Should you buy a premium domain name? If you’ve found the right domain and have the money to spend on it, a premium domain may be right for you.
A premium domain name can really help your business stand out from the crowd, but they can also be extremely expensive.
In this guide we’ll look at whether buying a premium domain name is the right option for you.
What is a premium domain name?
A premium domain name a high-quality domain that is owned by a domain investor or domain registrar looking to sell it on at a profit. Premium domain names are usually short, meaningful and memorable.
For example, www.insurance.online is far more valuable than www.getyourinsurance.online. They are both relevant domain names for an insurance business, but the former is more brandable and memorable than the latter.
Most domains cost around £10-20 a year to register (not taking into account special offers, which sometimes mean you can purchase a domain name for cheaper). Premium domains can go for thousands or even millions of pounds.
There are multiple factors that help make a domain premium:
Length: One- to two-word names that are usually easier to remember and appealing to a wider audience. For example, www.ces.tech.
Brandability: Catchy, unique names that immediately communicate their niche and make the brand stand out. For example, www.hello.space.
Keywords: Certain business or brand keywords when paired with the right domain extension become relevant and memorable. For example, www.nutrition.online.
GoDaddy’s domain search page highlights premium domains.
Why do premium domain names cost so much?
A good premium domain name can help boost a website’s profile and only one person/business can own that domain.
Because of this, if multiple businesses in a competitive sector are interested in a certain domain it can boost the price significantly
For example, www.cars.com and www.casino.online are both highly memorable. If you were running a big business in the motoring or casino space how much would you pay to own such a domain?
What benefits do premium domain names offer?
When you buy a premium domain, it’s a long-term investment in your brand. It offers the exclusivity that is needed to build a distinguished online identity.
When you buy a premium domain for your business, you are investing in a memorable and intuitive web address that will enable your business to gain authority in the business category you belong to or the target market you cater for.
Here are some of the reasons why businesses are willing to invest a huge chunk of their marketing budgets to buy a premium domain name:
1. Premium domains can bring in more traffic
While Google treats all domain names and domain extensions equally, buying a premium domain name can still help you boost your traffic.
For example both, www.youronlinenutritionist101.com and www.nutrition.online stand a chance to rank well in search results.
But which would you rather click? The latter sounds more like a trustworthy brand.
Then, once you’ve clicked, which would you be more likely to remember? The premium domain is shorter and more memorable.
This means that a premium domain can attract more clicks from search engines and more traffic from people who remember the name.
2. Premium domain names are marketing-friendly
Since premium domain names are short, memorable and meaningful, they are great for marketing, both on and offline.
You are likely to remember www.magazine.store from a billboard or a print ad but recalling www.subscribemagazinesonline.com will not be easy.
Plus, in the era of voice search, it’s important that you have a domain name that is easy to say out loud.
3. Premium domain names help build authority in the industry
A “category-defining” domain name comes in handy if you are aiming to become the leader in your industry.
For example, www.bags.online or www.mobile.store a chance to become the go-to websites for the products they represent, provided the website content is in line, too.
When you buy a premium domain, it’s a brilliant way to establish brand positioning and credibility.
Is buying a premium domain name worth it?
If the right domain name for your business just happens to be a premium domain name and you have the funds to buy one, then going premium can be a great option. But remember, you still need to build a website and market your online business for it to be a success.
There’s also a chance that any premium domain name you buy will go up in value in the future. That means even if you don’t use the domain for a project, you might be able to make a profit on it at a later date.
Buying and selling domains for profit is known as domain investing, and people have made a lot of money for it.
However, like any form of speculative investing there’s also a chance that you could lose money on a premium domain name.
Do premium domain names work?
A premium domain name on its own won’t be enough to make your business successful, but it can help.
Choosing the right domain name is an important part of getting any business online and if it just so happens that the perfect domain for you is premium, then a premium domain could work for you.
How do you buy a premium domain name?
If you want to buy a specific domain name that you think might be premium, the easiest thing to do is to use a domain search tool like GoDaddy’s and see what happens.
You may find the domain you want is:
- Available to purchase as usual
- Listed for sale as a premium domain name
- Registered to someone and not listed for sale
If the domain is already registered, you can do a WhoIs lookup search and make an offer to the current domain owner.
If it’s listed as a standard domain, you’ll just have to register it as normal. If it’s available as a premium domain, you’ll have to pay the premium price. You’ll usually only have to pay extra for your premium domain the first time you register it and you’ll be able to renew it at the usual price in the future. (In some cases, you may have to keep paying the premium price on renewal.)
Note that domains can be easily transferred between registrars to make their management easier.
Premium domain names are expensive because they can offer several benefits to an online business, including memorability and brandability.
Savvy investors can also make a profit by purchasing premium domain names and selling them on, although like all investments this has its risks.
Ready to buy a premium domain name? Search for a domain today and see if the one you want is available.