April 25, 2023

The 3 Types of Domain Names and Common Domain Extensions

written by

Joe Uddeme

Joe Uddeme

The 3 Types of Domain Names and Common Domain Extensions

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When you buy a domain name, you purchase a piece of digital real estate. But what, exactly, are you getting for your money? NameExperts.com Director Joe Uddeme unravels the elements of a domain name – so you’ll have a clearer understanding of the architecture behind them.

 

A domain name is an address you type into your web browser whenever you want to visit a website. It is arguably one of the most important assets any business can own.

While ‘domain name’ is an all-encompassing term, a domain is actually made up of multiple parts. Understanding these elements can give you a clearer picture of the domain name investing world and ensure you’re well-informed before buying a domain name or asking a skilled domain broker to negotiate the purchase of one on your behalf.

Key Takeaways

  • Domain names – an introduction
  • The 3 types of domain name
  • Domain TLDs for beginners

Why not check out our article about why choosing a .com domain name still makes sense for most businesses?

What are domains?

A domain name is a human-readable address that directs you to a particular website available on the internet. It’s akin to the address for your official residence or workplace. When someone wants to visit you, they come to your address. Similarly, when someone wants to visit a website, they type in the domain address in their web browser.

Any domain name has four main components;

  1. Domain name: The name of the domain itself.
  2. Top-Level domain (TLD): The suffix that appears after the domain name, e.g., .COM and .NET.
  3. Subdomain: A domain that is part of another primary domain. It is also known as a third-level domain.
  4. Protocol: The system that specifies how information from the domain is transferred to your web browser. It is either HTTP (insecure) or HTTPS (secure).

Take https://www.nameexperts.com/, for example.

  • NameExperts is the domain name
  • .COM is the top-level domain
  • WWW is the subdomain
  • HTTPS is the protocol

The 3 Types of Domain Names

There are three main types of domains, including:

1. Top-Level Domains

A top-level domain (TLD) is the final section of a domain name. It is the last segment of text appearing after the dot symbol. For example, in Google.com, .COM is the top-level domain.

Ever since the world wide web’s inception, .COM has been the most common top-level domain. It was originally used to designate commercial businesses but has become the de-facto TLD for most websites.

Another popular TLD is .NET. It was initially meant for internet service providers and networks but is now available to anyone who wants it. Because NET signifies network and technology, this is an ideal option for technology companies.

Yet another well-known TLD is .ORG, which was originally used to designate not-for-profit organizations. Till today, most people associate this TLD with non-profit organizations and social causes rather than commercial businesses. The .ai TLD is another popular one today – especially for tech firms.

There are two main types of top-level domains;

Generic TLD

A generic top-level domain refers to domain name endings with three or more characters, the type that you’d most likely recognize. .COM, .NET, .ORG, .INFO, and other common domain endings fall under this category.

Before 2011, there were barely two dozen domain extensions classified as generic. That year, the Internet Corporation for Assigned Names and Numbers (ICANN) expanded the number of generic domain extensions from 22 to over 1,200, opening up more opportunities for individuals and businesses to acquire domain names.

Country-Code TLD

As the name implies, these are domain extensions associated with specific countries. ICANN assigns country domain endings to each formally recognized nation and sovereign state, and these nations collect a royalty on every sale of their assigned TLD. For example, Tuvalu, a small island nation, earns 1/12th of its annual income from its .TV domain extension.

Other popular examples of country domain endings include

  • .US for the United States of America
  • .AU for Australia
  • .DE for Germany
  • .CA for Canada
  • .CC for Cocos Islands
  • .AE for the United Arab Emirates (UAE), etc.

2. Second-Level Domains

A second-level domain is directly below a top-level domain in the domain hierarchy. It is the part of the domain name that comes right before the top-level domain. For example, in NameExperts.com, NameExperts is the second-level domain.

The second-level domain is usually a combination of words describing the business or service of the domain name owner – and it pays to match this to the name of your business whenever possible to strengthen your brand. In the above example, NameExperts describes the business of a professional domain name broker that helps customers to acquire valuable domains.

A second-level domain can include letters, numbers, and hyphens. Symbols are not allowed.

