When you develop the perfect idea for a new website, your first step is to pick out the perfect domain to help people evaluate your site and choose to visit. After searching for some ideas, you find what you think would be great, only to see a price tag of several hundred or thousand dollars.
With some domains available for only a few dollars, you probably wonder what’s so special about the one you have found. Chances are, you have stumbled across premium domain names.
Here are the answers to some important questions to help you understand more about these domains and where to purchase yours.
What Are They?
According to the Name Experts, the main type of premium domain names is aftermarket ones. This is because it has a higher marketing value. After all, another company has already used it. These options can often go for millions of dollars if they come from a prominent company. Premium names are also easy to remember, short, and of higher value. You can also find unused premium names with these characteristics from the registry.
Why Are They Premium?
Officially, there are no specific characteristics that determine if a domain is a premium one. The registry decides this. Whether pre-owned domains are premium depends on who owned them and what the buyer is willing to pay.
That said, a few things stand out among all premium names. This includes their short length, organic traffic potential, branding ability, SEO power, and appeal.
Do All TLDs Offer Premium Options?
All TLDs do not have premium options. Most generic ones do, while the originals and country codes do not. In other words, as long as most .com, .org, .net, and country codes have not been registered with another company, they will be available at a reasonable price. However, aftermarket domains are not based on the TLD, and you can find used originals at premium prices.
How Much Do They Cost?
The price of a premium domain name varies. This is because the registry establishes the price for new domains based on assessed value. Therefore, they do not have a publicly identified pricing structure.
On the other hand, existing domain names are priced by their original owners. Therefore, you will spend quite a lot of money whether you want a new or used name. Often, this is a one-time large expense, and your renewal cost will be the standard fee associated with your extension. However, some higher-end premium names will have renewal costs close to their original registration cost. Therefore, it is important to check the renewal cost before you purchase your premium name.
Do You Need One?
Since these can be incredibly expensive, you must weigh the good and the bad to determine if you actually need one. In some cases, such as forensic science labs, they can help you stand out from the extensive competition, while other businesses will waste their money on premium names.
Who Should You Buy One From?
The company you purchase your premium name from should be someone who promotes the idea of a fair price. Often, brokers and companies will see these as a way to get more money for a name that may or may not provide increased traffic. Therefore, you want a broker willing to work on your behalf and get you something cost-effective.
Premium domain names are a big investment, so you need to think about whether you actually need one. Then, weigh the pros and cons to determine if this will be a waste of money or a good investment. Sometimes it will pay you back, and others, it will just be a waste of money.