What Is a Premium Domain Name And Is It Necessary To Have One?

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What Is a Premium Domain Name And Is It Necessary To Have One?

 December 5th, 2019

You know a domain is a premium domain when you end up paying more than its regular registration cost.  According to hover.com, "A premium domain name is a domain that is already owned by a person or registry. Its cost can be significantly more than a typical domain purchase anywhere from hundreds to hundreds of thousands of dollars due to its perceived higher value. The higher price will apply to the initial acquisition of the domain, but it will renew at the regular renewal price for whichever domain extension it uses."

Hover.com further states, "A domain becomes premium when someone believes that a particular domain name is more valuable than the average domain. Domains are considered premium for a large number of reasons, including length, keywords, and brand-ability."

Now that we know what they are, why in the world would you pay an exorbitant fee for a domain name?

Typically, you would buy a premium domain name to give your website a great name.  Occasionally, people type in a domain name at random instead of searching google.  Using a premium domain name can lead potential visitors to your site just by having a great name.  Short names are more memorable and appealing.  Unique names that have instant meaning to your brand can be catchy.  Keyword names can be trendy but typically hard to find due to them being taken so quickly.  All of these can help improve your SEO.

The most important reasons to consider before you purchase a premium domain name are:

  • Budget – can you afford it?
  • Are there other similar names you can use instead of spending a lot of money on a premium domain name?
  • Is your site some sort of online store or another site that will gain capital?  If not, is it worth spending a lot of money on a domain that you will not capitalize on?
  • Will it improve your site traffic?  Will it improve your SEO?
  • Remember that you typically have to pay first before the domain is given too you.  If you are going to purchase a domain name that is going to be very expensive, you will need to do your due diligence to ensure that you are not being defrauded.

So how do you buy a premium domain name?  Some premium domain names are not already owned.  So you can go to your trusted domain registrar and see if you can register it for its regular nominal fee.  If it is already owned and you want it, here are a few options:

  1. You can contact the current owner and offer to purchase the domain name.  This can typically be done by performing a whois lookup on the domain name to see who the owner is and find its contact information.
  2. You can use a search engine to find a dedicated domain marketplace that will list thousands of domains already owned that you can purchase at a set cost, or make an offer on the domain name.

Conclusion

There are some risks when purchasing a premium domain name that is already owned.  If you have taken the necessary steps against fraud, and after careful consideration, you decide that a premium domain name will help your business scale, the risks most often produce a significant financial reward.

If you have any questions or concerns regarding this blog, feel free to contact us.