Do you find yourself stumbling over domain terms and not quite sure what they mean? There’s a lot of terminology to learn, and it can be overwhelming. To help you get up to speed, we’ll be decoding the domaining dictionary, giving you an understanding of the various domain terms you may come across.
Table of Contents
One term you’ll often hear in the domain industry is “End User’.
An end user is a buyer who intends to use a domain for significant development purposes. These buyers could be corporations or individuals with a significant personal interest in a particular website. The end user does not plan to trade or resell the domain name unless there is an irresistible offer.
An end user is essentially the ‘end of the line’ for that domain—the user who has the final use of it and will likely never sell it again. Essentially, a domain is traded from owner to owner until it finds the ideal end user who will keep it indefinitely. As the end user has a vested interest in the domain name, they also usually pay much more for that domain than a domainer.
The end user is an important player in the domain industry because they help give value to the domain name. End users also provide a steady market for domain owners looking to sell their domains.
One of the most important players in the domain name industry is a registrar. In simple terms, a registrar is a company that provides the service of registering domain names. It is the registrar that enables businesses, organizations, and individuals to own and use a domain name.
In order to become a registrar, a company must be accredited by a registry. A registry is an organization that manages the registration of domain names for a specific top-level domain (TLD), such as ICANN for .com, .net, .org, etc. In order to be accredited by a registry, a registrar must comply with certain technical and operational requirements. They must also sign a contract with the registry and agree to follow its rules and policies.
There are many registrars to choose from when it comes to registering a domain name. Some of the most popular registrars include Godaddy, Dynadot, and Namecheap.
It’s also worth noting that registrars often offer additional services beyond domain name registration. For example, some registrars offer website hosting, website builders, email services, and more. These services can be a convenient way to manage all aspects of your online presence in one place.
A domain broker is an individual or company that specializes in buying and selling domain names on behalf of clients. These professionals have extensive knowledge of the industry and are skilled negotiators.
A good domain broker can help clients navigate the complex world of domain names, ensuring that they make informed decisions and get the best value for their money. They will often have access to a large database of domain names, including premium names that are not publicly available, like Ai.com.
If you are looking to sell a domain name, a broker can help you market your domain and find potential buyers. They will handle negotiations and ensure that you get the best price possible. On the other hand, if you are looking to purchase a domain name, a broker can help you identify potential domain names, assess their value, and negotiate the purchase price.
Domain brokers often work on a commission basis, which is usually a percentage of the sale price. This means that they only get paid when they successfully buy or sell a domain name. This commission structure also means that brokers have a strong incentive to get their clients the best possible deal.
Aftermarket refers to the secondary market for domains, where registered domains are bought and sold after they have expired or been put up for sale by their current owner. This market is an important part of the domaining industry as it provides a platform for domain investors to buy and sell valuable domains.
The aftermarket can be divided into two main categories: wholesale and retail. Wholesale refers to the sale of domains at a discounted price, whereas retail refers to individual domain sales to end users.
The term “wholesale” in the domaining industry refers to the pricing model in which domain names are sold (maybe in bulk) to domain investors at discounted rates. This practice is common on aftermarket platforms. Some popular marketplaces for domain wholesale include Namepros, Dnforum, and Squadhelp Wholesale.
Those people use wholesale to sell domains:
- Sell unwanted or useless domains.
- quit the domain market
- need fast cash
- have a large portfolio of domain names and want to reduce the renewal cost.
- inpatience to hold the domain
- The niche is hot now, but the owner doesn’t think it will always be popular. Like the GPT niche.
They offer the domains to domain investors at discounted prices. This allows domain investors to acquire domain names at a lower cost. Wholesale pricing is a great way to expand their portfolio by purchasing domain names at a lower cost. However, it’s important to note that most domains are useless, and you have to pick the gems from the trash.
The term “retail” in the world of domains refers to the price at which a domain is sold to an end user rather than to another domain investor. When a domainer says it is retail only, it means that the seller is not looking to sell to the domainer but rather waits for end users. End users are often willing to pay higher prices for domains that are valuable to them but not necessarily valuable to domainers.
It is significant to note that the seller sets retail prices, which can vary greatly depending on the particular domain and the seller’s motivations. Some sellers may set a very high retail price, like at least 5-figures, in hopes of attracting an end user who values the domain highly, while others may be more motivated to sell quickly and set an affordable retail price, like mid-4-figures.
Resell and Flip
The act of reselling a domain is essentially what it sounds like: selling a domain that you have already purchased from other domainers. Many domain investors buy cheap domains with the intention of reselling them for a profit. In fact, this is one of the primary strategies that many successful domain investors use to make money in the industry.
