Compass Designs

Your domain name is what people will type into their browser, e.g. www.yourname.com. This name must be registered with a central international agency and renewed every year. Think of it as the mailing address for your website. Without a domain, mail (or in this case, viewers) can't find you.

Its usually best to select the best "extension" for your web site:
.COM - used for commercial and personal sites
.NET - recommended for companies involved in Internet infrastructure
.ORG - recommended for not-for-profit organizations

An extract from InterNIC

What is the domain name system?
The Domain Name System (DNS) helps users to find their way around the Internet. Every computer on the Internet has a unique address - just like a telephone number - which is a rather complicated string of numbers. It is called its "IP address" (IP stands for "Internet Protocol"). IP Addresses are hard to remember. The DNS makes using the Internet easier by allowing a familiar string of letters (the "domain name") to be used instead of the arcane IP address. So instead of typing 207.151.159.3, you can type www.internic.net. It is a "mnemonic" device that makes addresses easier to remember.

What does it mean to "register" a domain name?
When you register a domain name, you are inserting an entry into a directory of all the domain names and their corresponding computers on the Internet.

How do I register a domain name?
Domain names ending with .biz, .com, .info, .name, .net or .org can be registered through many different companies (known as "registrars") that compete with one another.

The registrar you choose will ask you to provide various contact and technical information that makes up the registration. The registrar will then keep records of the contact information and submit the technical information to a central directory known as the "registry." This registry provides other computers on the Internet the information necessary to send you e-mail or to find your web site. You will also be required to enter a registration contract with the registrar, which sets forth the terms under which your registration is accepted and will be maintained.

How much does it cost?
Registering a new domain can cost from $10 to $50 depending on the extension.