An IP address is a set of four numbers separated by periods (eg: 192.168.0.5). Clearly we, as humans, are much better at remembering catchy names than long strings of numbers - so, domain names were born.

This technology happens through a system of standardized computers called domain name servers (DNS), which make easy-to-use domain names automatically link to their appropriated IP addresses, resulting in Internet viewers easily finding what they are looking for.

For most businesses, purchasing a domain name is one of the first steps in the Web development process. In fact, it is rather simple and affordable to buy one.

Today, there are seemingly endless options for Web sites that allow you to register domain names, and it only costs about $35 per year to purchase and keep one. However, it is important to understand that this doesn't get you on the Internet. It is still necessary to design a Web site and set up a host for the name and site. (See March, 2004 Column at http://www.mgmdesign.com/articles.html).

Before you purchase your domain name, you will need to consider two components which are the unique identifying part of the name that you choose, followed by the top level domain (eg. .com, .net, .org).

The only valid characters for a domain name are letters, numbers and a hyphen "-". Hyphens may be anywhere in the middle of a name, but cannot be located at the end or beginning of a name. A valid domain name cannot have spaces but can be up to 67 characters long - including the four characters used to identify the top level domain, but not including the www. at the beginning.

But, with all this in mind, there are a few things to consider before purchasing your domain name.

1. It is best to select a name with the .com extension. At this point, we have all been saturated to .com to the point where it is almost automatic for us to punch it in. In fact, if you leave it off, most Web site browsers will automatically insert .com for us.

2. Select a name that is easy to say, easy to type and easy to remember. You will be giving this out over the phone, on business cards, in advertising or even just walking down the street, and you want people to be able to find your site whenever they get back to their computer.

3. Be wary of names you need to explain. For example, if your name is car-dealership.com, you will find yourself constantly reminding people about the dash in your name. Or, another common one is stuff4you.com. When saying the name out loud, you will have to clarify whether it is a numeric "4" or the word "four" spelled out.

OK, having covered the technical aspects, let's move on to the five reasons people purchase their domain names.

The first is actually looked down upon by Internet veterans, but involves snatching up domain names with the sole intention of reselling them at a huge mark up to people willing to pay for a specific or premium name. People who do this extensively are called domain squatters. It seems like bad karma to take advantage of someone just because they are behind the technology curve.

On the other hand, this is America, and I would be lying if I said I wasn't sitting on a few choice names myself.

Next, there are many businesses who, for whatever reason, aren't ready or don't want a Web site at this time. But, to think that they will never have one would be a mistake. After all, domain names are becoming more and more like a business phone number - a necessity to doing business on a daily basis.

So, to plan for the day you may want a site, many businesses purchase a name so they will have it when they need it. As inexpensive as it is, this is a simple way to plan for the future.

The third, and most common reason for purchasing a name, is for the genuine use with your Web site. As I said before, one of the first steps in Web site development is to secure the domain name. If you are ready to start that process, the domain name is a must have.

Insurance to guarantee a competitor or cyber squatter doesn't come along and grab your ideal name is the fourth reason. Granted, it is a little late in the game, and most of the most valuable names have been long since purchased. But, if you have a unique name that hasn't been purchased yet, it is only a matter of time before someone gets it. Will it be you or someone else?

The fifth and final reason for purchasing a domain name is for advanced marketing and expansion of your Web site. The idea is, if you are selling products or services through your Web site, you can register additional domains to promote a specific, most sought after aspect of your business. By developing some basic yet unique content on this specific product or service and branding it to the additional domain, you can use that to increase and target search engine results.

For example, a citrus company selling online may have a general site for all their different products but then buy an additional domain exclusively marketing holiday gift packs. This would theoretically double their chances of being found in search engine keyword results - first from the general "online citrus for sale" search and second for the "holiday citrus gift pack" searches.

Convinced you should buy your first or additional domain names? Here are some popular sites to get you started:

Network Solutions http://www.networksolutions.com/

GoDaddy (based in Phoenix) http://www.godaddy.com

Register.com http://www.register.com

Matt Molenar is owner and operator of MGM Internet Solutions and Web master of YumaCity.com. He can be reached via e-mail at matt@mgmdesign.com, or 928-782-5915.

Have a question or topic you would like to see discussed in a future column? E-mail your ideas to matt@mgmdesign.com.