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Registrations of domain name are soaring.  In 2006 over 125 million domain names were registered worldwide. Many businesses combat cyber squatters by owning multiple domain names for different parts of their business. 

Coupled with the rise in registrations, so is the rise in problems.  Many businesses have such slack practices about managing their domain names, the possibility of a problem arising is real.

Choose a registrar carefully
Imagine how you would feel if one day, your business was ruined because your domain name had lapsed or changes were made without your knowledge.  Devastated probably wouldn’t describe it.

You might think ‘that would never happen to me’.  But you would be wrong. Your domain name should be treated with the same care as other assets of your business. 

But regularly, a business will register its domain name with one particular domain name registrar simply because it offers low fees.  Many registrars run great businesses and are ethical in their practices.  But while the industry goes almost unregulated some unruly operators have appeared.  Check out several registrars and understand how they work before making a decision about whom to use.  Low fees are not always best.

Make some rules
Few businesses have rules to deal with domain names decisions. But most of the problems can be avoided if some simple rules are permanently in place. 

Rather than leaving domain name decisions to individuals working in the business, an established set of rules will provide a framework for decision making. This will ensure a consistency of approach and avoid the problems that occur with staff changes and turnover.

Make sure the business owns it
The person who registers a domain name is often considered of little importance; that is until you want to change ownership.  

Domain names are often registered by individuals working in a business.  They fill in the registration form online and enter their own name under the heading ‘registrant’.  This means that those individuals are then the owners; not the business they work for.

A registrar will not check that the person who has registered the domain name is the owner.   If the individual listed as registrant leaves the business, transferring ownership can be problematic.  Transfer documents must be signed by the listed registrant.  If they either refuse to sign transfer documents or cannot be found to do so, the continuing viability of your business could be at risk.

Get the contact details right
Personal details of an individual are often given as the email, administration and technical contacts when domain names are registered Renewal reminders and other correspondence are sent by Registrars to the contact details listed.   This can cause difficulties if that individual leaves the business. 

It is common for a business to shut down email addresses when a staff member leaves. Who then knows that a domain name is due for renewal if the reminder is not received? 

Not renewing a domain name can sabotage a business.  Another business keen on your domain name may have placed it on backorder should it not be renewed.  If you do not renew it, their backorder could kick in and the domain name registered by them. Unless you can prove some foul play, you may not be able to get your domain name back.

Make sure it’s the permanent business details that are recorded when registering your domain names.

Passwords and registry keys
To make changes to a domain name, the unique password and registry keys assigned to each domain name are required. Passwords and registry keys are sent by the registrar to whoever registered the domain name first.   There are security issues to consider about holding and accessing password and registry keys.  If this information is not held in an accessible but secure central register, it may not be found when needed.  

On the other hand, because having access to a password and registry key means that anyone can then make changes to the domain, the effect of this information falling into the wrong hands is significant.  A balance needs to be achieved.

Be aware
These are only some of the issues that can significantly affect a business when domain name problems occur.  By being aware of these issues and taking steps to address them, you can stop your business falling victim to intentional or accidental sabotage.  The choice is yours. Setting clear domain name rules within your business will ensure the continuing security of your domain name – and your business.

An edited version of this article was published in Her Magazine December 2007

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  Corinne Blumsky

  Partner