What is a Domain Name?

Domain names are like addresses, giving internet based services and resources to users. By purchasing a domain name, you own the rights to that name and can use it to market your business or website. In this article, we take a closer look at domains and why it is so important for business owners.

A domain name is a unique name that identifies a particular website or service on the internet. When you purchase a domain name, you are essentially renting the right to use this name for one set period of time. This is similar to renting a home where you can only stay there as long as you pay your rent on time. After your rental period is over, you must renew your domain name to continue using it.

– When an individual or business registers a Domain Name, they are assigned a “URL” (Uniform Resource Locator) made up of letters, numbers, and sometimes symbols. URL’s are simply the address associated with a website on the internet. Each URL is unique and can be used to access a website (e.g. www.website.com). The URLs are important because they are the portal to the internet. Without them, information would be difficult to locate on the Internet.

– A domain owner pays a fee to register their domain name with an organization such as ICANN, which is the governing body of the internet. This organization ensures that all registered domains remain active and usable on the internet. It also protects individuals from registering similar domain names that could potentially cause confusion. – If the owner of a domain name stops renewing their domain, it will expire and become unavailable for use. At this point, the domain expires into what is called an ‘Active Deletion’ phase; this means that the owner of the domain loses control of the domain and it may become inactive. If the domain is not renewed during the Active Deletion phase, it will become an ‘Redemption Period’, which gives the owner one last chance to regain control of the domain before it goes back to the root registry and becomes permanently deleted. – Some domains may have other statuses due to transfers between registrants and other entities within the internet ecosystem. For example, a domain may transfer from a registrant to another entity within a registrar’s portfolio or from one registrar to another due to a change of ownership. A domain that is transferred will revert back to a Redemption Period status as soon as it goes into active deletion at the original registrar it was registered with prior to the transfer. Domains can also change their redemption period after they have been put into an active deletion phase. Under certain circumstances, a domain may be put into a Pending Delete Phase where the registry holds the domain for a certain period of time before issuing it a new redemption period. This allows an administrator of a domain to reclaim the domain if it is still being used after the registration lapses without being renewed by the original registrant. The Pending Delete Phase is only available to domains that fall into two specific categories. First, if the domain was already registered but not used in the Redemption Period before it was put into active deletion. Second, if the domain has been transferred before its original owner stopped renewing the domain registration and the registry has not received a notice to reclaim the domain during this new Redemption Period from the registrant of the original domain. Once either of these conditions have been met, the domain is put into the Pending Delete Phase of deletion and will remain in this status until either it is claimed by its previous owner or becomes eligible for deletion by the registry after a period of inactivity. If a domain is in the Pending Delete Phase when it is placed into the active deletion process, it will not have a separate Redemption Period and will be immediately deleted upon expiry of the pending delete period.

What is DNS?

Domain Name System (DNS) is a system used by computers on the World Wide Web to convert human-friendly computer names into IP addresses in order to facilitate easy communication between computers on internetwork networks. The abbreviation “DNS” is short for Domain Name System. Every domain name on the internet is actually linked to an IP address through something called a domain name server (DNS). A domain name system translates domain names into the numerical IP addresses that are used by the computers on the Internet in order to communicate with each other. When a computer or device needs to find a piece of information online, it requests the information’s location from a DNS server. If the information is located in the same country as the computer the request is coming from, the requester receives a local IP address.

Domain names are essential in the internet world. They link web pages to their corresponding numeric IP addresses. In order to find the website you are looking for, you need to know how to connect to the site using an Internet Protocol address or the more specific name for each domain.

