May 13, 2022

What is a Premium Domain Name & Why You Should Buy One

written by

Joe Uddeme

Joe Uddeme

What is a Premium Domain Name & Why You Should Buy One

If you have big plans for your business, you’ll be in the market for a domain name to match. Cheap, everyday domains are unlikely to work for you, which is why you’ll need to get your head around the world of premium domain names, as NameExperts.com Principal Joe Uddeme explains.

 

Domain names are the ultimate authority on the web. They can make or break any business with an online presence.

It’s necessary to pick a suitable domain name if you want customers to discover your website with little stress. Most individuals and businesses understand this rule, and that’s why there’s significant demand for the class of domain names known as premium domains.

There are various considerations to what constitutes a premium domain, but the most important thing to know is that they’re often short, catchy, and memorable.

Premium domain names give you greater recognition on the web. If you’re serious about your business, you’ll want to buy one of these pieces of prime digital real estate for your website.

Key Takeaways

  • What makes a premium domain name
  • Valuations of a premium domain name
  • Long-term financial growth possibilities
  • How to buy a premium domain name
Need help buying a domain? We make the domain buying process easy.

What makes a domain name Premium?

The factors that contribute to making a domain name premium include:

Trustworthy TLD

The top-level domain (TLD) refers to the string of characters at the end of a domain name. The most popular ones include .COM, .NET, and .ORG.

There are thousands of TLDs available on the web, and some of them are obscure, e.g., .WOW.TODAY, and .DOT. Any domain name having such TLDs will hardly or, if ever, be considered premium because people rarely encounter them and thus tend to be skeptical when they do.

Most premium domains end with the popular TLDs that customers trust. The best choice for one would be the .COM TLD.

Length and Brevity

A premium domain name is usually as short as possible. Overly long domain names can be difficult to memorize, so they can scarcely be considered premium – no matter how great their combination of words is. For example, are you more likely to remember (and visit) boats.com or greatboatsforsaleonline.com?

Conciseness is also a vital factor in premium domains. Hyphens or punctuations can make domains difficult to remember, so you want to avoid them.

Generic

Premium domain names typically contain generic words that are easy to recall and understand. The more common a domain name sounds, the higher the value it commands.

Take, for example, Insurance.com, which sold for $36 million, and VacationRentals.com, which sold for $35 million.

It’ll be a great advantage if your company’s domain name consists of a word broadly relating to your industry. If so, it’ll be easier to make a lasting impression on customers’ minds when advertising.

For example, Cars.com is a leading automotive classifieds site with hundreds of millions of dollars in annual revenue. The relationship between its domain name and its business carries weight.

Keywords/Search Engine Optimization

Search engines are the biggest medium through which internet users discover websites. Hence, premium domains typically correspond with common search terms. AirlineTickets.comCarRentals.com, and MovieTickets.com are typical examples of premium domains drawing their significance from search engine optimization.

They also prove that a domain name doesn’t have to be a single word to be considered premium.

Why buy a premium domain name?

There are numerous good reasons to buy a premium domain name, but they all converge on one motive: to bring about more business. Companies would not spend sizable sums on premium domains if they weren’t bringing good returns.

The justifications for buying premium domain names include:

Credibility

A premium domain gives your brand more credibility in your industry. A domain name can provide a hint of how serious your business is about flourishing. Don’t believe it?

Try pitching to business professionals or prospective investors with a questionable domain. You’ll be made jest of or continually dismissed, which isn’t a favorable situation to be in.

The domain name you pick also goes a long way in determining the quality of media coverage your business can get. News and industry publications are more receptive to premium domains than non-premium ones.

Brandable

It’s more feasible to build a thriving brand around a premium domain than a non-premium one. A premium domain is usually short and catchy and, therefore, can stick to customers’ minds more easily.

Many people don’t pay much attention to advertising, so it’s wise to give them something memorable in the shortest possible time.

A premium domain has a substantial competitive edge over non-premium domains in enticing customers to patronize a business.