Top of a building with a sign saying 'Your name here' to illustrate an article about domain names

3. Third-Level Domains

The third-level domain, or subdomain, is the part of the URL that comes before the second-level domain. The most common subdomain is www., which refers to the world wide web. Third-level domains are not mandatory, so you can have a fully functional domain name without the www part.

Some website owners create third-level domains to represent a different section of their website. Examples include:

  • Shop.mywebsite.com refers to the e-commerce section of a website.
  • Blog.mywebsite.com refers to a blog attached to the website.
  • Support.mywebsite.com leads to the customer support section of a website.

Understanding Domain TLDs

A domain name is the most important property for anyone who conducts business online. Hence, it’s crucial to understand what they are and the different types of domain name extensions to use for a website.

The information above should help you figure out how to structure your domain, but if you need help, we’re experts at domain selection and helping you buy the perfect domain.

 

 

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 the NameExperts team at: [email protected]

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They appraise a domain based on many factors, including popularity, search engine ranking, social media shares, TLD, and by comparing it to similar domains. These domain appraisal services platforms make it easy to get an educated answer on how much a domain is worth. A free valuation tool can give you an overview of the appraisal value, such as godaddy. 3. Find Out What Others Are Willing To Pay A more direct way to answer the question of “what is a domain worth?” is to understand the domain sales marketplace and see what others are willing to purchase it for. The easiest way to do this is to list your domain on a marketplace like Sedo and Afternic and see what offers you receive to purchase. Create cool landing pages to help drive leads. This data can help set better pricing. You can use the offers as the yardstick for valuing the domain. Combining AI and Human Expertise To accurately determine domain value, it’s essential to combine artificial intelligence (AI) and human expertise. 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If people can find your website on Google algorithms, they will click on it more often and give you higher conversions, which translates into a higher domain value when you analyze the data. Market Your Site You can advertise your website on appropriate venues like social media services, search engines, or even use free word of mouth for your Company. This lets people know you exist and will likely drive higher eyeballs to your domain, giving it a greater value. Availability of Other Domains People are less willing to pay a high price for a domain if they can get something similar for cheaper elsewhere, e.g., Cars.com > Cars.co. One way to avert this is to buy the keyword across multiple TLDs, e.g., Box.com, Box.org, Box.net, etc. This way, the intending buyer will have less leverage. Build An Online Presence You can create profiles on social media platforms to build an online presence. This gives your domain more brand power and, in turn, a higher evaluation figure. Types Of Domain Name Valuations There are three main types of domain name valuation: Retail Pricing These are domain names directly offered by the owners to end users with a clear use case. The end users already have something in mind to do with the domain, usually for a website, so are more willing to pay a higher sum than the estimates. Liquid Pricing This comes into play when domain names are being offloaded by an owner, court order, or a bankruptcy proceeding sales. The domains are typically sold as a group and are cheaper to buy because it is a fire sale. However, the chances of finding domains with liquid pricing estimates are slim compared to the others. Liquid pricing is usually between 20% to 30% of retail pricing. Investor Pricing This is when domain names are offered for sale by professional domain brokers or flippers. You can find these types in an auction where you will likely bid against other people to acquire a domain. Some people may exchange domains with other Internet portfolio investors or team up to acquire a single valuable name for their domain portfolio. Investor estimates pricing between 40% to 60% of retail pricing. Working with Domain Investors and Brokers Domain investors and brokers play a crucial role in the domain name market. They help individuals and businesses buy, sell, and appraise their names, leveraging their expertise to ensure fair and profitable transactions. Brokers, meanwhile, act as an expert go-between the buyer and seller of a domain name. Role of Domain Investors Domain investors are individuals or companies that buy and hold domain names with the intention of selling them at a profit. They often have a deep understanding of the domain name market and can provide valuable insights into the value of a domain name. Investors typically maintain a domain portfolio as part of their business, which includes a variety of domain names that they believe will appreciate in value over time. By analyzing market trends and leveraging their experience, domain investors can identify undervalued domains and acquire them at a lower cost, with the aim of selling them at a higher price in the future.   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]

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