A domain name is the address of a website. A domain name is also known as a web address. They are host names that stand in for complicated IP addresses. When a domain name is typed into a search box, it is looked up on the domain name system, and given the correct IP address for that certain web address. A computer then transfers the user to that website.

What are the three types of domains?
There are three levels of domain names: Top level domains, secondary level domains, and third level domains.

1. A top level domain is a small set of letters used to indicate the country in which the website is located or the sponsor type of the website. Some top level domains include .com, .net, .edu, .gov, .org, and .biz. A country code level domain is used to indicate a particular country. These types of top level domain names include .us [united states], .fr [france], and .ca [canada].

2. A second level domain is a word or phrase that comes directly before the top level domain. For example, the word yahoo in yahoo.com is a second level domain.

3. A third level domain is a word or phrase that comes directly before the second level domain. For example, the word sports in sports.yahoo.com is a third level domain.

How can one make money from a domain name?
One can make money by selling a domain name. In recent years, the resale market for generic domain names is booming. One can purchase a generic domain name such as dance.com and resell it for a higher price to make a profit.

 Also, one can purchase the domain name of an approaching franchise, and later sell it to the franchise for a higher price. For example, when the store, Toys R Us was in its early stages, one could purchase the domain name toysrus.com. When the Toys R Us Company later turned into a franchise, the company would want the said domain. Because of this, the company would pay a hefty amount of money to the holder of the domain name, toysrus.com.