Reading the Fine Print

Domain Names

A domain name is like your cyberspace address. Take for example, your organization’s prospective domain name - ‘yourbusiness.com.’ It consists of a unique name - ‘yourbusiness’ - followed by a top-level domain extension that indicates the purpose of the organization - ‘.com.’ Some common extensions are .com for commercial entities, .gov for government organizations and .edu for educational institutions.

The domain name ‘yourbusiness.com’ placed together with the ‘http://www’ prefix forms a URL (uniform resource locator) that works just like a complete mailing address with your address, city and zip code. Only in this case, the URL defines the location of a Web server on the Internet that stores the files that make up your Web site. Entering a URL into the address bar instructs your Web browser to contact that server, retrieve the files that are stored there and display them in your browser window.

Before you can publish a Web site, you must first acquire the rights to a domain and register it. In order to do this, you will need the services of a domain registrar. A domain registrar is an organization that takes the domain name in question and records your ownership in a central registry controlled by ICANN - The Internet Corporation for Assigned Names and Numbers . Registering a domain name gives you ownership over that particular domain for a set period of time.
You have exclusive rights to it and nobody else can use it.
Registering a domain name is an important first step for any small and medium-sized enterprises (SME) looking to establishing its online presence. The domain name you choose for your business not only points users to your Web site but it is a key component of your organization’s online identity.

Domain Registrars

Prior to 1998, Network Solutions enjoyed a government-granted monopoly over the assignment and registration of domain names. This monopoly was terminated as ICANN and the U.S. Department of Commerce agreed to manage the transition from public to private sector control, freeing up the domain registration business to open competition.

With the advent of open competition, there now exist dozens of ICANN-accredited domain registrars in countries around the world. ICANN has a complete list that can be found at: ICANN Accredited Registrars

Choosing a Domain Registrar

There are many issues involved when it comes to choosing a domain registrar. Prices vary, service offerings differ and customer support is of uneven quality. The service agreements are also littered with details regarding reselling, ownership and various other contractual details. When choosing a domain registrar, contemplate all the factors that are important to your organization. Keep in mind that no two registrars are the same and find one that fits your budget and organizational needs.

Rather than doing it yourself, a more convenient option may be to allow your hosting provider to take care of the domain registration process on your behalf. Hosting providers often set up reseller agreements with domain registrars, allowing them to offer domain registration services to their hosting customers.

Letting your hosting provider take care of registering your domain makes a lot of sense. They are experienced with domain registration issues and definitely qualified to recommend a reputable domain registrar. On top of it all, your provider can save you a lot of time.

The cost for registering the domain is often provided free with the purchase of Web hosting services. The real cost however, is typically built-in to the domain registration fee your hosting provider will ask you to pay to cover the cost of the registration. Depending on the services you receive and who is doing it, domain registration can run you anywhere between $10-50 dollars annually.

Whether you choose to register the domain name yourself or let your hosting provider take care of it for you, you will still have to be informed about domain registration issues. Be sure to have open channels of communication with your domain registrar or hosting provider. Ask questions and read the service agreement. It is rare that anybody takes the time to do this and as a result, there are details that often get overlooked. It is your job to cover this ground and to be aware of all the issues surrounding your domain registration.

Look closely at the stipulations outlined in the service agreement and ask your domain registrar or hosting provider to clarify any issues you are not sure of. If they value your business, they will take the time to address your concerns.

Some Things to Look For

Renewals and expiry dates - make sure you are clear about the renewal process. If you paid for one year, be clear on what happens when that one-year period expires. Most registrars will automatically renew unless otherwise instructed. But in some cases, non-renewal could result in your ownership of the domain name in question to expire. This could have the undesirable effect of having your entire site go down or exposing your domain name to be acquired by somebody else.

Transfer policy - Look to see if the contract has a clause refraining you from taking your domain with you to another registrar. Be clear on the transfer policy and keep this in mind when you decide to sign up with a domain registrar for more than a one-year period. Certain unforeseen circumstances may arise. For example, the registrar might give your poor service and you might want to change registrars. The same might happen with your hosting provider.

Reselling - Be sure to find out if the domain registrar will prevent or restrict you from reselling your domain name. This could be extremely crucial if you have a domain name that somebody values and would be willing to purchase.

Be clear on content issues - Many registrars are very strict when it comes to adult-related content and other illegal activities such as gambling or spamming. Many registrars have clauses in their service agreements that revoke your domain if you use it for illegal or “unacceptable” purposes. If you are on the margins, be clear on how ‘unacceptable’ is defined by your registrar.

Changes in Service Agreement - Make note of the policy for changes in the service agreement. For example, VeriSign reserves the right to change the provisions of the service agreement at any time and gives you 30 days notice. Not all providers will be as forthright. Take the initiative and ask your provider to update you on any changes to the service agreement as soon as they are put in place.