September 23, 2019

Domain Name Investing: Invest in Premium Domain Names

written by

Joe Uddeme

Joe Uddeme

Domain Name Investing: Invest in Premium Domain Names

Domain Buying Guides

Name Experts provides premium
domain service to:

MAX
MAX
MAX
Hope Channel
MAX
MAX

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.

Two rolls of dollar bills on white table to denote high cost of premium domain names

 

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.

Cute puppy dog looking confused

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]

Subscribe for More Domain Buying & Selling Advice

Related posts

Default alt text
Top 6 Hidden Domain Name Opportunities for 2026: How to Find and Acquire Off-Market Gems

Are you looking for hidden domain opportunities for 2026? You’ve come to the right place. In this post, domain name expert broker Joe Uddeme delves into the many possibilities that await the canny investor.   Introduction: why 2026 is a big year for domain names I often think of the global domain name market as being a bit like an ocean-bound oil tanker. Not only is it bigger than many people can imagine (annual global sales are more than $2 billion), but it can seem to take an age to change course. That’s not to say it does not change course. Like everything, the domain name market evolves with time – although the fundamentals of domain name investing rarely alter. In this post, we’ll take a look at the trends for 2026 that look set to shape the market. The biggest of them is likely to be a shake-up of TLDs (the bit at the end of a domain name such as .com or .org). We will get into this fully in the post, but in simple terms, ICANN (the Internet Corporation for Assigned Names and Numbers) is set to allow a whole slew of new domain name extensions in 2026. Exciting times – and if you are looking to acquire a premium domain name for your business, there has perhaps never been a better moment. Unless you can invent a flux capacitor and go back to 1993, of course!   Key takeaways Why 2026 could be a pivotal year for domain investing Industry-specific TLDs make their mark New short keyword opportunities in tech The.com TLD remains strong, but faces stiff competition (and may be overpriced) Expired domains for sale – a hidden goldmine?
Professional looking man (on right) and woman (on left) studying computer as if in conversation about domain names
A Premium Domain Name Makes All the Difference

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.   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”. 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]
Default alt text
Most Expensive Domains Ever Sold

If you’d had the foresight to register a domain name like golf.com or hotels.com when the internet first started, you’d have been sitting on a goldmine. Domain name valuation expert and broker Joe Uddeme investigates.   What Are The Most Expensive Domains Ever Sold – An Expert Analysis In the vast landscape of the internet, domain names serve as the digital addresses that guide users to websites. Think of a domain name as the online equivalent of a physical address; it’s how people find you in the vast expanse of the web. Whether you’re a business, a blogger, or an individual, having a memorable and relevant domain name is crucial for establishing your online presence. Domain names are not just about being found; they are about being remembered and trusted by your audience. Domain names sell for a wide range of prices, from just a few dollars to millions, reflecting their value and market demand. A relevant domain name can improve a site’s visibility and attract organic traffic by aligning with users’ search behaviors and preferences in different search engines. In this guide, we’ll look at some of the many factors behind domain name values and explore those that sold for the highest prices. Key Takeaways Serious bidders always assess the potential return on their investment before bidding. The most expensive domain name ever sold for just under $1 billion. Short, memorable names command a higher premium than ever. Domain names can be traded like shares – with fortunes being made (and lost)! What Makes Valuable Domain Names? A domain name’s value is influenced by several key factors. First and foremost, rarity plays a significant role. Just like rare collectibles, domain names that are unique and scarce tend to be more valuable. Demand is another critical factor; a domain name that is highly sought after by businesses or individuals will naturally command a higher price. Revenue potential is also a major consideration. A domain name that is easy to remember and directly relevant to a business or brand can drive significant traffic and, consequently, revenue. Brand recognition and online presence further enhance a domain name’s value, as a well-known name can attract more visitors and establish trust. The concept of an ’empty domain’ highlights that true value lies in memorable and brandable domains rather than random letter combinations. The length and structure of a domain name are also important. Shorter domain names, especially those consisting of a single word or a combination of two words, are generally more valuable. Avoiding hyphens, underscores, and other punctuation can also help maintain a domain name’s value. Market conditions, however, can make seemingly meaningless combinations valuable, as seen with some of the most expensive domain names sold in 2023. Lastly, the domain extension, or top-level domain (TLD), can impact value. The most valuable TLDs are .com, .net, and .org, as they are widely recognized and trusted by users.

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?