A domain name is the term used to describe a host name given to a computer that is on the Internet.  Domain names appear as a single component in a Uniform Resource Locator (URL), making it easier for people to find and identify websites online.  Some domain names are highly coveted due to their simplicity and public awareness, with some names even being sold for millions of dollars.
For any business setting up an online presence, choosing a suitable and effective domain names is the first, and one of the most important parts of the entire process.

Domain names are registered through dedicated domain name registrars, who are accredited by either the Internet Corporation for Assigned Names and Numbers (ICANN) or a national ccTLD authority.  Many domain name registers also provide a domain name server (DNS) service, but this is not necessarily the case.  There are a number of separate parts to a domain name, each of which is often characterised by a separate level of registration.  A top level domain name refers to either one of a small list of generic names with three or more characters, or a two character country or territory based code.  Some of the most popular top level domains include .com, .org, and .net.  A .com domain is often preferred by businesses due to its higher level of recognition among the general population.

Second and lower level domain names are the individual names chosen by people as a way to identify their particular website on the Internet.  A second level name is that which is directly to the left of the top level domain name, and is probably the most important name in the registration process.  Many businesses use their company name as their second level identifier, providing a direct link between their real world and online presence.  A water bed (wasserbettwelt.ch) business would want to have an identifiable water bed type name for their website, as this would make it easier for customers to find and remember their website.

If a water bed company wanted people to find out about its current water bed offer (Wasserbett Angebot), or its current vouchers and coupons, people need first to be able to find the webpage where they are located.  A well chosen domain name will make it much easier for customers to search for and track down any individual websites.  Water beds are very relaxing and great for people with aching joints and bad backs, however, if potential customers can not find out about these benefits through their appropriate website domain – then the business will not see the full benefits of its great products.