How to Make a Profit On Domain Names

It is said that the land rush today is a virtual one, taking place online through the purchase of domain names. There are certainly fortunes to be made in domain names, as previous sales of single names have commanded six and seven figure price tags while whole portfolios have sold for tens of millions of dollars. But that is the exception to the rule, and most portfolios are valued at much, much less. Some portfolios, or single domains won’t sell at all, so where is the value in that? In this article, we will look at some of the different methods professional domainers use to build a quality portfolio of valuable domain names and how they make a profit.

The first thing to consider is why you want to make money with domain names and what you hope to obtain from them. Are you hoping to purchase low and resell the domains for a profit? Or is it an investment with a long term strategy of website development and growth? There are many different paths to take when participating in the domain after market, and understanding where you want to go is the first step towards getting there. Some paths are riskier than others, so evaluating your options ahead of time will help you become better prepared for the challenges to come. Not everyone can make money with domain names, but the persistent and motivated often do. Once you have a clear vision of what you want, it becomes much easier to make choices that will move you in that direction.

The most obvious way to make money with domain names is to buy low and sell high. This is one of the most common methods used on the stock market and can be very profitable in many domain situations as well. All domain names start out at the registration fee, which can be as low as six or seven dollars per year for .com, .net, and .org domains. If you happen to register a domain that others perceive has value, the difference in the registration fee and this perceived (and/or actual) value can be a nice profit for the domain owner. Domainers who make money using this method often follow trends in the domain marketplace, registering keywords of new Top Level Domains (TLDs), registering and reselling desirable domain patterns (three letter domains, three character domains, etc), or just following what’s hot or picking up established domains as they expire (which is a method in and of itself). The general idea here remains to buy a domain at a bargain and find a buyer who also sees value in the domain and is willing to pay a premium for it.

The upside to reselling domain names is that you can generate a decent amount of profits in a relatively short amount of time. The downside is that it may not always go as planned, and you will not always find a buyer for your domains right away. It can be tough to find buyers for specific names and if domains aren’t reasonable priced, a buyer may never appear. Another downside is that you only make money off your own physical effort. You have to take the time to find domains to purchase, follow through with the purchase, and then find a buyer and complete the sale. This process can take quite a bit of time and involves a degree of risk. You may also find yourself holding onto domain names a lot longer than initially thought and end up playing the waiting game. With most domains, there are much better ways to produce profits, but don’t discount this method for its potential ability to generate income in a short amount of time with the right domains.

Paid parking is another method for making a profit on domain names. This works for some names, mostly generic domains, typos, or names that receive steady traffic. There are many different parking programs available, but the basic idea is to sign up with a paid parking service and then send your domain traffic to their servers. Their servers will then display ads and search boxes on template generated websites, and you earn a portion of the revenue if anyone clicks on a link or purchases an advertiser’s product. This system works when the domain earns more revenue per year than the cost of the yearly renewal fees. For instance, if you pay $12 per year for registration fees, the domain would need to earn slightly more than $1 per month to be a worthwhile option. Any less and it costs more to maintain the domain than the amount of money the domain produces. The plus side to this method is that once the domain parking is setup, you don’t have to do anything to earn income as long as your domain receives traffic.

Many domainers will park new domains they purchase in order to gauge traffic and see if the domains will be profitable on a paid parking service. If a domain shows the potential to make revenue, they will most likely keep it for the passive income. Otherwise, they will look at other options for making a profit on the domain.

You may also consider developing a website around a domain name. The site could sell products, subscriptions, offer content and display advertisements, or offer varying combinations of techniques to generate revenue. The idea is to build up a profitable website and in essence, create a resellable asset that produces income. Having an established website (profitable or not) can greatly increase the value of a domain as well as make it appeal to more buyers. With this method, you can build up websites specifically to resell, or hold onto them for a continual income stream.

As competition in the domain marketplace becomes increasingly fierce, more domainers are becoming webmasters in an effort to maximize their profits and revenue while dramatically increasing the value of their portfolios.

Hopefully by now you have an idea of some of the main methods used to make money with domains. There are countless other methods for turning a profit, and numerous variations of the methods described in this article, but having a base of knowledge provides an excellent starting point. The key is to know what you want beforehand, learn as much as you can about specific methods that will help get you where you want to go, and then keep at it until you succeed. Many people fail because they give up, or don’t do the research beforehand and end up losing money in bad deals. Making money with domain names isn’t a get rich quick scheme, but with enough effort, motivation, and patience, anyone can succeed.

Domain Names–What To Consider When Choosing One

Domain Name Registration

Never register your domain name through your web hosting company however attractive the deal might appear. Why? Well one day you may wish to transfer your domain name to another web hosting provider and your current web host may not take kindly to this. It is not unusual in such cases for the web host to charge a transfer fee and even in extreme cases to unequivocally refuse the transfer of your domain name. If such a situation arises you can report the offending party to the International Corporation for Assigned Names and Numbers (ICANN).

Another thing to consider when registering your domain name is not to rely solely on your domain name register to ensure that the domain name you have in mind is available and does not infringe on someone else’s trademark rights (unless you enjoy being sued). To be doubly sure your domain name has no trademark infringement issues, after conducting a search for its availability on your domain name register’s website, you can also check at the United States Patent and Trademark Office (USPTO) http://www.uspto.gov.

When registering your domain name it’s a good idea to register it for more than one year. The reason being that, other than the usual discounts you get for multi-year registrations from most domain name registers, Google (and perhaps the other search engines) consider multi-year registered domains as less likely to be spam sites. Consequently, right off the bat your site will have a search engine advantage (at least with Google), such as a shorter evaluation period in the Google Sandbox.

