April 10, 2019

What is a Premium Domain Name?

written by

Joe Uddeme

Joe Uddeme

What is a Premium Domain Name?

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Domain brokers like NameExperts.com help clients buy ‘premium’ domains – but what is a premium name, and how do you get one? In this post, domain name specialist Joe Uddeme lifts the lid on high-value web addresses.

 

Imagine a business today that didn’t have a website. Seems almost inconceivable, right? The internet is one of a business’ primary channels to entice potential customers, meaning any organization that doesn’t have an online presence is massively missing out.

The best way to showcase yourself online is by having a website stating clearly what you or your organization offers. And the way to do that? With a premium domain name.

The domain name is how people will find you on the web, so unless you strike it luck and some cheap random jumble of letters you’ve bought as a domain name suddenly becomes in vogue, you’ll need to dig deep and buy a premium domain name.

But what are the elements of a premium domain – and how much are you going to have to pay? Read on for the full details.

Key Takeaways

  • Understanding what premium means in the domain name world
  • Elements of a premium domain
  • How to buy a premium domain name
  • Why you should buy a premium domain

What are Premium Domains?

Premium domain names are high-quality domain names, giving you greater recognition on the internet. They’re often short, catchy, and memorable. They’re the domain names that people are likely to search for and trust over other names.

A premium domain name would go a long way in drawing organic traffic to your website. They’re usually costly, but one of the best investments you can make.

It’s not a coincidence that most of the successful online businesses we know have premium domain names – see Stripe.com, Amazon.com, Google.com and other big-hitters.

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How Do You Know if a Domain Name is Premium?

The easiest way to determine if a domain name is premium is the price you see when you search for it for a domain registrar. Likewise, you can use a premium domain checker for this task.

Premium domain names often range from a few hundred dollars to thousands or tens of thousands. They can go for even larger sums – as our post about the most expensive domains ever sold illustrates.

There are also specific characteristics differentiating premium domain names from the pool of all domains, and they include:

Length

“The shorter the name, the better” is the rule of thumb when it comes to domain names. Most two or three-letter domains are considered premium because they’re easy to imprint on customers’ minds.

These short names are also usually abbreviations adopted by various companies, so there’s intense competition for them.

Generic Value

Domain names consisting of generic words fetch a higher value than those with non-generic words. Generic names are easy to remember and brand, so there’s significant demand for them.

You’d have an advantage over competitors if your domain name consists of a word that broadly relates to your industry.

For example, Checkout.com, Bill.com, and Authorize.net are leading payment providers. Crypto.com and Blockchain.com are two famous cryptocurrency exchanges.

Customers need little effort to memorize such generic domain names, so it gives these companies a significant marketing advantage compared to their peers.

Search engine optimization

Search engines are the primary way people discover websites. Hence, any domain name matching what people mostly search for carries more weight.

CreditCards.com, HouseRepairs.com, and RentalCars.com are examples of domain names with high value stemming from search engine optimization.

Buyer Demand

Some domain names don’t look attractive at first glance but see great demand from prospective buyers for various reasons. These domains command high values because of the bidding war over them.

Numerous domain registrars let you check for available domain names, and it’s easy to identify the premium ones based on their prices and the other factors stated above.

If the domain name you want is already taken, don’t give up. You could still acquire it by making a direct offer (more on that below).

How Do You Get a Premium Domain?

The first step to buying a premium domain name is knowing if it’s available using a premium domain checker. You can buy it straight away if it is. If not, you’ll need to find the owner.

Many domain names are registered but not utilized to a considerable extent. Sometimes, you’ll see a homepage filled with advertisements and affiliate links but hardly any content.

This is an attempt by the owner to monetize what’s basically an abandoned site. If you encounter such a website, then it’s positive news for you. The owner is more likely to sell than someone actively hosting a site and doing good business.

If the website has a contact form, you can use it to reach out to the owner with an offer. If not, you must get creative in finding them. The easiest way to do this is through the WHOIS database.

It is a public database containing the information collected when someone registers a domain name or adjusts their DNS settings. ICANN, or the International Corporation for Assigned Names and Numbers, regulates the WHOIS database.

screengrab of WHOIS website homepage

 

Searching the WHOIS database

ICANN allows anyone to search its public database for domain name ownership information. You can do that through the agency’s online lookup tool or your PC’s command prompt.

Searching WHOIS Online

The official URL of ICANN’s WHOIS lookup tool is lookup.icann.org. Once you open that page, you’ll see a search bar where you can type in any domain name and press the lookup button. We searched for Microsoft.com to demonstrate, and we got the results shown below:

Microsoft.com registration on ICANN site

You can see the email assigned to Microsoft’s domain name is [email protected]. Hypothetically, we can contact that email with an offer for the Microsoft.com domain name, but we’re pretty sure the well-known technology company isn’t willing to sell.

