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Everyone who uses the Internet knows that typing the address of a website into the address bar of a Web browser will pull up that page. However, many people are unaware that domain names, the address which users type in to pull up a website, are in-demand commodities. Individuals or companies that buy up and sell domain names are engaging in domain trafficking.

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Domain Name Market
Domain names are like real estate on the Internet. Only one entity (be it an individual, a company or an organization) can own a domain name at any point in time. If no one owns a particular domain name, an individual can simply purchase it for a specified amount of time. However, if someone already owns that domain name, the individual can come up with another name to use or try to purchase it directly from the owner. Alternatively, the individual can wait for the period of time for which the owner purchased the domain to expire and hope he will not renew the domain name. This will cause the domain name to be on the open market once more for purchase.

Squatting
One less than scrupulous form of domain trafficking is domain squatting. This happens when a domain trafficker preemptively purchases a domain name that matches a famous person, company or product. The goal of this tactic is that the website is of much more use and value to the individual or company that would want to use that domain name than to the trafficker himself. Thus, the idea is to sell the domain name for a profit to the entity that otherwise would have purchased it had they acted quickly enough before.

Buying Up Expired Domain Names
Another way traffickers acquire domain names is by keeping their eye out for domain names which other entities have purchased and registered, then failed to reregister after the specified period. In this way, anyone who wants to use that domain, has to go through the trafficker to acquire or reacquire it. This could be anyone who wants to use it for a new business or personal enterprise, or even the original owner who let their domain name registration lapse. This can be a form of website squatting, where the trafficker can turn a profit from selling the domains.

Trafficker
Not everyone who sells domain names is engaging in domain trafficking. Entities that purchased a domain name, used it for their own enterprise, then sell the domain name if that enterprise is coming to an end are not trafficking in domains. Domain trafficking is about making money from buying and selling domain names as commodities, not using them for their intended purpose as Internet addresses.