A final note about domain name registration; there are plenty of domain name registration companies out there, all eager and equally willing to register your new name. Domain name registration prices range from as little as $10 a year up to $35 per year and beyond. Generally there is little point in opting for the more expensive registers because you more or less get the same service. In fact some of the cheaper domain name registration companies provide better quality service.

However whatever service you use, make sure that your domain name is registered in your name. Some less scrupulous domain registration services have been known to register new domains with their own information. You can verify that your domain is registered with your particulars at: http://www.internic.net/whois.html.

The Domain Name Game

So what kind of domain name do you want? Do you want to pick a domain name incorporated with a targeted keyword, or do you want to take the memorable-brand route that the likes of Google, Yahoo and Amazon (to name but a few) have done with astounding success. Well, if your website is going to be business related or involved in some form of commerce it makes sense to have a well-searched-for-keyword incorporated within the domain name. The majority of online businesses are still found through search engine queries. By and large though, a good rule of thumb is to incorporate the most searched for term (for your market) in your domain name.

The shorter your domain name the more memorable it’s going to be. However you’ll discover that most one-word/two-word domain names have been snatched up already. One alternative you’ve got is to hyphenate your targeted keyword with another word. The jury is still out about hyphens though, but most seo experts concur that hyphenating a string of words makes a long domain name more search engine friendly. The downside is that when it comes to word-of-mouth dissemination most folks won’t bother including those pesky hyphens, with the resulting consequence that intended referrals to your domain could end up on your competitor’s doorstep. So as you can see, the whole process of naming your domain is a fine balancing act.

Cutesy Artsy Domain Names

There’s a budding artist in all of us waiting for just the right moment and place to show the world we are the new Leonardo da Vinci. Be that as it may, but naming your domain is not the place to express that inner artist. Avoid cutesy names interspersed with numbers in place of words (e.g., 4 instead of for), they’ll only confuse potential customers and torment you with heaps of regret somewhere down the road. In fact the best rule of thumb is to avoid numbers in your domain name altogether. However, if on the other hand your domain functions merely as a cyber-platform to let an uncaring world know you exist, then by all means let loose!

Bottom line…your domain name is your online identity, so try to choose something that is memorable, fares well with the search engines, and also inspires confidence and respect.

To Dot.com or Not to Dot.com

These days there’re more and more choices for domain name extensions. This is great news because it is getting increasingly difficult to find a good domain name ending in .com that runs under twenty letters (okay that might be a wee bit of an exaggeration but you get the point). However the drawback with using anything other than a .com extension is human nature. You see people are creatures of conditioning and habit, and given a choice of precisely similar domain names, (other than the extension) you can bet most of us will instinctively beeline for the domain name with the .com extension–Without question the .com extension is the most recognizable.

Also think twice before settling for a top level country code domain such as co.uk. Unless you are located in that region and ship primarily within the area, such a domain name could have a negative impact on your business. Think about it…a potential customer based in the U.S. or another part of the world is not going to relish the prospect of forking out a mini fortune for shipping and handling fees when they can easily find a more local competitor. In the same vein try not to regionalize your domain name (unless your business caters to a market found only within that region) because you’ll probably lose potential customers who reside elsewhere.

On a final note, if you anticipate a lot of your traffic is going to come via word-of-mouth referral, you might consider registering similar domain names and redirecting to your main url (e.g. [http://www.africasafarizone.com] and [http://www.africansafarizone.com]) before cyber-squatters (people who register domain names in hopes of selling them for a profit) get wind of your growing success and beat you to it.

Why Should You Sell Domains?

“Money for nothing and the chicks for free”:
that is the perfect slogan for the life of people who buy and sell domains. Why? Because if you make it big in domain names, you are pretty much set for life. Sure, I may be making thousands a month with little investment, but the real big fishes make that a day. It might seem crazy, but it’s true. I do not work a day job, because I don’t need to: I sell domains. I do not labor 8 hour work days: I sell domains. That’s right, domains can make your life a lot nicer than it is now. If you are looking into domain investing, but are still on the fence as to whether it’s worth it, I hope that this article will help you make your decision.

Different people (and not only those who sell domains) have different opinions about investment. Some people will tell you that you shouldn’t spend money to make money. Investors will tell you that you should spend a lot of money to make money. The truth is that they are both partly right. As the old adage goes, ‘nothing in life is free’. All great businessmen needed capital to start their business. Whether their parents gave them money, whether they used to work a day job, or whether they took out a loan, they all input some money into their work. Benjamin Franklin wrote that “money begets money”, and that is as true now as it was back in colonial America. But a clever investor can compromise: you do need money to get rich, but you only need a bit. This is where domain names come in: Buy domains to sell domains and you make fortunes, but more importantly: buy domains to sell domains and you never lose out.

Domain names cost between $4-$9 to register, and they can sell for thousands. This phenomenon in the market is dissimilar to anything seen before. Domains sell for the price of diamonds, but they are not rare. Domains can be sold for the price of a space shuttle component, but anyone can sell them. Domains cost under $10 to purchase, but they are sold for 1,000 times that amount. Domain names are the perfect investment simply because of these qualities. They are a casino players’ dream: they are a minimal risk with high payouts. And even if you are unfortunate enough to buy a domain which you can’t sell (which is very unlikely, as almost all of my domains have brought in variable amounts of profits for me, but profits nonetheless), it is only a $4-$9 tax write off.