Searching WHOIS via Command Prompt

Searching WHOIS through your Windows command prompt is a complex process, so we recommend that only computer geeks take this route.

Step 1:

Download the whois.exe file from this link.

Step 2:

Open the command prompt terminal.

Step 3:

Set the command prompt directory to the folder where you save the whois.exe file.

Step 4:

Type in your query in the following format: Whois domain.com or Whois64 domain.com if you’re running a 64-bit computer. If you want to search for Microsoft’s domain name info, then type Whois Microsoft.com, and you’ll see the contact information.

Sometimes, a domain name owner may have enabled privacy protection through their registrar, meaning you can’t see their information. It implies that they’re likely not interested in selling their domain.

With the contact information, it’s time to negotiate a domain name sale. The process can be hectic and take long periods, so we advise you to hire an experienced domain name broker to help you.

 

Why Should I Buy a Premium Domain Name?

A premium domain name carries more authority on the web, meaning you’re more likely to get found through search engines or social media. It also brings about better brand recognition, making it easy to attract customers through advertisements.

Many domain registrars have a premium domain checker for their users to find and bid for premium domains without stress. Examples include Name.com and Domain.com.

 

Who Owns Premium Domain Names?

Anybody or any organization can own a premium domain name. Some are owned by business-savvy people or companies looking to flip them for a profit. Some are owned by domain name registrars themselves hoping to find buyers.

 

How Do You Value a Premium Domain?

There are various factors to consider when valuing a domain name. They include length, how generic they are, search engine recognition, and historical domain name sales data.

There are numerous appraisal tools available online that combine these attributes to value individual domain names. A good example is GoDaddy’s Domain Name Value & Appraisal tool.

 

Why are Premium Domains So Expensive?

The price of premium domains can be high because there’s considerable demand for them. The number of premium domain names is significantly less than the number of potential customers vying for them. Hence, premium domain owners can charge high prices and still make easy sales.

As professional domain name brokers, this is the world we live in – and we help people buy and sell premium domains globally every week. Clients choose us for our years of experience – it means we can help them get hold of names that seem impossible to purchase.

Our expert negotiation skills often save clients large sums of money, too.

