Why do premium domain names cost so much? What is the difference in a premium domain name versus a domain name?
Domain names are quite powerful entities in the world of the internet, and can make or break a business when an owner allows the domain name to expire.
If the owners fail to pay the yearly or quarterly domain name renewal fees, the domains become the property of the 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 have been previously registered for quite some time.
Some are put to use while some are no longer used by the owners or registered.
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 considered a Premium Domain Name?
Premium domain names are the most valuable and sought after domain names.
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.
The word or words that make up a domain determines the actually value of the domain and it being considered a premium domain name.
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.
After all, there are nearly 125 million .com domain names registered throughout the world over and growing daily.
Someone or business might have been the proud recipient of registering a premium domain, like the ones previously mentioned, decades ago when you were probably yet born, still attending school or had absolutely no idea of what a domain name was to begin with.
Now that time has passed and just like every other investment and asset under the sun, your business can expect to pay hundred 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 of 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 physical real estate.
Just like you would use an agent or broker to find a specific property or lot, the same can be found 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. You either pay or be paid based on the premium value of land you own.
Well, the same can action be taken with 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, the same can be said for 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 gain credibility in the online world.
For those looking for angel investors or even media coverage, the domain name in which a business is built on can speak positively or negatively to how serious your business is about succeeding.
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 just like physical property in real estate assets and investments.
As stated before, no low-ball offers when it comes to making an investment to purchase or lease a premium domain name.
Values of premium domain names increase on a daily basis by the shear number of domains name being registered 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 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 considering their soaring price that keeps on increasing 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 help your business unlock greater customer growth and revenue
Premium domain names that have been registered years ago are undoubtedly some of the finest domain names available out there on the market.
Remember that premium domain names are more than just the next domain name being registered in the growing world of the Internet.
Premium domain names are investment vehicles to help businesses serious about consistently generating greater customer growth and revenue do just that.
Premium domain names are popular names and have more marketing potential in terms of generating greater customer growth and revenue.
So either your business owns this premium domain, or your competition does.
Which is the most detrimental for your business?