Yet the thing about selling domains is that it’s an intelligent business. It might only require a minimal investment, but it certainly isn’t something that you can just throw money at. To sell domains, you need more than the $4-$9 needed to register the domain. That’s right, to sell domains you need the ‘know-how’ of a modern day investor. This might sound pompous and grand, but it really isn’t: there is a bit for you to learn before you sell domains, but it really isn’t too hard to grasp. The successful domainers know how to buy domains cheaply and sell domains at high prices. They know how to acquire domains which inherently sell for high prices, and they know how to turn any domain into a gold mine. Selling domains isn’t just a ‘buy domain, sell domain’ game, it is a game which has rules; And if you know these you will definitely do well. While the rules as to how to sell domains may be easy, most domainers do not know them… and most domainers are losing out on their most juicy opportunities to sell domains.

What does all of this mean? Buying domains to sell domains is a great investment: it has minimal risk, it has high profits, and it is open to just about anyone with a credit card to buy the domains and a bank account to deposit the profits made from selling domains. But before you go out and buy domains, get informed. Nobody can just sell domains and sell domains without knowing how the big guys made it. Buy physical books on investment, eBooks on how to sell domains, and listen to the latest trends in the industry. As soon as you master the rules of the game, you will win, and the prize is usually valued in the thousands of dollars. Since the internet is growing incredibly fast, if you know how to sell domains now, you have a pretty nice life ahead of you.

Tips for Selecting and Registering a Domain – Help for Newcomers

How does a domain name work?

Many new people to the internet often confuse a domain name with web hosting. Registering a domain with an (ICANN accredited registrar) will not instantaneously cause your Web site to appear when someone enters your domain into the Web browser. You must also upload your Web site (the group of files that make up your site) to a computer (server) that hosts the site and assigns a numeric address, called an IP address, to your domain. Your domain and related IP address are stored in a Whois database with every other registered domain and associated IP address. When visitors enter your domain into a Web browser, your domain works like an address forwarding service by forwarding visitors to the IP address where your Web site is stored. We use domain names instead of IP addresses because most people find it much easier to remember a name rather than a series of numbers. This system also helps businesses online establish a unique identity that creates brand recognition.

However, when you register a domain, you do not always have to create a website and upload the files to your hosting server. You can also:

Sell Your Domain Later. They can be a great investment! If you have registered a domain that you are not using, someone else might want to use it. Depending on where you registered, you can log in to your Account Manager and set up a For Sale parked page for your domain and sell it to the highest bidder. Don’t forget to include your contact information.

Protect your identity, and brand online. Obviously, more domains you register, the better. This will help to prevent others from registering a similar domain to yours-just to pilfer away your customers. What can you do with all these names? Forward them to your main domain that way you will capitalize on all the names.

Hold on to it for a while. Perhaps you have a great domain name but you haven’t decided what to do with your new domain. Don’t worry about it, there’s no big rush. You can leave it parked for the length of your registration until you decide.

For new .COM and .NET domains and updates, it can take up to eight hours for the changes to become effective. It can also take up to 48 hours for changes made to all other domain extensions to become effective. This reason is because of the number of networks and agencies involved in the process. These delays apply to all domains and registrars. In many instances the delays aren’t nearly this long, but please allow for this delay when planning Web sites or configuring a domain to work with your email.

Tips for registering a domain name

If your preferred domain is obtainable, you can register it for a period of time that you will specify during the checkout process. You can use your domain to build your business and assist you in creating a dynamic online identity. You may also want to seriously consider registering multiple domain names to:

” Keep your competitors from recording a similar domain name that draws customers to them instead of you.

” Promote a specific product and/or service you provide.

” Help to drive more quality traffic to your Web site.

” Create more ways to market to customers, and be listed on various search engines.

” Develop strategies that reach different target markets.

” Give your customers even more ways to find you when searching the Internet.

” Capture common misspellings of your domain name, instead of sending visitors to an error page.

” Safeguard your brand and identity online from others who may have objectionable purposes.

To generate a good name on the web for our site, you will have to do a little research. Choose an authorized domain registrar that is approved by ICANN (Internet Corporation for Assigned Names and Numbers) the authority that manages the international Domain Name Server database, and ensures that all domain names are unique and map properly to a specific IP address. While selecting the domain registrar scrutinize their trustworthiness through various means, such as their prices, special offers, twenty-four hour support services, etc. You should select only that registrar who is giving you complete control over your domain. There are many registrars who hide some critical information from the customers and secure the rights to some very important settings in a domain such as changing the DNS servers, forwarding, masking, etc.

Brainstorm numerous names, and don’t get your heart set on one particular name. In the event that the desired domain name under the TLD you wanted has already been taken, other options are available. Most domain registrars have an intelligent interface that will automatically check to see if the same name is available to register with a different TLD extension like (.net, .org, .biz, .us, .name, .ws, etc.), and offer you the option of registering your preferred name with one of those extensions instead. It is also recommended that name be short if possible. Leave out dashes, dots, things that may confuse customers and certainly does not aid with search engines. Also, give some consideration to purchasing several other similar domain names, based on your individual or business needs, in order to protect your name, your brand, and your identity on the internet. This often helps to prevent others from stealing the identity you have worked so hard to establish. The need to do this will vary depending on your website and its intended purpose.

What if I misspelled my domain when I registered it?

