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

Rear-view close-up shot of a woman using a laptop to illustrate article about buying a .org domain name
Why You Should Buy a .org Domain and How to Get One

The .com domain name might still be king, but .org can be a perfectly good alternative in some circumstances. Domain name expert Joe Uddeme explains when and why.   Why buy a .org domain? Why not? If you’ve been contemplating buying a domain and figured that all the alternatives to a .com were a dud, then a .org domain name is the exception. A .org domain imbues a site with immediate confidence and credibility. Your website visitors infer that you aren’t only interested in earning money but are dedicated to making this planet a better place, too. These domains are identical to other domains in most aspects but come with the extra bonus of perceived authenticity among your customers. Key Takeaways Why the .org suggests authority Understand the rules about owning a .org When a .org makes sense   What is a .org domain name? .org domain names were among the first top-level domain names. This means that they were among the first options available when people started picking a domain name. As a result, the .org domain extension is well known – and websites with that expansion are often viewed as authority websites. As they have a certain gravitas and longevity, they are often utilized as a choice alternative to the popular (but exceptionally competitive) .com domain name extension. Who can use a .org domain? If you want to create a community website for your college, gym or cultural establishment, then a .org domain name is going to be your very best choice. It is both fitting and correct – and will suggest to visitors that they have arrived at the official site. Anyone can now choose a .org domain name. You don’t need to submit any documentation or any other evidence that you’re a nonprofit or a charity. The procedure for registering for a .org domain name is straightforward and hassle-free. Commercial companies can just as readily secure .org domain names as official bodies, charities and other organizations can. From a business point of view, adding a .org may help ensure your trademark and brand are well shielded. The same may be true of other TLDs, such as .io or .ai.   Why choose a .org domain name? If you’ve been contemplating registering a domain and can’t get the .com name you want, its .org sister may be the way forward. It grants your site instant authenticity and is an extremely popular and identifiable domain extension. It’s ideal as a home for a charitable or community organization – and can be a terrific alternative to the .com domains. It works well for schools, charities, hospitals and so on, but can just as easily work for your own private use or a small business. If you need help purchasing a .org domain name or would like to inquire about a domain name that is already taken, the brokers at NameExperts can help guide you through the process. We’re particularly good to have around when it comes to negotiation work and have helped everyone from Mark Cuban to Tripadvisor to secure powerful domain names. 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]

US dollar blended into Chinese yuan
Domain investors in China should buy Western Premium domains

Memo to Chinese domain name investors: NameExperts.com Director Joe Uddeme thinks you’re missing a trick if you limit your portfolio to local names.   Most Chinese investors tend to shy away from Western-type domain names as they don’t have meaning in mainland China – names that contain vowels and the letter “v” in particular. Are they limiting their long-term growth potential? Some would say sticking with Chinese domains is a safer investment. As seasoned domain name brokers, however, we disagree. Here’s why… Key Takeaways New TLDs are not a good long-term play Aftermarket prices for .com names remain high Work with a broker if you need help with domain portfolio management   Background – understanding the Chinese domain name marketplace For those of you that follow the domain investor market, specifically in China, you can see all types of newly minted investors looking for the next great domain name investment. Most Chinese investors are focused on the domain names that have relevance inside of mainland China. The most popular investments in China are the short acronym domain, or simple numeric domain names as they translate to meaning to the Chinese culture. Some examples include the following (N = number; L = letter): 15.com (NN.com) 123.com (NNN.com) TR.com (LL.com) TYPL.com (LLLL.com) 6N.com (LN.com) N6.com (NL.com   Chinese domain investment trends As domain investments continue to increase in China, we are seeing many investors branching out into some of the newer GTLD extensions as alternative investments including; .club, .top, .wang. They are acquiring these names for much lower costs than the typical .com investment. Is that a solid investment? We say: no. The Chinese investor is savvy, but they are limiting their investment opportunity. In most instances, domain investors in China are only focused on these types of names because they create liquidity and are very attractive to the Chinese on a quick-flip model (check out our guide to domain name investing). Additionally, the Chinese investor should look at the plethora of available .com domain name inventory on the aftermarket. Tons of fantastic domain inventory is readily available. Short, generic and easy to spell English words that are solid investments. The saturation of the internet continues to precipitously grow year-over-year, with 78% of the Chinese population now online. When you do the math, it’s easy to see the longer-term opportunity. Should you limit yourself as an investor? Not with the .com market  stronger than ever – with fantastic acquisition opportunities and names that ultimately have a global appeal and market reach. We believe domain investors in China will start to acquire short, generic .com domains as trillions of dollars are available for private Chinese investors. Way back in 2017, George Kirikos had a fantastic post on Twitter, referencing 12,000 startups being created every day in China. The domain investor continues to evolve and grow. Investors should look at the longer-term investment opportunity and acquire names that are globally acceptable and not limited to mainland China.   How a domain broker can help Friends in the right places are always good to have, and most international domain brokers would gladly help Chinese companies and individuals who want to buy domain names. Domain brokers help buyers of any nationality to understand current market trends and navigate the sometimes complex world of domain acquisitions. NameExperts.com is one of the world’s best-known brokerages, offering personalized boutique services that include domain name strategy, portfolio management, negotiation and stealth acquisitions.   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. He advises clients globally. Contact us at: [email protected]

Close up of woman typing on laptop keyboard to indicate the importance of doing research when purchasing a domain name
Domain Due Diligence – What to Do Before You Buy

