ICANN (Internet Corporation for Assigned Names and Numbers) has overall responsibility for managing the DNS. It controls the root domain, delegating control over each top-level domain to a domain name registry . For ccTLDs , the domain registry is typically controlled by the government of that country. ICANN has a consultation role in these domain registries but is in no position to regulate the terms and conditions and the operations of how a domain name is allocated or who allocates it in each of these country level domain registries. Since generic top-level domains (gTLDs) are governed directly under ICANN, all terms and conditions are defined by ICANN with the cooperation of the gTLD registries.

Domain names which are theoretically leased can be considered in the same way as real estate, due to a significant impact on online brand building, advertising, search engine optimization, etc.

 

Commercial resale of domain names

An economic effect of the widespread usage of domain names has been the resale market of generic domain names that has sprung up in the last decade. Certain domains, especially those related to business, gambling, pornography, and other commercially lucrative fields have become very much in demand to corporations and entrepreneurs due to their intrinsic value in attracting clients. For example, the domain name sex.com was stolen from its rightful owner by means of a forged transfer instruction. During the height of the dot-com era, the domain was earning millions of dollars per month in advertising revenue from the large influx of visitors that arrived daily. Two long-running US lawsuits resulted, one against the thief and one against the domain registrar VeriSign .

One of the reasons for the value of domain names is that even without advertising or marketing, they attract clients seeking services and products. Furthermore, generic domain names such as Rent.com or Books.com are extremely easy for potential customers to remember, increasing the probability that they become repeat customers or regular clients.

Although the current domain market is nowhere as strong as it was during the dot-com heyday, it remains quite strong. Annually tens of millions of dollars change hands due to the resale of domains.