Please be careful when registering your domain and make sure your spelling is correct before you secure a purchase. Unfortunately, registrars are unable to change or edit the spelling of a domain once it has been registered. They try to register the domain exactly as you enter it in the search box. If the registration succeeds, then you are charged, even if the domain you entered was not the one you actually intended to type.

You do have the right of canceling the domain you registered so that it is no longer registered to you. However, canceling it will not entitle you to a refund of any part of your registration fee due to all the processes involved in registering it. Once you cancel the domain it is a permanent action and cannot be undone.

We are committed to providing the general public with up-to-date useful information that will assist in helping to make informed decisions regarding web hosting, domain registration, SSL certification and other services necessary to create a high-quality online presence.

Glossary of Domain Name Disputes

The domain name dispute resolution system was supposed to be user-friendly, but this goal has not always been achieved. One of the main barriers to effective access has been the jargon that has grown up around the system. To successfully negotiate the system you must need to know the differences between registrants, registrars and registries; you must not confuse your UDRP with your ACPA; and you’ll need to be able to choose between NAF and WIPO should it become necessary.

Abusive registration:

This is a key concept under the Nominet Dispute Resolution Policy; there is no concept of an abusive registration under the UDRP (although see the entry on bad faith). An abusive registration is one which was registered or acquired or has subsequently been used “in a manner which took unfair advantage of or was unfairly detrimental to the Complainant’s Rights”.

ACPA:

See the entry on the Anti-Cybersquatting Protection Act.

ADR:

ADR stands for alternative dispute resolution. In the domain name dispute context, arbitration proceedings are sometimes called ADR proceedings, especially in EURid documentation.

Alternative dispute resolution:

See the entry on ADR.

Anti-Cybersquatting Protection Act:

A US law enacted on 29 November 1999. It amended the Lanham Act – the centrepiece of US trade mark legislation – and forms section 43d. The ACPA may – in certain circumstances – be applied to your case by the US courts, even if you’re not a citizen of or based in the US.

Arbitration:

Domain name arbitration is the contractually-based system of dispute resolution used to determine disputes about the proper ownership of domain names. It is distinct from traditional arbitration: a sophisticated system of private dispute resolution proceedings commonly used to determine international contractual disputes.

Bad faith:

Under the UDRP a successful complainant must prove that the domain name was registered or is being used in bad faith. The concept of bad faith is not defined in the UDRP; however four examples of circumstances which are evidence of bad faith are given, and I have (crudely) summarised these below. First, circumstances indicating that the respondent intended to sell the domain name to the complainant are evidence of bad faith. Second, so-called “blocking” registrations are evident of bad faith, providing they are part of a pattern of such registrations. Third, evidence of bad faith may be found in registrations intended to disrupt a competitor’s business. Finally, circumstances indicating the commercial use of a domain name which creates a likelihood of confusion between the domain name and the complainant’s mark are evidence of bad faith. The list is non-exhaustive.

Cancellation:

One of the remedies permitted under the UDRP, Nominet Policy, and the .eu Regulation, but rarely employed. The usual remedy is transfer. Cancellation is also known as revocation.

ccTLD:

This stands for country code top level domain. Examples of ccTLDs include .us, .uk and .de.

Complainant:

The person making a complaint via a domain name arbitration service about a domain name registration (analogous to a plaintiff or claimant in litigation).

Complaint:

The document setting out the complainant’s case. There are detailed rules about what must go into a complaint, and the length of complaints is strictly limited under some regimes. Typically, a complaint would include references to the provisions of the relevant policy document, a description of the factual circumstances of the case, arguments as to why the case should be found in the complaint’s favour, and references to previous decisions which support the arguments.

Cybersquatting:

The practice of improperly registering or acquiring domain names in which others have rights.

Decision:

The domain name dispute equivalent of a court judgment. There is no formal system of precedent in domain name arbitration. However, the arbitration bodies are loath to allow a diversity of interpretations of their rules, and in practice panelists will not usually depart from well-reasoned earlier decisions (or at least that they know about).

Domain name holder:

Another name for a registrant.

EURid:

The body administering the .eu domain name. The EURid dispute resolution service is provided by the Prague-based Arbitration Court attached to the Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic.

Expert:

The Nominet term for panelists – the “judges” of the domain name dispute resolution system. Most experts are practising intellectual property lawyers.

Federal Trademark Dilution Act:

US legislation providing a powerful remedy for the owners of famous trade marks. The FTDA was enacted in 1996. It was the first statutory amendment of the US Lanham Act to address the challenges presented by the internet. Its main effect was to expand the protection available to famous marks by prohibiting dilution.

FTDA:

See the entry on the Federal Trademark Dilution Act.

gTLD:

This stands for generic top level domain. Examples of gTLDs include .com, .net and .org. Compare ccTLDs.

ICANN:

The Internet Corporation for Assigned Names and Numbers (ICANN) administers the domain name system. It has promulgated no less than 10 different policies relating to dispute resolution. The most important policy is the Uniform Domain Name Dispute Resolution Policy (the UDRP). The UDRP must be read in conjunction with the Rules for Uniform Domain Name Dispute Resolution Policy (the Rules). ICANN’s other dispute resolution policies relate, for instance, to specific kinds of domain name with particular registration requirements (e.g. .pro or .biz), the .info sunrise period, and disputes with registrars over domain name transfers.

IDNs:

See the entry on Internationalised Domain Names.

Internationalised Domain Names:

A domain name potentially containing non-ASCII characters, for example a domain name consisting of Arabic or Hebrew characters.

