February 13, 2019

A Premium Domain Name Makes All the Difference

written by

Joe Uddeme

Joe Uddeme

A Premium Domain Name Makes All the Difference

It’s impossible to overstate the power of a great domain name for a business. Get it right, and an endless flow of online traffic could be yours, as domain name expert Joe Uddeme explains.

 

The Internet evolves and is shaped by countless businesses, people, non-profits and an array of other entities looking for eyeballs in an ever-changing world.

Buying a premium domain name is crucial in today’s clutter. Brands work hard to engrain their product or service in the public psyche and establish market positioning and relevance. Your domain name is part of the deal.

Savvy brands understand the importance of creating something catchy and memorable. They need to separate themselves from their competition in ways that remain top-of-mind for their targeted audience.

In this post, we’ll look at some of the reasons why companies large and small spend so much time and money acquiring a valuable premium name. And why you should, too.

Key takeaways

  • Proof that top brands have instantly recognizable domain names
  • How a great domain name helps leverage your position in any marketplace
  • Questions to ask when searching for a valuable premium domain name

 

What’s in a name?

Let’s start by looking at the top ten brands, according to Wikipedia:

Rnk Company Rev($B) FY Employees Mkt. Cap Location Founded
1 Amazon $232.9 2018 647,500 $802.3 Seattle 1994 [1][2]
2 Alphabet Inc. $136.8 2018 98,771 $791.01 Mountain ViewCA 1998 [3][4]
3 JD.com $55.7 2017 137,975 $34.84 Beijing 1998 [5][6]
4 Facebook $55.01 2018 25,105 $486.39 Menlo ParkCA 2004 [7][8]
5 Alibaba $39.90 2018 66,421 $432.12 Hangzhou 1999 [9][10]
6 Tencent $36.39 2017 44,796 $434.66 Shenzhen 1998 [11][12]
7 Netflix $15.8 2018 5,400 $153.39 Los GatosCA 1997 [13][14]
8 Booking $12.7 2017 22,900 $92.94 NorwalkCT 1996 [15]
9 Baidu $12.40 2016 45,887 $88.11 Beijing 2000 [16][17]
10 eBay $10.75 2018 14,000 $32.07 San Jose 1995 [18][19]

 

Each of these companies went out and acquired their core premium domain name – no matter what the cost. They also understood the value of having .com as their global brand. Let’s dig a bit deeper into the strategy of one of the major power-houses listed above.

Facebook.com also owns many other valuable pieces of digital, beach-front real estate. Take for example, FB.com which complements the existing digital strategy that was already in place. Facebook has parlayed their web presence by building another piece of digital real estate alongside their own majestic piece of real estate.

Another example is Booking.com, with more than $12 billion in revenues. They do a phenomenal job of attracting users with constant ad-driven messaging. They have partnerships with more than 660,000 hotels and provide a valuable service to their clientele.

Screengrab of booking.com website, a company with an attractive premium domain name

 

Why Premium Domains?

Let’s continue with the beach-front real estate analogy. For the past thirty years, brands have been swallowing up the short, brandable .com domains. These are the assets that provide the most upside, equity and long-term value to the brands. These assets can hold generic value, such as Booking.com, or be more brandable, such as ebay.com or Baidu – to name a few.

Premium domain names have commercial appeal and are typically very memorable. Brands spend huge amounts of money attracting new users and creating brand credibility. Digital strategists – including speculators who buy and sell domains for profit – are competing for a smaller piece of the available premium domain name inventory.

Having a great domain name is only half the battle. Success lies in how you develop the brand and create long-term equity for your company. For this reason, companies should always acquire the shortest variation for their brand (Tesla, for example, spent an undisclosed amount on tesla.com so they no longer had to be teslamotors.com).

This doesn’t have to be the only strategy. Companies should outline a comprehensive domain name strategy that not only covers their brand but any additional reputation management/brand defense needed to protect their corporate brand positioning.

Simply put, premium domain names come with the following instant upside:

  • Brand-dominance and positioning
  • Equity toward a long-term exit strategy
  • Inability to build against – a defensive strategy against your competition

Own the real estate before your competitors do!

Most successful brands have identified the importance of the premium domain name. They have dedicated digital strategists or digital departments to handle the larger need for digital integration and social media components.

Brands should spend wisely and methodically when securing a new brand or piece of beach-front digital real estate.

