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

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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]

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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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Facebook.ai Facebook.ai is the dedicated platform for Facebook’s extensive research and development in artificial intelligence. The website provides a comprehensive overview of Facebook’s AI initiatives, including their cutting-edge AI-powered tools and technologies. The .ai domain extension helps Facebook highlight its focus on AI advancements and its role in shaping the future of technology. AI.google AI.google is Google’s showcase for its artificial intelligence research and development efforts. The website offers detailed information on Google’s AI projects, tools, and technologies, reflecting the company’s dedication to pushing the boundaries of what AI can achieve. The .ai domain extension reinforces Google’s position as a leader in the AI industry.   AI Domain vs Other Domain Extensions When it comes to choosing a domain extension, tech companies and organizations have several options, each with its unique advantages. The .ai domain stands out as a niche domain extension specifically associated with artificial intelligence and machine learning. While .com remains the most popular and widely recognized domain extension, .ai is rapidly gaining traction among businesses focused on cutting-edge technology. On the other hand, .io is another popular choice for tech companies, but it doesn’t carry the same strong association with AI as the .ai domain does. For businesses aiming to highlight their expertise in artificial intelligence, the .ai domain offers a distinct and memorable web address that sets them apart from the competition. (Need help securing a domain name that seems out of reach? Check out our guide to the top domain brokers for 2025). Comparison to .com Domain The .com domain is the most widely recognized and popular domain extension, with over 160 million registered domains. In contrast, the .ai domain has around 533,000 registered domains as of October 2024. While .com is a more established and traditional domain extension, .ai is gaining popularity as a niche domain extension for tech companies and organizations focused on artificial intelligence and machine learning. Google treats some ccTLDs, including .ai, .me, and .biz, the same way as .com, .net, and .org, making .ai a viable option for businesses looking to establish a strong online presence. Comparison to .io Domain The .io domain is a popular domain extension for tech companies, but it is not as closely associated with artificial intelligence as .ai. While .io is a more established domain extension, .ai is gaining traction as a niche domain extension for tech companies and organizations focused on artificial intelligence and machine learning. The .io domain has around 1.5 million registered domains, compared to the .ai domain’s 550,000. Why not check out our guide to choosing a domain name? It’s full of helpful tips and advice.   Acquiring and Configuring an AI Domain Acquiring and configuring a .ai domain is a straightforward process. To register a .ai domain, you can search for available domain names on a domain registrar’s website and proceed to check out. The registration process typically involves verifying the availability of the domain name, choosing your registration term, and paying the registration fee. Once the registration is complete, the domain name will be registered and available for use. To configure your .ai domain, you can set up website hosting, email hosting, and other services to establish a strong online presence. By securing a .ai domain, businesses can effectively signal their commitment to innovation and technological advancement in the AI industry.   AI Domain Safety and Security Features When it comes to online security, the .ai domain extension offers robust features to ensure a safe and reliable web presence. Here are some key safety and security measures associated with .ai domains: Overview of Safety Features Domain Name Dispute Resolution Policy: The .ai domain extension adheres to the Uniform Domain-Name Dispute-Resolution Policy (UDRP), providing a structured process for resolving disputes related to domain name registrations. This policy helps protect domain owners from potential conflicts and ensures fair resolution. Domain Name System Security Extensions (DNSSEC): The .ai domain extension supports DNSSEC, which adds an extra layer of security to domain name lookups. DNSSEC helps prevent certain types of cyber attacks, such as cache poisoning, by ensuring the authenticity of the DNS responses. Two-Factor Authentication: Many registrars offering .ai domain registrations provide two-factor authentication (2FA). This security feature requires users to verify their identity through an additional method, such as a mobile device, adding an extra layer of protection against unauthorized access. Domain Locking: Some registrars offer domain locking services, which prevent unauthorized changes to the domain name registration. This feature ensures that only authorized individuals can modify domain settings, reducing the risk of domain hijacking. WHOIS Protection: WHOIS protection services are available through some registrars, which hide the registrant’s contact information from public view. This feature helps protect domain owners’ privacy and reduces the risk of spam and identity theft. Overall, the .ai domain extension is a secure and reliable choice for businesses and organizations aiming to establish a strong online presence in the tech industry. With these comprehensive safety features, .ai domains provide peace of mind and robust protection against various online threats.   Who Uses .AI Domains? .ai domains are embraced by a diverse array of businesses and organizations within the AI and technology sectors. Here are some of the key users: Tech Companies: Many tech companies opt for .ai domains to establish a robust online presence and enhance brand recognition. The .ai extension underscores their commitment to technological innovation. AI Startups: For AI startups, a .ai domain is a perfect fit. It conveys a sense of cutting-edge technology and forward-thinking, which is crucial for attracting investors and customers. Research Institutions: Universities and research institutions often use .ai domains to highlight their work in artificial intelligence. This helps in building a strong online presence and gaining recognition in the academic and research communities. Businesses with AI-Related Products or Services: Companies offering AI-driven products or services find .ai domains particularly beneficial. It helps them stand out in a crowded market and signals their expertise in AI. Domain consultants advise businesses on the best strategy when planning a domain name portfolio. Overall, .ai domains are a strategic choice for anyone looking to make a mark in the AI industry, providing a blend of SEO benefits, brand recognition, and a clear association with technological innovation.   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 – be they .com, .ai or something else from the vast domain name network. Contact us at: [email protected]

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