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When someone wants to create a new domain, he or she has to do two things: firstly, find a name server for the domain name to live on, and secondly, register the domain name. Technically, there does not need to be a machine in the domain -- there just needs to be a name server that can handle the requests for the domain name. There are two ways to get a name server for a domain: you can both create and administer it yourself, or you can pay an ISP or hosting company to handle it for you. Larger companies have their own domain name servers. Smaller companies pay someone.

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To create a domain, you fill out a form with a company that does domain name registration (examples: register.com, verio.com, networksolutions.com). They create an "under construction page," create an entry in their name server, and submit the form's data into the whois database. Twice a day, the COM, ORG, NET, etc. name servers get updates with the newest IP address information. At that point, a domain exists and people can go see the "under construction" page.

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