What is Domain Parking?
Domain parking is the practice of registering a domain name and then allowing a third party to place ads on a site located at the registered URL, so that any key-in traffic is captured and converted into revenue as people click on the ads. Some domain name registrars, like GoDaddy, park newly-registered domain names as a matter of course until those names are built out. I like to refer to this type of parking as passive domain parking. The registrant (owner) of the URL does nothing and receives nothing.
The next level of domain parking is what I call "affirmative" domain parking. It occurs when a third party actually takes active steps to create content on the "parked" name. Companies like Sedo, Trafficz, Fabulous, and Skenzo have been doing this, with varying degrees of success, for many years. Included in this level of service are companies that attempt to add content through social marketing and through automated means. They theorize that by generating unique content, they can increase their traffic and get better conversion on ads. The URL owner gets a portion of the proceeds.
In all domain parking, the exclusive ultimate source of revenue is ads.
Why Would Domain Parking Be in Danger?
Ad-sites have traditionally relied on two sources for traffic: search engine referrals and key-in traffic. Both sources of traffic are under attack.
Google and the other search engines have always been suspicious of ad-sites, but in recent history, Google has increasingly devalued (for search engine purposes) any sites that do not give Google patrons exactly what they are looking for on the first click. (If you've ever clicked on a search result and experienced the frustration of landing on an ad-site, you know why Google has moved in this direction.) In other words, Google wants its patrons to go from the Google results page directly to a one-stop site that either sells customers the product or gives them the information they want.
For product-specific sites, Google is looking for several things that indicate an actual one-stop site. First, the site must have a lot of content, so that Google can be confident the shopper will find what he or she is seeking. Second, the site has to continually be updated with new content. (In the real world of retail, inventories circulate and change.) Third, the site needs to contain elements that show an actual ability to sell products. In effect, Google is looking to see if there is an active shopping cart and check-out system, terms of service, shipping policy, security certificate, Better Business Bureau seal, and a list of credit cards accepted, along with hundreds of other indicators that the site is actually selling products to customers.
All these factors make it almost impossible for domain parking services to get Google's respect. Sites parked with parking companies will never accept credit cards; they will never have a Better Business Bureau seal of approval; they will never list an 800 number or offer instant messaging with customer service representatives; in short, they will never do a thousand things that every actual product site does. Consequently, a parked site alone can never achieve great ranking in Google.
To make matters worse, Google has also dealt a severe blow to those parked sites that rely on key-in traffic, like URL's that are either "keyterm.com" sites or slight variations or misspellings of commonly-searched keyterm URL's. These sites do not depend on Google's search engine for traffic (users type the address directly into the address bar), but they do depend on Google and other ad-propagating companies for the ads that are served up to their sites. In mid-2008, Google announced that it would allow advertisers to opt out of ad-sites. Presumably, these sites were directing poor-quality traffic to the advertisers, and they wanted to be able to avoid paying for those clicks, and the result has been devastating to domainers.
How Bad Is It?
Just visit any online forum for domainers, and you will feel a boiling sense of frustration as domainers seek a better return on their names. One almost detects a hint of desperation as some domainers try to find a service that will provide a return anywhere similar to what domainers received in the past. Switching from service to service, they often experience a temporary jump in revenue before dropping off again, leading to even greater frustration. Many are wondering if it's just their portfolio, or if it's bad for everybody. And if so, how bad is it?
2008 was especially bad for domainers for two reasons. First, Google's "opt-out" decision gave advertisers a way to focus their advertising dollars, and many chose to avoid parked pages. Second, the overall economy was just dismal, and everybody is suffering. Summing it up, Michael Mann of WashingtonVC.com noted, "The most significant event for the domain industry in '08 is Google changing its relationships with bulk domain parkers so they earn less due to blacklisting, advertiser opt out checkboxes, and lower rev shares all around; secondly the crash of the economy overall has been limiting domainer portfolio valuations and corresponding liquidity options." Commenting on the difficult year behind us, Ron Jackson of Domain Name Journal added, "The PPC (pay per click) business was the first to run aground, falling by close to 50%, according to most accounts."
This is a stunning reversal, worse than the stock market crash, although few want to admit it. But the proof is in the proverbial "pudding." Oversee.net, one of the leading players in the domain parking business, recently announced an 18% workforce reduction to go along with last summer's 10% reduction. Other players have been acquired or have simply disappeared. Truly, the domaining industry is bad all over.
For many domain owners, revenues have not even justified continued registrations. Monte Cahn of Moniker.com speaking to DNJournal.com about domain portfolio owners in 2008 noted, "For the first time, many began to 'cherry pick' through their inventories and allow domains to expire that they normally would have renewed." In other words, revenues had fallen so far that the costs of registering many of these domains actually exceeded those revenues.
