Who owns the rights to domain names and why can companies like Sedo and GoDaddy sell these domains?

Question

I was simply wondering, I know ICANN is the registrar for many domain names like .com, .org, & .gov, but why can't te public simply get domain names for free from ICANN directly since they are apparently a non-profit US organization.

Instead we have to go directly to registrars to pay however much the site wants to charge us for website names which are in some cases EXTREMELY high prices; how did these websites gain access to these domain names any way, why do they exist, and why doesn't ICANN, a non-profit organization simply give out domains based on "first come, first serve" principles.

I would any in-depth explanation or even a short summary, mainly on the point of other websites being able to sell and own certain domains.

I'm aware that there are some places which offer domain names completely free, I simply wish to understand why this sort of transaction has to have a middle man at all.

Answer 1

Here is the history of ICANN which took over control of domain name registration in 1998: http://en.wikipedia.org/wiki/InterNIC



A domain name is leased.

If the domain name that you want is available then you can lease it.



For example if you wanted the domain "myonlinestore.com" then you could register the exclusive use of that name for around $15 per year.



When you register a domain, you get control of the location that visitors are sent when they type in your domain name. You could redirect them to an existing website, or send them to a new site. This is done by setting the nameserver configuration where you registered the domain.



No domains are completely free.



Many web hosting packages include a free domain name registration as part of the cost of the package. Be sure to read all of the details on the various hosting packages as some have costs that rise after the promotional period expires.



As far as expensive domains go,



Domain names can be registered for up to 10 years in advance with the option to renew the name indefinitely. For Example, If you have registered a available domain name for $15, you have the option to resell the rights to that particular name for whatever price that the market will allow. Insure.com sold for 16 million in 2009. Here is a list of the most expensive domain names sold. http://most-expensive.com/domain-name



For a business a easy to type and remember domain name is vital. However smart entrepreneurs think outside the box. Who knew what a "google" or "yahoo" was before they became popular. Take a look at the list of most popular websites. http://www.ebizmba.com/articles/most-popular-websites What is a "bing" or "twitter", I think you get the point.



Good Luck...

Answer 2

Non-profit does not mean "no charge". It simply means that the organization is not in business to make a profit. As such, they can not have sell stock, issue dividends, etc. And the owner of the organization can not pocket any profits. It all has to go back into the organization.



Non-profits do have expenses, and they are allowed to charge people for their services to cover those expenses.



You can go directly to ICANN and purchase your domain name. However the process can take several weeks and cost you more than going through a service like Sedo or Go Daddy. The services will usually charge you less (take a lose on the domain name) because they know they will recover the cost and make a profit off hosting the domain for the next year.



There are people who make a living by purchasing domain names directly from ICANN and then reselling them to other people. They watch the ICANN web site and when a domain name becomes available they immediately file for it. There have been many cases in which companies have forgotten to renew their domain name (happened to Microsoft once) and a speculator has grabbed the name. The company then has to pay big bucks to buy the name back from the speculator. (Had one try that on me a few years back when I shut down a site and let the domain name go. Within minutes I had emails from a speculator wanting to sell me the name back for $5000.)



Non-profit does not mean "free".

Answer 3

Lease - No Only if you own them. You might be able to buy them. Then you could sell them. Think of it like a lease car. You can't sell it because it does not belong to you.