Domain Name Investing: Invest in Premium Domain Names

written by

Joe Uddeme

Joe Uddeme

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.

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]

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How to Choose a Domain Name

Open the dictionary and pick a word – the .com of that word will almost certainly be gone. So, where do you begin when choosing a domain name that will help your business grow? NameExperts.com Director Joe Uddeme walks you through the whole process.   One of the most important decisions you’ll make about your business is the domain name you choose to acquire. The domain name you give your business is crucial because it becomes your identity on the web. You want it to reflect your brand and fit your business, but you also need it to be easy to find and promote. Acquiring a premium domain name is definitely the way to go, but choosing one can be difficult. What criteria should you be following to make sure you end up with the very best when you buy a domain name? This post is a little different to the others on the NameExperts blog – it’s a list of six key pointers to consider when choosing a domain name.   1. Pick a Short Name When You Choose a Domain What You Want to Avoid: When you’re just starting out playing with domain names to choose it can be tempting to combine all your ideas into one long domain name – like UsedCadillacsInTexas.com. However, while that may make it unique and descriptive, it may hurt your branding. What to Do Instead: A short name is easy to remember, easier to spell, and thus, has a better chance of becoming a household name. It also makes it easier when you want to branch out into branded items, or you want to create a logo, etc. Unfortunately, all the very easy 3-letter names were all taken as early as 1997, but there are plenty of others available that are appropriate. The shorter your domain name is, the easier it is to share through word of mouth. It’s also easier to type into your search bar, especially if you’re using a phone.   2. Pick Something Easy to Spell, Pronounce, and Remember What You Want to Avoid: A name that is difficult to spell can negatively impact your traffic because it can mean that users don’t land on your page. They might even end up with a competitor instead. You’ll also want to avoid using multiple spellings and the use of hyphens, numbers, or special characters. Your customers will often misunderstand numbers or misplace hyphens. People who hear your web address might not know whether you’re using a numeral or if it’s spelled out. What to Do Instead: This name needs to be easy to remember. Your customers need to be able to spell it correctly and pronounce it easily, so that they can easily share it with others (check out our guide to choosing a strong brand name for your business). Imagine you’re naming a child – you want something unique for your site, but you also don’t want a name that will create difficulties because of spelling or pronunciation. Every ‘Steve’ whose parents opted for ‘Steeyve’ or ‘Stëeve’ will tell you that being ‘clever’ with a name rarely works. If you absolutely need to include special characters or terms that are more difficult to spell in your domain name, make sure you register different variations of it to be safe. Some of the most famous and brandable names out there are extremely simple: Google. Facebook. Amazon. Apple. These are giants who created an excellent product or service, but who also knew how to brand themselves by acquiring premium domain names.   3. Use Relevant Keywords What You Want to Avoid: A word of caution here – if your domain is entirely made up of keywords, you run the risk of creating a brand that sounds too generic or unrecognizable. Especially if you’re starting a blog or a personal page, you need something with a bit of personality. What to Do Instead: You’ll notice that a lot of the heavy players have names that are composed of two words, and one of them is usually a keyword. That is a very clever choice, because a) it’s descriptive of your business, b) it majorly contributes to SEO, and c) it makes your name easy to remember. So, if you’ve got an interior design business, for example, you’ll want a premium domain that ideally includes a relevant keyword, like “design”, “interior”, “decorator”, “home”, “style”, etc. That will tell your potential customers all they need to know about your business. Your name is also likely to pop up in whatever Google search they try for “interior design” or similar keywords. If your business is local, you might consider including your city or state in your domain. That way, customers in your area can find your name and remember it easier. Often, when doing keyword research for your business, you’ll find that city and state will most likely be included.   4. Avoid Anything Confusing or Inappropriate What You Want to Avoid: You want to pay attention to not pick a name that is confusing (either because of spelling or sheer peculiarity), awkward, or inappropriate. If the initials of your business make up an inappropriate word, scrap the name immediately. What to Do Instead: Pay attention to what a domain looks like when you spell it out, if it’s made of multiple words. You’ll be surprised at how many other words you may inadvertently spell. Example: your name is Marc and you’re a rapper. www.marcraps.com isn’t great, is it? The other thing to look out for is picking a name that has no relation to your line of business. That can be very confusing.   5. Avoid Names that Already Exist or Are Trademarked What You Want to Avoid: Don’t go ahead with a name that is extremely similar to an existing one or that is trademarked, because a) that is confusing for your customers and you risk losing traffic, and b) you may, someday, be served with a legal notice that may create problems. What to Do Instead: However, there is a caveat here. If the name is already trademark-protected, that’s a bit of a dead-end. There can’t be another Burger King, for example. If, however, the domain name you want is just taken by someone else, there are ways around that, and you are still able to buy a domain name that is already owned.   6. Choose a .com TLD, but Purchase All Available Extensions What You Want to Avoid: If you only acquire the domain name you want and no other similar ones, you run the risk of having someone else purchase other variations of your domain. They will get the traffic that should have been directed towards your page. What to Do Instead: The most popular domains are .com ones and they are the most widely used, so it’s the ideal premium domain to acquire. But your work doesn’t stop here. Once you’ve bought that, you also want to purchase every other available variation of your domain name. For example, let’s say your domain name is www.carsforsale.com. You should try to buy www.carsforsale.net, www.carsforsale.org, www.carsforsale.biz, etc. That way, no one else can take these domains and possibly steal traffic that was meant to go your way. Once you have these domains, you can make sure the traffic redirects to your main .com domain. Check out our guide to TLDs (top level domains). The Bottom Line When Deciding How to Choose a Domain Name Choosing a domain name can be a delicate process. Pick the wrong one, and your business may suffer. Pick the right one, and it can catapult you into quick notoriety, or at least it can help make branding easier. The most important things to remember when choosing what domain to acquire is that it should be something easy to spell and remember, it should be non-trademarked, and it should ideally include a keyword. If you manage to find the perfect one, purchase every variation to make sure that you can take advantage of 100% of the traffic going to these domains. Buying premium domain names for a business can be pretty complex, which is why many people turn to an expert domain broker for help. Brokers know all the ins and outs of securing a great name and are adept at negotiating the best price for the buyer. Check out our guide to the best domain brokers of 2025 for more details.   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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Domain investors in China should buy Western Premium domains

