Let''s suppose that while a potential customer is driving in their car, they hear a commercial for your e-store or pass a billboard promoting your e-business. They are interested in the products and services you have to offer but don''t have the opportunity to write down your web address. Later, the potential customer is at a computer and now has the time to check out your site. Now, what was that URL again? The customer may have a recollection of the address but not be able to remember it exactly. Unfortunately, an Internet user with a less-than-perfect memory may not even get the opportunity to become one of your customers. Hopefully, you took advantage of the discounts offered by bulk registration of domain names and snatched up a few that you could use. For instance, if Cindy manufactures shoes and sells them online, a possible domain name for her business could be http://www.cindy-shoemaker.com. In addition to being an excellent shoe designer, Cindy is also a smart businesswoman and registered other names to allow for mistakes people make when accessing a URL, such as http://www.cindishoemaker.com, http://www.cindytheshoemaker.com, http://www.cindy-shoemaker.net and other variations on her domain name.
The alternate domains are not duplicates of the main site -- the visitor is redirected through coding. The webmaster of the site can easily accomplish coding the redirection without any effort on behalf of the visitor.
Sometimes it''s advantageous to register your name with variations to prevent a competitor from capitalizing on your brand or ruining your reputation. Case in point: the White House neglected to register domain names other than .gov when creating a web site. Alternate domains reveal a parody White House site and a site that gives new meaning to "ruling bodies" of government.
Even though the court system has become involved in a number of cybersquatting cases it is still difficult to wrestle a domain away from someone who you believe is damaging your name or your business. Registering multiple domains not only protects your business but it increases the chances of customers finding you.
For thorough information on all aspects of domains, including news, brokers and resources: DomainNotes
Some interesting articles on the business of domain registration and ownership:
U.S. Court Declares Domain Names Aren''t Property and Can''t Be Stolen
A Good Name Is Not Hard to Find
ICANN''s New TLDs Will Be Irrelevant