Legitimate Interests:

To help defeat a complaint made under the URDP, a Respondent should argue that he or she has legitimate interests in the domain name in dispute. A non-exhaustive list of ways of demonstrating a legitimate interest is set out in the UDRP. First, pre-dispute use of (or preparations for the use of) the domain name or a name corresponding to the domain name “in connection with a bona fide offering of goods or services” may constitute a legitimate interest. Second, you or your business being commonly known by the domain name may constitute a legitimate interest. Third, a legitimate non-commercial or fair use of the domain name may constitute a legitimate interest, providing that use does not misleadingly divert consumers of the complainant or tarnish the trade mark at issue.

NAF:

The National Arbitration Forum is a major forum for the resolution of domain name disputes. NAF focuses upon North American domain name disputes. Arbitration proceedings using NAF are governed by the UDRP, the Rules and NAF’s Supplemental Rules. NAF also provides non-UDRP dispute resolution services, for example for disputes about .us and .kids.us domain names.

Mediation:

Mediation is a form of alternative dispute resolution where the parties to a dispute try to agree a settlement to the dispute with the help of a professional facilitator. The Nominet Dispute Resolutions Service provides a free mediation service.

Mutual jurisdiction:

This concept is used in the UDRP and other policies to refer to the jurisdictions in which formal court proceedings should be conducted in the event that domain name arbitration proceedings do not produce a satisfactory outcome. Under the UDRP it means either the courts of the country in which the relevant registrar is based or the courts in the country which the registrant claims to be based in its WHOIS entry.

Nominet:

The Nominet dispute resolution service deals with disputes involving .uk domain names (including .net.uk, .ltd.uk, .plc.uk, .co.uk, .org.uk and .me.uk). Nominet does not use the UDRP; instead, disputes are determined under Nominet’s own Policy and Procedure.

Panel:

One or three panelists usually constitute the panel.

Panelists:

The judges of the domain name dispute resolution system. Many are practising intellectual property lawyers; many NAF panelists are retired US judges.

Party:

Legalese meaning a person who is involved in legal proceedings as a litigant. In the context of domain name arbitration proceedings, that means involvement as either a complainant or a respondent.

Passing off:

The English-law tort of passing off has been inherited many other common law jurisdictions. It is sometimes referred to (with some carelessness) as “unregistered trade mark infringement”. The registration and use of a domain name can constitute passing off.

Policy:

The UDRP and the Nominet Policy are the most important documents in UDRP and Nominet arbitrations respectively. The equivalent rules in .eu arbitrations are contained in the Regulation.

Procedure:

The Nominet Procedure contains the detailed rules governing the conduct of Nominet domain name arbitrations – for example, time limits for action.

Provider:

The company or organisation that administers a domain name dispute resolution service. Some systems of domain name dispute resolution, such as the UDRP system, have more than one provider; others, such as the .eu system, have only one provider.

Registrar:

A company or organisation that is accredited by a registry to register domain names.

Registrant:

The person that “owns” (i.e. has the contractual right to use) the domain name. The registrant of a domain name can be found using a WHOIS service.

Registration agreement:

The agreement entered into between a registrar and a registrant upon the registration or acquisition of a domain name. The registration agreement stipulates the manner of dispute resolution, and therefore underpins the whole domain name dispute resolution system.

Registration authority:

See Registry.

Registry:

The organisation administering the domain name extension in question. For example, Nominet it the .uk registry and EURid is the .eu registry. Sometimes called the registration authority.

Regulation:

In the context of .eu domains, this means Commission Regulation (EC) No 874/2004 of 28 April 2004 laying down public policy rules concerning the implementation and functions of the .eu top level domain and the principles governing registration.

Reply:

The document in Nominet proceedings containing the complainant’s arguments in response to the respondent’s arguments in the response. It should not in general contain new arguments unrelated to points raised in the response. There is no equivalent in the UDRP or .eu procedures.

Response:

The document containing the respondent’s arguments in response to the complaint.

Respondent:

A person responding to a formal complaint about his or her domain name registration (analogous to a defendant in legal proceedings).

Reverse domain name hijacking:

The improper use of domain name arbitration proceedings to dispossess a registrant of his or her domain name.

Revocation:

See cancellation.

Rights:

In Nominet proceedings, a complainant must show that he or she has rights in respect of a name or mark which is identical or similar to the domain name at issue. The Nominet Policy provides that rights “includes, but is not limited to, rights enforceable under English law. However, a complainant will be unable to rely on rights in a name or term which is wholly descriptive of the complainant’s business”. The most important rights are registered trade marks and, in English law, the right to bring proceedings for the tort of passing off.

Rules:

The Rules for UDRP supplement the UDRP itself. The Czech Arbitration Court also has a set of rules for .eu disputes.

Supplemental Rules:

Under the UDRP, both NAF and the WIPO Mediation and Arbitration Center issue their own supplemental rules, which supplement the UDRP and the Rules for UDRP, and include for example provisions about the costs of arbitration. The Czech Arbitration Court also has a set of supplemental rules for .eu disputes.

Trade Marks Act 1994:

The centrepiece of the UK trade mark law regime, the 1994 Act has been frequently amended, usually to reflect developments in European law.

Transfer:

The most important remedy in domain name arbitration proceedings. If the panel determines that a complaint has been made out, the domain name will usually be transferred from the respondent to the complainant.

Typosquatting:

The practice of improperly registering domain names which are very similar to names in which others have rights. A form of cybersquatting.

UDRP:

The Uniform Domain Name Dispute Resolution Policy promulgated by ICANN governing most disputes about generic top level domains, and many disputes about country code top level domains. The UDRP must be read in conjunction with the Rules for Uniform Domain Name Dispute Resolution Policy.

