Premium domain name: Their value and why they cost so much.
Quick Summary of Contents
- 1 What qualifies a domain to be a Premium Domain Name?
- 2 Why do premium domain names cost so much?
- 3 Key parameters for determining the price of a premium domain name
- 4 5 reasons why many choose to pay thousands of dollars for premium domain names
- 5 Where to buy and sell premium domain names
- 6 Premium domain names unlock greater customer growth and revenue
Why do premium domain names cost so much? What is the difference between a premium domain name versus a domain name?
Domain names are quite powerful entities in the world of the internet. In fact, they can make or break a business when an owner allows the domain name to expire.
If the owners fail to pay the domain name renewal fees, then the domains become the property of the domain registrar.
You may know this or have already experienced this costly lesson.
Expired domain names sometimes become the property of domain investors, known as domainers, or sometimes trademarked expired domain names end up in the hands of unethical cybersquatters.
However, no matter who owns a given domain name, there is a different class of domain names on the market known as premium domain names.
Typically, premium domain names were registered in the early to late 1990s. Some of these domains are actively developed. Others are parked, and a small percentage simply doesn’t resolve to a web page.
In most cases, many of these valuable domains are redirected while others are parked in hopes that someone would come along want to purchase the domain name for their business.
What qualifies a domain to be a Premium Domain Name?
Premium domain names are the most valuable and sought after domain names in the world.
They are one or two-word domains, mostly one-word .com domains, that are short and memorable.
In addition, premium domains can easily command high visibility across major search engines and draw global traffic for businesses that utilize such search-friendly gems.
Before you go out declaring premium domain names, keep in mind that not just any ole’ domain name can be considered a premium domain name.
The keyword(s) of a domain is of absolute importance. They determine the actual value and premium classification of the domain.
Consider natural and single-word .com domain names like InternetMarketing.com, SEO.com, or this list of premium domains.
Do those domain names sound appealing?
They should if you’re an internet or search marketing company.
Truth be told, there is very little chance for these domain names to be available for an affordable registration.
Currently, 400 million .com domain names are registered across the globe. This number changes daily by the millions.
Some person or a business registered a similar premium domain years ago. This likely occurred decades ago when you were probably yet born, still attending school, or had absolutely no idea of what a domain name was.
Now that time has passed and just like every other investment and asset under the sun, your business can expect to pay hundreds of thousands or even millions for these types of premium domain names.
And I know you’re what you’re thinking, “Why do premium domain names cost so much?”
To answer this question, you’ll need to understand the various facets that determine premium domain name values.
Why do premium domain names cost so much?
It’s all about supply and demand.
When the demand for a particular premium domain name increases, its price and value naturally increases due to the supply being quite low.
A good example and parallel industry to this virtual real estate is the nature of the physical real estate.
We use an agent or broker to find a specific property or lot, right? The same happens when searching for a premium domain name as well as domain names in general.
To find the perfect premium domain name for your business, let the experts help you out.
Why? They’ll help you save money and time with proven domain negotiating experience.
But do remember and recognize that most premium domain owners expect you to state your buying price as an initial point, so be mindful to not low ball or insult the owner.
Think about the game of monopoly and how it works. Players make or receive rental payments based on the value of the land.
This same concept transfers to the digital world of buying and selling premium domain names.
Key parameters for determining the price of a premium domain name
The first parameter that determines the value and price of a premium domain name is its age.
Many persons attempting to sell *premium domain names* attempt to sell you on price alone.
Let’s just say that anything less than 15 years old is not premium.
In addition to age, price and value vary based on spelling or wording, traffic that the domain is already receiving, and economic trends throughout the world.
For the premium location that will drive traffic to your business, you’re going to have to pay a premium lease.
Again, this same action applies when purchasing or leasing a premium domain name.
5 reasons why many choose to pay thousands of dollars for premium domain names
Your business needs the right premium domain name. Otherwise, it will not attain credibility in the online world.
The domain name used to develop a business speaks positively or negatively to how serious your business is about succeeding.
Don’t believe me? Then try securing funding from angel investors. And if you still question that, then attempt pitching a business for media coverage using a questionable domain name.
Go ahead, I’ll wait.
If you have a brand name and you do not wish to change it for any reason, then you need an absolute online match for that name.
Much like credibility, you want the name of the company and premium domain name to match, be sure and be memorable for customers.
3. Type-In Traffic:
Single worded or double worded common and popular names automatically receive traffic without any marketing efforts because of being searched for so often.
Your business can easily spend a fortune trying to make a brand a household name, or your business can invest a fortune going after a premium domain name made up of the keywords your customers use when they search online.
Which do you think will win and in record time?
4. Exponential ROI:
Premium domain names are investments, much like physical property in real estate assets and investments.
Don’t even think about making no low-ball offers for premium domains. You either have the monetary investment to purchase or lease a premium domain name, or you don’t. If you don’t, then simply move on to a more affordable and budget-friendly domain.
The market value of premium domain names increases daily. Why? Well, because the sheer number of domain name registrations increases exponentially on a daily, weekly, monthly, quarterly, and annual basis.
Many people throughout the world over register various domain names in selected niches.
Therefore, your chance of greater search engine rankings and visibility diminishes with each domain registration.
Although costly and sometimes ineffective, there are a variety of search marketing opportunities to get your domain name noticed by someone even if it lacks visible search rankings.
You can spend a fortune in both money and time trying to rank a brandable domain.
Alternatively, you can in purchasing or leasing premium domain names specific to your industry and ones made up of keywords that potential customers use when searching online.
Where to buy and sell premium domain names
Buying a premium name is not always easy. They often soar in price with the passage of time. There are many websites that offer the buying and selling of premium domain names. Premium domain names tend to be on one of the following websites, to name a few:
In most cases, the websites above offer premium domain names to be purchased or sold using the following options: make an offer, buy it now price, or lease now offer.
Premium domain names unlock greater customer growth and revenue
Premium domain names that have been registered years ago are undoubtedly some of the finest domain names available.
Remember, premium domain names are more than just the next registered run-of-the-mill domain name. The internet is full of worthless domains, growing leaps and bounds everyday.
The difference is that premium domain names are matchless investment vehicles. They often help to position a business to reach, connect, and serve customers in a way that no other domain ever achieves.
Premium domain names possess the ultimate marketing potential in terms of generating greater customer growth, revenue, and credibility.
So either your business owns this premium domain, or your competition does.
Which is the most detrimental for your business?