A domain name is an address that a person enters on the URL bar of a browser to access a website. It is considered the virtual address of a website; in order to access a particular portal, one simply needs to know its domain name.

However, getting the domain registered plays a crucial role in the naming of a website. So let us understand how domain registration is done, why it is important, and some of the best practices in the area.

The process of domain registration

There are several important steps in the process of domain registration, which are listed below:

Selecting the right domain

Domains are categorized into clusters and placed under seven extensions, which comprise some top-level domains (TLD). These extensions are used to identify the purpose of the website, its area of origin and other information such as the owner of the website. The registry of one TLD differs from that of the other, and the management is done by a specific group that has the backing of The Internet Corporation for Assigned Names and Numbers (ICANN). The four categories of top-level domains as mentioned under ICANN include:

• Generic top-level domains

This is the most common category. Domain names under this category can be registered by the general public at large. 

• Sponsored top-level domains

These domains are supervised and represented by private organizations.

• Country-code top-level domains

This category contains two letters that denote the country the domain belongs to.

• Infrastructure top-level domains

Within this group, the Address and Routing Parameter Area (.arpa) is the only TLD. It is managed by the Internet Assigned Numbers Authority (IANA).

Now, let us have a look at the seven top-level domains:

• .com

This domain type is mainly used for commercial purposes and is the most common worldwide. Businesses of various scales use dotcoms as their virtual identities.

• .edu

This domain type is primarily used by educational institutions.

• .gov

This is used for government agencies or officials. .gov is often followed by two letters that denote the country the domain is associated with.

• .int

This is a domain used by international organizations.

• .mil

This domain signifies the armed forces.

• .net

Network providers generally use this domain, which also happens to be the second most popular domain after .com.

• .org

This is used by a variety of institutions, including businesses as well as non-governmental organizations.

Other top-level domains that are considered unsponsored include:

• .biz

It is often used to refer to business.

• .info

This is used for informational sites.

• .mobi

This domain name is used for websites dealing with mobile technology.

• .name

This is often used by families and individuals.

• .travel

Hotels, airlines, tourism organizations, and travel agents use this domain.

The information that is usually required for domain registration includes:

• Selected domain name
• Contact information of the registrant including first name, last name, email address, phone number, residential address, and contact information for billing
• The chosen term for domain registration
• Payment and billing information

Last steps

After selecting the right domain, ensuring the availability, and understanding the cost involved in domain registration, one can submit the domain to various websites that offer the service. Once the information—including the requested domain name and contact details—is submitted, the registration is processed and completed at the service-provider’s end. The submitted information can then be accessed on WHOIS. By visiting WHOIS, one can know where a domain name is registered, the date of its registration, and in most cases, whom it has been registered by.

Why is the domain name required?

A domain name works as a unique identity of a person or organization on the internet. Back in the day, when most businesses were offline, it did not matter that there were multiple businesses of a single name. However, now that the world is increasingly adopting online formats, online businesses, too, have to be unique enough to be easily identified by the audience.

Needless to say, unique domain names and email addresses lend a professional edge to the company. Another reason why it’s essential to register a domain name is that it can be used to protect the intellectual property—which includes trademarks and copyrights among others—of an organization.

The difference between domain registration and domain ownership

Registering a domain does not translate to the right to use it forever. Domain names work on a subscription basis; and the registrant can hold one only up to the specified number of years, post which the domain name has to be renewed. It can be said that effectively, one pays the rental fee for the domain name for a certain period of time.

If one is unable to renew the domain and the domain name expires, it will again be up for registration by the public. In case the domain name does expire, all the work that would have previously gone into creating a brand online could go down the drain.

Domain registration and copyright infringement

Before registering a domain name, one must ensure that there are no conflicts related to trademark and that the domain name does not infringe on someone’s copyrighted work. The simplest way to do so is by going through a trademark database that will provide a list of existing and pending trademarks. ICANN is the body that is responsible for regulating copyright issues for domains and taking a domain down in the event of any infringement. Domain registration can be reversed for many reasons, some of which are:

• If you do not have a business of the name that the domain is registered under.
• If the registered name sounds or spells similar to that of another business, which could lead to confusion in the mind of the consumer.
• The domain name was registered to be resold or to create inconvenience for a competitor.
• No person or product in the company, nor the company itself, holds any resemblance to the name that has been registered.

