The secondary market where already-registered domains are bought and sold between parties. Contrast with initial registration. Platforms include Afternic, Sedo, Dan.com, and GoDaddy Auctions.
Appraisal
An estimate of a domain's monetary value. Registrar appraisals use proprietary algorithms. Independent appraisals (like URL.Ventures') use verified aftermarket sales data. The gap between the two can be enormous.
Auth Code (EPP Code)
A unique authorization code required to transfer a domain between registrars. Think of it as the key to your domain. Never share it unless you're initiating a transfer.
Auto-Renew
A registrar setting that automatically renews your domain before it expires. Essential for Tier 1 assets. Prevents accidental loss of valuable domains.
B
Backorder
A service that attempts to register a domain the instant it becomes available after expiration. Used to acquire specific dropping domains. DropCatch and NameJet specialize in this.
Brandable
A domain that works well as a brand name — short, pronounceable, memorable, and not tied to a specific keyword. Examples: "Plunge," "Gork," "Atom." High demand from startups.
Buy Now
A fixed-price listing on a marketplace. Buyers can purchase instantly without negotiation. Domains with buy-now pricing generally sell faster than offer-only listings.
C
ccTLD (Country Code TLD)
A two-letter top-level domain associated with a specific country: .uk (United Kingdom), .de (Germany), .co (Colombia, repurposed for commercial use), .ai (Anguilla, repurposed for AI).
Comparable Sales (Comps)
Similar domains that have recently sold, used to estimate a domain's fair market value. The foundation of data-driven appraisal. URL.Ventures' database of 23,374 sales is a comps engine.
Carrying Cost
The ongoing cost of holding a domain — primarily annual renewal fees. A 100-domain .com portfolio has ~$1,200/year in carrying costs. Managing this is key to portfolio profitability.
D
DNS (Domain Name System)
The internet's phone book. Translates human-readable domain names (google.com) into IP addresses (192.168.1.1) that computers use to connect. The infrastructure layer that makes domains work.
Domain Parking
Placing ads on an undeveloped domain to earn passive revenue from type-in traffic. Revenue is typically small but can offset renewal costs for domains with existing traffic.
Drop / Drop Catching
When a domain's registration expires and it becomes available for anyone to register. "Drop catching" is the practice of automatically registering valuable domains the instant they drop.
E
End User
The final buyer who intends to use the domain for a business, product, or brand — as opposed to another investor. End users typically pay the highest prices.
Escrow
A secure third-party service that holds payment until the domain transfer is complete. Essential for any transaction outside a major marketplace. Escrow.com is the industry standard.
Exact Match Domain (EMD)
A domain that exactly matches a search query, like "cheapflights.com" or "carinsurance.com." Once an SEO advantage, now valued more for brandability and direct navigation.
F
Flip
Buying a domain with the intent to resell quickly at a profit. Short-term domain trading. Contrast with "hold" strategies where domains are kept for months or years.
G
gTLD (Generic TLD)
Generic top-level domains not tied to a country: .com, .net, .org, .info, .xyz, .io, .ai. New gTLDs (like .app, .dev, .club) were introduced starting in 2014.
Grace Period
A window after domain expiration (typically 30–45 days) during which the original owner can still renew, usually at a higher fee. After the grace period, the domain enters redemption or drops.
H
Hand Registration (Hand Reg)
Registering a previously unregistered domain at standard registration price (~$12 for .com). The lowest-cost entry point to domain investing. Requires creativity and trend awareness.
I
ICANN
The Internet Corporation for Assigned Names and Numbers. The global organization that coordinates the Domain Name System, including accrediting registrars and managing TLD registries.
K
Keyword Domain
A domain containing one or more keywords relevant to a specific industry or search term. Examples: "aitools.com," "healthdata.io." Value comes from search relevance and buyer intent.
L
Lease-to-Own
A payment structure where the buyer pays for a domain in installments over time, gaining full ownership after all payments are made. Dan.com popularized this model.
LLL.com / LLLL.com
Shorthand for three-letter or four-letter .com domains. LLL.coms are ultra-premium (limited supply of 17,576). LLLL.coms are also valued for their scarcity and brandability.
M
MOIC (Multiple on Invested Capital)
The total return on an investment expressed as a multiple. A domain bought for $12 and sold for $12,000 has a 1,000× MOIC. The core metric for domain investing returns.
Make Offer
A listing type where no fixed price is shown; buyers submit offers. Can yield higher prices for premium names but reduces conversion rate versus buy-now listings.
N
Nameserver
The servers that tell the internet where to direct traffic for your domain. Changing nameservers points your domain to different hosting providers. Part of DNS configuration.
NNN.com
Three-number .com domains (000.com through 999.com). Limited to 1,000 possible combinations. Valued for their scarcity and use in Chinese-language markets where numbers have cultural significance.
P
Premium Domain
A domain considered high-value due to its length, keywords, TLD, or other characteristics. Also used by registries to describe domains priced above standard registration fees.
Privacy Protection (WHOIS Privacy)
A service that masks your personal contact information in WHOIS records. Prevents spam, social engineering, and unwanted solicitations. Should be enabled on all domains.
R
Registrar
A company accredited by ICANN to sell domain registrations. GoDaddy, Namecheap, Cloudflare, Dynadot, and Porkbun are major registrars. Your registrar is the custodian of your domain assets.
Registry
The organization that manages a TLD. Verisign operates .com and .net. The registry sets wholesale pricing and policies. Registrars are the retail layer on top.
Renewal
The annual (or multi-year) payment to keep a domain registered. Failure to renew leads to expiration and eventual loss of the domain. Auto-renew is critical for valuable assets.
S
SLD (Second-Level Domain)
The main part of a domain name — the "google" in google.com. This is where the primary value and branding lives.
Squatting (Cybersquatting)
Registering a domain in bad faith to profit from someone else's trademark. Illegal under the ACPA and subject to UDRP disputes. Not the same as legitimate domain investing.
T
TLD (Top-Level Domain)
The extension at the end of a domain: .com, .ai, .io, .xyz, .org, .net. TLD significantly affects value. See Chapter 1 for the TLD value hierarchy.
Transfer Lock
A security feature that prevents unauthorized domain transfers. Should be enabled on all domains and only disabled when you're intentionally transferring.
Type-In Traffic
Visitors who arrive at a domain by typing the URL directly into their browser, rather than through search engines or links. Generic keyword domains often receive natural type-in traffic.
An ICANN policy for resolving domain disputes, typically trademark-related. A trademark holder can file a UDRP complaint to claim a domain registered in bad faith. Costs $1,500+ to file.
V
Vertical
An industry or market category. AI, finance, health, e-commerce, gaming, and real estate are verticals. Domains aligned with high-value verticals command premium prices.
W
WPS (URL.Ventures Pricing Standard)
URL.Ventures' independent domain pricing methodology built on 23,374 verified aftermarket sales. Uses machine learning trained on real transactions to provide market-based valuations.
WHOIS
A public database containing registration information for domain names: registrant, registrar, registration date, expiration date, and nameservers. Use WHOIS privacy to protect personal data.