 

Get it right the first time with help from a broker

Domain name brokerage services like NameExperts help businesses with their domain strategy and are in high demand. Whether or not they work with us, we always advise companies to use the following checklist to make sure they are not leaving money on the table:

  • Conduct Research—who owns the asset and for how long have they had it? Is it being used? Are there active trademarks? What’s the history of the link profile?
  • Variations and Alternatives—brands need to nail it. To do this, sometimes, they need to think outside the box. Find viable alternative assets that define your image and brand.
  • Negotiation is key—do you negotiate for a living? We do. We remove the emotional attachment and red tape to manage both buyers’ and sellers’ expectations.
  • Be Flexible—sometimes you have to give a little to get a little. Don’t be afraid to be flexible and offer ways to benefit the other party in your transaction.
  • Be Honest—honesty and integrity go a long way. Be true to your word and don’t go back on what you say. This is critical for deals to succeed.
  • Ask Questions—hold your broker or expert accountable and ask appropriate questions. Some domain transactions move quickly. A clear line of communication is necessary to save valuable money and time.
  • Due Diligence—dig for more information and market comparisons: it’s all firepower necessary to make the case.
  • Timing—don’t hunt for a CBD-themed/Marijuana-type name when there is mass decriminalization and legalization occurring. The market is just too hot, and pricing will be inflated. Instead, names should be selected “ahead-of-the-curve”.

An arm with a watch on the wrist; person is stood on a boardwalk next to a river

Don’t fall at the first hurdle

When buying a premium domain name, it’s important to ask the right questions – it can save the buyer tons of money in the long-run. A common issue relates to trademarks tied to a name/brand. Many companies secure a domain name for commercial use but never take the time to search the trademark database. This quick search can save clients thousands of dollars.

Premium domain names make total sense for any emerging brand looking to scale their brand – and shortening the global domain name is still the foundation for successful growth. The top companies around the world continue to focus on the universally popular .com for brand growth.

This validates the need for a superb, premium domain name for your company and brand. Get it right the first time and save money in the long run – while adding credibility and equity value while you’re doing it.

 

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]

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The Best Places to Buy and Sell Domain Names

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Who it’s best for: serious name-hunters who want access to a vast pool of names. 2. NamePros NamePros is an online community for domain name owners to interact and discuss events related to the industry. In the forum’s early days, users commonly posted they had domain names available for sale and wanted to connect with potential buyers. Observing this, the owner of the forum launched an official domain marketplace section for buying and selling domain names. On NamePros, any registered user can list the domain names they have available in a forum post. To make the domains easy for prospective buyers to find, NamePros has formal categories that users can attach to their posts to find the perfect domain. How much is it worth? Namepros can also share pertinent details of recently sold domains that are similar in nature to your domain search. Domain name valuation is a complex area, so tread carefully! Because it is a forum, NamePros only helps buyers and owners find each other and it’s up to them to negotiate and decide how they’ll handle payments for the domain. This is unlike Sedo, which facilitates payments and domain transfers for its users among other services. When using NamePros to buy a domain you should be more careful about your purchase. Set specific terms with the seller before proceeding on any deal and use a trusted online escrow service (e.g. Escrow.com) to ensure that the payment goes through only after the seller has transferred the domain name to your preferred registrar. You can find a large variety of domain names for sale on NamePros, making it one of the best domain marketplaces in the world. Who it’s best for: industry players and those looking to strike up a relationship with fellow domain traders. It’s by no means the easiest marketplace to use! 3. 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Who it’s best for: anyone wanting to sell quickly (choose an enhanced listing for maximum visibility). 4. Namecheap Namecheap is one of the most widely-used domain registrars, serving over 2 million customers and giving GoDaddy a run for its money. It also has a premium domain marketplace as well as business resources and forum support for its customers. Popular domain names Namecheap has an internet marketplace where domain name owners can connect with and manage potential buyers. Only domain names registered on Namecheap can be listed for sale, however, and owners can list their domain names at a fixed amount or put them in auctions. If a seller lists their domain at a fixed price, you can purchase it immediately, just like you would purchase a new domain on Namecheap. Auctions If the seller puts their domain up for auction, you’ll have to participate in a timed bidding process if you want to try and secure it. If you’re the one doing the selling, Namecheap collects a 10% commission on each sale. You must have a Namecheap account to buy domains from its marketplace and after buying any domain it is automatically transferred to your control. The convenient sale process makes Namecheap one of the easiest domain marketplaces to use over other domain marketplaces. Who it’s best for: amateurs and serious pros – Namecheap has something for everyone. 5. Atom.com (formerly Brand Bucket) Each premium domain is carefully reviewed by branding experts to ensure it meets high standards of originality, pronunciation, and memorability when selling domain names. This makes Atom.com a little different in the domain marketplace arena. Names often have five- or even six-figure asking prices. Visual Identity Package Every premium domain listing includes a professionally designed logo for your organization, providing a cohesive domain brand package that helps with your company identity. User-Friendly Search and Navigation Advanced filtering lets you search domains by industry, point, style, length, and other attributes to find the perfect match. Who it’s best for: anyone looking for a brandable premium name. They even mock up logos for available domains to give you a taster for what’s possible.   FAQ About the Domain Name Marketplace   Where can I sell my domain name fast? If you have a good name available and want to raise funds quickly, you can quickly sell it any of these marketplaces. A large platform such as SEDO, GoDaddy, Afternic or Namecheap offer great options for buying domains quickly – and also boast a fast transfer process.   How fast do domain names sell? Domain names take anywhere from hours to days, months, or years depending on the demand for them. The amount the domain is listed for also plays a role in how quickly it will sell. If the price is too high relative to its value, there may be no interest from buyers, especially for a premium domain. If a domain is listed on the wrong marketplace, it may not sell, too. We recommend using a large marketplace like GoDaddy. Check out our post about domain flipping for some extra tips.   Where do I buy expired domain names for sale? Many domain registrars host auctions for expiring domain names, including GoDaddy, Namecheap, and Network Solutions to buy domains. There are also websites specializing in auctioning expired domains, such as ExpiredDomains and DropCatch market services for other domain name sales on non-active domains. Domain brokers can help too. They can also help you buy names that are currently owned by someone else – even those already in use, if the price is right.   How can I build or develop my domain? Select a registrar, choose and pay a hosting company to host the domain, and sign up for a web builder interface to develop the site. WordPress or Wix are popular, though Wix is easiest to use if you have no experience. GoDaddy also offers a turnkey solution for your company’s development to make launching online worry free.   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]