Sedo CEO Tim Schumacher was particularly pointed in his comments to DNJournal.com about declining revenue numbers in 2008 and prospects for 2009: "With the negative trends accelerating towards the end of the year, registries like VeriSign posted lower registration numbers . . . and domain investors as well as domain companies saw their advertising revenues and their domain sales decrease. . . . While we at Sedo truly believe in the value of domain names, advertising numbers will continue to be weaker than expected unless the advertising providers will give the domain channel the dedication, transparency and freedom it deserves. . . . The theory that 'domain names will always grow in value' is a myth. Instead, smart buying and smart selling always was and always will be the choice of the successful ones. It's pretty simple: if someone offers you a 100x (yearly!) multiple on a domain name, because he likes or needs the name, and doesn't care about the traffic, go for it. A few smart companies have already made this a revenue stream, and more will follow."
Is there a Cure?
The pervasive opinion in the industry seems to be that domain owners will never realize the full potential of their domain names until they start to develop their properties. Ari Goldberg of ESQwire.com told Domain Name Journal, "A significant trend I see is that domainers seem to universally recognize that in order to reap the super-value of domains they must 'develop' them. With domain parking revenues down across the board, the move toward development has become relatively less risky and costly (i.e. less parking revenue to lose). On the other hand, the type of development and a domainer's capability to develop a domain is an entirely different story."
He commented further, "There are great opportunities for a domain-less individual with industry-specific experience, technical know-how and connections to link-up with domainers lacking these qualities."
In other words, for domainers, one great option is to find an individual or company that has the technical expertise, industry experience, and desire to build out domains for the URL owners. The company also needs to be willing to maintain and support the site, since most domainers are not interested in taking on a 24/7 job. To the extent there are any vendor relations or customer service, the company should commit to carry that burden, as well.
Of course, such companies are going to want a large part of the action, and the domainer choosing this path has moved completely away from domain parking to the relatively new field of domain profit sharing (DPS).
Domainers considering DPS should ask themselves, "what is my end goal?" If the end goal is to make money, they should compare the parking revenue to the supported projections advanced by the DPS company. If their agreement with an experienced DPS company ensures they can continue to control their URL's, guarantees a minimum income stream (at least equal to current ad revenues and with performance benchmarks along the way), and offers a large upside, then domainers should seriously consider making the leap.
The best DPS companies take on the entire cost of building and provisioning a site and pay domainers a percentage of "total sales." Domainers should avoid companies that offer only a cut of the "profit," since profit numbers can be manipulated. Domainers should also be able to log in to their account to determine rolling sales numbers.
A DPS company should also have experience in the entire process. It should be experienced building websites, and it should be skilled at marketing those sites through every online channel, including search engine optimization. The company should have a history of working with manufacturers and providing top-level customer service and product support. It is even better if the DPS company has all these functions in one place, preferably state-side and in-house, where the teams can communicate and work together.
Article Source: http://EzineArticles.com/2008776
Saturday, August 6, 2011
How To Value A Domain Name
Introducyion
You've decided on a domain name for your new business, and the domain is already registered and for sale. How much should you be willing to pay? This is becoming a common question, as so many quality domain names have already been taken. While there is no scientific method to determine a precise value for any domain name, there are some considerations that go into determining a reasonable ballpark value for that domain name you want. Please read on, and learn about some of the techniques professional domain appraisal companies utilize to ply their trade.
Valuation Fators
There are quite a few technical factors that go into determining what a domain name is worth, and there are differences of opinion as to the relative importance of the various factors. Here we will examine a number of commonly considered parameters in domain valuation. This collection is not necessarily meant to be all-inclusive, but is instead intended to give you a flavor of many of the fine points to consider.
One of the most important considerations in valuing a domain name is the "TLD," or Top Level Domain. This is the extension that appears at the end of the domain name, such as .com, .net, .org, etc. All other things being equal, a .com name will generally sell for about four times the otherwise equivalent domain in one of the other common global extensions, such as .net, .org, and .info. The .mobi extension, utilized for content to be delivered to mobile devices, is rapidly gaining popularity and value, especially for domain names suitable for such devices. Some country specific domains, such as .co.uk and .de (Germany) are very prestigious, and can also command high prices in certain cases. The .tv extension, later to hopefully be used in connection with internet enabled TV, results only occasionally in high value sales at current (until hardware, distribution, and media companies reslve their mutual "cut of the pie" concerns, there is likely to be little content to drive this market).
An extremely important consideration in the value of a domain name is th number of words it contains. Single "real word" domains (no misspellings or abbreviations), especially in easily monetizable internet industries, can be enormously valuable, particularly inthe .com extension. Two word domains, again without misspellings or abbreviations, can also be quite valuable, as long as the domain name can easily be monetized, and the TLD is of high quality. Values really plunge when you get to three words or more.
Domains containing misspellings, abbreviations, hyphens, characters not on a standard keyboard, and other oddities often have very little value. Also, domains containing phrases that are trademarked may be worth nothing, as the trademark owner may be able to summarily confiscate the domain.
The extent to which a domain can be monetized has a major impact on its value. Domains in the sex, financial, and health industries often top the list in terms of high value sales. Domains related to industries that cannot asily generate revenue on the web will usually have little value.