Memo to Chinese domain name investors: NameExperts.com Director Joe Uddeme thinks you’re missing a trick if you limit your portfolio to local names.   Most Chinese investors tend to shy away from Western-type domain names as they don’t have meaning in mainland China – names that contain vowels and the letter “v” in particular. Are they limiting their long-term growth potential? Some would say sticking with Chinese domains is a safer investment. As seasoned domain name brokers, however, we disagree. Here’s why… Key Takeaways New TLDs are not a good long-term play Aftermarket prices for .com names remain high Work with a broker if you need help with domain portfolio management   Background – understanding the Chinese domain name marketplace For those of you that follow the domain investor market, specifically in China, you can see all types of newly minted investors looking for the next great domain name investment. Most Chinese investors are focused on the domain names that have relevance inside of mainland China. The most popular investments in China are the short acronym domain, or simple numeric domain names as they translate to meaning to the Chinese culture. Some examples include the following (N = number; L = letter): 15.com (NN.com) 123.com (NNN.com) TR.com (LL.com) TYPL.com (LLLL.com) 6N.com (LN.com) N6.com (NL.com   Chinese domain investment trends As domain investments continue to increase in China, we are seeing many investors branching out into some of the newer GTLD extensions as alternative investments including; .club, .top, .wang. They are acquiring these names for much lower costs than the typical .com investment. Is that a solid investment? We say: no. The Chinese investor is savvy, but they are limiting their investment opportunity. In most instances, domain investors in China are only focused on these types of names because they create liquidity and are very attractive to the Chinese on a quick-flip model (check out our guide to domain name investing). Additionally, the Chinese investor should look at the plethora of available .com domain name inventory on the aftermarket. Tons of fantastic domain inventory is readily available. Short, generic and easy to spell English words that are solid investments. The saturation of the internet continues to precipitously grow year-over-year, with 78% of the Chinese population now online. When you do the math, it’s easy to see the longer-term opportunity. Should you limit yourself as an investor? Not with the .com market  stronger than ever – with fantastic acquisition opportunities and names that ultimately have a global appeal and market reach. We believe domain investors in China will start to acquire short, generic .com domains as trillions of dollars are available for private Chinese investors. Way back in 2017, George Kirikos had a fantastic post on Twitter, referencing 12,000 startups being created every day in China. The domain investor continues to evolve and grow. Investors should look at the longer-term investment opportunity and acquire names that are globally acceptable and not limited to mainland China.   How a domain broker can help Friends in the right places are always good to have, and most international domain brokers would gladly help Chinese companies and individuals who want to buy domain names. Domain brokers help buyers of any nationality to understand current market trends and navigate the sometimes complex world of domain acquisitions. NameExperts.com is one of the world’s best-known brokerages, offering personalized boutique services that include domain name strategy, portfolio management, negotiation and stealth acquisitions.   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 advises clients globally. Contact us at: [email protected]

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