Domain Name Glossary

DNS - Domain Name System
The Domain Name System (DNS) helps users find their way around the Internet. Every computer on the Internet has a unique address, just like a telephone number, composed of a string of numbers.
This string of numbers is called an IP address.
The DNS makes using the Internet easier by allowing a familiar string of letters (domain name) to be used instead of the IP address. This allows you to type the domain name to access the web address in place of the IP address allowing for ease of use on the internet.
Instead of typing 207.151.159.3 you can type www.internic.net. It is a mnemonic device that makes addresses easier to remember
TLD - Top Level Domain
TLDs are the names at the top of the DNS naming hierarchy.
They appear in domain names as the string of letters following the last dot, such as "net" in "www.example.net".
The administrator for a TLD controls what second-level names are recognized in that TLD.
The administrators of the root domain or root zone control what TLDs are recognized by the DNS. Commonly used TLDs include .com, .net, .edu, .jp, .de, etc.
gTLD - Generic Top-Level Domain
Most TLDs with three or more characters are referred to as generic TLDs, or gTLDs. They can be subdivided into two types: sponsored TLDs (sTLDs) and unsponsored TLDs (uTLDs).
Whois
Whois (pronounced "who is") is a query and response protocol widely used for querying databases that store registered users or assignees of an internet resource.
ICANN's gTLD agreements require registries and registrars to offer an interactive web page and a port 43 WHOIS service providing free public access to data on registered names.
Such data is commonly referred to as WHOIS data and includes elements such as the domain registration creation and expiration dates, nameservers, and contact information for the registrant and designated administrative and technical contacts.
RGP - Redemption Grace Period
The Redemption Grace Period is a 30-day period occurring after a registrar deletes a domain name.
During this time the original registrant has a chance to redeem the domain by paying a fee. If the fee is not paid during the grace period the domain name moves into Pending Delete status.
Registrar
Domain names ending with .aero, .biz, .com, .coop, .info, .museum, .name, .net, .org, and .pro can be registered through many different competing companies known as registrars.
In most cases you only want to work directly with ICANN Accredited registrars. There are resellers but DropCatch.com does not use resellers for the registration of domain names. The registrar you choose will ask you to provide various contact and technical information that makes up the registration.
The registrar keeps records of the contact information and submits the technical information to a central directory known as the registry. This registry provides other computers on the Internet the information necessary to send you e-mail or to find your website.
You will also be required to enter a registration contract with the registrar which sets forth the terms under which your registration is accepted and will be maintained.
Registry
The Registry is the company that maintains the master database of all domain names registered in each Top-Level Domain.
The Registry operator keeps the master database and generates a zone file which allows computers to route Internet traffic to and from top level domains anywhere in the world.
An example of a registry is Verisign. Verisign maintains control over the .com and .net Top-Level Domains. Internet users do not interact directly with registry operators; users can register TLDs including .biz, .com, .info, .net, .name, and .org, by using an ICANN-Accredited Registrar.
IP - Internet Protocol
Internet Protocol is the communications protocol underlying the internet allowing large and geographically diverse networks of computers to communicate with each other quickly and economically over a variety of physical links.
An Internet Protocol Address is the numerical address by which a location on the Internet is identified.
Computers on the Internet use IP addresses to route traffic and establish connections among themselves; people generally use the human-friendly names made possible by the Domain Name System.
ISP - Internet Service Provider
An ISP is a company which provides access to the Internet to organizations and/or individuals. Services provided by ISPs may include web hosting, email, VoIP (Voice Over IP), and support for many other applications.
IANA - Internet Assigned Numbers Authority
The IANA is the authority originally responsible for the overseeing IP address allocation, the coordination of the assignment of protocol parameters provided for in Internet technical standards, and the management of the DNS, including the delegation of top-level domains and oversight of the root name server system.
Under ICANN, the IANA continues to distribute addresses to the Regional Internet Registries, coordinate with the IETF and others to assign protocol parameters and oversee the operation of the DNS.
ICANN - The Internet Corporation for Assigned Names and Numbers
The Internet Corporation for Assigned Names and Numbers (ICANN) is an internationally organized non-profit corporation that has responsibility for Internet Protocol (IP) address space allocation, protocol identifier assignment, generic (gTLD) and country code (ccTLD) Top Level Domain name system management, and root server system management functions.
Originally, the Internet Assigned Numbers Authority (IANA) and other entities performed these services under U.S. Government contract. ICANN now performs the IANA function.
As a private-public partnership, ICANN is dedicated to preserving the operational stability of the Internet; to promoting competition, achieving broad representation of global internet communities; and to developing policy appropriate to its mission through bottom-up consensus-based processes.
IDNs - Internationalized Domain Names
IDNs are domain names that include characters used in the local representation of languages that are not written with the twenty-six letters of the basic Latin alphabet "A-Z". An IDN can contain Latin letters with diacritical marks, as in Greek, or may consist of characters from non-Latin scripts, such as Arabic or Chinese.
Many languages also use other types of digits than the European "0-9&". The basic Latin alphabet together with the European-Arabic digits are, for the purpose of domain names, termed "ASCII characters" (American Standard Code for Information Interchange). These are also included in the broader range of Unicode characters that provide the basis for IDNs.
A domain name that only includes ASCII letters, digits, and hyphens is termed an LDH label. Although the definitions of A-labels and LDH-labels overlap a name consisting exclusively of LDH labels, such as icann.org, is not an IDN.
Root Servers
Root servers contain the IP addresses of all the TLD registries, both global registries such as .com, .org, etc. and the 244 country-specific registries such as .fr (France), .cn (China), etc.
This is critical information. If the information is not 100% correct or if it is ambiguous it might not be possible to locate a key registry on the Internet. In DNS parlance the information must be unique and authentic.

