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

Domain Buying Guides

Name Experts provides premium
domain service to:

MAX
MAX
MAX
Hope Channel
MAX
MAX

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

Two women, standing, and a man, seated, stare at a laptop screen
Domain Name Investing: Invest in Premium Domain Names

There’s more to a premium domain name than a high price tag – a great one can accelerate business growth and promote long-term financial stability. NameExperts.com Director Joe Uddeme explains why landing a beauty could be essential for your company.   Here’s a question for every company to tackle. Small businesses and startups in particular need to consider if it is worth investing a quarter of their funding, say, on a premium domain name rather than better office facilities or company cars. The answer to that question is seldom simple. That’s because it is dependent on the kind of business the domain name will be used by, together with a number of other aspects. A domain name is critical because, quite simply, you can’t run a website without one. It will be the title of your site and email – and will play a crucial role in your marketing strategy once you’ve purchased it. In this guide, we’ll study everything there is to know about premium domain names so you can decide whether you should buy one for your business. Even if the name you want ends up costing $10,000 or more (LOTS more, in some cases), it might prove to be one of the best investments you make for your company.   When is a Domain Name Considered a Premium Domain? The process of buying domain names usually involves several disappointing moments. Such as when you first think of an especially excellent name… only to search for it and discover it was bought in 1999 and is currently up for sale for $100k. The crazy thing is, these domains do nothing special. There’s no rocket science involved with coming up with them – which is kind of the point. Premium domain names with a high price tag are familiar-sounding and catchy. Everyday words. It’s why cars.com sold for almost a billion dollars. A great domain name will help your site gain more traction much faster – and will prove to be one of your greatest investments if you have chosen wisely. This is the reason why a domain becomes a premium one.   The Precise Definition of a Domain Name The cost of a domain name will give away that it’s a premium one. Usually, a regular premium domain name is a domain name that is already owned by a registry or a person. If you want it, it’ll cost you. The name’s costs are exponentially higher than a typical domain and can vary from a few hundred dollars to millions. This is because of the perceived value which it might have for a company within a particular industry. In order for a name to achieve a high sale price, there has to be somebody who believes it is worth it. Until a domain name is sold, technically speaking it is worth virtually nothing. Try getting a million bucks for a domain name if the internet permanently goes down! A domain name is considered premium due to its brandability, keywords and overall desirability. All these are highly valuable for a business that wishes to branch out on the internet. Not every premium domain price is set by a person. On occasion, the relevant registry (such as .info or .design) sets the cost for this.   The Potential Problems With Choosing a Not-So-Premium Domain There are a few issues a company might run into if they don’t choose the best domain name they can. Here are the main difficulties: Trust and Branding Issues. Often, having a .com domain is the best way to show that a company is serious and trustworthy. A good deal of experts say to always go with .com, but there are lots of other options too, including .org, .co and .io. A trusted domain name consultant can guide you on the best choices here. Little Potential to Grow. When you’re stuck with a lemon, you can limit your business opportunities. Numerous businesses end up thriving after purchasing a premium domain name for around $500,000, particularly if it matches with their institution’s name. It Might Confuse the Client. If a business opts for an inferior domain extension, they may lose lots of customers. Some of these would-be visitors might believe the support is down or that the site doesn’t even exist because what they have actually done is visit domain.com rather than your site – domain.co. How a Premium Domain Name Can Help Your Website The fantastic thing about ultra-premium domain names is the fact that they are pretty much household names – so you don’t have to make additional investments in making them known. As a result: You’ll have to spend less money on internet PPC advertisements. Why? Because you are going to get organic visitors to your website as soon as you’ve launched it. You’ll enjoy better SEO and site rank – resulting in more traffic. Individuals are already searching for your website and will be glad to find it. There are more trust and authority involved using a premium domain name, which will make reliable companies link to your site. This can further boost SEO. A short, catchy name functions really well on social media and people will remember it. The domain will provide prospective clients with a strong indication about what they will find on your website, so you don’t have to invest money and time describing it to them. Simply speaking, it is much simpler to make a premium domain popular. You’ll have to devote a good deal less money on advertising it. Summing up If you’re doing business in a market where word of mouth is essential, than premium domains are definitely something to consider – whatever the cost. Not all small business owners and startups, however, should start with a premium domain name. A business can definitely be effective with a less-than-perfect domain name if it is catchy enough. If the domain name you’re considering matches your branding, sometimes that is all you’ll need. It can work well even if it doesn’t match your business’s name. If you can’t get the .com extension you want, it is possible to go with .co, .ai or many other top-level domains (TLDs). But when you start to hit it big, securing a premium domain name could be a very wise move – because there’s a high possibility it will pay off handsomely within the next few years.   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]
Default alt text
Domain Name Availability – Everything You Need to Know