Stripe.comAmazon.com, and Uber.com are examples of businesses whose highly brandable domain names have contributed greatly to their success.

Uber website screengrab to denote valuable domain name

Improved search engine ranking

The battle to rank high on search engines is very fierce. There are millions of websites competing for limited space on the first page, so you need every possible competitive advantage.

A premium domain is more likely to rank higher on search engines than other domains.

Investment

A domain name is not just a tool but also an asset. There would not be a big domain flipping market if this wasn’t true. The past two decades of commercial internet have seen many domain investments reap big windfalls for their owners.

A premium domain can appreciate in value over short periods of time due to high demand. Hence, it’s a proper medium to park some cash with hopes of getting a significant return.

Let’s say a business with a premium domain fails. That domain can be sold for a high price and give some comfort to the owners of the faltered business. Check out our guide to the most expensive domain names ever sold for an eye-opening introduction to this high-value world.

Blocks of gold bars denoting the value of a premium domain name

Is it worth it to buy a premium domain?

In many cases, buying premium domain names for your business can be a great decision. A good domain name corresponds to a solid online identity, which is valuable for any business.

The competition on the internet is intense, so you should strive to differentiate yourself with a premium domain name.

One of the best online business tactics is to buy a premium domain in a booming industry – mental health and artificial intelligence, for example. Such a domain is likely to bring about a great deal of organic growth for your business – or could have a phenomenal resale value.

Do domain names increase in value?

Very often, yes. A domain name you buy may not be in vogue at the moment, but no one is sure of what the future holds. That domain could be useful in a burgeoning industry, making an organization pay a big sum for it.

Another way for a domain to increase in value is if an established business decides to launch a product or rebrand with that name.

For example, when Facebook, the social media giant, rebranded to Meta last year, it had to buy the Meta.com domain name.

The price it paid for the domain wasn’t disclosed, but the company separately bought some trademarked assets relating to the name for $60 million, giving a hint of how valuable the domain was.

Laptop showing rising bar chart to denote growing value of domain names

How much is a premium domain name?

premium domain name can cost between hundreds and millions of dollars. There’s no definitive price range, as it mostly lies on arbitrary terms between the buyer and the seller.

If you’re buying premium domain names directly from a domain registrar, you should expect to pay a few hundred or thousands of dollars. It gets more expensive when there are direct negotiations involved and the value of the name is irrefutably higher.

Some domain owners demand tens or hundreds of thousands for their domains. We advise you to hire a professional domain broker if you’re to buy a premium domain name directly from the seller.

How to buy a premium domain name

You can buy a premium domain name directly from a domain registrar or the owner. Many registrars offer premium domains to their customers, e.g., GoDaddyDomain.com, and BuyDomains.

There are also sites specializing in auctioning expired or deleted domain names, e.g., Sedo.com.

To buy a premium domain name directly, you can sign up on a dedicated marketplace (NameProsAtom.com, etc.) linking sellers up with prospective buyers like you.

An alternative is to hire a domain broker to find the identity of an existing domain owner and negotiate a possible deal. There are many advantages to using a domain name brokerage service, including saving time and money.

Name Experts, for example, has access to a wide network of buyers and sellers. We’ll also handle the legal, escrow and negotiation on your behalf – resulting in a faster, hassle-free process that keeps you safe and protected.

 

About the author

Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Using his years of experience, negotiation skills and little black book of contacts, Joe is an expert at helping clients secure premium domain names. Contact him at: [email protected]

Need help buying a domain? We make the domain buying process easy.
Subscribe for More Domain Buying & Selling Advice

Related posts

Alarming image of a piece of paper stamped with 'scam' for an article about domain name scams
Understanding the Domain Name Scam

