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by Kevin
Savetz
It doesn't
take a sleazy back-alley deal to get a domain name for your Web
site. In fact, thousands of domain names are offered via that
upstanding institution, the online auction.
State
Your Name
For the benefit of any recently converted Luddites, a domain
name is a unique alpha-numeric name that's used to identify a
particular computer (i.e., Web server or mail server) on the
Internet. In other words, it's the part of the email address
that comes after the @ sign, and the part of a Web address that
follows "www"--for example, yahoo.com and vendio.com.
You'll need one if you plan to run a Web site of your own.
In essence, you'll have
a choice of either registering your domain name with a
traditional domain name registrar, such as Network Solutions or
Register.com, or going the online auction route and placing a
bid on sites such as eBay and Yahoo Auctions. You also can use
domain name-specific auction sites, such as Afternic.com or
GreatDomains.com.
What
You'll Get
Many domain names that are for sale have never been used for a
Web site; they're just names that might be (the seller hopes)
useful to someone, either a business or individual.
Occasionally, you'll find domains for sale that have been online
with Web sites: They might already have traffic and
notoriety--for better or worse. (For example, not long ago the
owners of year2000.com, a clearinghouse for information about
the Y2K bug, offered the domain on eBay.) In some cases, the
sale might be for an entire Web site, content and all. Or, the
seller might be offering the name only--be sure you understand
exactly what is for sale.
How
Much?
What can you expect to pay for a domain name? It depends
entirely on the quality of the name. Simple, short, descriptive
domain names, such as television.com and news.com, have sold for
hundreds of thousands of dollars...or more. (A more startling
and atypical example: business.com sold for $7.5 million late
last year.) On the other hand, not-so-memorable names might go
for a couple hundred bucks or less. When an established Web site
is for sale along with its domain name, a buyer can expect to
pay significantly more.
In the case of most
domain name registrars, all you need to do in order to purchase
a name is supply your personal information and credit card
information. Moreover, there are costs associated with the
purchase of a domain name beyond the registration price. Here's
how it works with Network Solutions, the most popular domain
registration service. Although there is no fee for transferring
a domain name to a new owner, the domain name registration must
be in paid status--if it isn't, someone will have to pay $35 to
renew it for a year. If the normal three- to six-week processing
time to transfer ownership isn't fast enough, priority two-day
processing is available for $199. In addition, the seller will
need to invoke the service of a Notary Public, which can cost a
few dollars more. Typically, the buyer pays for these incidental
costs--a smart seller will indicate the terms in the listing. If
the terms aren't clear, ask the seller before making any
commitments.
It costs $35 to register a new domain
name with Network Solutions. Use the WHOIS
lookup tool to find out whether the one you want is taken.
Of course, if you choose to obtain a domain name via online
auction, the amount you'll pay will vary greatly. Just be sure
to take the usual precautions (checking the seller's feedback,
sending emails with any questions you have, and so on) and
remember that in all likelihood you still will have to pay
renewal fees in the future--buying a domain name is not a
one-time purchase.
Going
the Distance
Thinking about buying a domain name and auctioning it off for a
quick profit? Well, the sad fact remains that a lot of the good
domain names (and many of the not-so-obvious ones, and a whole
lot of the stupid ones, too) were snatched up long ago. Just
check the completed auctions in eBay's domain name category and
you'll see for yourself--hundreds of domain name auctions end
without a single bid. And even if some of the domain names have
potential, the sellers often demand excruciatingly high opening
bids. You'll also come across some names that are simply lame,
while others are trademark infringement lawsuits just waiting to
happen. As always, caveat bidder.
But the domain name
landscape soon will be changing as the Internet Corporation for
Assigned Names and Numbers (ICANN), the organization charged
with managing the infrastructure for Internet addresses,
eventually introduces new top-level domain names and new
suffixes (".shop" and ".store" in addition
to the current ".com," ".org," and
".net"). Some domain name experts believe this will
dilute the value of the dot-com name, while others say it will
create a larger and more robust domain name market.
Regardless of what
happens in the future, online auction sellers who are looking to
further establish themselves with a more formal online presence
should seriously consider obtaining their own domain name and
Web site in addition to having About
Me-style pages and the like. It's not only a great branding
opportunity that increases your credibility and visibility, but
it also give buyers a place where they can find out more about
you, your merchandise, and your online auction biz.
Back to Auction tips &
tactics
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