Reselling domains can be a time-consuming process. You may need to negotiate with the seller and potential buyers, and you may use the information asymmetry.
Flip just means “fast resell.” Flipping a domain name involves acquiring it at a low price, holding it for a short period, and then reselling it for a higher price.
Grace Deletion (Dynadot) and Domain tasting
Grace deletion applies only to newly registered domains. Dynadot is one of the registrars that offers a grace deletion service to their customers. The process is simple: if you register a domain name with Dynadot and decide within a certain time frame that it is not what you wanted or needed, you can request a grace delete. This will remove the domain from your account and refund a portion of the registration fee to you.
The Dynadot grace delete period lasts for five days from the registration date of the domain. During this time, you can use the automated system to delete the domain or contact their support team to request a manual deletion. However, it is important to note that not all TLDs are eligible for a grace period, and the refund amount may vary depending on the TLD and the registration fee.
Comparing with Grace Deletion, domain tasting is the practice of temporarily registering a domain name during the Grace Period. The Grace Period is the first five days of the registration of an ICANN-regulated domain. During this period, a registration can be fully refunded by the domain name registry if it is cancelled. Originally, the Grace Period was designed to address accidental registrations. However, domainers use the Grace Period for other purposes, such as evaluating the traffic value of a domain. For example, a domainer might register a domain and then use it to test its potential for generating type-in traffic.
The term “brandable” refers to a domain name that is unique and catchy, making it easy to remember and recognize. Brandable domain names can be created from a combination of words, phrases, or made-up words that are easy to spell and pronounce,like Zoho.com and Hulu.com.
Comparing to keyword-rich domain names, brandable domain names are not associated with a particular company or product. This means that they can be used for a variety of purposes, from building a new brand to launching a new product or service.
However, brandable domain names can also be challenging to monetize. Unlike keyword-rich domain names, brandable domain names are hard to search for by end users. This means that you may need to invest more time and resources in marketing and promoting your domain to attract end users. You must put it on the brandable domain marketplace with a logo to promote your domains.
When choosing a brandable domain name, it is important to consider factors such as spelling, pronunciation, and length. Aim for a name that is easy to remember, easy to spell, and easy to pronounce. Avoid using hyphens, or symbols in your domain name, as these can make it harder to remember and less memorable.
In simple terms, drop-catching is the process of registering expired domain names within a short period of time after they have been canceled by the registry. This automated process happens within a fraction of a second, giving drop-catchers the ability to snatch up valuable domains that have just become available.
There are various companies, often referred to as “drop-catchers,” that specialize in this process. They use automated software to monitor and catch expired domains and can often acquire them through an expired domain auction.
Drop-catching can be a competitive industry, as there are often multiple companies vying for the same valuable domain names. Some drop-catchers use specialized algorithms or tactics to give them an edge over their competitors, while others may focus on specific types of domains or niches.
In the world of domaining, a dictionary word is simply a word that can be found in the dictionary. These words were not coined or invented but are existing words that have a defined meaning in the English language. Examples of dictionary words are “car,” “house,” “tree,” “happy,” and so on.
Why are dictionary words important in domaining? Well, they are valuable because they are easy to remember, spell, and pronounce. They are also commonly used in everyday language, making them more familiar to potential users or buyers.
A domain name that consists of a dictionary word can be an excellent investment opportunity for a domain investor. It has the potential to attract more buyers or users because of its familiarity. Moreover, a domain name that consists of a dictionary word is easier to brand and market, which can add more value to it.
However, not all dictionary words are equal in value. A single-word domain name that consists of a commonly used dictionary word is more valuable than a domain name that consists of a rare or obsolete word that no one uses anymore. Therefore, it’s crucial to do your research and understand the market demand for a particular dictionary word before investing in it.
A domain with good development potential means that it has the potential to become a successful website with valuable content, features, and services. Businesses and investors are vying for domains with development potential because they can produce significant traffic and brand recognition.
One of the key advantages of domains with development potential is that they are perfect for easy website building. Depending on the niche and market, you can create a blog, an e-commerce store, a service portal, or a social media platform. The niche market should be big enough, and the domain should be niche-keyword-rich.
The term “niche” refers to a specific area of focus or interest. This could be anything from a particular industry or market, to a specific hobby or passion. For example, a domain name related to photography could be considered a niche domain, as it appeals to a specific group of individuals with a common interest.
Niche domains can be highly valuable, as they are often in high demand within their respective communities. They are also typically more targeted and specific, which can make them easier to market and sell. However, it is important to remember that the value of a niche domain will ultimately depend on the size and profitability of the market it is targeting.
Premium = High Quality
premium domain = high-quality domain. When we talk about a domain being of high quality, we usually mean that it is a good domain. This means that the domain is relevant to its intended purpose, has a high level of trust and authority, is easy to remember, and stands out from the crowd.