The bigger the domain name purchase price, the more attractive it is to scammers and fraudsters. Global domain name broker Joe Uddeme shares his top tips for staying safe when buying or selling premium domain names. It’s essential to understand the different types of domain name scams to protect yourself and your online identity. Domain name holders must be vigilant about renewing their domain names to retain exclusive rights. Domain name scams can be difficult to spot, but there are ways to identify them, such as recognizing phishing emails. One domain name renewal scam typically involves urgent phone calls or emails pressuring you to renew your domain names immediately and pay or risk losing your domain. This domain name renewal scam tries to trick people using phishing scams and deceptive tactics when registering names. Awareness and reporting are crucial to protect yourself. Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Watch out for fraudulent domain renewal notices that may look official but are not. Domain registrations often come with options for renewal or transfer, so explore these to avoid falling for scams. Always verify the authenticity of the email or letter by contacting your registrar company directly. Be aware of deceptive practices by companies that send official-looking letters from a domain registry, urging you to transfer your registrations under false pretenses.   Protecting Yourself from Domain Scams Always use a secure payment method to pay for domain name renewal. Recognizing legitimate renewal notices is essential to avoid unnecessary fees and potential loss of domain ownership for the customer, so don’t ignore every email you received about your names. Just treat them all with caution. Verify the authenticity of the email or letter by contacting your domain registrar company directly. Scammers often exploit the relationship with your existing registrar by suggesting that a transfer is merely a renewal process. Monitor your domain name registration and renewal dates to avoid missing important deadlines. Scammers use various methods, including urgent phone calls and deceptive emails, to execute a renewal scam. Use domain locking to prevent illegal transfers. Domain hijacking is another threat that can be mitigated by this measure. Registration scams typically manifest through fake renewal notices, creating confusion and unwarranted financial pressure. Keep your contact information private by using a domain name privacy service. Scammers may trick owners through fake offers, exploiting confusion around domain registration and renewal. Fraudulent phishing scams often target website owners, too, using tactics to deceive them into believing they owe money or need to make changes to their domain or hosting services.     Understanding Domain Name Renewal Scams A Domain name renewal scam is a type of intellectual property scam or confidence scam that target the owner. These scams can result in financial loss for businesses and individuals. The financial loss can be substantial, affecting both small businesses and large corporations. Domain name scams can take many forms, including domain slamming, false offers to buy or sell domains, and fake trademark protection. It’s essential to understand the different types of domain name scams to protect yourself and your online identity. Domain Registry of America is an example of a fake trademark protection service. They contact the website owner claiming to have a trademark right or warning that someone else owns the rights to your name. Check your expiration date and make sure your domain information is protected so you don’t lose control of your asset. While you can’t technically buy a domain name forever, you can register and renew for extended periods. Domain name scams often involve unscrupulous domain name registrars attempting to generate revenue by tricking businesses into buying, selling, listing, or converting a domain name. These scams can be difficult to spot, but there are ways to identify scam tactics. Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Always verify the authenticity of the email or letter by contacting your registrar company directly. Be able to recognize scammer tactics by paying attention to blog post and article updates. Customers should also consider adding two-factor authentication for all registered accounts, or hiring a domain name consultant for guidance. Definition of domain name scams A domain name scam is a fraudulent scheme where scammers deceive individuals or businesses into paying for fake registration services, overpriced renewals, or by impersonating legitimate registrars. It often involves phishing, domain hijacking, or misleading offers to trick victims into making unauthorized payments or losing control of their domain Importance of awareness and prevention Awareness is the first line of defense against domain name scams. The website owner must be vigilant and proactive in protecting their assets. This means being cautious of unsolicited offers, verifying the authenticity of emails and letters, and keeping domain registration information up to date. By understanding the risks and taking preventative measures, website owners can safeguard themselves from getting scammed. Regularly monitoring domain status and using secure payment methods for renewals are also crucial steps in prevention.   Domain Registry and Scams Domain renewal scams: fake notices and invoices Domain scams are a common tactic used by the scammer to trick the owner into paying for unnecessary services or transferring their site to a different registrar. These scams typically involve sending fake notices or invoices that claim the domain name is due for renewal. Often involving inflated prices, notices often appear to be from a registry or a legitimate company, but they are actually from fraudsters posing as an internet registry. Swindlers use various tactics to make these notices or invoices appear legitimate. They may include the domain owner’s contact information and registration details, creating a sense of urgency by claiming that the domain names will expire or be lost if the renewal fee is not paid immediately. They may ask for you to renew your domain and pay an exorbitant fee. This pressure can lead the holder to act hastily without verifying the authenticity of the notice or link. They may also try an inflated price on the renewal scam for your website or use a scare tactic and tell you your name is about to expire if you don’t pay a fee. To avoid domain scams, website owners should be cautious of unsolicited notices or invoices. Always verify the authenticity of the sender by contacting the current registrar directly or checking the domain name holders registration information online.     Domain Scams – How to Stay Safe To protect yourself from domain scams, it’s crucial to be vigilant and take proactive steps. Here are some tips to help you avoid falling victim to domain scams: Keep your domain registration information valid, up to date and secure so it never expires. Simply renewing ahead of time. Set a calendar reminder to be a step ahead Be cautious of emails or letters that create a sense of urgency or threaten to cancel your domain name registration. Verify the authenticity of the email or letter by contacting your domain registrar or reseller directly. Use secure payment methods when you register and renew your site or domain name. Avoid Mail that contains your physical mail address. Address customer concerns by contacting customer support. Monitor your domain name registration and renewal dates to avoid missing important deadlines. Consider adding auto-renew as a double check for registering your asset before it expires. Use domain locking to prevent unauthorized transfers of your registered assets. Keep some money in the registrar account in case you have an issue with your credit card when you pay. Keep your contact information private by using a domain name privacy or proxy mail service. By following these tips, you can reduce the risk of falling victim to domain scams and protect your online website identity for your domains.   Reporting Domain Scams to Your Domain Registrar If you suspect that you have been a victim of a domain scam, it’s essential to report it to the relevant authorities. Here are some steps you can take: Report the scam to the Federal Trade Commission (FTC). Share the information about the scam on social media to warn others. Use the social media links provided to share the post. Report the scam to your domain registrar company such as Network Solutions. Contact the Internet Corporation for Assigned Names and Numbers (ICANN) Complaint department and let them know about the letter or email. File a complaint with the Better Business Bureau (BBB) if the scammer is a business. By reporting domain scams, you can help prevent others from falling victim to the same scam and bring the fraudsters to justice.   About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

