Domain Investing Glossary: Essential Terms and Definitions 2025

Introduction

Domain investing has its own language—a mix of internet terminology, investment concepts, and industry-specific jargon. Understanding this vocabulary is essential for communicating with other investors, comprehending industry news, and navigating marketplaces and forums.

This comprehensive glossary defines the essential terms every domain investor should know, from basic concepts to advanced strategies. Whether you're a complete beginner or an experienced investor looking to clarify specific terms, this reference guide will serve as your domain investing dictionary.

A

Aftermarket The secondary market where previously registered domains are bought and sold between parties. Contrasts with the primary market (initial registrations). Major aftermarket platforms include Afternic, Sedo, and Dan.com.

Aged Domain A domain that has been registered for an extended period (typically 5+ years). Aged domains may have SEO benefits, trust signals, and historical value. Also called "mature domains."

Appraisal An estimate of a domain's market value, either automated (Estibot, GoDaddy) or professional (human expert). Automated appraisals should be taken with caution; actual sales data is more reliable.

Auction A competitive bidding process where domains are sold to the highest bidder. Common auction types include expired domain auctions (NameJet, DropCatch) and seller-initiated auctions (GoDaddy Auctions, Sedo).

Auth Code (Authorization Code) Also called EPP code or transfer code. A unique password required to transfer a domain from one registrar to another. Protects against unauthorized transfers.

B

Backlinks Links from other websites pointing to a domain. Quality backlinks improve SEO value and can indicate a domain's previous use and authority. Analyzed using tools like Ahrefs or Moz.

Bad Faith In UDRP proceedings, evidence that a domain was registered primarily to sell to a trademark owner, disrupt a competitor, or profit from trademark confusion. Demonstrating bad faith is required for complainants to win UDRP cases.

Bid Sniping Placing a bid in the final seconds of an auction to avoid giving competitors time to counter-bid. Common strategy in domain auctions but requires precise timing.

Brandable Domain A domain suitable for building a brand, typically invented or suggestive words rather than exact keyword matches. Examples: Google.com, Spotify.com, Zillow.com.

Broker A professional intermediary who facilitates domain sales between buyers and sellers, typically for high-value domains ($10,000+). Brokers earn commissions (usually 10-20%) and provide expertise, negotiation, and confidentiality.

Bulk Sale Selling multiple domains as a package rather than individually, typically at a discount. Also called "portfolio sale."

Buy Now A fixed price at which a seller will sell immediately, bypassing negotiation or auction. Allows buyers to secure domains instantly without competitive bidding.

C

ccTLD (Country Code Top-Level Domain) Two-letter top-level domains designated for specific countries or territories. Examples: .uk (United Kingdom), .de (Germany), .jp (Japan). Some ccTLDs have restrictions on who can register.

Chargeback A reversal of a payment transaction, typically initiated by a credit card holder disputing a charge. Major risk for domain sellers accepting credit card payments. Escrow services help prevent chargeback fraud.

COGS (Cost of Goods Sold) In domain investing, the original acquisition cost of domains sold. Used to calculate gross profit and taxable income.

Comparable Sales (Comps) Similar domain sales used to estimate a domain's value. Found through NameBio, DNJournal, or industry reports. Key valuation method based on actual market data.

Cybersquatting Registering, trafficking in, or using a domain name in bad faith with intent to profit from someone else's trademark. Illegal under the Anticybersquatting Consumer Protection Act (ACPA) in the US.

D

Dan.com Popular domain marketplace known for clean interface, installment payment options, and zero seller commission (buyers pay 9% fee). Integrated with major registrars.

Deleting/Dropped Domain A domain that wasn't renewed by its owner and has completed the deletion process, becoming available for registration again. Valuable dropped domains are often caught through drop-catching services.

Development Building a website on a domain with content, functionality, and design. Developed domains typically sell for higher multiples than undeveloped domains due to demonstrated potential and revenue generation.

Domain Authority (DA) A Moz metric (0-100) predicting how well a domain will rank in search engines. Higher scores indicate stronger SEO value. Similar metrics include Domain Rating (Ahrefs) and Trust Flow (Majestic).

Domain Hack Using a domain extension as part of the domain name itself. Examples: del.icio.us, bit.ly, insta.gr.am. Can be creative but may confuse users.

Domain Parking Placing placeholder pages (typically with advertisements) on domains to generate revenue while holding them for sale. Services include Bodis, Sedo Parking, and ParkingCrew.

