Business Overview

A domain registration business doles out and manages internet domain names. Once they're registered with the official authorities, they'll have access to unregistered website names in the public domain. (This business is not the same as buying up potentially profitable domain names and then reselling them at a later date to the highest bidder.) Customers will pay a small fee to set up and keep their chosen name, while the registration maintains the name and handles any specific issues that may occur.

Who is this business right for?

This business is good for someone who enjoys administrative duties as well dealing with customers. They should have a love for technology, and an inherent understanding of how websites are named and who is in the market for them.

What happens during a typical day at a domain registration business?

It’s typically the registry operator who has the bulk of the duties. Their day may include any of the following:

  • Maintaining databases
  • Setting policies for the company
  • Paying registration fees
  • Researching new developments in domain law

What is the target market?

Anyone starting a new website will need a domain. With the popularity of services like Wix and Squarespace, this number only grows by the day. Trying to register your own domain name is usually either expensive or full of potential legal pitfalls, so there are few exceptions to this rule.

How does a domain registration business make money?

Domain registrars charge an annual fee to every website owner. If it's not paid on time, the website will be taken down and that name will either go back on the market or be sold to a similar business. Business owners use these annual fees to both pay themselves (and potentially their employees) and to cover any legal or administrative costs they may have. Customers pay based on both the actual name and the suffix for their name. For example, they may pay more for a .com name than a .net name.

What is the growth potential for a domain registration business?

There is a lot of potential for the right person in this industry. As it becomes easier and easier to set up a website, more people are taking advantage of subscription services to get the word out about their interests. Whether it’s a cause, hobby, or career move, it’s not uncommon for people to have multiple websites to promote the things they care about. As this trend continues, domain names will become ever scarcer and thus more valuable to those who want to find the right name to get the most exposure.