Image looking over a person's shoulder to indicate anonymity when securing a domain name
What Are The Best Domains To Buy?

Right at the top of the to-do list for any new business is “launch with a great brand name”. You’ll also need a website domain name to match – which is where NameExperts.com Director Joe Uddeme can help. Find out how to choose and register a great URL for your business in this guide.   For more than 15 years, NameExperts.com has been helping brands buy premium domain names that will help them grow. The issue most new firms have today is that pretty much every great domain name they can think of has gone. But that doesn’t necessarily mean they aren’t available. As well as advising fledgling companies on which great brand names to choose, we spend much of our time tracking down domain name owners and reaching out to them on behalf of our clients. It’s what domain brokers do – we’re your secret weapon when trying to get a great name owned by someone else (and not paying over the odds for it). In this post, we’ve rounded up 10 of our best tips for anyone who wants to buy a domain name for their business. And if you get stuck, just reach out to us for some expert help.   What are the best domain names to buy? Stick with the classics! Though it might be tempting to use options like .net, .edu, .biz or even things such as .shop, or .blog, it’s usually better to go with a .com domain name whenever possible. That’s mainly because everyone is familiar with .com. No matter how good the domain name you’ve landed, they won’t remember the all-important last bit (known as the top-level domain or TLD) if it’s something obscure. Everyone will automatically assume your domain is a dot com – so you might as well give your customers what they are expecting. Additionally, the .com name is worth more. Search engines cater to sites that give the user the best experience, and .com sites are seen as more credible to users and help establish brand authority.   Choose a brandable name If you’re just getting started with establishing your brand, choose something brandable. Think about something unique that your competition won’t have. A brandable name might mean that your name doesn’t mean anything at all, as is the case with Etsy or YouTube. You also want your domain to be easy to remember and easy to pronounce. Something else you’ll want to consider is to not choose something that sounds shady or untrustworthy. The goal is to create something that can be developed over time, so choosing the right name is important.     Keep it short and simple If you’re trying to add keywords (terms people will tap into Google when searching for a business like yours) to your domain name, make sure you don’t go overboard. It’s better to have something short and simple that accurately represents your brand. We recommend keeping your domain under 15 characters and avoid using numbers – unless they are specifically a part of your brand. Try to avoid weird or unique spellings of common words. If your name is Smyth and you want to include that in your brand, odds are that every single person will type Smith. Alternatively, if you’re dead set on using your unique brand that might be a variation of a common word or name, you can work with us to buy the domains that include the common misspellings. That way, even if users type it in wrong, it will redirect to your website.   Avoid double letters and hyphens Another tip we would suggest is to avoid double letters or hyphens in your domain. It makes your domain much more complicated. For example, if your website is classset.com, you will probably lose traffic because of typos. Avoiding double or triple letters like this will keep it simple and easier to type and remember. Additionally, always avoid hyphens. Hyphens are typically associated with spam websites, and you don’t want your business or blog to be tainted off the bat. Plus no one will remember the hyphen! If the reason you’re using a hyphen in your name is that a competitor has the domain you want, chances are you’ll be sending clients right to them. So, find a different and unique name. If you’re having trouble, contact us. We love helping clients find the very best domain for their business – and at the right price, too.   Don’t limit yourself with a domain that is too specific Choosing a name related to the industry you’re in is a smart choice because you automatically give users an idea of what your website is about. However, you don’t want to limit yourself and not give your brand the opportunity to expand. If you’re a baker, you might consider the name frostedcupcakes.com – but what if you wanted to include more than just cupcakes in your bakery? Your domain might dissuade users from exploring what other services you offer because they have a preconceived idea of what you do. Try to pick something flexible that can grow with you. Research the history of your domain before you buy This is where an expert domain name broker can really add value. We research your domain to find out who owns it, and then we spend time finding out what the reputation of that domain is. Why? Because sometimes even an “amazing” domain just isn’t worth it. If your desired name is tainted because it’s associated with spam or an inappropriate site, it might be worth looking at another domain name. Keeping that in mind, you don’t want to choose an alternative name that’s too similar to the one you’ve just abandoned because of its bad reputation. You never want your name associated with anything untrustworthy.   Domain names are like real estate Every day, new domains are registered globally. If you find a domain name you want, don’t wait too long! We’ve often described domain names as being similar to real estate. People all over are looking for good brandable names that they can register and then try to sell at better rates later. If you don’t act fast (or consult an expert like us), someone else might go ahead and register your domain name before you do. That being said, not all domain names are worth as much as you might think (or their sellers would have you believe). So don’t just buy domain names just to have them – buy names you actually think you might use in the future. If a name you want is in use, think laterally. Website copywriter Mike Peake, who sometimes helps out on the NameExperts website, had to do this when he tried to register mikepeake.com many years ago, only to discover it was already registered. Rather than choose a .co.uk TLD (he’s a Brit), he went with bymikepeake.com instead.   Make sure you’re set to auto-renew Typically when registering a domain name, you get to choose the registration period – usually a time span between 12-24 months. If you don’t renew your domain after that time, you will miss your window and it will become available to the public to buy. Sometimes, if you fail to renew in the time allotted, brokers and other domain purchasing sites will buy your recently expired domain and then charge you an arm and a leg to get it back. Avoid all that nonsense by setting your payment to auto-renew! Nearly every registrar gives you the option, so better be safe than sorry.   Don’t worry if your domain is taken Honestly – that’s what domain brokers are for! We are in the business of buying domains on your behalf, even if they are already taken. We have a tried and true process that really works. Our service includes a pre-consultation phase, followed by a more detailed consultation and then in-depth research. After that, we contact the seller for you and negotiate the price. We take all the hassle out of the process and make sure your domain gets transferred to you. What are the best domains to buy? It’s all down to you and what you want your brand to represent. But don’t panic if your dream name doesn’t appear to be available. We can work wonders with our ‘little black book’ and negotiation skills – or we can steer you in an exciting new direction if that’s a better route. The goal in both cases is to help you secure the best domain name that works for you.   About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]  

