A Premium Domain Name Makes All the Difference

written by

Joe Uddeme

Joe Uddeme

A Premium Domain Name Makes All the Difference

Domain Buying Guides

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 View, CA 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 Park, CA 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 Gatos, CA 1997 [13][14]
8 Booking $12.7 2017 22,900 $92.94 Norwalk, CT 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]

Subscribe for More Domain Buying & Selling Advice

Related posts

Man stares at a large whiteboard. He is wearing a purple tee shirt.
How Much Do Domain Names Cost? Everything You Need To Know

Ready to start a business? Then get set to enter the world of domain name buying. In this post, NameExperts.com Director Joe Uddeme covers all the pricing information a newcomer to domain names needs to know.   When it’s time to start your business online, securing a domain name is the first step. Regardless of whether or not your business is established, you can’t create a website without a domain name. If you’re like most business owners, you’re probably wondering how much do domain names cost? You might also have questions about how much time you should spend looking for the right URL or even how to buy a domain name. We’ve got the inside scoop on what you need to know. Your domain name essentially functions as your website’s address, so you want to make sure you have one that is simple and relevant. You’ll also want to make sure it’s easy to remember so that people can easily find you and your business online. With all of that in mind, it’s easy to see why some people are willing to break the bank to get the domain name they want. If your domain name is just right, it can greatly increase website traffic. Discover everything you need to know about domain names and how much they cost right here. Key Takeaways A beginner’s guide to domain names Pricing details for domain name buyers How a domain broker can secure a better price and streamline the process   Pricing for Domain Names – the Inside Guide Ready to delve into domain names and what they cost? Let’s start with the basics: What Is A Domain Name You don’t want to shell out a ton of money on a domain name without first understanding what you’re paying for. We mentioned it earlier, but a domain name is the web address you type into a browser to bring up your specific website. It typically will start with https or www and will end with something common like .com. You’ll recognize some of the higher profile (read: high traffic volume) domain names like www.google.com or www.irs.com. Why Do You Need To Purchase One If you want to have a website, then registering your domain is absolutely necessary. There are three main reasons why you might need to buy a domain. 1. You’re building a website. You’ll most likely use a domain name that ties in with your business name or utilizes keywords that are related to your company. This is a non-negotiable part of the business world – you need a domain name. 2. Another reason you might register a domain name is when you’re considering starting a business or website. If you have a great idea for a business or a website, then you might want to jump on registering the domain you want. Stake your claim before anyone else comes along and takes it before you’re ready to execute. Check out our guide to finding a great brand name for your business. 3. The third reason that people start to wonder how much domain names cost and start registering domain names is when they are investing. Domain name investing was really popular at the start of the internet age, when popular keywords were still available. Nowadays, a lot of domain names are already taken (read: what to do if the domain you want is taken), but domain investing can still be a great way to earn money. If you’re working with a broker who is managing your domain portfolio, you can find domains that have the potential for significant value and buy them now so that you can sell them for a profit later. How Much Do Domain Names Cost In general, you can purchase a domain name for $2-$20 a year, depending on discounts available and who you’re purchasing it from. Newer domain extensions, the part at the end of your address, like .app or .info might cost more, as they are newer on the market. We can break down how much domain names cost based on a couple of factors. Like we just said, the domain extension can increase the price – for example, using .com might be more expensive than .shop. Where you purchase your domain name is another factor. A reputable registrar might be less expensive than an aftermarket service or private seller. Additionally, if you choose to register for multiple years and elect to include domain privacy it can also increase or decrease the price of your domain name. You’ll find that the most expensive domain names will be the ones you’ll find on auction houses, through private sellers, or aftermarket services. Unfortunately, there are no hard or definitive prices for domain names, regardless of the avenue you choose to purchase from. The domain name industry varies, just like real estate. Sometimes it’s a seller’s market, sometimes it’s a buyer’s market – as our guide to domain name valuation illustrates. Scarcity, though, is what drives domain name prices to eye-watering levels. Add in desirabilty, and you have a recipe for domain name costs that can shoot through the roof. The most expensive domain name ever sold – cars.com – went for just a little short of a billion dollars. Make sure you consult a domain broker if you’re looking to buy from a private seller, or are looking to purchase a domain that is already owned. Brokers are experienced and can handle all of the ins and outs of the acquisition and negotiation process so that you get the domain you deserve at a fair price. Why You Should Consider Hiring A Broker As mentioned above, hiring an experienced domain broker might be the best idea to make sure you get the domain you want. However, for a readily-available name, such as parkmylimo.com, there’s no need – it’s yours from any of the registration companies for just a few dollars. If you can be flexible when the domain you want isn’t available, that’s another great way to snap up a bargain, too. Sometimes, though, you can’t proceed without a certain domain name. Even the mighty Tesla struggled to do what they wanted with the brand because they didn’t own tesla.com. They eventually bought it – after many years of negotiations and a price tag thought to be in the many millions. A broker with experience will know the market inside out. He or she will have a thick contact book, and their years of experience provide leverage when negotiating the best price for you. If going it alone, look out for hidden fees, discount scams, and even hidden costs in your written agreements. This is where having a domain broker on your side comes in handy. They know the lingo, they’ve negotiated before, and they aren’t emotionally invested, which means they just want to get you the best deal. Let a broker help you navigate this industry and help you determine what might be too good to be true. Sometimes, when a great domain seems really cheap, it might be because there are hidden fees when registering. A domain broker can help you choose a reputable registrar and find the right price.   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]
Family of people of various ages crowded around a computer as if investigating domain name services online.
What Is the GoDaddy Domain Broker Service, and Is it Worth It?

