A domain name identifies one or more IP addresses. For example, the domain name VOHIO.com embodies a number of IP addresses that is used in URLs to identify particular web pages. This would normally be made up of a designed website, links to search engines, business deals, related advertisements and reciprocal link connections to other websites.

In acquiring a domain name, the prospective owner will have to pay for its registration and should likewise renew its license annually to avoid its expiration. However, there are a number of owners who fail to do so due to a number of factors. The owner may have run out of money to promote the site, might have waned in his enthusiasm to manage the site or maybe failed to received the expiration notice from the registrar.

An expired domain name is interesting to many webmasters. The online traffic generated by such domain comes as an opportunity to cross-sell a new website and its services. Once acquired, the webmaster has the option to either maintain the website or redirect the expected visitors to one of his websites. The use of the expired domain name is tantamount to acquiring rights to the link's popularity, as wells as back links from other websites, page rank status and as indexed in major search engines.

By investing in its acquisition, webmasters not only obtain the potential traffic of the expired domain but also benefits from being let off from the tasks and costs related to the extensive promotion of a site just to get a substantial share of online traffic.

Entrepreneurs are likewise drawn to buying expired domain names to make money. They pick up popular expired domain names and resell domains these through online domain name agents, forums or sell them through public auctions.