Domain name availability (or lack of it) is what keeps domain buyers up at night. In this guide, domain name expert Joe Uddeme explains exactly what it means when a domain appears unavailable – and what to do about it.   Choosing the perfect domain name for your business is like finding the ideal storefront location in Manhattan – everyone wants prime real estate, but most of the best spots are already taken. Securing an available domain name that matches your brand vision has become increasingly challenging, with an estimated 100,000 domains registered daily. But here’s the good news: just because your dream domain appears unavailable doesn’t mean it’s out of reach forever. Understanding domain name availability goes far beyond simply typing your desired name into a registrar’s search box. It involves mastering the ins and outs of the domain ecosystem, from DNS mechanics to aftermarket negotiations. You also need to know exactly what to do when that dreaded “domain not available” message appears. Whether you’re starting a business, rebranding an established firm, or expanding into new markets, you’ll need a comprehensive strategy for domain acquisition. It can make the difference between settling for www.yourcompanynameLLC2025.com (no thanks!) or securing the memorable, brandable domain you really need – something that will define your online presence for years to come. This guide will explore professional strategies that Fortune 500 companies use, reveal the hidden opportunities in expired domains, and show you why sometimes the best approach involves working with experts who know how to unlock doors that appear permanently closed. Key Takeaways Domain availability checking involves multiple tools and techniques beyond basic registrar searches. Strategic options include direct owner contact, broker negotiations, alternative extensions, and monitoring for expiration. Explore domain aftermarket opportunities through auctions, expired domains, and private sales. Professional domain brokers are well equipped to access off-market domain names and negotiate acquisitions that individual buyers may struggle to do alone. Understanding domain registration mechanics, renewal cycles, and legal considerations goes hand in hand with making informed decisions – and avoiding costly mistakes.
Close up image of a person at a laptop as they investigate a domain name
What is Domain Name Escrow & How Does it Work?