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Stealth Acquisitions Domain Name

Some domain acquisitions are straightforward, but others are less so. Joe Uddeme, Director of NameExperts.com, explains what happens when a client wants a domain that seems out of reach – and they want to keep their name out of the picture, too.   As a buy-side broker specializing in stealth acquisitions, it’s our job to dig deep and find the rightful owner of a domain name while protecting the identity of the buyer. The problem is that some domain owners make it very difficult to reach them. What’s the psyche behind this rationale? For a start, not all domain name owners are equal; some just don’t want to be contacted or have zero interest in selling their domain name. Or perhaps it’s just a case that their whois information is out of date – making it difficult to decipher the current domain owner. GDPR is another major change. Many countries now adhere to stricter policies related to domain name owner privacy, with many whois entries now redacted for owners’ privacy rights. 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Is there a website, or is it undeveloped? Whois history is a valuable tool to understand the true history of the domain name. Check the Wayback Machine to see what other properties have been developed on the URL in the past. If working with a buy-side broker, they should offer the following upside for any stealth acquisitions: Negotiate with YOU in mind; no dual agency in this scenario. Provide contracts that protect ALL parties involved. Typically save you time and money. Allows for a third-party (non-biased) approach towards the acquisition. Coordinate necessary contractual paperwork between parties. Facilitate and handle smooth transfers of domain names. Offer transparency and full disclosure. Non-disclosure where applicable.   How to choose a broker for your stealth acquisition Start by researching suitable candidates to help with your domain name acquisition. Don’t identify the asset unless you are sure you have found the buy-side broker you’re certain you want to work with. Ask the broker for information about their service and a few names they recently acquired for clients. Find out how your broker can add value to your potential acquisition; always do a Google search to learn more about the broker you are working with. Take the time to find an expert that can properly assist you with all of your acquisition needs. Ask lots of questions and make sure you feel aligned with the broker. Hold the broker accountable and require status updates so you aren’t left in the dark as they progress. In most instances, your stealth acquisition needs to be completed right the first time. Most domain name acquisitions only have one chance to secure the domain name target without leaving extra money on the table. Stealth acquisitions should only be performed by a seasoned domain name buy-side broker, so choose your broker carefully. You should understand if the broker has certain strengths or weaknesses. Some buy-side brokers don’t have the tools or knowledge to find the rightful domain owner. Or they lack rich relationships with industry veterans. Other buy-side brokers are excellent at managing the acquisition but terrible at the details. Details are key when it comes to any domain name acquisition. Contracts and paperwork can take months to pass through the legal channels, so it’s important to find a representative that is fully vested and can assist you with all aspects of the buy-side domain name acquisition process. Finally, when selecting a buy-side broker, make sure you ask for referrals so you get a feel for how they work. Once you have faith in your broker you can instruct them to make contact with the rightful domain owner and secure the perfect domain name for your brand.   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. Stealth acquisitions are his specialty. 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.

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Aid.com

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