Dos and don’ts of domain registration

Finding the right domain name can be a difficult task, despite it seeming easy. Let us have a look at some of the basic principles that need to be followed when registering a domain name:

• Make it foolproof

When people enter the address of a website in the URL bar, they may not mention its full/exact name. And in case of a difference in the spelling, they might just get redirected to some other website. Hence, typographical errors are something that one should avoid at all costs, when deciding on a domain name.

Another way to avoid confusion is by doing away with similar-sounding words that have multiple spellings. Some of the don’ts of domain registration include mixing words with numbers and using hyphens, homonyms, and abbreviations.

• Make it memorable

While the domain name is usually established at the beginning of a business, it will be remembered for as long as the business exists, which, perhaps, could be quite a long time. Thus, it is always advisable to select a domain name that is easy to be remembered and recalled.

• Make it concise

The longer the domain name, the greater are the chances of typos and it slipping the customer’s mind. Make sure that the domain name is as short as possible. Even if the company has a big name, you can consider shortening it in the domain name for quick recalls.

• Pick an evergreen name

Trends will come and go, but what you need is a domain name that can stand the test of time. So it is only wise to not go for a name which might be trending at the moment but could lose its popularity a few years down the line. While flickr.com initially went for a name that was quirky and in-trend by omitting the ‘e’, they eventually had to buy flicker.com as well, in order to avoid misspelling.

• Be uniform

Uniformity plays an important role in the growth of a domain name, and in turn, the business. Therefore, it is ideal to match the domain name to that of the organisation.

• Read it out for yourself and others

When you read a domain name aloud, you will understand the different ways in which people might read and register it in their minds. This can help you formulate a domain name in a way that you eliminate the possibility of it being read in any way other than the one in which you would want them to. Remember that multiple words are strung together in a domain name, sometimes making it difficult to gauge the beginning and end of words.

The most expensive domain names ever

While creating a domain name is the most basic requirement of any organization that has a website, it can also weigh heavily on one’s pockets. This, however, entirely depends on the level of importance that a domain holds for the company. It is also largely contingent on its business model—if a company is majorly reliant on the website for revenue, then chances are, it will not compromise on the domain name. However, if the business is primarily run offline, the owner/entrepreneur might want to invest that capital in the enhancement and functioning of their store(s) instead. In that vein, let’s have a look at some of the most expensive domain names that have ever been registered/acquired:

• Business.com

This domain name was bought for $7.5 million in the year 1999, making it one of the most expensive domain-name sales back then. In the following years, it captured the interest of Dow Jones and The New York Times, and eventually, was sold to RH Donnelley at a staggering $340-350 million. However, the company filed for bankruptcy after just a couple of years of having bought the domain name.

• LasVegas.com

This domain name was purchased in 2005 for as high an amount as $90 million. It was predominantly meant to drive traffic to the travel agency’s website and convert the same into sales.

• CarInsurance.com

Marketing company QuinStreet has made some significant domain-name purchases, the most expensive of which was CarInsurance.com. It was acquired for a whopping $49.7 million in 2010, making the company a leader in its segment.

• Insurance.com

The second-largest domain purchase of QuinStreet, Insurance.com was bought for $35.6 million in 2010, and this, too, went on to become a hugely profitable platform for the company. Insurance.com became a reliable insurance platform for cars, homes, health, and life for many.

• VacationRentals.com

Just when internet marketing was taking off, Brian Sharpies, the CEO of HomeAway, took hold of VacationRentals.com in 2009. It is said that the reason behind his move was that Expedia, a rival, too, was eyeing the same. Notably, VacationRentals.com was already a site before the acquisition, and once the deal was sealed at $35 million, it became a popular marketplace for vacation rentals.

• PrivateJet.com

This is touted to be one of the greatest pure sales in the history of domain names. PrivateJet.com was purchased for over $30 million in 2012, offering luxury jet charter rentals to businesses across the globe. It was acquired by Nations Luxury Transportation, LLD from Don’t Look Media.

The future of domain registration

Domain names have been around for a very long time. To do this day, a multitude of domain names has been registered, with most being under the .com domain. Due to this, businesses may not be feeling the need to get creative with their domains. However, today, we are seeing newer TLDs emerging, which are poised to replace traditional ones.

One of the most popular domains that businesses are now using is .inc. It is being widely preferred by companies because of the decreased risk of disconnect between the domain and business names (since many business names have ‘Inc.’ in them.) While the response to the domain has been such that many from the ‘World’s Most Valuable Brands’ list have opted for it, it is still too early to proclaim that .inc will be the new .com.