Escrow is important when buying domain names, especially those of high value. Domain name expert Joe Uddeme explains how domain name escrow works – and why you should use a domain escrow 3rd-party when making highly-priced acquisitions.   What is Domain Name Escrow? Domain name escrow is a specialized service designed to protect both buyers and sellers during domain name transactions. In this process, a neutral third-party agent holds the payment and domain information until all conditions of the transaction are met. This setup ensures that the buyer receives the domain name and the seller gets their payment, significantly reducing the risk of fraud and deception. By using domain name escrow services, both parties can enjoy a secure and efficient transfer of domain ownership, providing peace of mind throughout the transaction. A domain name consulting service can help make the process much easier. What Is Escrow? Escrow is an arrangement in which a neutral third party temporarily holds money meant for a purchase until specific conditions are met. The money will only be transferred to the intended recipient when the conditions are met. If the conditions are not fulfilled, the money will go back to the buyer. In domain name and other transactions, the escrow process often involves a lawyer managing legal documents, ensuring compliance with laws, and securely holding the assets and money in a trust account until the terms of the agreement are fulfilled. What Can Escrow Be Used For & Why Escrow is common in transactions where a significant amount of money is involved, e.g., real estate. It is necessary to protect the buyer from losing money in case the seller does not fulfill the terms of the deal. Domain transactions can be pricey, which makes escrow and other services necessary just like with real estate. After all, domain names are online real estate. Escrow protects against: Sellers refusing to deliver a domain despite agreeing to do so. Buyers refusing to pay for a domain despite an agreement to buy it. Payment being made – but the domain not being transferred to the buyer. Secure payment is crucial in domain name transactions, and escrow services ensure that the financial exchange is safe and protected. In short, escrow ensures that both parties in a deal stick to their agreed terms. It is a mediator of the transaction and refuses to complete it until both parties act in good faith. How Does Escrow Work? 1. Agreement on price and deal The buyer and the seller negotiate and agree on how much is to be paid for a domain name or group of domain names. They also negotiate important factors like the date of payment, method of payment, and what currency to use. 2. Buyer places agreement with an escrow company With the deal terms drawn out, the buyer finds an escrow provider and deposits the payment with an escrow agent. Once the payment goes through, the buyer pays escrow company will notify the seller and tell them to transfer ownership of the domain name related to the escrow transaction. 3. Domain Name Is Transferred The seller will transfer the domain name to the buyer. The wire transfer procedure varies depending on the domain registrar, but both parties will work together to ensure a smooth transfer. It is crucial to involve legal counsel in domain transfers to secure the transaction and ensure compliance with legal requirements. 4. Domain Transfer Is Confirmed After the domain is transferred, the buyer will notify the seller and agree with the escrow company that the seller has fulfilled their part of the deal. 5. Payment Given To Seller With the domain transfer confirmed, the escrow company completes the escrow transaction by using a money order and sending the money deposited by the buyer to the seller. What fees are associated with using an escrow service? The escrow usually charges a commission on the value of the deal. Some may also charge a flat fee in addition to a commission. The exact commission may vary depending on the deal volume. Benefits of Using Escrow For Buyers and Sellers The benefits of using escrow for domain names include: Security: The escrow holds the money until all deal terms are fulfilled, so there are little chances of the buyer losing their money without getting the intended domain name. The buyer also feels more secure dealing with a trusted escrow company than with a stranger over the web. Additionally, escrow services safeguard domain transactions by holding funds and domain holder information, minimizing the risk of fraud. Assurance: The buyer is assured that they will get the domain they want, and the seller is assured of payment once the domain transfer is confirmed. Customer support: Escrow services usually offer customer support and can guide the buyer throughout the process of acquiring a domain name. Choosing the Right Escrow Services Selecting the right 3rd-party escrow provider for domain name transactions is crucial for a smooth and secure process. Start by looking for a reputable and licensed escrow company with a proven track record in handling domain name transactions. Evaluate their fees and payment terms to ensure they fit within your budget. Additionally, consider the quality of their customer service and support, as this can be invaluable if any issues arise during the transaction. A reliable escrow provider should offer a secure and transparent process to deposit funds, with clear contractual obligations and a well-defined escrow agreement. Research the company’s reputation online and read reviews from previous clients to ensure you are working with a trustworthy escrow company. Domain Name Transfer and Intellectual Property Transferring ownership of a domain name involves several steps and can be particularly complex when intellectual property rights are involved. A domain name can be considered intellectual property if it is trademarked, which can impact its value and transferability. Before proceeding with a domain name transfer, it is essential to conduct a clearance search to ensure the domain name does not infringe on any existing trademarks. Utilizing a domain name escrow provider can facilitate this process by ensuring that both parties fulfill their contractual obligations and that the domain name is transferred securely. This helps protect best interests of the buyer and the seller, ensuring a smooth and legally compliant transfer of the domain name. Alternatives To Using Escrow Attorney A licensed attorney can draft a sales contract that is legally binding for buyer and seller. If any party breaks the contract, they can be sued for damages in court. The attorney can also act as an escrow organization and only transfer money from the buyer to the seller if the terms of the contract are fulfilled. An attorney is crucial in selling domain names to ensure all legal aspects are covered, and the transaction is secure. Domain marketplace There are many marketplaces where you can acquire domain names. Here, the marketplace acts as a custodian of the domain and only the seller transfers it to the buyer after payment is confirmed, which is then given to the seller. Best Domain Name Escrow Services Escrow.com Escrow.com is the world’s largest online escrow service, and it has specific features for domain sales. The buyer can initiate the escrow request and provide the seller’s contact information for Escrow.com to get in touch. The buyer transfers the agreed sum to Escrow.com, and it is only when they confirm the domain has been successfully transferred that Escrow.com will disburse the money to the seller. Escrow.com charges 3.25% for deals between $0 and $5,000; 0.89% for deals between $5,001 and $25,000; and $162.5 + 0.25% for deals over $25,001. Sedo Domain Transfer Service Sedo is a popular domain name and website marketplace, especially useful for those looking to buy or sell domain names. Its domain transfer service puts it as a middleman between the buyer and the seller. Sedo receives the payment from the buyer and the domain name from the seller. When both ends are confirmed, Sedo transfers the domain to the buyer and the buyer sends the money to the seller. This service incurs a 3% fee on the domain purchase price, with a minimum of $60. Afternic Afternic is another popular domain name marketplace focused on high-value domains. It offers an escrow service to protect both the buyer and the seller. Afternic holds the agreed amount and only disburses it to the former owner or seller when the buyer has confirmed receipt of the domain. If either party breaks the deal terms, the sale will be canceled and the money given back to the buyer minus the escrow fee. The drawback here is that Afternic doesn’t charge escrow fees separately. It takes a 20% fee, which includes both sales and escrow commissions on all domains listed on its platform. Using an Escrow Service It is necessary to use an escrow service if you are paying a significant amount for a domain name and it helps protect you and the seller. If you need guidance in the domain buying process, including escrow, contact us for help. We have negotiated over $150 million in domain name sales and have over a decade of experience in domain name buying and transfers.   About the author Joe Uddeme is Director and Principal of NameExperts.com, 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.

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 premium domains?