WHOIS:

Directory service for looking up names and other details of domain name registrants.

WIPO:

The World Intellectual Property Organization (WIPO) is an agency of the United Nations. WIPO’s Arbitration and Mediation Center was the first dispute resolution service accredited by ICANN. Arbitration proceedings using WIPO are governed by the UDRP, the Rules and WIPO’s Supplemental Rules. It is – along with NAF – one of the “big two” providers of dispute resolution services under the UDRP.

This glossary is intended to help you get to grips with the jargon; if you need more information, please visit the Internet Library of Cybersquatting and Domain Name Disputes at [http://www.sequitur-ips.com/domain-name-disputes/library.html].

Hagit Ben-Artzi runs Sequitur IPS, which specialises in representing individuals and companies in domain name disputes and domain name arbitration proceedings.

6 Secrets to Making Money Buying and Selling Domain Names

Here are 6 Rules to Live by if You Want to Be Successful in Buying and Selling Domain Names:

1. Study the sales data, let the domain sales data tell you what is in demand…whatever you do, do not guess —

Say you have the dream and desire to successfully buy and sell domain names, you have to be a student of the domain name aftermarket. Here are a few websites you should check to see what is selling. One being the sedo.com marketplace. Another site that you have to check is dnjournal.com which is run by Ron Jackson, a fellow domainer. You can find a page where all of the recent sale data is listed. Let this be a guide in your decision-making as to what is in demand.

2. Be sure you learn about dropped names with traffic and expired domain names with Google page rank —

Some domainer’s make a business of buying and selling expired names that have existing traffic. A dropped domain name that has traffic is in demand. If you couple an expired domain name with traffic along with Google PR, that is a wonderful combo to have.

Some of you might wonder what an expired domain is. An expired domain is one in which the prior registrant(owner)failed to pay their annual renewal fee. When a prior owner fails to renew a domain, there is a 30 day grace period. After that anyone can get it. The benefit to the domainer is that all of the work the prior owner did is passed on to the new owner. That means everything: the traffic, the back links, the PR are passed to the new owner. And get this — the existing Google page rank is passed on. Buyers want domain names with page rank and will pay a premium. This makes your domain name more easy to sell.

3. Short is is in demand–

The shorter the length of the domain name the more desirable it is. Domain name purchasers give a good deal of economic value to a short domain name. All you need to do is research out what you would have to invest to buy a two letter.com domain. Even research out the price the three letter.com domains are being bought at. Just go to a domain name aftermarket like moniker.com. If you look at the auctions occurring you’ll see 3 letter names — dot-coms — going for hundreds if not 1000s of dollars. Four letter domains are likewise in craved by the domain aftermarket crowd.

If we are planning to focus on generic keyword-based domains, keep foremost in mind that the shorter domain is better.

4. “.coms” are the best – they will offer you the highest reward —

With all the new domain names extensions offered today, it’s not hard to get confused.

Domain name extensions are the letters after the dot. For example, in the domain name Google.com, the.com is the domain name extension. The three letters that come after the dot. This is also referred to as the “TLD” which stands for top level domain.

To add to the confusion are confusingly new extensions being offered (almost on a regular basis). For example, recently, the .me TLD was offered. We already have .com, .net, .org, .info, .mobi (nice, huh?). It can appear overwhelming.

If you are planning to concentrate on buying and turning domains you have to realize that the.com extension is the most coveted. It has been around the longest. A.com name is associated with constancy and an genuine presence on the Web. Now do not take me wrong — the other extensions do have plenty of proponents — and I can see also a want for them. But for the sake of flipping domain names, the.com is the topper.

5. Keep an e-mail list of your buyers and contact them with your best deals —

The money is in the list. I am sure you’ve heard that. That means your e-mail list of buyers is an asset. If you get involved in the domain name reselling game, your list of buyers are proven to be people who are interested in purchasing good domain names. It is critical that you send your list a listing of your domain names before they are made available to anyone else. Wouldn’t it be exciting to have a domain name sold as soon as you send it out to the list?

6. Trademarks = headaches —

One of the quickest ways to get yourself tied up in a legal battle is to buy a domain name that contains the trademark of another company or person. Trademarks are considered to be property rights. The trademark owner has the right to prevent anyone from capitalizing on it. It is very hard to sell a domain name that contains a trademark. On top of that, most parking companies prevent parking trademark domains. This means no parking revenue.

Beware of trademark-based domain names. They could result in tremendous liability.

Phil Craig is an author, lawyer and domainer. He likes to write about domain names and domaining. For more information on how to make money buying and selling domain names and on his new course, Quick Cash Domaining, visit Quick Cash Domaining [http://quickcashdomaining.com/], the premiere website dedicated to creating and profiting from a domain name flipping business.

Public Domain – Very Important Data About Worldwide Copyrights

The public domain is a range of abstract materials-commonly referred to as intellectual property-which are not owned or controlled by anyone.The term indicates that these materials are therefore “public property”, and available for anyone to use for any purpose.

The laws of various countries define the scope of the public domain differently, making it necessary to specify which jurisdiction’s public domain is being discussed.Furthermore, the public domain can be defined in contrast to several forms of intellectual property; the public domain in contrast to copyrighted works is different from the public domain in contrast to trademarks or patented works.