Hundred-dollar bills fanned out and held by a hand

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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Got a business idea? All set to buy a domain name so you can start dominating online? Some domains are readily available – others, less so. Here is our step-by-step guide to buying your dream domain name.   Option 1: buy a domain name from a domain registrar Choose a Domain Name: Perform a domain name search. Pick a name that represents your business or personal brand. Keep it short, memorable, and easy to spell. Choose the appropriate domain extension (e.g., .com, .net, .org). Check Availability: Use a domain registrar (like GoDaddy, Namecheap, Google Domains) to check if your desired website name is available. Select a Domain Registrar Compare prices and services from domain registrars. Understand how domain locks and transfer processes work, and familiarize yourself with renewal costs and web hosting services. Most domain registrars offer promotions of a free domain name with a year renewal to register a domain name. 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Evaluating Your Preferred Domain Name We know that a lot of work goes into finding the right domain name. The first step is to think about your long-term goals for your company, and make sure that your desired domain is a good fit for your business and what you intend to do with it. Once you’re sure that the domain you want is a good fit, you’ll need to evaluate the website currently on the domain. Is there a real working website there? Has it been updated recently? If it is, then most likely the owner won’t be interested in selling. However, if it’s really outdated or is just a placeholder website, then you can approach the owner with the confidence that you might be able to make a deal. Sometimes, owners of certain domains are just waiting for the right buyer to come their way and make an offer. Investigating the domain is crucial in making sure it is available and allows you to determine if buying a domain that is already owned by someone else is a realistic option. 2. Find Out Who Owns The Domain Once you decide that the domain name you’re after is the one you want, the next step is to find out who owns it. There are a number of different websites that can look up that information for you and the most common method is a Whois lookup. Entering your desired domain into one of the whois search sites will return information about that domain, including when the domain was registered, who registered it, and the contact information for the person or company that currently owns the domain. Unfortunately, accessibility to domain owners has really taken a hit with GDPR and some registrars offer advanced privacy protection services for free when you register a domain name. By adding more privacy to comply with GDPR regulations and additional measures to hide contact information, it can make it difficult for some folks to reach the rightful domain owners. If you are able to determine the domain owner’s contact information through the Whois lookup you can continue working through the next steps. But what if you can’t? It’s time to hire a broker. In a few seconds, they can help find an available domain name. 3. Target the Right Contact Person In some cases, the Whois lookup is just the start of the process. Some domain owners are very large, corporate power-houses that own hundreds or perhaps thousands of domain names and the contact information shown may not lead you to the correct person. Amazon.com is a perfect example. They own more than 41,152 domain names in their portfolio. Many of their domains go unused. How do you find the person involved with domain portfolio management, much less the domain you’re interested in, within Amazon’s 600,000+ employees? Did you Reach the Proper Decision Maker? Is it the project manager around that brand? Would it be marketing, CMO, Legal, Business Development, Webmaster, Technology etc? It’s a vital step to connect with the correct person or division within the company so you don’t spend time spinning your wheels. This is where working with a domain broker can be beneficial. They can do the research to identify the owner of the domain and establish contact for no additional fee. Depending on the extension you want, you may find the perfect domain name that works for your business. After contact is established, you need to determine whether the asset is indeed available for purchase – and if it is, will it be within your budget (and if not, can domain name price negotiations bring it down to an acceptable level)? 4. Determine Your Spending Limit Before you even start the negotiation process after you’ve found the owner, you want to think about the budget you have in mind. Make sure you think about what the owner went through, too. If they are actively using the domain to promote their business and have spent their time and money building a website, then you’ll want to make them a fair offer that reflects the domain’s value. If you partner with a domain broker, they can tell you what the domain is actually worth. They’ll conduct a valuation of the domain and can provide you with their estimate of a fair price. You can then use that to make a great offer that will simplify the negotiation process and hopefully get you closer to the outcome you desire for your business identity. 5. Negotiate Without Emotional Attachment Whatever you do next, don’t become emotionally attached to the asset when you start negotiating a price for the domain name. Ultimately, this could add headache, stress and more money to the equation if you start making decisions based on emotion. Remember that a negotiation is a give-and-take and should always try to create a win/win for both buyer and seller. If the price isn’t right and goes beyond your budget, you should be willing to walk away. Once you agree on terms, in most instances you would then either enter into a contract or purchase and sales agreement with the prospective seller or simply move right to one of the formidable escrow providers such as Escrow.com. Contracts and documents can become tricky and need to be completed diligently and professionally if necessary. You will also need to have proper legal representation to make sure you are protected accordingly. Documents can get stuck in legal or need board approval, and can certainly slow down the overall acquisition process. 6. Transfer Ownership of the Domain So now you have made proper contact, negotiated a price, handled the paperwork and set up the Escrow transaction. The buyer has agreed to terms and now you are ready to transfer the domain name. Domain transfers can sometimes be tricky but typically follow two forms for completion. The easiest way to transfer a domain name is by “pushing” the domain name within the current registrar. Alternatively, you may also choose to transfer your domain name to another registrar. To complete this, you will need an authorization code from the seller. Make sure the domain name is unlocked and privacy removed before you try and transfer the domain name. Once the transfer has been completed, you can release the funds to the seller and mark the transaction complete. The entire process for a domain name transaction can be completed in as short as 3-5 days, however most transactions take longer. Some transactions take months to come to fruition, but when complete you will have successfully purchased a domain name that was owned by someone else. What To Do if You Can’t Find the Domain Owner? If the Whois lookup doesn’t provide the contact information you need, it does not mean your path to purchasing the domain ends. Instead, reach out to a domain broker to continue the research process. They can conduct additional investigations into who owns a domain – or at least begin to track down contacts who can get them closer to finding that information. Partnering with a broker at this phase of the process is a great step to take as everything that follows can be challenging to do on your own. Not only is it time-consuming, but they’re experts at this and spend every day figuring out how to help people find their perfect domain.   Getting Support in Buying A Domain Name That is Already Taken Working with successful brokers can save you a lot of time, money, and hassle when it comes to getting the domain name you want. Reach out to us, and let us help you grow your business. We’d love to answer any questions about our services and help boost your confidence when it comes to buying and selling domains. 7 key reasons why you should buy a domain name: 1. Professionalism and Credibility Owning a custom domain (e.g., yourbusiness.com) makes your business look more professional and credible compared to using free services like yourbusiness.wordpress.com or Gmail addresses. 2. Brand Control A domain name helps establish and protect your brand identity. It ensures your business name is uniquely represented online and prevents others from using it. 3. Easy Online Access A custom domain makes it easier for customers to find your website, improving your online visibility and brand recognition so consumers can find your site properly. 4. Custom Email Addresses A domain allows you to create personalized, professional email addresses (e.g., [email protected]) that look more professional than generic ones. 5. SEO Benefits Having a relevant domain name can improve your search engine rankings, making it easier for potential customers to discover your website through organic search. What makes a ‘relevant’ domain? Check out our post about why a .com domain name is still king. 6. Long-Term Investment A domain name is a valuable digital asset that can appreciate over time, especially if it’s a premium or in-demand name. 7. Security Owning your domain means you have full control over your online presence and don’t rely on third-party platforms that could change policies or shut down. Buying a domain helps you establish a unique and trusted online presence, improve credibility, and create opportunities for future growth.   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 .com domain names that are already owned. Contact him at: [email protected]  

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