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Sunday, January 10, 2010

Domain aftermarket prices and trends

Domain name sales occurring in the aftermarket are frequently submitted to the DN journal. The sales are listed weekly and include the top aftermarket resellers which include but are not limited to Sedo, Traffic (auctions), Afternic, NameJet, Moniker and private sales.

To date, and according to Guinness World Records and MSNBC, the most expensive domain name sales on record as of 2004 were

  • Business.com for $7.5 million in December 1999
  • AsSeenOnTv.com for $5.1 million in January 2000
  • Altavista.com for $3.3 million in August 1998
  • Wine.com for $2.9 million in September 1999
  • CreditCards.com for $2.75 million in July 2004
  • Autos.com for $2.2 million in December 1999

Resale of domain names

The business of resale of previously registered domain names is known as the domain aftermarket. Various factors influence the perceived value or market value of a domain name. Annually tens of millions of dollars change hands in connection with the resale of domains. Large numbers of registered domain names lapse and are deleted each year. On average, more than 25,000 domain names drop (are deleted) every day.

Official assignment

The Internet Corporation for Assigned Names and Numbers (ICANN) has overall responsibility for managing the DNS. It administers the root domain, delegating control over each TLD to a domain name registry. For ccTLDs, the domain registry is typically installed by the government of that country. ICANN has a consultation role in these domain registries but cannot regulate the terms and conditions of how domain names are delegated in each of the country-level domain registries. On the other hand, the generic top-level domains (gTLDs) are governed directly under ICANN, which means all terms and conditions are defined by ICANN with the cooperation of each gTLD registry.

Domain names are often seen in analogy to real estate in that (1) domain names are foundations on which a website (like a house or commercial building) can be built and (2) the highest "quality" domain names, like sought-after real estate, tend to carry significant value, usually due to their online brand-building potential, use in advertising, search engine optimization, and many other criteria.

A few companies have offered low-cost, below-cost or even cost-free domain registrations with a variety of models adopted to recoup the costs to the provider. These usually require that domains be hosted on their website within a framework or portal that includes advertising wrapped around the domain holder's content, revenue from which allows the provider to recoup the costs. Domain registrations were free of charge when the DNS was new. A domain holder (often referred to as a domain owner) can give away or sell infinite number of subdomains under their domain name. For example, the owner of example.edu could provide subdomains such as foo.example.edu and foo.bar.example.edu to interested parties.

Second-level and lower level domains

Below the top-level domains in the domain name hierarchy are the second-level domain (SLD) names. These are the names directly to the left of .com, .net, and the other top-level domains. As an example, in the domain en.wikipedia.org, wikipedia is the second-level domain.

Next are third-level domains, which are written immediately to the left of a second-level domain. There can be fourth- and fifth-level domains, and so on, with virtually no limitation. An example of an operational domain name with four levels of domain labels is www.sos.state.oh.us. The www preceding the domains is the host name of the World-Wide Web server. Each label is separated by a full stop (dot). 'sos' is said to be a sub-domain of 'state.oh.us', and 'state' a sub-domain of 'oh.us', etc. In general, subdomains are domains subordinate to their parent domain. An example of very deep levels of subdomain ordering are the IPv6 reverse resolution DNS zones, e.g., 1.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.0.ip6.arpa, which is the reverse DNS resolution domain name for the IP address of a loopback interface, or the localhost name.

Second-level (or lower-level, depending on the established parent hierarchy) domain names are often created based on the name of a company (e.g., microsoft.com), product or service (e.g., gmail.com). Below these levels, the next domain name component has been used to designate a particular host server. Therefore, ftp.wikipedia.org might be an FTP server, www.wikipedia.org would be a World Wide Web server, and mail.wikipedia.org could be an email server, each intended to perform only the implied function. Modern technology allows multiple physical servers with either different (cf. load balancing) or even identical addresses (cf. anycast) to serve a single hostname or domain name, or multiple domain names to be served by a single computer. The latter is very popular in Web hosting service centers, where service providers host the websites of many organizations on just a few servers.

Top-level domains

The top-level domains (TLDs) are the highest level of domain names of the Internet. They form the DNS root zone of the hierarchical Domain Name System. Every domain name ends in a top-level or first-level domain label.