Drop-Catching Using automated systems to register valuable domains immediately when they become available after deletion. Services include NameJet, DropCatch, and SnapNames. Success rates vary; competition is intense for quality domains.

DROA (Domain Return on Assets) A metric measuring portfolio performance by comparing revenue or profit generated to total domain portfolio value.

E

EMD (Exact Match Domain) A domain that exactly matches a search query or keyword phrase. Example: CarInsurance.com for "car insurance." Previously had SEO advantages; Google has reduced (but not eliminated) this benefit.

End-User A buyer who intends to use the domain for their own business rather than reselling it. End-users typically pay higher prices than domain investors. Most profitable sales are to end-users.

Escrow A neutral third-party service that holds funds and facilitates domain transfers, protecting both buyers and sellers. Escrow.com is the industry standard for domain transactions.

Estibot Automated domain appraisal service using algorithms to estimate domain values. Useful for quick estimates but often overvalues domains. Always verify with actual comparable sales.

Expiry Date The date when a domain's registration period ends. Domains must be renewed before this date to maintain ownership. After expiry, domains enter a grace period, then redemption period, before finally dropping.

F

Fast Transfer Afternic's system allowing instant domain transfers for compatible registrars. Eliminates traditional 5-7 day transfer wait time. Available for select registrars and domains.

Flip/Flipping Buying domains with intent to resell quickly (typically within 6-12 months) for profit. Contrasts with long-term holding strategy.

Forward (Domain Forwarding) Redirecting a domain to another URL. Used when owning multiple domains pointing to one website or when domains are listed for sale.

G

Generic Domain A domain using common dictionary words or phrases that describe products, services, or industries. Examples: Insurance.com, Books.com, Travel.com. Typically valuable due to broad appeal and search volume.

Geo Domain A domain incorporating geographic locations (cities, states, countries). Examples: NYC.com, California.com, Paris.com. Valuable for local businesses and tourism.

GoDaddy Largest domain registrar and major domain marketplace. Known for auctions, aftermarket listings, and extensive domain services. Higher renewal costs but good for beginners due to user-friendly interface.

Grace Period Period after domain expiry (typically 30-45 days) during which the original registrant can still renew at standard price. After grace period, domain enters redemption period with higher renewal fees.

gTLD (Generic Top-Level Domain) Top-level domains not associated with countries. Includes original gTLDs (.com, .net, .org) and new gTLDs (.app, .shop, .blog). Contrasts with ccTLDs (country codes).

H

Hand Registration (Hand-Reg) Registering an available domain directly from a registrar at standard registration price (typically $10-15 for .com). Most cost-effective acquisition method but requires finding available quality names.

Holding Costs Ongoing expenses to maintain domain ownership, primarily annual renewal fees. Must be factored into ROI calculations.

Hyphenated Domain A domain containing hyphens, such as best-domain.com. Generally less desirable than non-hyphenated equivalents due to typing difficulty and unprofessional appearance.

I

ICANN (Internet Corporation for Assigned Names and Numbers) Nonprofit organization coordinating the global domain name system, IP addresses, and internet protocols. Sets policies for domain registrars and registries.

IDN (Internationalized Domain Name) Domains using non-Latin characters (Chinese, Arabic, Cyrillic, etc.). Example: 中国.com. Allows internet in native languages but presents technical and marketing challenges.

Inquiry A potential buyer's expression of interest in purchasing a domain. Can range from serious offers to casual questions. Tracking inquiry frequency helps assess domain value.

L

Landing Page A simple website on a domain (usually for sale) presenting information and contact options. Professional landing pages can increase conversion rates and justify higher prices.

Length The number of characters in a domain name (excluding extension). Shorter domains are generally more valuable: premium domains are typically under 12 characters.

Liquid Asset In domain investing, domains that can be sold relatively quickly. High-quality .com domains in popular categories tend to be more liquid than specialized or alternative TLD domains.

Listing Placing a domain for sale on a marketplace with a set price or "make offer" option. Multiple platform listings increase exposure and sales likelihood.

LLL/NNN Acronyms for Letter-Letter-Letter or Number-Number-Number patterns. Examples: ABC.com (LLL) or 123.com (NNN). Short pattern domains are highly valued, especially in Chinese markets.

Lowball Offer An offer significantly below asking price or market value, often 10-20% of listing price. Common in domain sales; typically rejected but can be countered.

