain name to another registrar. These fees could be exorbitant and they violate ICANN policy (ICANN is the non-profit corporation that oversees the use of Internet domains). Beyond the cost, a few registrars make it nearly impossible to perform a transfer by making the transport procedure cumbersome and hard to navigate. It’s a good idea to check into how easy the transfer process is before deciding upon a registrar.   2. Protect your privacy Unprotected data is vulnerable to being mined by spammers and scammers. Start looking for domain registrars that offer privacy protection for free. Be cautious about dealing with registrars that charge a premium for “privacy solutions,” particularly any who offer to place their details on these registries instead of yours, which covertly gives them possession of the domain.   3. Guard your info Beyond failing to protect your personal data from public records, some registrars actively sell your information to third parties like marketing associations. Some registrars even mine the WHOIS database and then send false renewal invoices, getting visitors to unknowingly transfer their domains. Be certain to find a registrar that promises never to sell or misuse your client information for marketing purposes. 4. Focus on transparency Look for registrars that offer transparency in their pricing. You should, for example, be able to readily find your renewal prices, as well as the processes for transferring or canceling your domain name registration. Some registrars offer cheap registration during the initial purchase, but then charge flat-rate costs to renew your domain the following calendar year. They also might make it very difficult to cancel your order. Start looking for a registrar with upfront pricing info and terms of service to avoid surprises later on.   5. Differentiate support from sales Some registrars don’t have support staff but instead have salespeople who are trained to sell you add-on services you may not need – all in the guise of friendly customer support. Look for a registrar that offers courteous and professional support and help, not one that sees you as a cash register they keep trying to ring. With careful study before you opt for a domain, you can side-step some unfortunate traps and make sure your domain name — and your business – are in good hands for many years to come.   About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s top domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

Why Work with Name Experts

Name Experts offers personalized domain brokerage services, assisting clients in buying or selling premium domain names with expert appraisal, negotiation, and complete transaction management while ensuring confidentiality.

Some of our most
successful stealth acquisition and sales

Aid.com

Fit.com

Mine.com

GLD.com

Jeff.com

Fora.com

Nori.com

Secure.com

Guitar.com

F*ck.com

Radian.com

MetaData.com

Prize.com

Link.com

Loop.com

Programs.com

Claim.com

Quince.com

Hook.com

QXO.com

NQ.com

Rest.com

Humani.com

Max.com

Need help buying or selling premium domains?