Generic domains tend to be more valuable than non-generic ones. A generic domain is one that contains only real words (ones you can find in a dictionary), and has no contribution from proper names (first or last). Generic .com domain names in highly monetizable industries can be immensely valuable, and are for the most part very hard to obtain (without spendin a lot of money!).
The number of letters in a domain name also affects its value. Three letter .com names can be quite valuable, even if they mean nothing. Four letter .com names usually need to be pronounceable to have value, but they need not necessarily be real words in the dictionary (cool sounding four letter .com names can be very brandable, even if they are made up). When you get to five letters or more, value is riven by quality of the word or words (generic vs. non-generic, monetizable vs. non- monetizable, etc.). Once you start getting over 8-9 letters, value tends to decrease a lot, unless the name is highly monetizable.
The extent to which a domain can be branded may be very important in deterining value. Domain names that are easy to say and remember, easy to type in, highly reflective of predictable monetizable content, and/or generate a lot of "type-in" traffic (people typing your domain name directly into the address box in their browser rather than finding your domain via a search engine) are highly sought after, and may transact for significant sums.
The size and profitability of the market to which the domain name applies is also important. This directly impacts how easily the domain name can be monetized. Needless to say, products and services that do not lend themselves to e-commerce (directly, or indirectly through selling ad space) will most often have little value.
We could go on almost forever listing factors that impact the value of a domain, but the above gives you a sense of what to consider.
Where's The Beef?
You'll notice the discussion thus far has presented no magic formulas for computing the right price to pay for your new domain name. I would love to give you a cool formula with lots of neat math symbols, but sadly things aren't that simple or elegant. In order to understand what you are going to have to pay, you need to learn a few things about the domain after market.
First, there is way more supply than demand. This at first may sound encouraging, but unfortunately it isn't. Most domain resellers are very inexperienced, and tend to price their domains way too high, and as a result drive buyers away. Haggling oftn results in little movement in the price.
Second, the really great names, one or two real word .com domains in high traffic, high margin internet sectors are essentially all bought up. They do sometimes become available for sale, but always at extravagant prices.
Third, you have to be very careful when buying non-generic domain names (domains containing words that are not in the dictionary, or domains containing words that are in the dictionary but combine toform an unusual phrase that th courts will not consider "public domain"). These domains may be protected by a trademark. In such cases, the trademark owner can sue for ownership in court, and quite possibly be able to confiscate your domain without remuneration.
At this point you're probably wondering how much to pay for that domain on the aftermarket. As stated above, I can't give you a precise formula. I can, however, give you some advice based on theabove principles, via reference to contemporary sales history. The basic idea is that I can provide you with anticipated price ranges (rather broad ones) that seem to be well in sync with recent domain aucton closings.
At the very top of the spectrum, you have one word, and very high quality two word, generic domains in easily monetizable internet sectors. These may sell for $100,000 USD or more, and will usually have .com extensions, althugh occasionally some will be in other high value TLD's (such as .net, ,org, .info, .mobi, .co.uk, and .de). The very best of these domains may approach $10,000,000.
Global (non-country specific) TLD's other than .com's rarely sell for more than $100,000. The best of these, again one word and very high quality two word generic domains in easily monetizable internet sectors, usually sell fo between $10,000 and $100,000, but sometimes may go as high as about $250,000. The best country specific extensions, mainly .co.uk and .de, lend themselves to the same kind of pricing as the non-.com global TLD's ($10,000 - $100,000). Some excellent domains in the .eu (Europe), .se (Sweden), .tv (Tuvalu), and .ch (Switzerland) extensions are starting to command these prices too.
There is an active aftermarket in two to three word .com names that are long (10 letters or more) and sell for $2,000 to $10,000. These tend to be generic, although some non-generics may be found here as well. Thee domains will in general be harder to monetize than the more premium names, either due to industry (not a high profit internet sector) or scope (serve only a subset of a larger sector).
word generics that are less monetizable than their otherwise equivalent brethren that sell for more.
Certain country specific domains tend to sell in the $1,000 to $10,000 range. These tend to be one word or short two word generics in the most attractive country extensions (especially .co.uk, .de, .eu, and .v). Needless to say, these are not as monetizable as their more premium brethren.
If the domain you want does not fall into one of the above categories, you should think long and hard before spending more than $2,000 or so. Admittedly, there will be times when purchasing a particular non-generic name may be unavoidable (e.g., you already have an offline business name which is not trademarked, and need the corresponding domain for your online preence). The key point here is that absent proof of pre-existing heavy traffic, and/or profits from an already deployed web site at the domain, these names are just not that valuable.
Article Source: http://EzineArticles.com/883443
You've decided on a domain name for your new business, and the domain is already registered and for sale. How much should you be willing to pay? This is becoming a common question, as so many quality domain names have already been taken. While there is no scientific method to determine a precise value for any domain name, there are some considerations that go into determining a reasonable ballpark value for that domain name you want. Please read on, and learn about some of the techniques professional domain appraisal companies utilize to ply their trade.
