How are Domain names Sold? (Not P2P)

webmasterbeta

New Member
Okay, well for some odd reason, I started to getting thinking about online marketing, which led to domain names, at 1AM. So here I am! I'll keep this short.

I'm curious how companies such as GoDaddy, or HostGator legaly distribute unregistered domain names. How come these types of companies can only do it, why can't I get a domain myself for free? How would I go about doing so? Do these hosting companies have to buy the domain from someone else?

Maybe you can answer all these, maybe not, but I'm very curious. Maybe you can just give me a post about the life cycle of a domain, here's an example of how I think It is done (99% sure I'm wrong)

Some official internet corporation sells domain right to ---> Domain Register Company for maybe 4$---> Domain Register sells to you for 10$ ad that's how they make their profit.
 
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