M

Make Offer A listing option allowing buyers to propose their own price rather than accepting a fixed "Buy Now" price. Creates flexibility for negotiation.

Marketplace A platform where domains are listed for sale. Major marketplaces include Afternic, Sedo, Dan.com, and GoDaddy Auctions. Each has different fee structures and buyer audiences.

Monetization Generating revenue from a domain, typically through parking (ads), development (content + ads/affiliate), or lease agreements.

N

NameBio Comprehensive database of domain sales with over 1 million records. Essential research tool for determining comparable sales and market values. Subscription tiers available.

NameJet Auction platform specializing in expired and deleting domains. Features pre-release backorders, private auctions, and public auctions. Quality-focused compared to competitors.

Nameserver Servers that translate domain names into IP addresses. Must be configured properly for domains to resolve to websites or email services.

New gTLD Top-level domains launched after 2013 (over 1,000 introduced). Examples: .app, .blog, .shop, .xyz. Most have underperformed .com; select few (.io, .ai) have gained traction.

Numeric Domain Domains consisting only of numbers. Particularly valued in Chinese markets where numbers have cultural significance. Examples: 888.com, 123456.com.

O

Organic Traffic Website visitors arriving from search engines rather than paid advertising. Domains with organic traffic are more valuable due to proven SEO value and monetization potential.

Outbound Proactive outreach to potential buyers (end-users) rather than waiting for inbound inquiries. Effective strategy for domains with clear target buyers.

P

Parking See Domain Parking. Placing revenue-generating placeholder pages on domains while holding for sale.

Portfolio Collection of domains owned by an individual or entity. Can range from dozens to thousands of domains. Should be diversified across categories, extensions, and price points.

Premium Domain High-quality domain commanding above-average prices, typically $5,000+. Characteristics include short length, .com extension, dictionary words, or exact-match keywords.

Proxy Bidding Automated bidding system where maximum bid is set in advance, and system automatically increases bid as needed up to that maximum. Common in domain auctions.

PPC (Pay-Per-Click) Advertising model where revenue is generated each time visitors click ads. Common monetization method for parked domains.

R

Redemption Period Period after grace period (typically 30 days) when expired domain can still be recovered by original owner at higher cost ($100-200). After redemption period, domain is deleted.

Registrant The person or entity that owns/registers a domain. Listed in WHOIS database (though often privacy-protected).

Registrar Company authorized to sell domain registrations. Examples: Namecheap, GoDaddy, Porkbun. Registrars must be ICANN-accredited for gTLDs.

Registry Organization managing a specific TLD. Example: VeriSign manages .com and .net registries. Registries don't sell directly to public; they work through registrars.

Renewal Extending domain registration for another term (typically 1 year). Must be done before expiry to maintain ownership. Annual renewals are primary holding cost.

Reserve Price Minimum price a seller will accept in auction. If bidding doesn't reach reserve, seller isn't obligated to complete sale. Can be public or hidden.

ROI (Return on Investment) Profit divided by investment, expressed as percentage. Key metric for evaluating domain investment performance. Formula: (Sale Price - All Costs) / All Costs × 100.

S

Sedo Major international domain marketplace, strong in European markets. Features auctions, broker services, and domain parking. Commission-based fees (10-20%).

SEO (Search Engine Optimization) Practices to improve website ranking in search results. Domains with SEO value (aged, backlinks, keywords) command premium prices.

SERP (Search Engine Results Page) The page showing results for a search query. Domain names appearing in SERPs can drive type-in traffic.

Soft Close Auction system where end time extends if bids are placed near closing (typically 5 minutes). Prevents sniping and ensures all interested parties can bid. Common in domain auctions.

Speculation Buying domains based on predicted future trends or demand. Higher risk but potential for significant returns if trend materializes.

T

TLD (Top-Level Domain) The extension at the end of a domain name (.com, .net, .org, etc.). Divided into gTLDs (generic) and ccTLDs (country codes).

Trademark Legal protection for brand names, logos, and phrases. Domain investors must avoid trademarked terms to prevent UDRP complaints and legal liability. USPTO TESS database provides US trademark search.

Transfer Moving a domain from one registrar to another or from one owner to another. Requires authorization code and typically takes 5-7 days.

Trend Domain Domain related to current hot topics or fads. Can be very profitable if timed correctly but risky as trends fade quickly. Examples: fidget spinner domains (2017), NFT domains (2021).

