Company that does most of its business on the Internet
A dot-com company, or simply a dot-com (alternatively rendered dot.com, dot com, dotcom or .com), is a company that does most of its business on the Internet, usually through a website on the World Wide Web that uses the popular top-level domain ".com".[1] As of 2021, .com is by far the most used TLD, with almost half of all registrations.[2]
The suffix .com in a URL usually (but not always) refers to a commercial or for-profit entity, as opposed to a non-commercial entity or non-profit organization, which usually use .org. The name for the domain came from the word commercial, as that is the main intended use.[3] Since the .com companies are web-based, often their products or services are delivered via web-based mechanisms, even when physical products are involved. On the other hand, some .com companies do not offer any physical products.[4]
History
During the dot-com bubble, the NASDAQ Composite index spiked in the late 1990s. It then fell sharply as the bubble burst.
With the creation of the World Wide Web in 1991, many companies began creating websites to sell their products. In 1994, the first secure online credit card transaction was made using the NetMarket platform.[7] By 1995, over 40 million people were using the Internet.[8] That same year, companies including Amazon.com and eBay were launched, paving the way for future e-commerce companies.[9] At the time of Amazon's IPO in 1997, they were recording a 900% increase in revenue over the previous year.[10] By 1998, with a valuation of over $14 billion, they were still not making a profit.[11] The same phenomenon occurred with many other internet companies—venture capitalists were eager to invest, even when the companies in question were not profitable. In late 1999, the Nasdaq index reached a price-to-earnings ratio of over 200, more than double that of the Japanese asset price bubble at the beginning of the 1990s.[12]
A common indicator used to show the dramatic rise in the number of dot-com companies is the number of advertisements purchased at the Super Bowl. In 1999, only two internet companies bought advertisements, but that number reached 17 the following year.[13] However, this number sharply decreased in 2001, with only 3 dot-com companies purchasing an advertising slot.[14]
While the term can refer to present-day companies, it is also used about companies with this business model that came into being during the late 1990s with the rapid growth of the World Wide Web.[15] Many such startups were formed to take advantage of the surplus of venture capital funding and were launched with thin business plans, sometimes with just an idea and a catchy name. The stated goal was often to "get big fast", i.e. to capture a majority share of whatever market was being entered. The exit strategy usually included an IPO and a large payoff for the founders. Others were existing companies that re-styled themselves as Internet companies, many of them legally changing their names to incorporate a .com suffix.
The stock market crash around 2000 that ended the dot-com bubble resulted in many failed and failing dot-com companies, which were referred to punningly as dot-bombs,[16]dot-cons[17] or dot-gones.[18] Many of the surviving firms dropped the .com suffix from their names.[19]
The burst of the dot-com bubble triggered a wave of market panic, leading to widespread sell-offs of stocks from dot-com companies. This selling frenzy further depressed the values of these stocks, and by 2002, estimated investor losses had reached an astounding $5 trillion.[citation needed]
The dot-com bubble was a stock market bubble in the late 1990s. The period coincided with massive growth in Internet adoption, a proliferation of available venture capital, and the rapid growth of valuations in new dot-com startups.
In the Internet, a domain name is a string that identifies a realm of administrative autonomy, authority or control. Domain names are often used to identify services provided through the Internet, such as websites, email services and more. As of 2017, 330.6 million domain names had been registered. Domain names are used in various networking contexts and for application-specific naming and addressing purposes. In general, a domain name identifies a network domain or an Internet Protocol (IP) resource, such as a personal computer used to access the Internet, or a server computer.
The domain com is a top-level domain (TLD) in the Domain Name System (DNS) of the Internet. Created in the first group of Internet domains at the beginning of 1985, its name is derived from the word commercial, indicating its original intended purpose for subdomains registered by commercial organizations. Later, the domain opened for general purposes.
The domain name .tv is the Internet country code top-level domain (ccTLD) for Tuvalu.
The domain name .org is a generic top-level domain (gTLD) of the Domain Name System (DNS) used on the Internet. The name is truncated from 'organization'. It was one of the original domains established in 1985, and has been operated by the Public Interest Registry since 2003. The domain was originally "intended as the miscellaneous TLD for organizations that didn't fit anywhere else." It is commonly used by non-profit organizations, open-source projects, and communities, but is an open domain that can be used by anyone. The number of registered domains in .org has increased from fewer than one million in the 1990s, to ten million in 2012, and held steady between ten and eleven million since then.
Verisign Inc. is an American company based in Reston, Virginia, United States, that operates a diverse array of network infrastructure, including two of the Internet's thirteen root nameservers, the authoritative registry for the .com, .net, and .name generic top-level domains and the .cc country-code top-level domains, and the back-end systems for the .jobs and .edu sponsored top-level domains.
