Domain name

A domain name is a name of a computer on the Internet that distinguishes it from the other systems on the network. They are sometimes colloquially (and incorrectly) referred to by marketers as "web addresses".

Commercial resale of domain names

An economic effect of the widespread usage of domain names has been the resale market for generic domain names that has sprung up in the last decade. Certain domains, especially those related to business, gambling, pornography, and other commercially lucrative fields have become very much in demand to corporations and entrepreneurs due to their intrinsic value in attracting clients. For example, the domain name sex.com was stolen from its rightful owner by means of a forged transfer instruction. During the height of the dot-com era, the domain was earning millions of dollars per month in advertising revenue from the large influx of visitors that arrived daily. Two long-running US lawsuits resulted, one against the thief and one against the domain registrar VeriSignhttp://www.wired.com/news/business/0,1367,63142,00.html.

Related Topics:
Sex.com - Dot-com - VeriSign

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One of the reasons for the value of domain names is that even without advertising or marketing, they attract clients seeking services and products who simply type in the generic name. Furthermore, generic domain names such as Rent.com or Books.com are extremely easy for potential customers to remember, increasing the probability that they become repeat customers or regular clients.

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Although the current domain market is nowhere as strong as it was during the dot-com heyday, it remains strong and is currently experiencing solid growth again. Annually tens of millions of dollars change hands due to the resale of domains. It has been estimated that around 40% of registered domain names lapse and are deleted each year, which is approximately 25,000 domain names every day.

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