Valuation Fators
There are quite a few technical factors that go into determining what a domain name is worth, and there are differences of opinion as to the relative importance of the various factors. Here we will examine a number of commonly considered parameters in domain valuation. This collection is not necessarily meant to be all-inclusive, but is instead intended to give you a flavor of many of the fine points to consider.
One of the most important considerations in valuing a domain name is the "TLD," or Top Level Domain. This is the extension that appears at the end of the domain name, such as .com, .net, .org, etc. All other things being equal, a .com name will generally sell for about four times the otherwise equivalent domain in one of the other common global extensions, such as .net, .org, and .info. The .mobi extension, utilized for content to be delivered to mobile devices, is rapidly gaining popularity and value, especially for domain names suitable for such devices. Some country specific domains, such as .co.uk and .de (Germany) are very prestigious, and can also command high prices in certain cases. The .tv extension, later to hopefully be used in connection with internet enabled TV, results only occasionally in high value sales at current (until hardware, distribution, and media companies reslve their mutual "cut of the pie" concerns, there is likely to be little content to drive this market).
An extremely important consideration in the value of a domain name is th number of words it contains. Single "real word" domains (no misspellings or abbreviations), especially in easily monetizable internet industries, can be enormously valuable, particularly inthe .com extension. Two word domains, again without misspellings or abbreviations, can also be quite valuable, as long as the domain name can easily be monetized, and the TLD is of high quality. Values really plunge when you get to three words or more.
Domains containing misspellings, abbreviations, hyphens, characters not on a standard keyboard, and other oddities often have very little value. Also, domains containing phrases that are trademarked may be worth nothing, as the trademark owner may be able to summarily confiscate the domain.
The extent to which a domain can be monetized has a major impact on its value. Domains in the sex, financial, and health industries often top the list in terms of high value sales. Domains related to industries that cannot asily generate revenue on the web will usually have little value.
Generic domains tend to be more valuable than non-generic ones. A generic domain is one that contains only real words (ones you can find in a dictionary), and has no contribution from proper names (first or last). Generic .com domain names in highly monetizable industries can be immensely valuable, and are for the most part very hard to obtain (without spendin a lot of money!).
The number of letters in a domain name also affects its value. Three letter .com names can be quite valuable, even if they mean nothing. Four letter .com names usually need to be pronounceable to have value, but they need not necessarily be real words in the dictionary (cool sounding four letter .com names can be very brandable, even if they are made up). When you get to five letters or more, value is riven by quality of the word or words (generic vs. non-generic, monetizable vs. non- monetizable, etc.). Once you start getting over 8-9 letters, value tends to decrease a lot, unless the name is highly monetizable.
The extent to which a domain can be branded may be very important in deterining value. Domain names that are easy to say and remember, easy to type in, highly reflective of predictable monetizable content, and/or generate a lot of "type-in" traffic (people typing your domain name directly into the address box in their browser rather than finding your domain via a search engine) are highly sought after, and may transact for significant sums.
The size and profitability of the market to which the domain name applies is also important. This directly impacts how easily the domain name can be monetized. Needless to say, products and services that do not lend themselves to e-commerce (directly, or indirectly through selling ad space) will most often have little value.
We could go on almost forever listing factors that impact the value of a domain, but the above gives you a sense of what to consider.
Where's The Beef?
You'll notice the discussion thus far has presented no magic formulas for computing the right price to pay for your new domain name. I would love to give you a cool formula with lots of neat math symbols, but sadly things aren't that simple or elegant. In order to understand what you are going to have to pay, you need to learn a few things about the domain after market.
First, there is way more supply than demand. This at first may sound encouraging, but unfortunately it isn't. Most domain resellers are very inexperienced, and tend to price their domains way too high, and as a result drive buyers away. Haggling oftn results in little movement in the price.
Second, the really great names, one or two real word .com domains in high traffic, high margin internet sectors are essentially all bought up. They do sometimes become available for sale, but always at extravagant prices.
Third, you have to be very careful when buying non-generic domain names (domains containing words that are not in the dictionary, or domains containing words that are in the dictionary but combine toform an unusual phrase that th courts will not consider "public domain"). These domains may be protected by a trademark. In such cases, the trademark owner can sue for ownership in court, and quite possibly be able to confiscate your domain without remuneration.
At this point you're probably wondering how much to pay for that domain on the aftermarket. As stated above, I can't give you a precise formula. I can, however, give you some advice based on theabove principles, via reference to contemporary sales history. The basic idea is that I can provide you with anticipated price ranges (rather broad ones) that seem to be well in sync with recent domain aucton closings.
At the very top of the spectrum, you have one word, and very high quality two word, generic domains in easily monetizable internet sectors. These may sell for $100,000 USD or more, and will usually have .com extensions, althugh occasionally some will be in other high value TLD's (such as .net, ,org, .info, .mobi, .co.uk, and .de). The very best of these domains may approach $10,000,000.
