April 6, 2020

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

written by

Joe Uddeme

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

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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:

.com (commercial)
.info (information)
.org (organizational)
.net (network)
.biz (business)

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]

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There aren’t many people today who don’t know what a domain name is – but few actually understand how they really work. In this post, NameExperts.com Director Joe Uddeme explains what’s going on behind the scenes. A domain name is what you type when you want to visit a website. For example, you type “Google.com” into your web browser, and it takes you directly to Google to search for stuff. But a lot happens behind the scenes to ensure the domain name you type takes you to the correct website. In fact, it’s all pretty complicated – and interesting, too. If you want to buy a premium domain name worth in the tens or even hundreds of thousands, having clear insight into what you’re actually paying for might be a good idea. This article will explain what happens and demystify how the world of URLs and the web works. Key takeaways: Understanding the different components of a domain name Proven ways to buy a domain name Domain name facts and FAQs How A Domain Name Leads You To A Website On the Internet The Internet is an extensive network of computers connected to each other via cables; each computer on this network can communicate with others. Every computer is identified by a unique Internet Protocol (IP) address, which consists of four numbers separated by periods, e.g., 192.168.1.2.

Close up image of a person at a laptop as they investigate a domain name

What is Domain Name Escrow & How Does it Work?

Escrow is important when buying domain names, especially those of high value. Domain name expert Joe Uddeme explains how domain name escrow works – and why you should use a domain escrow 3rd-party when making highly-priced acquisitions. What is Domain Name Escrow? Domain name escrow is a specialized service designed to protect both buyers and sellers during domain name transactions. In this process, a neutral third-party agent holds the payment and domain information until all conditions of the transaction are met. This setup ensures that the buyer receives the domain name and the seller gets their payment, significantly reducing the risk of fraud and deception. By using domain name escrow services, both parties can enjoy a secure and efficient transfer of domain ownership, providing peace of mind throughout the transaction. A domain name consulting service can help make the process much easier. What Is Escrow? Escrow is an arrangement in which a neutral third party temporarily holds money meant for a purchase until specific conditions are met. The money will only be transferred to the intended recipient when the conditions are met. If the conditions are not fulfilled, the money will go back to the buyer. In domain name and other transactions, the escrow process often involves a lawyer managing legal documents, ensuring compliance with laws, and securely holding the assets and money in a trust account until the terms of the agreement are fulfilled. What Can Escrow Be Used For & Why Escrow is common in transactions where a significant amount of money is involved, e.g., real estate. It is necessary to protect the buyer from losing money in case the seller does not fulfill the terms of the deal. Domain transactions can be pricey, which makes escrow and other services necessary just like with real estate. After all, domain names are online real estate. Escrow protects against: Sellers refusing to deliver a domain despite agreeing to do so. Buyers refusing to pay for a domain despite an agreement to buy it. Payment being made – but the domain not being transferred to the buyer. Secure payment is crucial in domain name transactions, and escrow services ensure that the financial exchange is safe and protected. In short, escrow ensures that both parties in a deal stick to their agreed terms. It is a mediator of the transaction and refuses to complete it until both parties act in good faith. How Does Escrow Work? 1. Agreement on price and deal The buyer and the seller negotiate and agree on how much is to be paid for a domain name or group of domain names. They also negotiate important factors like the date of payment, method of payment, and what currency to use. 2. Buyer places agreement with an escrow company With the deal terms drawn out, the buyer finds an escrow provider and deposits the payment with an escrow agent. Once the payment goes through, the buyer pays escrow company will notify the seller and tell them to transfer ownership of the domain name related to the escrow transaction. 3. Domain Name Is Transferred The seller will transfer the domain name to the buyer. The wire transfer procedure varies depending on the domain registrar, but both parties will work together to ensure a smooth transfer. It is crucial to involve legal counsel in domain transfers to secure the transaction and ensure compliance with legal requirements. 