September 23, 2020

How To Safely Purchase Premium Domain Names

written by

Joe Uddeme

Joe Uddeme

How To Safely Purchase Premium Domain Names

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Almost every good domain name you can think of has already been registered – meaning you’ll need to buy it from someone if you want it. NameExperts.com Principal Joe Uddeme explains how to do it the right way.

 

We are living in a time when there are more active domain names than there were people alive in the 1920s. There are over 1.8 billion websites, and this doesn’t even include the ones that aren’t active.

This doesn’t leave a lot of room for you to find an original domain name that will instantly connect with your market.

If you want your business to succeed in the online world, you will likely need to buy a premium domain name that is already owned by someone else. Keep reading to learn everything there is to know about premium domains and how you can successfully purchase them – with or without the help of a top domain broker.

Key Takeaways

  • Understand premium domains and what they can do for your business
  • Top tips for purchasing a high-value domain name
  • How a domain broker can simplify and streamline the whole process

 

What Are Premium Domain Names and Why Do You Need One?

You want your business to be successful right off the bat, and premium domain names might be the best first step. Here, we discuss what premium domain names even are and share a few tips to help you purchase them.

Elements of a premium domain name

Premium domain names are short, easy, and highly marketable names that are usually already bought by someone and are available for sale for a “premium” value. They are priced higher than normal domains due to a few factors:

  • They have high marketability thanks to their unique and trendy names that are instantly recognizable by the target audience.
  • Premium domain names tend to be shorter in length and are easier to remember. (Example: Facebook bought “fb.com” as it was used almost as much as “facebook.com”). While not on our list of most expensive domain names ever sold, it certainly commanded a high price.
  • They have optimized keywords that are hard to find in new domain names.
  • They usually end in the popular “.com” extension.

There are a few other things to consider and a few criteria that are used to qualify your domain name as premium. The first is if they are generic or single word domain and whether they have a .com or another globally driven brand.

They should also be pronounceable and meaningful and should have a desired commercial appeal. Similarly, does the name you want to have a clear path to developmental success or is it random and highly specific?

A premium domain might also already have a rich-SEO history and what we call a “white-hat” SEO past. Your domain should be catchy, brandable, and most importantly – scalable.

Basically, you’re looking for a timeless domain that won’t go out of style or be easily forgotten. A domain name consultant can advise here, and can prove invaluable when investigating your intended domain name’s past.

When you’re looking to add a domain name to your business, it’s important to focus on some of these pointers above if you want to add value and long-term equity to your overall brand. If you plan on selling your business someday, you want to choose a name that can be resold; try and give yourself a little digital curb appeal for if the business doesn’t pan out down the road.

Large 'Sale' sign in shop window

 

Why Premium Domain Names Are Necessary For Your Business

While they’re more expensive, premium domain names offer a range of benefits that often match that price and provide a pay-off in the long term.

The first benefit you can take advantage of is a higher reach and resonance with your audience. A memorable domain name will stick in consumers’ minds and create a more credible image around your brand. If they remember your domain name, they’re more likely to search directly for it. Check out our guide to choosing a strong brand name for your business.

Premium domains will typically contain relevant keywords that are used frequently by consumers of your chosen business segment. This provides a potential pool of traffic already searching for your domain – readily available for you to access.

Premium domain names are not essential when you’re first starting out and do not have a lot of capital. They are often expensive and might be a risky investment at the beginning. Once your business starts growing, a premium domain name will help take your online presence to the next level and open you to a world of new opportunities. The Name Experts team regularly helps provide detailed strategies about great business names to help your startup off the ground.

Office scene with man and woman conversing indicating a startup business

Our Tips For Purchasing Premium Domain Names

Buying domain names can be stressful if you do not have much experience with the process. Here are a few tips you can follow to successfully purchase a premium domain.

  • Hire a Domain Buyer Broker with a successful track record. They will help you perform a WHOIS search easily and aid you through the process of your purchase.
  • Make sure you get your broker to sign an NDA to protect your information.
  • Contact the owner professionally.
  • Keep a list of alternatives.
  • Be honest and flexible in your negotiations. No one wants to deal with dishonest or overly-rigid buyers.
  • Ask your broker any question that comes to your mind.

Why Choose a Domain Broker for your Premium Domain Name Purchase

Though this is a quick and general list, we highly suggest reaching out to an experienced broker to help you with the process.

A well-established firm like Name Experts offers a full-service domain name brokerage experience for clients. With over 16 years of industry experience and a proven track record (including helping Monday.com to rebrand), we can help you buy a premium domain name your business needs to boost its online presence.

We’re highly skilled at tracking down and reaching out to owners of off-market domain names, as well as negotiating the best price for our clients. Buying high-value domain names is a process, and our services ensure that you’ll get the best deal with the least fuss.

 

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 him at: [email protected]

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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]  

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