Global (non-country specific) TLD's other than .com's rarely sell for more than $100,000. The best of these, again one word and very high quality two word generic domains in easily monetizable internet sectors, usually sell fo between $10,000 and $100,000, but sometimes may go as high as about $250,000. The best country specific extensions, mainly .co.uk and .de, lend themselves to the same kind of pricing as the non-.com global TLD's ($10,000 - $100,000). Some excellent domains in the .eu (Europe), .se (Sweden), .tv (Tuvalu), and .ch (Switzerland) extensions are starting to command these prices too.
There is an active aftermarket in two to three word .com names that are long (10 letters or more) and sell for $2,000 to $10,000. These tend to be generic, although some non-generics may be found here as well. Thee domains will in general be harder to monetize than the more premium names, either due to industry (not a high profit internet sector) or scope (serve only a subset of a larger sector).
word generics that are less monetizable than their otherwise equivalent brethren that sell for more.
Certain country specific domains tend to sell in the $1,000 to $10,000 range. These tend to be one word or short two word generics in the most attractive country extensions (especially .co.uk, .de, .eu, and .v). Needless to say, these are not as monetizable as their more premium brethren.
If the domain you want does not fall into one of the above categories, you should think long and hard before spending more than $2,000 or so. Admittedly, there will be times when purchasing a particular non-generic name may be unavoidable (e.g., you already have an offline business name which is not trademarked, and need the corresponding domain for your online preence). The key point here is that absent proof of pre-existing heavy traffic, and/or profits from an already deployed web site at the domain, these names are just not that valuable.
Article Source: http://EzineArticles.com/883443
Domain Name Terms
This will be a list of domain name terms that are commonly used in the industry. I hope this eases some confusion or at least educates a few people out there. There's nothing more frustrating than talking to customer service and not understanding the words they're saying.
Administrative Contact: The administrative contact is an individual authorized to make certain changes to a domain name on behalf of the registrant. This person will tyically have the ability to transfer a domain name, so it's recommended to be someone the registrant trusts.
Appraising: Evaluating a domain name and determining the value of that domain in the market.
Country Code: These are special TLD's that refer to a specific country. For example, .us is the United States while .ca is Canada.
Deactivation: This refers to a domain name no longer being in the "zone files". The domain servers no longer have access to the domain name's data, and any websites or email addresses associated with the domain name will become inactive. A domain that is deactivated may still be renewed.
Deletion: This is when a domain has gone through the entire life cycle of a domain name and will be deleted from the registry's master list. Once a domain name is deleted, it instantly becomes available for public purchase.
Domain Name: The letters or words typed into a web browser that signifies a website.
Domain Name Dispute: This refers to a dispute over who owns a given domain name. This can also happen when a domain name is similar to another domain that is trademarked by someone. There is a policy that defines this process called Domain Name Dispute Policy.
Domain Servers: Usually referred to as DNS (Domain Name System). These hold records or data for a domain name. Most registrars require at least two domain servers to be set for a domain name. These tell computers around the world how to find the domain name and view the appropriate web page, or deliver an email message. They do the "mapping" on the internet highway.
DNS: See "Domain Servers"
Escrow: A third party service that is used during the sale of a domain name from one person to another. These companies will hold the buyer's money until the transfer of the domain name is complete. This ensures that both the buyer and the seller are protected during the transaction.
Host: This is the computer or server that contains the data for the domain name such as a website or email. These computers or servers are typically owned by a hosting company or web host.
ICANN: Internet Corporation for Assigned Names and Numbers - A non profit organization that handles IP address space allocation and most other regulatory tasks associated with domain names. They make the rules for how registrars and registries can behave.
IP Address" A numerical address that computers use to route data in the format of (123.123.123.123). When you type in a domain name, it actually finds its IP Address and sends the user to that IP.
Parking: This is a type of hosting style that can be used for any domain name. When a domain is "parked" there is no real website or content. Usually people will park domain names as a temporary solution until they have found a hosting company to use.
Private Registration: This is also known as WHOIS Privacy services. This will put alternate information in the WHOIS record for a domain name. This is useful if you wish to keep your contact information private.
Propagation: The process where name servers throughout the world add new domains and remove expired ones from their records. This can take anywhere between a few minutes and 72 hours depending on a number of factors. Please note that a registrar cannot make this go faster for your domain name. When you change your DNS or register a new domain name, propagation must take place.
Redemption: The redemption grace period is a time frame lasting roughly 30 days. A domain name will go into the redemption status after a registrar deletes the domain name record from their internal database. This does not mean the domain is deleted and available for public purchase. The domain can still be redeemed but it must go back to the previous owner and there are usually very steep fees to do so. Also, you may only redeem the domain name with the registrar it was previously registered with.
Registrant: This is considered the owner of the domain name. Typically this information cannot be changed easily to ensure the domain name does not leave the hands of the owner.
Registrant Name Change Agreement (RNCA): This is the process of changing information for a registrant such as the name of the person or company who owns the domain name. This is usually considered a domain transfer, but happens within the registrar from one account to another. It is important to note that it occurs within the same registrar.
Registration: The process of purchasing a domain name. Once a new domain name has been purchased it is considered "registered".