An internationalized domain name (IDN) is an Internet domain name that contains at least one label displayed in software applications, in whole or in part, in non-Latin script or alphabet or in the Latin alphabet-based characters with diacritics or ligatures. These writing systems are encoded by computers in multibyte Unicode. Internationalized domain names are stored in the Domain Name System (DNS) as ASCII strings using Punycode transcription.
A domain name registrar is a company that manages the reservation of Internet domain names. A domain name registrar must be accredited by a generic top-level domain (gTLD) registry or a country code top-level domain (ccTLD) registry. A registrar operates in accordance with the guidelines of the designated domain name registries.
Domain name speculation, popular as domaining in professional jargon, is the practice of identifying and registering or acquiring generic Internet domain names as an investment with the intent of selling them later for a profit.
The domain name net is a generic top-level domain (gTLD) used in the Domain Name System of the Internet. The name is derived from the word network, indicating it was originally intended for organizations involved in networking technologies, such as Internet service providers and other infrastructure companies. However, there are no official restrictions and the domain is now a general-purpose namespace. It is still popular with network operators and the advertising sector, and it is often treated as an alternative to .com.
A country code top-level domain (ccTLD) is an Internet top-level domain generally used or reserved for a country, sovereign state, or dependent territory identified with a country code. All ASCII ccTLD identifiers are two letters long, and all two-letter top-level domains are ccTLDs.
Generic top-level domains (gTLDs) are one of the categories of top-level domains (TLDs) maintained by the Internet Assigned Numbers Authority (IANA) for use in the Domain Name System of the Internet. A top-level domain is the last level of every fully qualified domain name. They are called generic for historical reasons; initially, they were contrasted with country-specific TLDs in RFC 920.
Single-letter second-level domains are domains in which the second-level domain of the domain name consists of only one letter, such as x.com. In 1993, the Internet Assigned Numbers Authority (IANA) explicitly reserved all single-letter and single-digit second-level domains under the top-level domains com, net, and org, and grandfathered those that had already been assigned. In December 2005, ICANN considered auctioning these domain names.
.web is a proposed top-level domain (TLD) that was created and assigned by an auction process to several bidding companies. It was awarded to Nu Dot Co LLC, which is primarily funded by Verisign.
The Domain Name System of the Internet consists of a set of top-level domains that constitute the root domain of the hierarchical name space and database. In the growth of the Internet, it became desirable to expand the initial set of six generic top-level domains in 1984. As a result, new top-level domain names have been proposed for implementation by ICANN. Such proposals included a variety of models ranging from adoption of policies for unrestricted gTLDs that could be registered by anyone for any purpose, to chartered gTLDs for specialized uses by specialized organizations. In October 2000, ICANN published a list of proposals for top-level domain strings it had received.
Sophia Bekele Eshete is an entrepreneur, corporate executive, governance and risk management specialist, policy advisor on ICT, commentator and philanthropist.
A landrush period is the time during which domain names are available for registration, usually to a closed group, to entities that do not own a trademark in the name they wish to register, for example generic terms like loan or car, and thus would not qualify for registration during the sunrise period. Orders may or may not be treated on a first-come-first-served basis. This period follows the sunrise period just after the launch of a new top-level domain or second-level domain during which, for example, owners of trademarks may register a domain name containing the owned mark, but a landrush period precedes a period of general availability, when any qualifying entity can register any name on a first come first-served basis.
Public Interest Registry is a not-for-profit based in Reston, Virginia, created by the Internet Society in 2002 to manage the .ORG top-level domain. It took over operation of .ORG in January 2003 and launched the .NGO and .ONG top-level domains in March 2015.
The domain name Dot Chinese Website (.中文网) is a new generic top-level domain (gTLD) in the Domain Name System (DNS) of the Internet. Dot Chinese Website is among many listed top level domains. Created along with the partner domain name Dot Chinese Online (.在线) by TLD Registry through Internet Corporation for Assigned Numbers and Names (ICANN)’s new gTLD program launched in April 28, 2014. TLD Registry was founded in June 2008 in Finland with the mission to create essential new Chinese TLDs - intended mainly towards a Chinese-speaking audience. Because it is displayed in a simplified Chinese character language specific script, Dot Chinese Website is known as an Internationalized Domain Name (IDNs).
.google is a brand top-level domain (TLD) used in the Domain Name System (DNS) of the Internet. Created in 2014, it is operated by Alphabet Inc., Google's parent company. It is notable as one of the first gTLDs associated with a specific brand. The company's first usage of the TLD was with com.google, an April Fools' Day joke website that hosted a horizontally mirrored version of Google Search. The domain currently hosts multiple Alphabet Inc. products and services, and plans exist to move other Alphabet properties to .google as well.
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