The regular price of domains ranges between tens of dollars and a hundred dollars. However, some domains are way above this range. These domains are not just pricey; their high price is because of their perceived value for marketing, search engine optimization, and growth, making them highly sought-after by businesses and brands. These domains are called premium domains.
This article will talk about premium domains, how much is a premium domain, what influences their values, and if they are worth buying to help you as an individual or company choose the best option.
A premium domain is a new or expired web address that commands a higher price than standard domain names because they are highly sought-after.
These domains are typically short, memorable, keyword-rich, and brandable. These factors make them valuable.
There are two types of domains. The first type, called aftermarket premium domains are existing domains with high sales value. These domains already have previous registrants and they are most times expired.
The other type is the registry premium domains that have never been registered. They usually come with higher price tags placed by the registry.
The following are some typical features that determine if a domain is premium or not:
The length of a domain still determines its value in great part. Usually, the domain will be more valuable the shorter its length is. That’s why two to three-letter domains are much sought-after.
Great domains containing popular keywords relevant to specific industries have higher value because they can improve search engine optimization efforts.
Top-level domain choice also affects the value of a domain name. Popular TLDs, like the standard general TLDs (gTLDs) and country-code TLDs (ccTLDs), often have a higher cost than less-known gTLDs.
A good domain should be short and easy to remember and spell, making it ideal for branding. Domains that match its appeal to customers and are easily recognizable.
Domains that are easy to type and recall can attract more direct traffic. Also, keywords with high search traffic are considered premium.
Like in any sale, if there's a high demand for a particular item, the price tends to appreciate. For domains, too, trending domains will command higher prices.
The short answer is no. Although many new generic TLDs—like.club or.tech do have premium options, traditional TLDs like.com, .net, and.org may have less premium names that can be registered.
The available ones have already been snatched up because of the reputation of traditional domains. So, if you are looking for a premium domain, you may have to consider newer generic TLDs, but of course, the reputable ones.
Nevertheless, a premium identity doesn't always depend on the TLD, especially in the aftermarket. Domains that are two or three letters long may sell at a high price regardless of their TLD.
There's no definitive answer to this question because there's no fixed price for premium domain names. Usually, the registry sets a price based on the estimated value of the domain. However, other factors can determine how much a domain costs.
Generally speaking, premium domains cost a lot of money. Depending on how desirable a domain name is, its price can range from 3 to 8 figures.
Here are hidden domain name costs to be wary of as a buyer:
Renewal Fees: Renewal payments are typically higher than initial registration cost as registrars often offer discounts for the first year.
Transfer Fees: Another cost to consider is the transfer cost. Depending on the registrar, if you're buying a premium domain name from someone else, you may end up paying for the transfer.
Additional Services: Depending on what additional services the registrar offers, the price for the domain may go high.
ICANN Fees: Some domain extensions have an ICANN cost. However, this is only a small percentage of the overall cost and is also a one-time payment.
Premium domain prices vary based on factors like:
Domain Registrar: The price for premium domains may differ for various registrars, so it's best to compare prices before settling for one.
Domain Extension: The extension attached to a domain can affect its price. So you may see the same premium domain but with different prices based on their extension.
Term Length: The price will also depend on how long you register a premium domain. Registering for a longer term could lower the price.
Extra Features: The additional services offered with your domain can also increase its price. Sometimes, your plan includes services like professional email, domain privacy, and a web builder, which increases the overall cost.
You have to find out if you need a premium domain for your company before making investments in one. The following must be considered:
Are you looking for the best name for your website? Here are some things to guide you:
While it's not compulsory, it's good to own more than one domain. Here's why:
Registering variations of your domain and possible wrong spellings helps protect your brand against rivals or squatters who might register similar names. This will prevent traffic from diverting to such sites.
Registering similar domains that are paramount to your brand's identity ensures that even if customers misspell your name when they type it into the internet, they will still get redirected to your primary website.
Another thing to consider is whether you're trying to reach different demographics or have various product lines.
You may get a ccTLD variation to target key countries where your business operates. You may also need different domains based on your product lines.
Before you invest in a premium domain, ask these crucial questions:
If the premium domain you found is way above your budget, you may decide against it, especially if there's a competitive alternative you can choose. But if it's just a bit higher, you can go for it.
Before you make a choice, ask how the domain aligns with your brand. If it plays a crucial role in building your brand identity and hitting your goals, then it's the right choice.
Legal issues are anything but comfortable and cheap, so ensure you've done thorough research to determine whether there are trademark issues or other legal problems.
You may be thinking twice about the cost of a domain, but you'll need to ask if it's a great idea to leave it in the hands of your rivals. If the domain will give you a competitive advantage, you shouldn't pass up on it.
Besides the short-term benefits, consider whether a good domain name offers long-term value for your business and what its resale value will be in case you want to sell it.
Follow this quick step-by-step guide to premium domain purchase before paying for one:
One major factor determining how much you should pay for a premium domain is the value you personally attach to it. If the price tag on that specific domain matches how you value it, it's a fair deal.
However, it's essential not to forget facts. Value the domain based on factors like search benefits, keyword relevance, length, and TLD. Also use historical sales data to assess how much similar domains have sold for. Domain valuation tools like Estibot and GoDaddy Value and Appraisal tools can be helpful here.
Premium domains are easy to remember and spell. This can increase organic traffic as prospective visitors can easily find your website, and customers can also recommend you.
Most premium domains that are already available contain relevant and popular keywords. These keywords usually have high search volumes, so when people search for the word, your domain will easily pop up, leading to higher rankings.
With the right domain name, your brand can make the right first impression and build an exceptional reputation. These premium domains look and sound professional, making sure visitors attach relevance to them. This helps you build authority and credibility within your niche.
Using a premium domain relevant to your brand's identity and purpose also helps you build the right brand image. Such domain names, especially one that matches your brand name, aren't just common web addresses; they are closely tied to the brand.
Yes! Several alternatives to premium domain names may suit your needs without breaking the bank:
You can find creative variations that aren't premium domains but offer similar quality. You can play around with many domain names by adding a prefix or suffix, and you may just come up with something great.
If popular TLD options are more expensive, you can consider other, more affordable variations that are still relevant to your business goal.
Look for deals on platforms like Sedo or Flippa, where sellers might offer discounts compared to direct registration fees from registrars.
A premium domain is great and can offer many benefits. Still, it is not always the best option. Think about your budget, if it fits the goal of your business, and whether it would be wise to pass on the chance before choosing a premium domain name.
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