While many people ask how to get a free domain name, the answer can be complicated.

Many, many companies sell domain names at low costs ranging from $2 to $10 per year. In some cases, these very low-cost domain names come with hidden costs. The unwary consumer may find herself locked into an expensive multi-year webhosting contract. The contract – and its related costs – remains in effect, even if the customer wants to switch to a different webhosting service or dismantles the site and has no further need for a webhosting company.

Buyer Beware

As in any other financial transaction, the buyer should beware when looking to get a free domain name. However, there are excellent values on all types of web services available.

Profit Potential

On the other hand, some people make a fortune by registering free or low-cost domain names and reselling them to the highest bidder. The domain name Business.com sold for $7.5 million, while Rock.com was purchased for $1 million. In some cases, the buyer bought an actual company but in many others, the entrepreneur only owned the domain name.

Often, a major corporation will find that it needs a short, effective domain name. Sometimes an enterprising web entrepreneur who recognized the name’s potential has already snapped the domain name up. Some businesses specialize in domain name speculation, registering many domain names that they think might become valuable in the future. Some of these entrepreneurs are less scrupulous, and will register the name of a famous person, like BradPitt.com or Beyonce.com.

A key factor in this type of enterprise is the ability to identify emerging trends. Many, many top domain names are already sold. However, entrepreneurs who have the foresight to get ahead of cutting edge trends and emerging fashions, can still identify and claim domains to resell in the future. Having knowledge of how to get a free domain name is very helpful in this type of enterprise.