The public domain is most often discussed in contrast to works restricted by copyright.Under modern law, most original works of art, literature, music, etc are covered by copyright from the time of their creation for a limited period of time (which varies by country).When the copyright expires, the work enters the public domain.
About 15 percent of all books are in the public domain, including 10 percent of all books that are still in print.

The public domain can also be defined in contrast to trademarks. Names, logos, and other identifying marks used in commerce can be restricted as proprietary trademarks for a single business to use.Trademarks can be maintained indefinitely, but they can also lapse through disuse, negligence, or widespread misuse, and enter the public domain.

It is possible, however, for a lapsed trademark to become proprietary again, leaving the public domain.

The public domain also contrasts with patents.

New inventions can be registered and granted patents restricting others from using them without permission from the inventor.

Like copyrights, patents last for a limited period of time, after which the inventions covered by them enter the public domain and can be used by anyone.

Intellectual property law, Primary rights, Copyright, Patents, Trademarks, Industrial design rights, Utility models, Geographical indication, Trade secrets, Related rights, Trade names, Domain names, Sui generis rights, Database rights, Mask work, Plant breederĀ“s rights, Supplementary protection certificate, Indigenous intellectual property.

A creative work is said to be in the public domain if there are no laws which restrict its use by the public at large. For instance, a work may be in the public domain if no laws establish proprietary rights over the work, or if the work or its subject matter are specifically excluded from existing laws. Because proprietary rights are founded in national laws, an item may be public domain in one jurisdiction but not another. For instance, some works of literature are public domain in the United States but not in the European Union and vice versa.

The underlying idea that is expressed or manifested in the creation of a work generally cannot be the subject of copyright law (see idea-expression divide). Mathematical formula will therefore generally form part of the public domain, to the extent that their expression in the form of software is not covered by copyright; however, algorithms can be the subject of a software patent in some jurisdictions.

Works created before the existence of copyright and patent laws also form part of the public domain. The Bible and the inventions of Archimedes are in the public domain. However, copyright may exist in translations or new formulations of these works. Although “intellectual property” laws are not designed to prevent facts from entering the public domain, collections of facts organized or presented in a creative way, such as categorized lists, may be copyrighted.

Collections of data with intuitive organization, such as alphabetized directories like telephone directories, are generally not copyrightable.

In some countries copyright-like rights are granted for databases, even those containing mere facts. A sui generis database rights regime is in place in the European Union.
Works of the United States Government and various other governments are excluded from copyright law and may therefore be considered to be in the public domain in their respective countries. They may also be in the public domain in other countries as well.

All copyrights and patents have always had a finite term, though the terms for copyrights and patents differ.When terms expire, the work or invention is released into public domain.
In most countries, the term for patents is 20 years.

A trademark registration may be renewed and remain in force indefinitely provided the trademark is used, but could otherwise become generic.

Copyrights are more complex than patents; generally, in current law, the copyright in a published work expires in all countries (except Colombia, Guatemala, Honduras, Mexico, Samoa, and Saint Vincent and the Grenadines) when any of the following conditions are satisfied :The work was created and first published before January 1, 1923, or at least 95 years before January 1 of the current year, whichever is later;The last surviving author died at least 70 years before January 1 of the current year;No Berne Convention signatory has passed a perpetual copyright on the work; and neither the United States nor the European Union has passed a copyright term extension since these conditions were last updated. This must be a condition because the exact numbers in the other conditions depend on the state of the law at any given moment.

These conditions are based on the intersection of United States and European Union copyright law, which most other Berne Convention signatories recognize. Note that copyright term extension under US tradition usually does not restore copyright to public domain works (hence the 1923 date), but European tradition does because the EU harmonization was based on the copyright term in Germany, which had already been extended to life plus 70. United States law all or part of this article may be confusing or unclear.

In the United States, copyright law has changed several times since the founding of the country.
Rural that Congress does not have the power to re-copyright works that have fallen into the public domain.

“After World War I and after World War II, there were special amendments to the Copyright Act to permit for a limited time and under certain conditions the recapture of works that might have fallen into the public domain, principally by aliens of countries with which we had been at war.
Works created by an agency of the United States government are public domain at the moment of creation.

Examples include military journalism, federal court opinions (but not necessarily state court opinions), congressional committee reports, and census data. However, works commissioned by the government but created by a contractor are still subject to copyright, and even in the case of public domain documents, availability of such documents may be limited by laws limiting the spread of classified information.

Before 1978, unpublished works were not covered by the federal copyright act This does not mean that the works were in the public domain. Rather, it means that they were covered under (perpetual) common law copyright The Copyright Act of 1976, effective 1978, abolished common law copyright in the United States; all works, published and unpublished, are now covered by federal statutory copyright.

The claim that “pre-1923 works are in the public domain” is correct only for published works; unpublished works are under federal copyright for at least the life of the author plus 70 years.
For a work made for hire, the copyright in a work created before 1978, but not theretofore in the public domain or registered for copyright, subsists from January 1, 1978, and endures for a term of 95 years from the year of its first publication, or a term of 120 years from the year of its creation, whichever expires first. If the work was created before 1978 but first published on or before December 31, 2002, the work is covered by federal copyright until 2047.

Works published with notice of copyright or registered in unpublished form prior to January 1, 1964, had to be renewed during the 28th year of their first term of copyright to maintain copyright for a full 95-year term.

Until the Berne Convention Implementation Act of 1988, the lack of a proper copyright notice would place an otherwise copyrightable work into the public domain, although for works published between January 1, 1978 and February 28, 1989, this could be prevented by registering the work with the Library of Congress within 5 years of publication. After March 1, 1989, an author’s copyright in a work begins when it is fixed in a tangible form; neither publication nor registration is required, and a lack of a copyright notice does not place the work into the public domain.