When the Domain Name System was created in the 1980s, the domain name space was divided into two main groups of domains.The country code top-level domains (ccTLD) were primarily based on the two-character territory codes of ISO-3166 country abbreviations. In addition, a group of seven generic top-level domains (gTLD) was implemented which represented a set of categories of names and multi-organizations. These were the domains GOV, EDU, COM, MIL, ORG, NET, and INT.

During the growth of the Internet, it became desirable to create additional generic top-level domains. As of June 2009, there are 20 generic top-level domains and 248 country code top-level domains. In addition, the ARPA domain serves technical purposes in the infrastructure of the Domain Name System.

During the 32nd International Public ICANN Meeting in Paris in 2008, ICANN started a new process of TLD naming policy to take a "significant step forward on the introduction of new generic top-level domains." This program envisions the availability of many new or already proposed domains, as well a new application and implementation process.Observers believed that the new rules could result in hundreds of new top-level domain to be registered.

.lk

.lk is the Internet country code top-level domain (ccTLD) for Sri Lanka. Foreign companies who do not have a local presence can only reserve their top-level and corresponding open second-level domains (either through the LK Domain Registry or agents). In order to register and use a name they must have a contact address in Sri Lanka (which may be obtained through an agent or law firm).

.org

The domain name org is a generic top-level domain (gTLD) of the Domain Name System (DNS) used in the Internet. The name is derived from organization.

The org domain was one of the original top-level domains,, with com, edu, gov, mil and net, established in January 1985. It was originally intended for non-profit organizations or organizations of a non-commercial character that did not meet the requirements for other gTLDs. The MITRE Corporation was the first group to register an org domain with mitre.org in July 1985.

Registrations in the org are processed via accredited registrars worldwide. Anyone can register an org second-level domain. Although org was recommended for non-commercial entities, there are no restrictions to registration. There are many instances of org being used by commercial sites. org was also commonly recommended for use by individuals, although name and info are now alternatives.

The org TLD has been operated since January 1, 2003 by Public Interest Registry, who assumed the task from VeriSign Global Registry Services, a division of VeriSign.

Although organizations anywhere in the world can register org domains, many countries have a second-level domain with a similar purpose under their own country code top-level domain (ccTLD). Such second-level domains are usually of the form org.cc or or.cc, where cc is the country code

.com

The domain name com is a generic top-level domain (gTLD) in the Domain Name System of the Internet. Its name is derived from commercial, indicating its original intended purpose for networks of general commercial character.

The com TLD was originally administered by the United States Department of Defense and is today operated by VeriSign. Registrations in com are processed via registrars accredited by ICANN. The registry accepts internationalized domain names.

The domain was one of the original top-level domains (TLDs), the others being edu, gov, mil, net, org, and arpa established in January 1985. It has grown to be the largest TLD in use.

.net

Here at Depiction, we strive to help others expand their web design knowledge. Our goal is to help you develop aesthetically pleasing and user friendly websites with your own creative touch.

Depiction, the representation through picture or words, was chosen for this site because it presents a professional image and well suits a web design resource and learning site. I have created and maintained many websites over the past few years covering web design and personal hobbies with many uncreative names which have badly represented me. Taking the time to pick a well suited name was very important this time around.

Depiction opened in June 2003 with a wide variety of content. Although there were very few tutorials here, we had many games, downloads, scripts, virus info, and free templates; much of which was free content hosted elsewhere. In August 2003, InterSolutions, the paid web design and hosting service section of the site, opened with little success. Although I don't receive regular clients, InterSolutions is still open; mainly as a portfolio site.

Reseller web hosting

Reseller hosting is a form of web hosting wherein the account owner has the ability to use his/her allotted hard drive space and bandwidth to host websites on behalf of third parties. The reseller purchases the host's services wholesale and then sells them to customers for a profit. A certain portion of hard drive and bandwidth is allocated to the reseller account. The reseller may rent a dedicated server from a hosting company, or resell shared hosting services. In the latter case, the reseller is simply given the permission to sell a certain amount of disk space and bandwidth to his own customers without renting a server from a web hosting company he signed for a reseller account with.

The typical web hosting reseller might be a web design firm, web developer or systems integrator who offers web hosting as an add-on service. Reseller hosting is also an inexpensive way for web hosting entrepreneurs to start a company. Most reseller hosting plans allow resellers to create their own service plans and choose their own pricing structure. In many cases, resellers are able to establish their own branding via customized control panels and name servers.

