What is a domain name? A domain name is a unique name, much like an email address is unique, that is registered in a database called WHOIS through an organization called Network Solutions, Inc. (NSI). The domain name corresponds to a unique set of numbers called an IP (Internet Protocol) address. The reason why we use domain names instead of IP addresses is that they are closer to our language. It would be hard to market a site like this: “Go to 64.233.167.99 or 216.109.112.135 to search the Internet!” A much easier way to do this is to say “Go to http://www.Google.com or http://www.yahoo.com to search the Internet!” (Both Google and Yahoo are trademarks of Google, Inc. and Yahoo, Inc., respectively.)

A domain name points to a computer called a “name server.” The name server knows that your domain name corresponds to the IP address of your web hosting server and routes the person who entered your domain name to your web hosting server, to your website. This is how people from anywhere in the world can see your website by typing in your domain name.

In 1992, the National Science Foundation awarded an exclusive contract to NSI to be the only top-level domain name registrar. NSI also had a cooperative agreement with the United States Department of Commerce (“DoC”). Without competition, consumers were at the mercy of NSI.

In 1998, NSI and the DoC modified their cooperative agreement to allow registrar competition. NSI was forced to provide domain name registration to competing registrars at wholesale prices, instead of the standard annual fee of $34.99. NSI still charges $34.99 per year.

In late 1998, the DoC assigned responsibility for overseeing the transition to a competitive domain name market and the accreditation of new registrars to a new organization called the Internet Corporation for Assigned Names and Numbers (ICANN).

In 1999, ICANN began accepting applications from companies that wanted to become registrars, and then capitalism took over: companies had to compete for business. Prices have dropped and service has improved, however some are better than others. For a more detailed history of this transition, please visit http://www.icann.org/registrars/accreditation-history.htm.

Even with the positive effects of competition in the domain name market, the Internet domain name registration process remains a mystery to many.

There are many companies that want to charge you hundreds of dollars to do the simple task of registering a domain name for you. There are some registrars that will charge you $35 just to register a domain. And there are website consultants who charge upwards of $100 to do the work for you. But you can do it yourself in about 15 minutes, and it can cost as little as $1.99 per year. If you do a little research, learn a little, and work smart, you can save yourself some money and some heartache.