Registrar: A registrar is a company that is able to sell domain names to the public. Registrars purchase their domains from the registries for each TLD.
Registry: A registry is a company that holds a master list of all registered domain names for the TLD they represent. For instance, VeriSign is the registry for COM and NET, but the Public Interest Registry is the registry for ORG. They do not sell domains to the public, but rather sell domains to registrars.
Renew: When a domain name reaches its expiration date it will eventually go into the deletion cycle. It is important that a domain owner who wishes to keep the domain name renew it. The owner would pay for another registration term and keep the domain name. Please note that anyone can renew any domain name. You do not have to be the owner or even associated with the domain name to renew it, however, the ownership never changes when a domain is renewed.
Reseller: There are many companies out there that resell a domain name. Typically someone registers a domain name at the reseller's website and then the reseller registers the domain name on your behalf with a registrar. In almost all cases, if you purchase a domain name through a reseller, you must use them for support. If your reseller won't support you, you should call the registrar immediately and file a complaint. Ask if there is a way to leave the reseller's account and use one of your own. Be warned that the prices the registrar offers you may not be the same as the reseller offered.
Resolve: This is commonly used to describe if a website appears when you type in a domain name. If the site does not appear, then it is considered to not be resolving. Technically, it is when the domain name is tied to an IP address regardless if there is a website or not.
Subdomain: A domain name has three parts. In the exampleeach part is separated by a d The first part (www) is a subdomain. The second part (domainname) is a domain name and the third part (com) is a Top Level Domain or TLD.
Top Level Domain: Commonly known as TLD - this is the last part of a domain name (.com, .net, .org are all TLD's).
Transfer: This refers to the process of taking a domain name from one registrar and giving it to another. The actual registrar changes and the registrant information can potentially change as well. This is not to be confused with changing the DNS on a domain name. You don't want to call your registrar and initiate a transfer of the domain name by accident as you can potentially lose the domain name! Also note that the domain name may only be transferred if it meets the transfer requirements delegated by ICANN.
Administrative Contact: The administrative contact is an individual authorized to make certain changes to a domain name on behalf of the registrant. This person will tyically have the ability to transfer a domain name, so it's recommended to be someone the registrant trusts.
Appraising: Evaluating a domain name and determining the value of that domain in the market.
Country Code: These are special TLD's that refer to a specific country. For example, .us is the United States while .ca is Canada.
Deactivation: This refers to a domain name no longer being in the "zone files". The domain servers no longer have access to the domain name's data, and any websites or email addresses associated with the domain name will become inactive. A domain that is deactivated may still be renewed.
Deletion: This is when a domain has gone through the entire life cycle of a domain name and will be deleted from the registry's master list. Once a domain name is deleted, it instantly becomes available for public purchase.
Domain Name: The letters or words typed into a web browser that signifies a website.
Domain Name Dispute: This refers to a dispute over who owns a given domain name. This can also happen when a domain name is similar to another domain that is trademarked by someone. There is a policy that defines this process called Domain Name Dispute Policy.
Domain Servers: Usually referred to as DNS (Domain Name System). These hold records or data for a domain name. Most registrars require at least two domain servers to be set for a domain name. These tell computers around the world how to find the domain name and view the appropriate web page, or deliver an email message. They do the "mapping" on the internet highway.
DNS: See "Domain Servers"
Escrow: A third party service that is used during the sale of a domain name from one person to another. These companies will hold the buyer's money until the transfer of the domain name is complete. This ensures that both the buyer and the seller are protected during the transaction.
Host: This is the computer or server that contains the data for the domain name such as a website or email. These computers or servers are typically owned by a hosting company or web host.
ICANN: Internet Corporation for Assigned Names and Numbers - A non profit organization that handles IP address space allocation and most other regulatory tasks associated with domain names. They make the rules for how registrars and registries can behave.
IP Address" A numerical address that computers use to route data in the format of (123.123.123.123). When you type in a domain name, it actually finds its IP Address and sends the user to that IP.
Parking: This is a type of hosting style that can be used for any domain name. When a domain is "parked" there is no real website or content. Usually people will park domain names as a temporary solution until they have found a hosting company to use.
Private Registration: This is also known as WHOIS Privacy services. This will put alternate information in the WHOIS record for a domain name. This is useful if you wish to keep your contact information private.
Propagation: The process where name servers throughout the world add new domains and remove expired ones from their records. This can take anywhere between a few minutes and 72 hours depending on a number of factors. Please note that a registrar cannot make this go faster for your domain name. When you change your DNS or register a new domain name, propagation must take place.
Redemption: The redemption grace period is a time frame lasting roughly 30 days. A domain name will go into the redemption status after a registrar deletes the domain name record from their internal database. This does not mean the domain is deleted and available for public purchase. The domain can still be redeemed but it must go back to the previous owner and there are usually very steep fees to do so. Also, you may only redeem the domain name with the registrar it was previously registered with.
Registrant: This is considered the owner of the domain name. Typically this information cannot be changed easily to ensure the domain name does not leave the hands of the owner.