Before getting excited about the domain name you want being available, ask yourself why it is up for grabs – especially if it appears to be a great name. Many domain names on the open market have a hidden past – as NameExperts.com Director Joe Uddeme explains… Let’s say you just found out you can secure a domain name that matches the name of your new business. Or maybe you’re doing it the other way around and want to start with an available domain name that you’ll build your business around. Now let’s suppose it’s one of those short, snappy modern domain names made up of five letters that don’t mean anything. Now press pause. Before you plan the entire history of your brand around these five letters, it’s advisable to perform some due diligence – just as it is when buying any domain name. When buying a car, it’s helpful to have a trusted mechanic perform an inspection and to review the vehicle’s service history before handing over your cash. A similar thing applies to purchasing domain names. It’s necessary to perform proper due diligence – or you risk wasting money. This article will give you a due diligence checklist to follow to ensure you make a worthy purchase and ensure you don’t buy a domain name with a damaging hidden past. Key Takeaways Spammy “past lives” of your domain name could damage your reputation Discover the tools that help you discover your name’s true past Make sure there are no trademark issues Why You Need To Conduct Due Diligence For Any Potential Acquisition Due diligence means investigating the details of a business or person that you want to enter a commercial transaction with. It’s necessary because it helps you understand the nature of what you want to buy, the risks involved, and anything else that could be a hindrance. Not conducting domain name due diligence before buying can cause trouble. For example, you may buy a domain that has been blacklisted for spam activities and wonder why your website isn’t getting traffic. Or why any email sent from your domain goes to the recipient’s spam folder. You could also buy a stolen domain and be subject to lawsuits accusing you of theft – or one that used to be an adult site. The list of potential risks is endless, so always carry out domain due diligence before any purchase.   Domain Due Diligence Checklist WHOIS WHOIS is a public database containing information about domain name owners. You can run a WHOIS lookup to trace the ownership of a domain name, and it’s advisable to do this for any domain you want to buy a domain name. Check the WHOIS history for at least a year to see if there were any ownership changes. If you notice any, you can contact the prior owner to ensure that they actually transferred the ownership and the domain wasn’t stolen. Domain thieves try to sell domains in a hurry, and this process helps you avoid buying a stolen domain and exposing yourself to legal troubles. Because of Europe’s GDPR data protection laws, you may not be able to see details about a domain’s owner (it’ll appear as redacted). However, access is granted to certain licensed third parties that, in turn, offer that data to people for a fee. DomainIQ and DomainTools are two examples of such parties. Domain History The WHOIS lookup will help you verify that the domain is owned by a legitimate buyer and not a hacker. After that, the next step of the domain name due diligence is to check how the domain was utilized in the past. What type of website was it used for? Is it something that could have gotten it into a blacklist? A good website to check a domain’s history and utilization is the Wayback Machine. This is a digital archive that lets you see how the website for any domain looked in the past. The idea is to ensure that the domain was used for appropriate activities. If it was used for nefarious things like unregulated gambling, domain name scams, or data theft, it’s a signal to stay clear because the domain may have been blacklisted by search engines and email providers. Potential Trademark Issues Ensure that the domain name you want to use is not similar to an established trademark because this can lead to infringement lawsuits and a possible court order to hand over the domain. There was a popular case of an entrepreneur called Mike Rowe, who registered the “MikeRoweSoft.com” domain for his software company. Microsoft, the well-known software company, filed a lawsuit alleging trademark infringement, and Mike Rowe had to hand over ownership of the domain in exchange for an Xbox and some certification training. If the domain name you want to buy is similar to an established trademark, it’s best to avoid it and go for something else. Search Value Another important part of the due diligence checklist is to see how the domain name performs on search engines. If you can’t find valid results when you input the domain name of a search engine, it’s a signal that it may have been blacklisted due to past activity. Check if there are backlinks from nefarious sites pointing to the domain because that represents another red flag. It’s also important to see if a domain has been marked by email blacklists. If so, emails from that domain will likely end up in the recipient’s spam folder instead of the main inbox. Popular email blacklists include Spamhaus, Barracuda, and Proofpoint, and most of them let you run a simple scan to see if a domain is part of the list.   During the Acquisition Process Once you have ticked all the boxes in your acquisition due diligence checklist and decided to proceed with the purchase, there are some essential tips to follow. Tracking Each Step You should create a spreadsheet to track each step of the domain name sale. The spreadsheet should contain sections like “current status”, “date transferred”, and “price”. This will help you stay on top of every detail of the imminent domain acquisition. Setting Up Escrow Escrow refers to a neutral third party that holds the money before it is transferred from the domain buyer to the seller. It’s necessary to use an escrow service to prevent yourself from falling victim to fraud. The escrow service will hold the money that you’ve agreed to pay for the domain and only disburse it if the seller fulfills all the terms of the deal.   What To Keep In Mind For the Transfer Process When you acquire a domain, the buyer will have to transfer it to your registrar for it to officially become yours. A domain must be at least 60 days old to be transferable according to rules defined by ICANN, the governing body for domain registration. The owner will need an authorization code from their registrar to authorize the transfer to your own registrar. Once this is complete, the domain is officially yours. If you need help with domain name due diligence, you can hire a professional domain broker with experience in appraising and investigating domain names. The broker can help you decide if it’s a worthwhile purchase and also negotiate a good price with the owner. Check out our post on domain name negotiation tips for further insight into this exciting and complex world!   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]

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?