Reseller hosting does not require extensive knowledge of the technical aspects of web hosting. Usually, the data center operator is responsible for maintaining network infrastructure and hardware, and the dedicated server owner configures, secures, and updates the server. A reseller is responsible for interfacing with his/her own customer base, but any hardware, software and connectivity problems are typically forwarded to the server provider from whom the reseller plan was purchased. It should be noted that being a profitable reseller firm usually involves extensive advertising to get customers. While the monthly fees with major hosts are only a few dollars a month, it's a low margin business, and resellers must devote large advertising budgets to compete with established competitors. However, web hosting is one of the biggest online businesses, because every website needs hosting.

Shared web hosting service

A shared web hosting service or virtual hosting service or derive host refers to a web hosting service where many websites reside on one web server connected to the Internet. Each site "sits" on its own partition, or section/place on the server to keep it separate from other sites. This is generally the most economical option for hosting, as many people share the overall cost of server maintenance.

Quick Blog

Quick Blog is a hosted blogging service from GoDaddy.com. It is offered free with ads for every domain name purchased or as a separate, subscription-based product. It debuted on December 16, 2005. The current version is 1.2.9.

.tk

Tokelau provides any interested individuals .tk domain names free of charge. These free domains are pointed to Tokelau nameservers, which redirect HTTP traffic via HTML frames to a specified web page. The domains also redirect 250 email addresses to external addresses. Because of this redirection, use of free .tk domains for other services (such as hosting servers for other protocols such as FTP and IRC or creating hostnames and subdomains within them) is not officially possible. Sites not visited at least 25 times in consecutive 90 day periods are automatically cancelled to avoid the domains being unavailable to more active websites.

Dot TK recently provided .tk websites the option to join a network called TiKinet, a close-knit network that links sites to each other based on key words called TiKilinks. The network is expected to increase traffic to the websites, many of which are personal sites and blogs operated by individuals who otherwise would have no way to advertise their sites.[1]

To be able to use one's own nameservers, or get a "special" .tk domain name, for example, trademark domain names for most Fortune 500 companies, and to avoid advertisements, the user must buy it. Paid domain names start at US$19.90 for the first two years. Potentially valuable names with less than 4 characters are similarly unavailable for free registration, and must be purchased—usually at a premium price of over $1000.

Dot TK have now teamed up with Twitter so when you create your name you can "tweet" it to Twitter, and Facebook where you can rename yours and your friends' Facebook account pages with a .tk name.

All .tk domains were down in May 2009 (including the Dot TK website), instead displaying this message: "At this moment Dot TK is a bit overwhelmed by all the new users. Therefore we are currently unable to handle your request." On 6 May 2009, all service was restored.

Previously, access to .tk-hosted redirects would show an advertisement before redirecting. Also, unless the site administrator disabled it in the Linker-Promo section of "My Dot Tk", it was not possible to have more than three free domain names.

Free content

Free content, or free information, is any kind of functional work, artwork, or other creative content having no significant legal restriction relative to people's freedom to use, distribute copies, modify, and to distribute derived works of the content. It is distinct from open content in that it can be modified, whereas one might not have that ability with content that is simply "open" and not "free".

Free content encompasses all works in the public domain and also those copyrighted works whose licenses honor and uphold the freedoms mentioned above. Because copyright law in most countries by default grants copyright holders monopolistic control over their creations, copyrighted content must be explicitly declared free, usually by the referencing or inclusion of licensing statements from within the work.

Though a work which is in the public domain because its copyright has expired is considered free, it can become non-free again with all its derivatives becoming non-free or illegal, if the copyright law changes.

Public domain

The public domain is an intellectual property designation for the range of content that is not owned or controlled by anyone. These materials are "public property", and available for anyone to use freely for any purpose. The public domain can be defined in contrast to several forms of intellectual property; the public domain in contrast to copyrighted works is different from the public domain in contrast to trademarks or patented works. Furthermore, the laws of various countries define the scope of the public domain differently, making it necessary to specify which jurisdiction's public domain is being discussed.