Registrant Name Change Agreement (RNCA): This is the process of changing information for a registrant such as the name of the person or company who owns the domain name. This is usually considered a domain transfer, but happens within the registrar from one account to another. It is important to note that it occurs within the same registrar.
Registration: The process of purchasing a domain name. Once a new domain name has been purchased it is considered "registered".
Registrar: A registrar is a company that is able to sell domain names to the public. Registrars purchase their domains from the registries for each TLD.
Registry: A registry is a company that holds a master list of all registered domain names for the TLD they represent. For instance, VeriSign is the registry for COM and NET, but the Public Interest Registry is the registry for ORG. They do not sell domains to the public, but rather sell domains to registrars.
Renew: When a domain name reaches its expiration date it will eventually go into the deletion cycle. It is important that a domain owner who wishes to keep the domain name renew it. The owner would pay for another registration term and keep the domain name. Please note that anyone can renew any domain name. You do not have to be the owner or even associated with the domain name to renew it, however, the ownership never changes when a domain is renewed.
Reseller: There are many companies out there that resell a domain name. Typically someone registers a domain name at the reseller's website and then the reseller registers the domain name on your behalf with a registrar. In almost all cases, if you purchase a domain name through a reseller, you must use them for support. If your reseller won't support you, you should call the registrar immediately and file a complaint. Ask if there is a way to leave the reseller's account and use one of your own. Be warned that the prices the registrar offers you may not be the same as the reseller offered.
Resolve: This is commonly used to describe if a website appears when you type in a domain name. If the site does not appear, then it is considered to not be resolving. Technically, it is when the domain name is tied to an IP address regardless if there is a website or not.
Subdomain: A domain name has three parts. In the exampleeach part is separated by a d The first part (www) is a subdomain. The second part (domainname) is a domain name and the third part (com) is a Top Level Domain or TLD.
Top Level Domain: Commonly known as TLD - this is the last part of a domain name (.com, .net, .org are all TLD's).
Transfer: This refers to the process of taking a domain name from one registrar and giving it to another. The actual registrar changes and the registrant information can potentially change as well. This is not to be confused with changing the DNS on a domain name. You don't want to call your registrar and initiate a transfer of the domain name by accident as you can potentially lose the domain name! Also note that the domain name may only be transferred if it meets the transfer requirements delegated by ICANN.
How to Register an Expiring Domain
The normal domain expiration process for .com .net
A domain is registered for a time period of 1-10 years. During this time the domain owner has unrestricted use of the domain.
At the end of this time period, the registrant is required to pay a renewal fee to the registrar to continue to use the domain. If the domain is renewed go back to phase 1, if not the domain is placed in an onhold (on-hold) status for 1-45 days (each registrar has determines how long this period lasts). During this time, the registrant (owner of the domain) can still pay the renewal fee and continue to use his/her domain name. During this onhold period the domain resolves to the registrars website or does not resolve at all.
After the 1-45 day onhold period, the domain then enters redemption status (RGP - Redemption grace period), which lasts for 30 days. During this time the registrant of the domain name has the option to pay a redemption penalty fee (redemption fees generally cost between $100-200 depending on the registrar) and renew the domain. If the domain owner renews the domain go back to phase 1. During this redemption period the domain resolves to the registrars website or does not resolve at all.
After the domain completes the 30 day redemption period without being renewed, it then enters a 5 day pending delete period. During this the time the registrant no longer has the ability to renew the domain name. The domain will be released to the general public and be available for registration on the sixth day at 2pm eastern.
(This drop process does not hold true for exclusive backorders)
Domains are an ever changing industry. Over the last 2 years, many things have changed including many variations of the domain deletion process. The above mentioned process is the norm, but every day more and more registrars are starting to have exclusive drops.
An example of an exclusive drop: A domain is registered with Network Solutions. The registrant fails to renew the domain within 60 days of the expiration date. The domain is then auctioned off at snapnames.com (a domain
auction site).
