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

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JoeUddeme

JoeUddeme

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

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 drastic demand for the class of domain names called premium domains.

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

Premium domain names give you greater recognition on the web. It’ll be wise to get one for your website.

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 permissible. Overly long domain names can be difficult to memorize, so they can scarcely be considered premium.

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 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.

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.

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.

Is it worth it to buy a premium domain?

Yes, buying premium domain names for your business is 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, for example, mental health and artificial intelligence. Such a domain is likely to bring about a great deal of organic growth for your business.

Do domain names increase in value?

Of course, they do. 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.

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 hundreds of thousands of dollars. It gets much more expensive when there are direct negotiations involved.

Some domain owners could 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.

Need help buying a domain? We make the domain buying process easy.
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Best domain broker for clients seeking expert advice on selling high-end domains. Grit Brokerage Pros & Cons Pros:  Expertise in all top-level-domains High success rate with valuable domains Insightful newsletter Cons:  Limited reach Not suitable for smaller transactions 7. Media Options Media Options is a leading domain brokerage firm that helps with both domain name sales and acquisitions. Known for its premium service and privacy-focused approach, Media Options handles high-profile deals globally. Best domain broker for premium domain name buyers and sellers looking for confidentiality. Media Options Pros & Cons Pros:  Premium domain expertise Global reach Insightful newsletter Cons:  Focused mainly on high-end Limited options for budget-conscious 8. Brannans Brannans specializes in both domain sales and acquisitions, focusing on premium and brandable domain names. They offer extensive expertise in helping companies secure high-value domains. 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Saw.com Pros & Cons Pros:  Personalized service Domain expertise Competitive pricing Cons:  Smaller platform Not suitable for smaller transactions   Two Honorable Domain Broker Mentions: While they didn’t quite make it into the top 10, here are two additional domain brokers who have made a lot of headway over the past couple of years and deserved an honorable mention: VPN.com: Great outbound broker for valuable digital real estate. DNPost.com: Blogger and newsletter related to domain offerings. Domain Broker FAQ Section Hopefully the above information has given you a pretty good understanding of domain brokerage, but we don’t settle for good. We want you to have all the insight necessary to make the right choice when it comes to your unique domain broker needs. With that in mind, here is ‘best domain broker practices’ aka FAQ section to cover any additional questions you may have. 1. How do domain brokers charge? Most domain brokers charge a commission, typically between 10-20% of the sale price. Some may also charge flat fees for certain services, depending on the complexity and value of the transaction. 2. How do I choose the right domain broker for me? Your decision depends on your budget, the type of domain (premium or general), and the level of service you need. High-value transactions benefit from boutique brokers like Name Experts, while larger, affordable platforms like GoDaddy are better for general transactions and smaller term deals. 3. Can I negotiate domain broker fees? Yes, in some cases, especially for high-value transactions, you can negotiate brokerage fees. It’s important to discuss fees upfront before entering into an agreement with a broker. Complete broker transparency is crucial to not leaving money on the table. 4. Do domain brokers offer privacy services? Yes, many brokers offer privacy and anonymity for domain transactions. NameExperts.com and Domain Holdings Group specialize in keeping domain buyers’ and sellers’ identities confidential. 5. What should I expect from a domain broker? Domain brokers help you navigate domain acquisitions and sales by offering expertise in pricing, negotiations, marketing, and legal agreements. They should also facilitate secure payments and transfers. The Best Domain Broker For You? That Depends. Not all domain brokers are created equal, and which one is best for you depends on your unique business needs— from buying or selling a premium domain  or looking for niche expertise. But if you’re ready to move forward, click on the below banner and let Joe show you why Name Experts is one of the best domain brokers in the game.

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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