Everybody’s heard of GoDaddy, whose services include quick, cheap registration of available domain names. In this post, NameExperts.com Director Joe Uddeme explores their other services – and whether they’re the right option for premium domain name buyers.   GoDaddy is the world’s largest domain registrar, with over 90 million domain names registered and counting. Thanks to never-ending marketing, the average person likely thinks of GoDaddy when they want to buy a new domain. It’s common for people to visit GoDaddy, type the domain they want to buy, and see that someone else has already taken it. But GoDaddy doesn’t leave the user hanging– it suggests an alternative domain name or advertises its domain broker service, as seen in the image below:
Group of three people in business meeting discussing domain name leasing
Make Money on Your Domain With Domain Leasing

Domain leasing is a viable solution for owners who don’t have a use for their name – and also for would-be buyers who can use it but can’t afford it. NameExperts.com Principal Joe Uddeme explores how it works.   Life sometimes doesn’t give you the hand you were hoping for. You were planning to snap up cars.com for your used automobile business, only to find it was first registered decades ago and went on to sell for hundreds of millions of dollars. Or, more probably, you have a family business with a strong brand name, but someone else owns the perfect URL. Not having access to it is getting in the way of business growth. Domain names are an asset class that people speculate on. Some even have domain consultants advising them on their portfolio decisions. As a result, millions of domain names are simply ‘parked up’. While that might be bad news if you want to secure a specific .com domain name that either isn’t for sale or has a price tag that’s beyond your budget, it doesn’t mean all is lost. Welcome to the world of domain leasing. Key Takeaways What is domain leasing? 4 ways to make money from a domain name you own Why you may want to lease a domain Understanding the downsides of leasing a domain How to lease a domain for your business What Is Domain Leasing? Domain name leasing refers to renting a domain name for an extended period, usually a year or more. An individual or business pays to rent a domain name owned by another individual or corporation. This arrangement allows the lessee to use a domain name for a long time without paying a substantial sum outright. Domain leasing is usually done for valuable domain names that are too expensive for the lessee to acquire completely. How Does This Compare To Renting? Renting and leasing are the same thing, except for the latter being for longer periods. Domain leasing agreements usually cover at least one year compared to typical renting, which covers a few months. What Are the Ways You Can Lease Your Domain? You can lease your domain through the following ways: Periodic payments: The lessee can pay for their lease at specific intervals. For example, they could pay monthly or quarterly for the period the lease lasts. This method gives the domain owner stable income they can count on during the leasing period. Percentage of profit: You can agree to take a percentage of profits the lessee makes from the website using your domain name. This method is riskier, as there’s no guarantee the website will be profitable. However, there’s a higher upside if the website becomes a profit-making enterprise. Royalties: You can collect a fixed percentage of the lessee’s net revenue for as long as the lease runs. Ownership percentage: You can request a percentage of shares in the domain lessee’s company. This method is risky but can earn you significant income if the website becomes a viable business that another corporation eventually acquires.   