A Premium domain name is the ultimate authority on the web. A great domain name can provide instant credibility and trust. They are the foundation for branding, marketing and scaling.
If you’re looking for something that people will remember when they hear it, then you need to choose a good domain. Most people know this, so there’s a huge market for what we call premium domains.
There are various factors that go into defining what makes for a good premium domain name, but the most important one to know is that they tend to be short, catchy, and easy to remember.
A premium name gives you greater visibility, trust and authority online. You’ll want to buy one if you’re planning to use your site for business purposes.
What is the definition of a Premium Domain Name?
The term “Premium” has many different meanings depending on who you ask. In general, a premium domain name refers to any domain with an extremely high price tag. This could mean anything from $100,000 up to several million dollars.
Here are several aspects that communicate a premium domain include:
Length and Brevity
A short, memorable, and catchy URL is often preferable than an overly long one. Longer URLs can be hard to remember, so they cannot be considered good choices for a good URL.
Concision is also important when choosing premium domain names. Using hyphens or commas can make domain names hard to recall, so you don’t need to use them.
A TLD is a string of characters at the END of a web address. For example .com, .org, and.org are examples of TLDs.
There are thousands of top level domains (TLDs) available online, and some of them may seem odd, (ex: .hiphop, .fishing, and .gallery. Any domain names with these TLDs will probably not be considered premium because most of us don’t encounter them and so we’re likely to be skeptical when we see one.
As a general rule, most high-quality domain names end with the. com, .net, .org, .ai, .io, top level domains (TLD) that people trust.
Premium domain names usually contain generic words that sound familiar and understandable. The more common a word is, the higher its price tag.
For example, voice.com was bought by an entrepreneur for $30 million, whereas FantasticVoice.com was purchased for $126 at a GoDaddy auction.
If your company has a domain that includes a word related to your industry, it’ll be easier for people to remember when they’re thinking about buying something from you.
Cars.com is an online automobile classifieds site with hundreds million dollars in annual revenues. The association between its web address and its business has value.
Search Engine Optimization (SEO)
Premium domain names tend to draw their value from the fact that they’re associated with popular keywords. This means there could be direct type in traffic for your domain. Content creators add more links to domain names that communicate authority. You could be also losing a backlink if your domain does not equal your brand.
Clear.com, Identity.com, and Rubicon.com are examples of premium domain names that derive their value from SEO.
Premium domain names are valuable because create a simple path for customers.
There are several good reasons for buying a high quality domain name, but they’re all aimed at increasing your company’s conversion, traffic and profit. If companies were willing to pay hefty amounts for domain names just because they thought they looked better, then there’d be no need to invest in them. There is a very real way to evaluate a premium domain name.
There are several reasons why people buy premium domains.
Ability to control your brand.
Premium domains tend to be shorter and easier for people to remember than non-premium ones. Therefore, they’re more likely to stick in consumers’ minds.
Advertising is often overlooked by most consumers, so it’s smart to create something memorable in the shortest amount of space.
A premium domain name has a significant competitive advantage over non-premium domain names in encouraging people to visit a business’ web site.
Identity.com and Rubicon.com are good example of brands whose highly memorable domains have helped them succeed.
A premium.com address can give your business more credibility in its industry. It can also give an indication of how serious your business really is about thriving.
If you pitch to business professionals or potential investors with a questionable domain name, you’re likely to get laughed at or constantly dismissed, which isn’t an ideal scenario for you to be in.
A good domain names go a long way in helping you attract attention from news and media outlets. Premium domains are more likely to be accepted by these sources than non-premium domains.
The wrong domain name will create confusion and could make your brand look like spam.
Premium domain names have been one of the best asset classes over the last twenty years. A premium domain name is not an expense, but an asset that will grow in value. We have many clients pivot and sell their domain name for double or even triple the cost they paid.
Premium domains can increase in price over short periods of time because they’re highly sought after by buyers. So, they’re a good place to put some money for future gains.
If a business with a premium name has failed, then its domain can be sold at a high price, giving the business’ owner back their investment. That is why we call it an asset.
Improved search engine ranking
It’s extremely difficult to get ranked highly on Google, Bing, Yahoo, etc., but there are ways to improve your chances.
Premium domain names tend to rank better on search engines than other domain names. Your perfect domain will create an effortless path for your customers.
Should you buy a premium domain name?
Yes, purchasing premium domains for your business is a wise investment. It helps create an attractive web presence. A premium domain name creates an effortless path for you customers.
The competition on the Internet is intense, so you need to be different from everyone else by using a premium.com address.
One of the best ways to start an online store is by buying a premium.com name in a rapidly growing market, for example, mental wellness and AI. A premium.com name in such a market is likely to attract a lot of traffic from search engines.
They are typically purchased from an owner but you may find them at a market place.
Premium domain names tend to appreciate in value over time.
Of course, they will. Buying a domain name that isn’t currently popular might not be in style right now, but no company knows what the next trend will be. If you’re able to get that domain name before someone else does, your organization could end up with a valuable asset.
An alternative way for a domain name to become more valuable is if an existing company launches a new brand with that name.
For example, when Meta bought the Meta.com domain back in 2017, it had to pay well into the seven figures.
It didn’t disclose the cost of its purchase of the.com address, but it did buy some trademarked assets related to the word for $60 million, which suggests just how valuable the.com address was.
What is a premium domain name worth?
It’s impossible to give an exact figure for the price of a premium .(com) or (.org) address because it depends largely on the individual circumstances of each case.
Buying premium domain name registrations directly from a domain registrant usually costs several hundred thousand US$ (or even millions). However, if you negotiate directly with the domain owner, it could be worth tens of millions of US$.
If you want to purchase a premium domain name directly from the owner, we recommend hiring a professional who specializes in buying and selling these types of names.
The value of a domain name goes down depending upon the domain name extension. The most popular extension is the (.com) because it has the most consumer trust. Premium domains also typically have some direct traffic because consumers skip google and just type it in.
There are several types of premium domain. These include one word domains, two-word domains, category defining domains, brandable domains and memorable domains. The vast majority of
How to purchase a premium domain name
You can purchase a domain name directly from a registrant or the registrant’s registar. For example, GoDaddy offers its customers a variety of domain names for sale at various prices.
There are also websites where you can buy expired or deleted domains, such as DropCatch.com.
If you want to purchase a premium domain directly from a seller, you can sign up for a marketplace where they link up potential buyers with sellers.
Consider using a domain broker like Media Options for a domain names valued above $75,000. They have access to thousands of domain names for sale, including premium domain names.
Why should you use a domain broker, read this blog.