Type-In Traffic Website visitors who type domain directly into browser rather than using search engines. Exact-match domains and short memorable names generate more type-in traffic.

Typo Domain (Typosquatting) Domain that's a common misspelling of a popular domain. Example: Gooogle.com (Google). Generally considered trademark infringement and not recommended for investment.

U

UDRP (Uniform Domain-Name Dispute-Resolution Policy) ICANN policy for resolving domain disputes related to trademark infringement. Faster and cheaper than courts but binding. Complainant must prove bad faith registration and use.

Undeveloped Domain Domain without a functioning website, typically showing "for sale" page or parked content. Most domains held by investors are undeveloped.

Unlocking Removing transfer lock from a domain to allow transfer to another registrar. Required step before transferring domains.

V

Valuation Process of determining a domain's worth. Methods include comparable sales analysis, revenue multiples (for developed sites), and automated appraisals. Accurate valuation requires experience and market knowledge.

Vertical Industry sector or market niche. Example: health vertical includes domains related to fitness, medical, wellness, nutrition, etc.

W

Whois Public database showing domain registration information including registrant, registrar, registration date, and expiry. Privacy services mask registrant details while maintaining registrar information.

Whois Privacy Service hiding registrant personal information from public WHOIS database. Recommended for all domains to prevent spam and maintain privacy. Often included free with registration.

Y

Yield Return generated from a domain, typically from parking revenue or development income. Expressed as percentage of domain value annually.

Numbers

2L/3L/4L Abbreviations for two-letter, three-letter, four-letter domains. Short letter domains are highly valued. Example: AB.com (2L), ABC.com (3L).

60-Day Transfer Lock ICANN policy preventing domain transfers for 60 days after registration or transfer. Protects against fraud but can delay sales.

Industry Phrases

"Been around since the 90s" Refers to aged domains registered in the 1990s dot-com era. These domains have maximum age benefit and historical significance.

"Build out" Developing a domain into a functioning website with content and monetization.

"Catch/Drop catch" Successfully registering a previously-owned domain the moment it becomes available after deletion.

"Dead money" Domains that aren't selling and tie up capital unproductively. Should be dropped or liquidated.

"Diamond in the rough" Undervalued domain with significant potential that hasn't been recognized by market.

"Domain tasting" Registering domains and returning them within 5-day grace period for refund. ICANN has largely eliminated this practice through policy changes.

"Fire sale" Selling domains at steep discounts, often due to urgent need for liquidity.

"Hand reg gold" Valuable domains still available for standard registration price—rare finds requiring creativity and research.

"Liquid domain" Domain that can sell quickly due to high demand and broad appeal.

"Make an offer (MAO)" Instead of fixed price, seller invites buyers to propose price. Creates negotiation opportunity.

"Names" Industry shorthand for domains. "I own 500 names" means 500 domains.

"One-word .com" Highly coveted category of domains using single dictionary words in .com extension. Extremely scarce and valuable.

"Park and mark" Strategy of parking domains with revenue-generating ads and tracking their performance.

"Portfolio play" Acquiring multiple related domains as a package investment.

"Premium" High-quality domains commanding above-average prices, or registrar-held domains with premium pricing (often $500-$10,000 for registration).

"Keyword rich" Domains containing multiple relevant keywords for SEO value.

Conclusion

Understanding domain investing terminology is essential for success in the industry. This glossary covers the most important terms, but the language continues to evolve with new technologies, strategies, and market dynamics.

Key recommendations:

For beginners: Focus first on core terms (domain, TLD, registrar, marketplace, escrow). Learn advanced terms as you encounter them.

For intermediate investors: Master valuation terminology (comps, ROI, DA) and marketplace terms to communicate effectively and analyze opportunities.

For advanced investors: Stay current with emerging terms related to new technologies (blockchain domains, AI trends) and evolving strategies.

Bookmark this guide as a reference resource. Return when you encounter unfamiliar terms in forums, articles, or transactions.

The domain investing community assumes knowledge of this vocabulary. Mastering these terms will help you:

• Understand industry discussions
• Communicate professionally
• Evaluate opportunities accurately
• Negotiate effectively
• Build credibility

Language is power in any specialized field. In domain investing, knowing the terminology separates amateurs from professionals.

Now you speak the language. Use it well.

Ready to expand your domain investing knowledge? Explore our other comprehensive guides on domain valuation, auction strategies, and portfolio management.