There are many factors that contribute to the quality of a domain, such as its length, keywords, age, and extension. For example, a short, memorable domain with a .com extension is often considered to be of higher quality than a longer domain with a less popular extension.
In the domaining industry, high-quality (premium) domains are in high demand and often sell for premium prices. Typically, investors who want to make money from their investments own these domains and want to sell them to end users.
60 days rule
The “60 days rule” is a regulation that requires you to wait a minimum of 60 days before transferring a newly registered domain to a different registrar. This rule is in place to prevent domain hijacking and unauthorized transfers. It also helps in protecting the registrant’s interests.
The “60 days rule” is applied after the initial registration or transfer of the domain name and whois changes. During this period, you cannot transfer the domain to the owner at another registrar. This waiting period is also known as a lock period, and it applies to most top-level domains.
A domain transfer refers to the process of moving a domain name from one registrar to another. This can be done when a domain owner wants to switch to a new registrar, sell the domain to someone else, or give the domain to someone else as a gift.
The domain transfer process can vary depending on the domain extension and registrar involved. However, there are some basic steps that apply to most transfers. Firstly, the person receiving the domain must initiate the transfer from their account at the new registrar. The current domain owner must then supply the new owner with an Auth Code. This code acts as a security measure to ensure that the domain is only transferred to an authorized recipient.
Additionally, the current owner must unlock the domain if it is currently locked. Once the transfer request is initiated, the new registrar will typically send an email to the current registrant to verify the transfer request. The domain transfer process can take anywhere from a few days to a few weeks to complete, depending on the extension and registrars involved.
Lowball and Lowballer
You may come across the term “lowball” or “lowballer.” These terms refer to someone who makes a very low offer on your domain name, often significantly below market value. This can be frustrating for domain investors who have put time and effort into finding high-quality domains and want to sell them for a fair price.
When a lowball offer comes in, it can be tempting to dismiss it outright. However, it’s important to consider the potential motivations behind the offer. Sometimes, a lowballer may simply be testing the waters to see if you’re open to negotiation. In these cases, it may be worthwhile to counteroffer with a more reasonable price and see if the lowballer is willing to meet you somewhere in the middle.
On the other hand, some lowballers may have more nefarious intentions. For example, they may be hoping to take advantage of a seller who is inexperienced or unaware of the true value of their domain. They may offer a low price and then resell the domain for a significant profit, leaving the original seller feeling cheated.
CHIP = Chinese Premium
Chinese premium domains are highly valued in China because of their cultural significance. In Chinese numerology, certain numbers are considered lucky while others are considered unlucky. For example, the number 8 is considered lucky because it sounds like the Chinese word for “wealth,” while the number 4 is considered unlucky because it sounds like the Chinese word for “death.” Similarly, certain letters in the Chinese language are more desirable than others.
As a result, the Chinese domain market has a preference for domains that do not contain the numbers 0 or 4, and that do not contain the letter “v.” Instead, they prefer domains that contain the number 8 or other lucky numbers, as well as letters that are considered desirable.
Domains that meet these criteria are known as CHIP domains, and they are highly sought-after in China. These domains can fetch high prices on the Chinese market, even if they do not have much value in other parts of the world.
The most important aspects of buying and selling domain names is ensuring a secure transaction for both parties involved. This is where a domain escrow service comes into play.
A domain escrow service acts as a neutral third-party that holds the buyer’s payment until the seller has transferred the domain to the buyer. This ensures that both parties fulfill their part of the agreement and protects them from fraudulent activities.
Domain escrow services work in a similar way to PayPal or other online payment platforms. The buyer and seller agree to the terms of the sale and the buyer sends the payment to the escrow service. Once the domain has been transferred to the buyer and buyer confirmed they received the domain, the escrow service releases the payment to the seller. This is a much safer option than simply sending money directly to the seller, which could result in the buyer never receiving the domain.
Domain escrow is highly recommended by domainers and is an essential part of any secure domain name transaction. It offers peace of mind to both parties involved and ensures a smooth and secure transaction.
A pronounceable domain name is one that is simple to say aloud and understand by others. It does not necessarily have to be an actual word, but it should be able to be pronounced without any confusion.An example of a pronounceable domain name is Hulu. Although it is not a real word, it is simple to pronounce and comprehend. This is important because it makes the domain name memorable and easy to share verbally.
A domainer is an individual who specializes in the buying, selling, and parking of domain names. They are often referred to as domain investors, or digital real estate developers. Domaining is a lucrative business for those who understand the industry and can identify valuable domain names.
You can check the wiki for all domain abbreviations here