Sound recordings fixed before February 15, 1972, were generally covered by common law or in some cases by statutes enacted in certain states, but were not covered by federal copyright law.
The 1976 Copyright Act, effective 1978, provides federal copyright for unpublished and published sound recordings fixed on or after February 15, 1972. Recordings fixed before February 15, 1972, are still covered, to varying degrees, by common law or state statutes. Any rights or remedies under state law for sound recordings fixed before February 15, 1972, are not annulled or limited by the 1976 Copyright Act until February 15, 2067.

Critics of copyright term extensions have said that Congress has achieved a perpetual copyright term “on the installment plan.

British government works are restricted by either Crown Copyright or Parliamentary Copyright.
Published Crown Copyright works become public domain at the end of the year 50 years after they were published, unless the author of the work held copyright and assigned it to the Crown.
In that case, the copyright term is the usual life of author plus 70 years Unpublished Crown Copyright documents become public domain at the end of the year 125 years after they were first created.

However, under the legislation that created this rule, and abolished the traditional common law perpetual copyright of unpublished works, no unpublished works will become public domain until 50 years after the legislation came into effect.

Since the legislation became law on 1 August 1989, no unpublished works will become public domain under this provision until 2039.

Parliamentary Copyright documents become public domain at the end of the year 50 years after they were published.

Crown Copyright is waived on some government works provided that certain conditions are met.
These numbers reflect the most recent extensions of copyright in the United States and Europe.

Canada and New Zealand have not, as of 2006, passed similar twenty-year extensions
Consequently, their copyright expiry times are still life of the author plus 50 years.

Australia passed a 20-year copyright extension in 2004, but delayed its effect until 2005, and did not make it revive already-expired copyrights.
Hence, in Australia works by authors who died before 1955 are still in the public domain.

As a result, works ranging from Peter Pan to the stories of H. Lovecraft are public domain in both countries.(The copyright status of Lovecraft’s work is debatable, as no copyright renewals, which were necessary under the laws of that time, have been found.

Also, two competing parties have independently claimed copyright ownership on his work.
As with most other Commonwealth of Nations countries, Canada and Australia follow the general lead of the United Kingdom on copyright of government works.Both have a version of Crown Copyright which lasts for 50 years from publication.

New Zealand also has Crown Copyright, but has a much greater time length, at 100 years from the date of publication.

India has a government copyright of sixty years from publication, to coincide with its somewhat unusual life of the author plus sixty years term of copyright. According to Thai copyright law, the copyright term is the life of author plus 50 years.When the author is a legal entity or an anonymous person, the copyright term is 50 years from the date of publication.

Works of applied art (defined as drawings, paintings, sculpture, prints, architecture, photography, drafts, and models) have a copyright term of 25 years from publication.

Republication of works after the expiration of the copyright term does not reset the copyright term.
Thai state documents are public domain,but creative works produced by or commissioned by government offices are protected by copyright.

Japanese copyright law does not mention public domain. Hence, even when some materials are said to be “in the public domain” there can be some use restrictions. In that case, the term copyright-free is sometimes used instead. Many pre-1953 both Japanese and non-Japanese films are considered to be in the public domain in Japan.

Examples of inventions whose patents have expired include the inventions of Thomas Edison.
Examples of works whose copyrights have expired include the works of Carlo Collodi, Mozart, and most of the works of Mark Twain, excluding the work first published in 2001, A Murder, a Mystery, and a Marriage.

In the United States, the images of Frank Capra’s classic film, It’s a Wonderful Life (1946) entered into the public domain in 1974, because someone inadvertently failed to file a copyright renewal application with the Copyright Office during the 28th year after the film’s release or publication.

Although copyright law generally does not provide any statutory means to “abandon” copyright so that a work can enter the public domain, this does not mean that it is impossible or even difficult, only that the law is somewhat unclear.

How To Value A Domain Name

Introduction

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 Factors

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 resolve 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 the number of words it contains. Single “real word” domains (no misspellings or abbreviations), especially in easily monetizable internet industries, can be enormously valuable, particularly in the .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 easily 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 spending 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 driven 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 determining 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 often 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 to form an unusual phrase that the 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.

The Bottom Line

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 the above 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 auction 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, although 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 for 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.

Every week, there are several dozen sales of .com domains in the $10,000 to $100,000 range. These tend to be one to two word generics, but not as easily monetizable as the ones that sell for over $100,000.

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. These 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).

There is also a market in global TLD’s other than .com’s in the $2,500 to $10,000 range. .net’s and .mobi’s tend to dominate this space, although you will also find .org’s and .info’s here. These are generally one to two 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 .tv). 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 presence). 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.

In Closing

My hope is that this article has helped you to become a more educated domain buyer. The main takeaway should be that unless you have a truly urgent need to obtain a specific domain, you should use common sense principles and not overpay. Remember, in spite of the fact that so many good names are taken, most domains just sit and wait at aftermarkets like Sedo and Afternic because of the vast supply overhang. If the owner of the domain you want will not sell for a reasonable price, try to be creative and find alternatives, like using a different TLD, pluralizing, reordering the phrase words, etc.

The internet domain market will never lend itself to discounted cash flow pricing like financial securities, and the value of a domain is really nothing more than what the market will bear. Ultimately, values are determined by sale prices of similar domains. This article has hopefully armed you with that knowledge so you can negotiate with confidence.