The public domain is most often discussed in contrast to works whose use is restricted by copyright. Under modern law, most original works of art, literature, music, etc. are covered by copyright from the time of their creation for a limited period of time (which varies by country). When the copyright expires, the work enters the public domain. It is estimated that currently, of all the books found in the world's libraries, only about 15% are in the public domain, even though only 10% of all books are still in print; the remaining 75% are books which remain unavailable because they are still under copyright protection.[1]

The public domain can also be defined in contrast to trademarks. Names, logos, and other identifying marks used in commerce can be restricted as proprietary trademarks for a single business to use. Trademarks can be maintained indefinitely, but they can also lapse through disuse, negligence, or widespread misuse, and enter the public domain. It is possible, however, for a lapsed trademark to become proprietary again, leaving the public domain.

The public domain also contrasts with patents. New inventions can be registered and granted patents restricting others from using the inventions without permission from the inventor. Like copyrights, patents last for a limited period of time, after which the inventions covered by

Domain name

A domain name is an identification label that defines a realm of administrative autonomy, authority, or control in the Internet, based on the Domain Name System (DNS).

Domain names are used in various networking contexts and application-specific naming and addressing purposes. They are organized in subordinate levels (subdomains) of the DNS root domain, which is nameless. The first-level set of domain names are the top-level domains (TLDs), including the generic top-level domains (gTLDs), such as the prominent domains com, net and org, and the country code top-level domains (ccTLDs). Below these top-level domains in the DNS hierarchy are the second-level and third-level domain names that are typically open for reservation by end-users that wish to connect local area networks to the Internet, run web sites, or create other publicly accessible Internet resources. The registration of these domain names is usually administered by domain name registrars who sell their services to the public.

Individual Internet host computers use domain names as host identifiers, or hostnames. Hostnames are the leaf labels in the domain name system usually without further subordinate domain name space. Hostnames appear as a component in Uniform Resource Locators (URLs) for Internet resources such as web sites (e.g., en.wikipedia.org).

Domain names are also used as simple identification labels to indicate ownership or control of a resource. Such examples are the realm identifiers used in the Session Initiation Protocol (SIP), the DomainKeys used to verify DNS domains in e-mail systems, and in many other Uniform Resource Identifiers (URIs).

An important purpose of domain names is to provide easily recognizable and memorizable names to numerically addressed Internet resources. This abstraction allows any resource (e.g., website) to be moved to a different physical location in the address topology of the network, globally or locally in an intranet. Such a move usually requires changing the IP address of a resource and the corresponding translation of this IP address to and from its domain name.

Domain names are often referred to simply as domains and domain name registrants are frequently referred to as domain owners, although domain name registration with a registrar does not confer any legal ownership of the domain name, only an exclusive right of use.

This article primarily discusses the group of domain names that are offered by domain name registrars for registration by the public. The Domain Name System article discusses the technical facilities and infrastructure of the domain name space and the hostname article deals with specific information about the use of domain names as identifiers of network hosts.

Toll Free Domain Name

A toll free domain name is a domain name used typically by a company, that has a matching Toll-free telephone number that spells a term. It can be a brand or generic term. Based upon information and belief, this term was first used in commerce by LMCC in the new millennium and later trademarked the domain name www.getatollfreedomain.com. It can be simply a Toll Free Domain name which means you access it only online for example as www.1800TollFree.com but if it does not have a matching telephone number it is considered by many useless as it directs to a phone that is not owned by the user. If the Toll free domain name is used in conjunction with the same toll free number, then it is sometimes referred to as a teledotcom meaning it combines both for use. That type of combined telephone and url are considered valuable to marketers.

Examples are: 1-800-Mattress.com, 1-800 Contacts.com, 1-800-Flowers.com etc.

The companies benefit from having a unique brand that allows the simple stating of their name or showing of their logo to instantly communicate to a consumer how to contact them both by telephone and on the internet.

These are considered generic domains which have a value ever increasing over the "brand names" of the past. The user of the generic domain and or toll free number that spells a generic item can in effect capture use of the market effortlessly and uniquely from its competitors.

Once used as a service mark or trademark for the company no other company may freely emulate its use without risk of infringement as overseen by courts in the jurisdiction of the business, WIPO, or other regulating entities.

Once used in commerce they are established as the user of the telephone in conjunction with the generic phrase which may not be legally mimicked.

1718Mattress was forced to relinquish its domain and telephone number to 1800Mattress as it potentially could have confused the customers of 1800Mattress first to use the toll free generic telephone number as its service mark and brand in commerce.