Benefits Of Leasing For Domain Owners Provides Another Way To Monetize A Domain Monetizing a domain is better than having it sit idle. If you have a valuable premium domain you’re not using, leasing it out can earn you passive income. You can always reclaim your domain once the lease expires. Opportunity For Investors With Domains In Their Portfolio Many investors specialize in acquiring domain names for profit. Investors with a portfolio of valuable domain names can lease them for a long time and get stable income. Consistent Revenue Stream Renting out a domain for periodical payments generates consistent income for the owner. The owner is sure of getting a specific return on the capital they spent acquiring the domain as long as the lease lasts. The Domain Value Increases Due To Usage Active domains are more valuable than inactive ones because of online traffic. The higher the traffic to a domain, the more valuable it is. Leasing out a domain increases its value in the long term, which the owner can realize by selling it later. Long Term Financial Advantage Receiving periodic lease payments can generate more revenue in the long term compared to selling your domain for a lump sum. It’s why many owners lease domain names out despite getting lucrative purchase offers.   Benefits Of Domain Leasing For End Users Spend Less Money Upfront Valuable domain names can run into tens or hundreds of thousands of dollars, which is risky to spend upfront. Leasing allows you to build a business with the domain and make periodic payments from the revenue you generate, which is cost-effective. Lesser Burden If the website for whcih you use the leased domain fails, you can terminate the lease and return the domain to the owner. If you owned the domain outright, that means having another asset you must keep renewing or find a potential buyer for. Opportunity To Buy the Domain In the Future Some lease terms include an option to acquire the domain outright later. This way, you can start the website to see if it succeeds. If it does, you can acquire full domain ownership and gain more control over your website’s fate. Access To Premium Domain Names At A Lower Cost Domain leasing lets you use very valuable domain names for lower costs. These valuable domain names can draw more organic traffic to your website. Avoid Legal Liability Issues Leasing a domain name means avoiding any legal liabilities concerning the domain’s ownership. Any legal dispute is the concern of the owner and not the lessee.     Downsides Of Leasing A Domain No ownership Not having full ownership of your domain is a risk. The owner can terminate the lease anytime and pay any agreed monetary penalties for early termination. It could be at a crucial time when your website is booming, and losing the domain would affect it negatively. Less Control You have less control over your website than the domain owner. Let’s say your website grows big and becomes valuable; its fate lies more in the hands of the domain owner than yours. They could use that leverage to extract concessions from you. The Domain Value You Build Is Never Yours Drawing traffic to your website increases the value of its domain name. Yet, the owner will capture that value instead of you working hard to maintain the website.   Where Can You Lease A Domain Domain Marketplaces Many domain name marketplaces allow owners to list and lease their domain names. This method is beneficial because owners can easily find customers to lease domain names to. The domain leasing services generate a lot of traffic, giving you higher chances of finding an interested lessee. Domain Brokers You can approach a domain broker to lease your domain for you. Domain brokers are experts in negotiating domain deals and can fetch you the best possible price. They’ll collect a fee for their service, either a flat rate or a percentage of the lease value. Word Of Mouth You can spread the word to your social and business circles about a domain name you want to lease out. You may find a trusted lessee this way and negotiate a good deal to earn a stable income. Forums You can join webmaster forums and post about the domain name you want to lease. You may find a buyer this way, but ensure you use a transaction escrow service because you’re dealing with a stranger.   Leasing versus Buying a Domain While leasing a domain might be a good option for some businesses, buying your domain outright continues to be the safest and most secure option for guaranteed success.   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. He also advises on leasing strategy and portfolio management. 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.

Free Consultation

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 your premium domain?