Version 2.0 - Published April 30, 2024

ICA’S BEST PRACTICES FOR DOMAIN NAME BROKERS

A domain name broker shall:

1.Endeavor to provide conscientious service to clients in a professional manner and exercise reasonable knowledge, skill, judgment, and competence in providing those services.

2.Endeavor to keep informed of the trends, best practices, and changes affecting domain name brokerage services and the industry in general.

3.Always employ a written brokerage agreement that adequately sets out all fees, duties, terms, rights, and obligations applicable to both the broker and the client, and unless otherwise expressly agreed with the client, the agreement shall entitle the broker to act as the client’s exclusive broker in respect of the subject domain name(s). Where any co-brokering, subcontracting, or other arrangement is contemplated, that shall be disclosed in a written agreement.

4.Promote and protect the best interests of the client and endeavor to serve the client’s interests uninfluenced by the basis of remuneration.

5.Always act within the authority granted by the client.

6.Hold in strictest confidence all information acquired in a professional capacity and not divulge it or any portion of it unless so authorized by the client or so required by law. Without limiting the generality of the foregoing, a domain name broker shall not publicly disclose the confidential details of a domain name transaction, including but not limited to the domain name itself, without the express permission of the applicable parties.

7.Strive to conduct oneself with courtesy and in good faith, in such a way as to enhance public respect for the domain name industry and for domain brokers in particular.

8.Not represent that one acts for or on behalf of the buyer, seller or particular domain name, unless there is written authorization from the buyer, seller, or owner of a particular domain name, respectively.

9.Include in the initial outreach, when soliciting interest for services as a broker with respect to a domain name which one is not authorized by the domain name owner to represent on their behalf, the following statement, “I am not acting for the domain name owner, nor am I authorized by the domain name owner to do outreach on this domain name”.  Such statement shall be included in a prominent manner such that it will be noticed by the recipient.

10.Fully disclose to the client any conflicts of interest that may exist.

11.Not represent both the buyer and seller in respect of the same domain name unless the client’s consent has been obtained and the dual agency has been disclosed to the client.

12.Fully disclose and obtain the consent of the client with respect to any arrangements for receiving compensation from any third party.

13.Recommend to the client that an established and credible domain name escrow or transfer service be employed in connection with all domain name transactions.

14.Strive to encourage clients to seek the services of qualified attorneys, accountants, or other professional advisors when applicable.

15.Endeavor to comply with all applicable laws and not knowingly assist or facilitate any unlawful conduct.

16.Maintain a publicly accessible website and LinkedIn profile identifying oneself and describing one's services.

17.Not knowingly attempt to circumvent or interfere with another broker’s exclusive contract with a domain name owner or buyer.

18.Not refer to legitimate domain name investors as "cybersquatters" or "squatters" or otherwise disparage the legitimate domain name investment industry and do one’s best to educate clients about the legitimate business of domain investing.