Services offered

Most colocation centres offer different types of services to customers ranging from dedicated suites/rooms or cages to smaller racks or partial racks. Some colocation centres also offer some degree of service level agreements to support a wide range of computer and network related services, for example, server reboots, hardware replacements and software updates.

There are a few key differences between a dedicated server and colocation servers. Dedicated servers tend to be owned and rented out, while a colocation server is one that the client owns.

Some colocation centres feature a "meet-me-room" where the different carriers housed in the centre can efficiently exchange data. Most peering points sit in colocation centres. These sites are often used for web hosting. Most colocation centres have high levels of physical security and multiple redundant power and humidity/air-conditioning systems.

Confusingly, one company can operate a colocation centre, another can provide the bandwidth, whereas a third company would rent a cage inside the centre, renting out racks to hosting providers which would rent the servers themselves to actual clients. Any and all of those companies will claim ownership of the facility and will feature photos and descriptions of it on their web sites. At the actual physical location various ID cards with various logos will be present, including those of the company that built/rents/owns the actual building.

One-click hosting

One-click hosting generally describes web services that allow internet users to easily upload one or more files from their hard drives (or from a remote location) onto the one-click host's server free of charge.

Most such services simply return a URL which can be given to other people, who can then fetch the file later on. As of 2005 these sites have drastically increased in popularity, and subsequently, many of the smaller, less efficient sites have failed. Many internet forums exist in order to share such links; this type of file sharing has, to a degree, taken over from P2P filesharing services[2].

The sites make money through advertising or charging for premium services such as increased downloading capacity, removing any wait restrictions the site may have or prolonging how long uploaded files remain on the site. Some sites implement a CAPTCHA to prevent automated downloading.

Personal file storage

Personal file storage services are aimed at private individuals, offering a sort of "network storage" for personal backup, file access, or file distribution. Users can upload their files and share them publicly or keep them password-protected.

Prior to the advent of personal file storage services, off-site backup services were not typically affordable for individual and small office computer users.

Sometimes people prefer hosting their files on a publicly accessible HTTP server. In this case, they generally choose paid hosting, and use their hosting for this purpose. Many free hosting providers do not allow the storage of files for non-website-related use.


Software file hosting

Authors of Shareware, Freeware and Open Source/Free software often use file hosting services to serve their software. The inherent problem with free downloads is the huge bandwidth cost. These hosts also offer additional services to the authors such as statistics or other marketing features.

Hosting reliability and uptime

Hosting uptime refers to the percentage of time the host is accessible via the internet. Many providers state that they aim for at least 99.9% uptime (roughly equivalent to 45 minutes of downtime a month, or less), but there may be server restarts and planned (or unplanned) maintenance in any hosting environment, which may or may not be considered part of the official uptime promise.

Many providers tie uptime and accessibility into their own service level agreement (SLA). SLAs sometimes include refunds or reduced costs if performance goals are not met.

Service scope

The scope of hosting services varies widely. The most basic is web page and small-scale file hosting, where files can be uploaded via File Transfer Protocol (FTP) or a Web interface. The files are usually delivered to the Web "as is" or with little processing. Many Internet service providers (ISPs) offer this service free to their subscribers. People can also obtain Web page hosting from other, alternative service providers. Personal web site hosting is typically free, advertisement-sponsored, or cheap. Business web site hosting often has a higher expense.

Single page hosting is generally sufficient only for personal web pages. A complex site calls for a more comprehensive package that provides database support and application development platforms (e.g. PHP, Java, Ruby on Rails, ColdFusion, and ASP.NET). These facilities allow the customers to write or install scripts for applications like forums and content management. For e-commerce, SSL is also highly recommended.

The host may also provide an interface or control panel for managing the Web server and installing scripts as well as other services like e-mail. Some hosts specialize in certain software or services (e.g. e-commerce). They are commonly used by larger companies to outsource network infrastructure to a hosting company.

public domain

The public domain is an intellectual property designation for the range of content that is not owned or controlled by anyone. These materials are "public property", and available for anyone to use freely for any purpose. The public domain can be defined in contrast to several forms of intellectual property; the public domain in contrast to copyrighted works is different from the public domain in contrast to trademarks or patented works. Furthermore, the laws of various countries define the scope of the public domain differently, making it necessary to specify which jurisdiction's public domain is being discussed.