Rear-view close-up shot of a woman using a laptop to illustrate article about buying a .org domain name
Why You Should Buy a .org Domain and How to Get One

The .com domain name might still be king, but .org can be a perfectly good alternative in some circumstances. Domain name expert Joe Uddeme explains when and why.   Why buy a .org domain? Why not? If you’ve been contemplating buying a domain and figured that all the alternatives to a .com were a dud, then a .org domain name is the exception. A .org domain imbues a site with immediate confidence and credibility. Your website visitors infer that you aren’t only interested in earning money but are dedicated to making this planet a better place, too. These domains are identical to other domains in most aspects but come with the extra bonus of perceived authenticity among your customers. Key Takeaways Why the .org suggests authority Understand the rules about owning a .org When a .org makes sense   What is a .org domain name? .org domain names were among the first top-level domain names. This means that they were among the first options available when people started picking a domain name. As a result, the .org domain extension is well known – and websites with that expansion are often viewed as authority websites. As they have a certain gravitas and longevity, they are often utilized as a choice alternative to the popular (but exceptionally competitive) .com domain name extension. Who can use a .org domain? If you want to create a community website for your college, gym or cultural establishment, then a .org domain name is going to be your very best choice. It is both fitting and correct – and will suggest to visitors that they have arrived at the official site. Anyone can now choose a .org domain name. You don’t need to submit any documentation or any other evidence that you’re a nonprofit or a charity. The procedure for registering for a .org domain name is straightforward and hassle-free. Commercial companies can just as readily secure .org domain names as official bodies, charities and other organizations can. From a business point of view, adding a .org may help ensure your trademark and brand are well shielded. The same may be true of other TLDs, such as .io or .ai.   Why choose a .org domain name? If you’ve been contemplating registering a domain and can’t get the .com name you want, its .org sister may be the way forward. It grants your site instant authenticity and is an extremely popular and identifiable domain extension. It’s ideal as a home for a charitable or community organization – and can be a terrific alternative to the .com domains. It works well for schools, charities, hospitals and so on, but can just as easily work for your own private use or a small business. If you need help purchasing a .org domain name or would like to inquire about a domain name that is already taken, the brokers at NameExperts can help guide you through the process. We’re particularly good to have around when it comes to negotiation work and have helped everyone from Mark Cuban to Tripadvisor to secure powerful domain names. About the author Joe Uddeme is Director and Principal of Name Experts, one of the world’s leading domain name brokerage services. He has overseen domain name sales and acquisitions totaling more than $150 million and is renowned worldwide as a go-to expert in buying and selling premium domains. Contact us at: [email protected]

Why Work with Name Experts

Name Experts offers personalized domain brokerage services, assisting clients in buying or selling premium domain names with expert appraisal, negotiation, and complete transaction management while ensuring confidentiality.

Some of our most
successful stealth acquisition and sales

Aid.com

Fit.com

Mine.com

GLD.com

Jeff.com

Fora.com

Nori.com

Secure.com

Guitar.com

F*ck.com

Radian.com

MetaData.com

Prize.com

Link.com

Loop.com

Programs.com

Claim.com

Quince.com

Hook.com

QXO.com

NQ.com

Rest.com

Humani.com

Max.com

Need help buying or selling premium domains?