4. Domain Transfer Is Confirmed After the domain is transferred, the buyer will notify the seller and agree with the escrow company that the seller has fulfilled their part of the deal. 5. Payment Given To Seller With the domain transfer confirmed, the escrow company completes the escrow transaction by using a money order and sending the money deposited by the buyer to the seller. What fees are associated with using an escrow service? The escrow usually charges a commission on the value of the deal. Some may also charge a flat fee in addition to a commission. The exact commission may vary depending on the deal volume. Benefits of Using Escrow For Buyers and Sellers The benefits of using escrow for domain names include: Security: The escrow holds the money until all deal terms are fulfilled, so there are little chances of the buyer losing their money without getting the intended domain name. The buyer also feels more secure dealing with a trusted escrow company than with a stranger over the web. Additionally, escrow services safeguard domain transactions by holding funds and domain holder information, minimizing the risk of fraud. Assurance: The buyer is assured that they will get the domain they want, and the seller is assured of payment once the domain transfer is confirmed. Customer support: Escrow services usually offer customer support and can guide the buyer throughout the process of acquiring a domain name. Choosing the Right Escrow Services Selecting the right 3rd-party escrow provider for domain name transactions is crucial for a smooth and secure process. Start by looking for a reputable and licensed escrow company with a proven track record in handling domain name transactions. Evaluate their fees and payment terms to ensure they fit within your budget. Additionally, consider the quality of their customer service and support, as this can be invaluable if any issues arise during the transaction. A reliable escrow provider should offer a secure and transparent process to deposit funds, with clear contractual obligations and a well-defined escrow agreement. Research the company’s reputation online and read reviews from previous clients to ensure you are working with a trustworthy escrow company. Domain Name Transfer and Intellectual Property Transferring ownership of a domain name involves several steps and can be particularly complex when intellectual property rights are involved. A domain name can be considered intellectual property if it is trademarked, which can impact its value and transferability. Before proceeding with a domain name transfer, it is essential to conduct a clearance search to ensure the domain name does not infringe on any existing trademarks. Utilizing a domain name escrow provider can facilitate this process by ensuring that both parties fulfill their contractual obligations and that the domain name is transferred securely. This helps protect best interests of the buyer and the seller, ensuring a smooth and legally compliant transfer of the domain name. Alternatives To Using Escrow Attorney A licensed attorney can draft a sales contract that is legally binding for buyer and seller. If any party breaks the contract, they can be sued for damages in court. The attorney can also act as an escrow organization and only transfer money from the buyer to the seller if the terms of the contract are fulfilled. An attorney is crucial in selling domain names to ensure all legal aspects are covered, and the transaction is secure. Domain marketplace There are many marketplaces where you can acquire domain names. Here, the marketplace acts as a custodian of the domain and only the seller transfers it to the buyer after payment is confirmed, which is then given to the seller. Best Domain Name Escrow Services Escrow.com Escrow.com is the world’s largest online escrow service, and it has specific features for domain sales. The buyer can initiate the escrow request and provide the seller’s contact information for Escrow.com to get in touch. The buyer transfers the agreed sum to Escrow.com, and it is only when they confirm the domain has been successfully transferred that Escrow.com will disburse the money to the seller. Escrow.com charges 3.25% for deals between $0 and $5,000; 0.89% for deals between $5,001 and $25,000; and $162.5 + 0.25% for deals over $25,001. Sedo Domain Transfer Service Sedo is a popular domain name and website marketplace, especially useful for those looking to buy or sell domain names. Its domain transfer service puts it as a middleman between the buyer and the seller. Sedo receives the payment from the buyer and the domain name from the seller. When both ends are confirmed, Sedo transfers the domain to the buyer and the buyer sends the money to the seller. This service incurs a 3% fee on the domain purchase price, with a minimum of $60. Afternic Afternic is another popular domain name marketplace focused on high-value domains. It offers an escrow service to protect both the buyer and the seller. Afternic holds the agreed amount and only disburses it to the former owner or seller when the buyer has confirmed receipt of the domain. If either party breaks the deal terms, the sale will be canceled and the money given back to the buyer minus the escrow fee. The drawback here is that Afternic doesn’t charge escrow fees separately. It takes a 20% fee, which includes both sales and escrow commissions on all domains listed on its platform. Using an Escrow Service It is necessary to use an escrow service if you are paying a significant amount for a domain name and it helps protect you and the seller. If you need guidance in the domain buying process, including escrow, contact us for help. We have negotiated over $150 million in domain name sales and have over a decade of experience in domain name buying and transfers. About the author Joe Uddeme is Director and Principal of NameExperts.com, 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]