The public domain is most often discussed in contrast to works whose use is restricted by copyright. Under modern law, most original works of art, literature, music, etc. are covered by copyright from the time of their creation for a limited period of time (which varies by country). When the copyright expires, the work enters the public domain. It is estimated that currently, of all the books found in the world's libraries, only about 15% are in the public domain, even though only 10% of all books are still in print; the remaining 75% are books which remain unavailable because they are still under copyright protection.[1]

The public domain can also be defined in contrast to trademarks. Names, logos, and other identifying marks used in commerce can be restricted as proprietary trademarks for a single business to use. Trademarks can be maintained indefinitely, but they can also lapse through disuse, negligence, or widespread misuse, and enter the public domain. It is possible, however, for a lapsed trademark to become proprietary again, leaving the public domain.

The public domain also contrasts with patents. New inventions can be registered and granted patents restricting others from using the inventions without permission from the inventor. Like copyrights, patents last for a limited period of time, after which the inventions covered by them enter the public domain and can be used by anyone.

Co-branding and resellers

These let you brand fixed plans with your own company. Other services, offer whm or panel reselling. This allows the client to develop his or her own web hosting plans and business.

Some customization commonly afforded to the co-branding or reseller owner would be the ability to set service quotas, to add, enable, disable or remove features of resold accounts, custom reseller or co-branded website, private label dns and backend services among other items to differentiate the individual's service from the parent company of which they are a reseller or co-branded provider.

The key difference between co-branded and reseller services is the level of customization afforded to the individual setting up their own free hosting service and the level of autonomy afforded to the individual service owner.

File hosting on free webhosts

Many free web hosting services discourage the use of their free web hosting services for file or image hosting only in which no web page is established or setup resulting in the use of bandwidth due to hot linking of files with no revenue gain to the service provider in the case of advertising supported services. As a result, hot linking or remote linking or inclusion of many image, media and download file formats is disabled or not permitted on many free web hosting services.

Other common limitations on file hosting limits on free hosts are limits on file size, for example no files over 5 mb or file types such as programws or large media files such as mp3

This has resulted in the growth of free hosting services dedicated to image hosting, vidio hosting and general file hosting which permit remote hotlinking of files and larger file formats.

Forum applications

This method is popular, as the hosts can decide which applications to deny and allow. This is common when a popular forum has free hosting as an add-on service, rather than the other way around.

Post for Hosting

Some free hosts require posting in a forum. Forum-based free hosting requires users to either reach a certain amount of posts before getting a free hosting account, or be an active contributor in the forum. Forum-based free hosting often work on a system of points where posts give points to a user and can be used as credits toward getting a hosting account or more resources. Typically, the forum where users have to post contains advertising as the hosts way of making a profit.

Instant Activation

Due to the risks of illegal, inappropriate and abusive websites, many free web host services have switched from instant activation to mail confirmation or other means of verifying the account details prior to actually providing service to the user. Some services which have opted to stay with instant activation usually provide lower storage limits and bandwidth allowance among other limitations such as features available due to the risks associated with instant activation.

Free web hosts which provide instant activation are usually the primary targets of link spaming sites, phisingsites and other malicious activity due in part to the ease of account creation.

Profiting from free webhosting

The majority of the hosting companies use free hosting to introduce their services, and as an entry point to their more expensive offerings. Generally they recoup their costs in one of a few ways:

  • Advertising - Selling online advertising on the customer sites is generally considered a fair trade - the reasoning is that high traffic sites are more expensive to host, but the additional traffic allows for additional ad impressions therefore covering the cost. For the web master, it can be a good trade if the advertising is of good quality and non-competitive. This is one of the main reasons that businesses do not use free hosting for their website. The majority of free hosting companies use this method.
  • Referrals - Using a simple form of viral marketing, these providers rely on the users to spread the offer. The ratio of free to paid accounts is known, and by having each free user refer a number of friends, the hosting provider is able to get enough paid accounts to cover the cost.
  • Resell Hosting - This is where someone starts up a hosting company, attracts lots of visitors, then sells the hosting company to someone else once it can no longer support itself. Once sold, this individual uses the money to start up multiple hosting ventures and sells each in turn.

Some hosting companies are using hybrid approaches that mix these tactics.