dotster must be backordered at namewinner Domains registered at enom must be backordered at club drop (if at least on backorder is placed at the above services the domain will stay with the original registrar, if no backorder is placed, the domain will follow the normal drop process) A backorder is the process of signing up at a drop catching service and making a request to be the next owner of a domain. The prices at each drop catch service vary. Pool.com - Backorders start at $60. Pool uses a pay for performance business model. If pool does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain and pool catches it, you are awarded the domain for $60. If the expired domain was backordered by more than one person, the domain is then up for private auction. People that backordered the domain prior to Pool catching it are only allowed to bid in the auction. The auction lasts for 3 days. SnapNames.com - Backorders start at $60. Snapnames uses a pay for performance business model. If Snapnames does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain and snapnames catches it, you are awarded the domain for $60. If the expired domain was backordered by more than one person, the domain is then up for private auction. People that backordered the domain prior to snapnames catching it are only allowed to bid in the auction. The auction lasts for 3 days. Enom Club Drop - Backorder start price is optional$10 or $30. Enom uses a pay for performance business model. If enom does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain for $10 the domain then goes to public auction, but if you backordered it for $30 or more and enom catches it, you are awarded the domain. If the expired domain was backordered for $30 or more by more than one person, the domain is then up for private auction. The auction lasts for 3 days. Namewinner.com - Backorders start at $30. Namewinner uses a pay for performance business model. If namewinner does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain and namewinner catches it, you are awarded the domain for $30. If the expired domain was backordered by more than one person, the domain is then up for private auction. People that backordered the domain prior to namewinner catching it are only allowed to bid in the auction. The auction lasts for 3 days. Godaddy.com or any Wild West Domains Reseller - $18.95 first come first served (only one person can place a backorder on any one expiring domain, if or when the domain expires and godaddy catches it, the backorder holder is awarded the domain.) It is always best to fully research an expiring domain name. There is no sure fire way of knowing if a domain will receive traffic, or how much a domain is worth. But by checking to see how many sites link to a domain (linkpop), how many people searched for the domain in the previous month (overture with extension), how many people searched for the terms that make up the domain in the previous month (overture without the extension), what the google pr is (google page rank), and what the domain was use for in the past (wayback archive), you can get a rough idea of how much traffic you should expect.
A domain is registered for a time period of 1-10 years. During this time the domain owner has unrestricted use of the domain.
At the end of this time period, the registrant is required to pay a renewal fee to the registrar to continue to use the domain. If the domain is renewed go back to phase 1, if not the domain is placed in an onhold (on-hold) status for 1-45 days (each registrar has determines how long this period lasts). During this time, the registrant (owner of the domain) can still pay the renewal fee and continue to use his/her domain name. During this onhold period the domain resolves to the registrars website or does not resolve at all.
After the 1-45 day onhold period, the domain then enters redemption status (RGP - Redemption grace period), which lasts for 30 days. During this time the registrant of the domain name has the option to pay a redemption penalty fee (redemption fees generally cost between $100-200 depending on the registrar) and renew the domain. If the domain owner renews the domain go back to phase 1. During this redemption period the domain resolves to the registrars website or does not resolve at all.
After the domain completes the 30 day redemption period without being renewed, it then enters a 5 day pending delete period. During this the time the registrant no longer has the ability to renew the domain name. The domain will be released to the general public and be available for registration on the sixth day at 2pm eastern.
(This drop process does not hold true for exclusive backorders)
Domains are an ever changing industry. Over the last 2 years, many things have changed including many variations of the domain deletion process. The above mentioned process is the norm, but every day more and more registrars are starting to have exclusive drops.
An example of an exclusive drop: A domain is registered with Network Solutions. The registrant fails to renew the domain within 60 days of the expiration date. The domain is then auctioned off at snapnames.com (a domain
auction site).
dotster must be backordered at namewinner Domains registered at enom must be backordered at club drop (if at least on backorder is placed at the above services the domain will stay with the original registrar, if no backorder is placed, the domain will follow the normal drop process) A backorder is the process of signing up at a drop catching service and making a request to be the next owner of a domain. The prices at each drop catch service vary. Pool.com - Backorders start at $60. Pool uses a pay for performance business model. If pool does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain and pool catches it, you are awarded the domain for $60. If the expired domain was backordered by more than one person, the domain is then up for private auction. People that backordered the domain prior to Pool catching it are only allowed to bid in the auction. The auction lasts for 3 days. SnapNames.com - Backorders start at $60. Snapnames uses a pay for performance business model. If Snapnames does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain and snapnames catches it, you are awarded the domain for $60. If the expired domain was backordered by more than one person, the domain is then up for private auction. People that backordered the domain prior to snapnames catching it are only allowed to bid in the auction. The auction lasts for 3 days. Enom Club Drop - Backorder start price is optional$10 or $30. Enom uses a pay for performance business model. If enom does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain for $10 the domain then goes to public auction, but if you backordered it for $30 or more and enom catches it, you are awarded the domain. If the expired domain was backordered for $30 or more by more than one person, the domain is then up for private auction. The auction lasts for 3 days. Namewinner.com - Backorders start at $30. Namewinner uses a pay for performance business model. If namewinner does not catch the domain when it expires then you are not charged. If you are the only person that backordered a domain and namewinner catches it, you are awarded the domain for $30. If the expired domain was backordered by more than one person, the domain is then up for private auction. People that backordered the domain prior to namewinner catching it are only allowed to bid in the auction. The auction lasts for 3 days. Godaddy.com or any Wild West Domains Reseller - $18.95 first come first served (only one person can place a backorder on any one expiring domain, if or when the domain expires and godaddy catches it, the backorder holder is awarded the domain.) It is always best to fully research an expiring domain name. There is no sure fire way of knowing if a domain will receive traffic, or how much a domain is worth. But by checking to see how many sites link to a domain (linkpop), how many people searched for the domain in the previous month (overture with extension), how many people searched for the terms that make up the domain in the previous month (overture without the extension), what the google pr is (google page rank), and what the domain was use for in the past (wayback archive), you can get a rough idea of how much traffic you should expect.
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