Two execs – one male, one female – face an open laptop to illustrate blog post about domain names

Domain Name History – How to Check and How to Stay Safe

Ever been tempted by an available domain name that seems too good to be true? Maybe it’s exactly that – with a hidden history that adversely affects its true value. In this post, domain name expert Joe Uddeme flags up the things to look out for when buying a domain name. Researching domain history is important for businesses and website owners, especially when you wish to buy a premium domain. It’s like wanting to purchase a property and checking the record of its past owners, renovations, and sales history before signing the contract. If you don’t do your due diligence, you might find your dream property was a crime scene six months ago. The same can (kinda) be true of a domain name. You’ve arrived at the right place if you’re interested in digging deep into the history of any domain. This article will give you the relevant knowledge and tools to navigate a domain’s history – and help ensure there are no skeletons in your URL’s closet. Key takeaways Domain history is important – ignore it at your peril A hidden past can help you negotiate a lower price (if you still want it) Discover all the top tips and tools that will help you unearth a domain name’s past Why Would Someone Want To Know A Domain’s History Domain name history is important in several cases, mainly when someone wants to acquire a domain. For example, you come across a domain you want to buy but don’t know the owner. Investigating the domain registration history can help you find the owner so you can begin inquiring about purchasing the domain. These are typical cases that warrant a domain history lookup: Finding A Domain Name’s Owner You might find a domain that looks valuable for your business, but the existing website has no official information to contact the owner. In that case, researching the domain name history can help you find the owner’s email address, phone number, physical address, or other contact information. Conducting Research Before Buying A Domain Due diligence is critical if you’re buying any domain. Checking the domain name ownership history lets you know its reputation with search engines, which can affect your website’s discoverability and brand appeal. This due diligence lets you know if the domain was previously used for any malicious activity, and you can immediately back out if so. Or, if it has certain questionable connotations you can live with and you feel your name/brand is strong enough to survive the domain’s hidden past, you can use its history to negotiate a lower price. Competitive Research Checking a competitor’s domain name history can reveal valuable information. Who registered the domain? How long has the website existed? How much was the domain acquired for? Has the domain ever been sold? These questions give great insight into your competitors, letting you know how to stand out and win customers. Checking A Domain’s History The WHOIS database is the first place to check a domain name’s history. This public database contains the information collected when someone registers a domain name. You can use it to find relevant information about a domain name’s owner and operational history. WHOIS Lookup You can query information from the WHOIS database using any WHOIS lookup tool. This database is publicly available, so many websites allow users to type in a domain name and see every information related to that domain in the WHOIS database. Examples of such tools include WHOIS.com, Who.IS, and WHOIS.DomainTools.com. Type a domain into any of these tools, and you’ll see relevant information about it, including: When the domain was first purchased A WHOIS lookup always shows a domain’s initial registration date. This information gives you a clue of how long the website has existed. To illustrate, let’s perform a WHOIS lookup for NameExperts.com. We typed this domain into the Who.IS lookup tool and got the following information:

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.

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

Domain Buying Guides

Name Experts provides premium domain service to:

What Is A Domain Name?

What is the DNS?

How Does the DNS Work?

Different Types of Domain Name Extensions

Generic Top-Level Domains (gTLDs)

Sponsored Top-Level Domains (rTLDs)

Subdomains

How To Choose The Right Domain Name

Working With A Domain Name Broker – The Easy Solution

About the author

Subscribe for More Domain Buying & Selling Advice

Related posts

How Does A Domain Name Work?

What is Domain Name Escrow & How Does it Work?

Domain Name History – How to Check and How to Stay Safe

Why Work with Name Experts

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Name Experts provides premium
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