We often receive questions from clients about domain names. Your domain name is one of the most basic pieces to setting up your own website and also one of the most frequently misunderstood. Today I'm going to cover some of the important things to know about domain names and how they are managed.

A domain name is similar to an address; the domain name tells your web browser what site you would like to visit. Computers called domain name servers (DNS) store a list of domain names and their associated ip addresses; like mailmen, they make sure your browser gets to the correct website. Beyond the basics, a domain name helps identify your business to current and potential clients.

Choosing a domain name

Since your domain name is usually the first bit of information a potential client sees, its important to choose a memorable and has branding potential. You might want to consider using keywords in your domain name which may help your ranking in search engines and will certainly help clue customers in to your business's purpose. A domain name can be between 2 and 63 characters, however, its unlikely that you'll be on either extreme end unless you're already well known by a short name or a long (easily spelled) catch phrase.

While domain names often include your business name, it never hurts to add a bit extra in order to have the name stand out in people's minds. For example, there are many businesses with the name "Spencer" - if you're a heating and cooling specialist, spencerheating.com might help customers remember your website, while a company selling upscale pens might try buyspencer.com on for size. Whatever your choice, remember that your domain name needs to fit in as a piece of your overall branding strategy.

Pointing your domain name

Once you've chosen and purchased your domain name, you'll need to tell your domain name where your website is going to be. Web designers and web hosts will often call this "pointing your domain". Its not nearly as painful as it sounds, but it can be confusing. Some web services providers, like DotConcepts, will manage your domain for you and "point" it for you.

Whoever is hosting your website, whether its a web host or your web designer, will tell you which name servers (remember, we talked about those earlier) hold your website's address. Usually there are two name servers, but there can be up to four; they often look like NS1.hosting.com and NS2.hosting.com. You will need to access your domain name and change the Name Servers to those your host provided for you. Within 24 - 48 hours, all the name servers on the internet should have talked to each other and shared your website's new address.

Transferring a domain name

Transferring a domain name is often confused with pointing a domain name, but these are two very different processes. When you transfer a domain name, you physically give the domain name to someone else either by switching the company you register with or by giving someone else ownership of the domain name. Most domain name registration companies (registrars) will allow you to "lock" your domain name to keep unscrupulous parties from trying to take your domain name from you. As an additional security step, many registrars will require you to personally authorize any kind of transfer.

Renewing a domain name

An often overlooked but important part of the domain name process is renewal. Domain names are registered on a yearly basis; many registrars allow you to register several years at a time or set up automatic renewal. If you do not renew your domain name, the name is released back into the wild where another person or company can purchase the name. While you do have a grace period between your registration running out and the name being released, you're much better off ensuring that your domain names are renewed early or set to automatically renew. If you know you plan to keep your domain name for a long period of time, its worth seriously considering purchasing multiple years of registration for both the price break and the peace of mind.