What Happens When You Buy a Domain (and the Scams That Follow)

When you buy a domain, what exactly are you purchasing? This guide explains the process and highlights common scams to avoid.

Overview

You're not buying ownership of the name; instead, you secure a renewable lease on it through a registrar. The key players are the registry (which runs the top-level domain, e.g., .com), the registrar (where you buy your domain), and the registrant (you). While the registrar is important for renewals and contact information, other services like DNS hosting and web hosting can be separate.

Buying a Domain

Pick an Available Name: Choose a name that's not already registered.
Pay the Registrar: The registrar will charge you for the lease, typically $10-20 per year.
Whois Information: Your contact information is recorded in Whois, and privacy protection should be free at reputable registrars.
Set Nameservers: Point your domain's nameservers to either the registrar’s DNS or a third-party provider like Cloudflare (see the DNS doc for more details).
Create Records: Set up records that direct web traffic to your host and email to wherever it resides.

Separations Worth Keeping

Registrar (the lease)
DNS Host (answers queries)
Web Host (serves the site)
Email Host

Bundling all these services at one company can be convenient, but it's better to keep them separate if you plan on switching providers.

Renewal Reality

The initial $2 promotional price often renews at a much higher rate. Always check renewal prices and ensure auto-renew is enabled for important domains. Expiration can lead to domain squatting, where squatters may offer the domain back for a hefty fee.

Common Scams

Domain Listing Services: Invoices by mail for $85 with no benefit (paper phishing).
Trademark Scams: "Your Chinese trademark is being registered" emails.
Fake Renewal Notices: Lookalike renewal notices from registrars you don't use.
Appraisal Scams: Offers to buy your domain.

Rule of Thumb: Only interact with your domain through the registrar dashboard you chose, avoiding anything that arrives by mail or email.

Extras

WHOIS Privacy: Free and recommended (on at good registrars).
Registrar Lock: Blocks unauthorized transfers (on at good registrars).
DNSSEC: Nice-to-have for security.
New Tlds (.dev, .app): Fine to use, but .com still carries the most trust.

By understanding these points, you can navigate domain management and avoid common pitfalls.