The Ultimate Guide to Domain Brokers

In today’s digital landscape, securing the right domain name is crucial for businesses and individuals alike. A domain broker can play a pivotal role in helping you acquire the perfect domain. This guide explores what a domain broker is, how they operate, and why you might need one.
What is a Domain Broker?
They are professionals that assist clients in buying, selling, or leasing domain names. They act as intermediaries between buyers and sellers, utilizing their expertise and networks to negotiate favorable terms.
Key Responsibilities of a Broker
Market Research: Analyzing domain name trends and values.
Negotiation: Handling discussions between buyers and sellers.
Valuation: Assessing the worth of a domain name based on various factors.
Why Use a Domain Broker?
1. Expertise
They have in-depth knowledge of the domain market. They can provide insights that help you make informed decisions.
2. Time-Saving
Negotiating a domain purchase can be time-consuming. A broker can handle the entire process, allowing you to focus on your business.
3. Access to Exclusive Listings
Brokers often have access to domains that are not publicly listed, giving you more options.
How to Choose the Right Domain Broker
When selecting a domain broker, consider the following:
Experience: Look for brokers with a proven track record.
Reputation: Check reviews and testimonials from previous clients.
Services Offered: Ensure they offer services that meet your needs.
The Process of Working with a Domain Broker
Step 1: Initial Consultation
Discuss your goals and budget with the broker to align expectations.
Step 2: Domain Search
The broker will search for suitable domain names based on your criteria.
Step 3: Negotiation
Once a target domain is identified, the broker will negotiate the price and terms.
Step 4: Finalizing the Purchase
After reaching an agreement, the broker will assist with the transfer process.
Domain Brokers FAQ
1. How to choose the right broker?
Ther are many experts in the domain industry. It is important to find the domain broker services that fits your situation. Some only deal with high valued assets where others will broker a domain at any price.
2. What commission do domain brokers charge?
Brokers charge anywhere from 15% – 30% depending on many variables.
3. Do I have to sign an agreement with a domain broker?
If you are hiring a legitimate broker, they will ask for an exclusive agreement. These broker agreements are a legally binding contract between a domain owner (the seller) and a broker (the agent) that grants the broker exclusive rights to represent and negotiate the sale of the domain name on behalf of the owner.
4. How do I know if Domain Name is for Sale?
With strong privacy laws, it is getting very difficult to find out who owns a domain name and how to contact them. Professional brokers know how to find the owner and initiate contact. This is why many people use brokers to acquire their brand’s domain name.
5. Do I need to hire a domain broker?
Brokers offers expert appraisals, network of buyer and sellers, skilled negotiation tactics, keeps buyer or sellers information confidential, has legal and trademark experience, removes personal attachment, handles secure escrow payment process, and smooth transfer of domain names.
Essential Tips for Buying and Selling Domains Successfully
Understand the Domain Market
Before diving into domain trading, familiarize yourself with the market trends. Research high-demand domains and niches. Keep an eye on emerging industries and keywords. Knowledge is your best asset in the domain business.
Choose the Right Domain Name
Selecting the perfect domain name is critical. Opt for short, memorable names. Prioritize extensions like .com, .net, or .org. Avoid numbers, hyphens, or complex spellings. Simplicity and clarity win in the domain world.
Focus on Keywords
Domains with relevant keywords rank higher in search engines. Choose keywords that resonate with your target audience. A well-optimized domain can boost traffic and value.
Evaluate Domain Value
Assess the domain’s worth before buying or selling. Use tools like Estibot or GoDaddy Appraisals. Factors such as age, extension, and traffic impact value. Compare similar domains to gauge market trends.
Check Domain History
A clean history is crucial for domains. Use tools like Wayback Machine or DomainTools to check past content. Avoid domains linked to spam, scams, or blacklisted activities.
Leverage Auctions and Marketplaces
Domain auctions and marketplaces like Sedo, Flippa, and GoDaddy are excellent platforms. Participate actively and monitor listings. Auctions often reveal high-demand domains.
Negotiate Smartly
Be prepared to negotiate. Set a clear budget when buying. For selling, highlight the domain’s benefits. A fair price ensures mutual satisfaction.
Secure the Transaction
Always use a trusted escrow service for domain transactions. Platforms like Escrow.com protect both parties. Verify all terms before finalizing deals.
Understand Legal Considerations
Ensure the domain doesn’t infringe trademarks. Conduct proper checks to avoid legal complications. Compliance protects your investment and reputation.
Optimize Domains for Selling
Boost your domain’s appeal to potential buyers. Develop a basic website or landing page. Highlight the domain’s value proposition. Presentation matters in maximizing returns.
Stay Patient and Persistent
Domain trading requires time and strategy. Avoid rushing decisions. Stay updated on market trends and adapt your approach accordingly.

We Are Flexible

What Smart Founders Know About Domain Names

When coming up with a name for your startup, or contemplating a rebrand for your current company, do you think about domain names? For too many founders, names are an afterthought—not integrated into the fabric of the brand story or brand promise, or, equally dangerous, paired with a subpar domain name or extension (translation: anything NOT your brand + dotcom). Even those founders who do carefully consider naming, might not be giving domain names their due—or thinking about them in the right way. 

Smart founders use domain names to build their brands, while improving their bottom line and overall company valuation. Founders like Noah Kagan (Sumo.com), Aaron Patzer (Mint.com), Jamie Siminoff (Ring.com), Karn Saroya (Cover.com), Tim Campos (Woven.com), and many more learned firsthand the value of upgrading to a top notch one word .COM domain, one that is short, memorable, authoritative, and “passes the radio test.”

As famed tech entrepreneur and angel investor, Jason Calcanis says, “If you have to spell it over the phone, you’ve lost.” And none other than Paul Graham (Y Combinator) famously said: “If you have a US startup called X and you don’t have x.com, you should probably change your name… The problem with not having the .com of your name is that it signals weakness. Unless you’re so big that your reputation precedes you, a marginal domain suggests you’re a marginal company.”

The top 5 factors that smart founders look for in a domain name:

• One word: preferably a short, English Dictionary word
• .COM extension — the gold standard, providing trust and legitimacy
• Easy to remember and easy to spell — passes the radio test
• Makes sense (Mint = personal finance, Cover = insurance, etc.)
• Positive consumer resonance

Most companies are in the digital equivalent of an arm’s race with their top competitors; an ultra-premium .COM domain name provides the key differentiator that they need to prevail.