Advantages and Benefits of Premium Domains

Premium domain names are the most valuable domains on the market. However, with their hefty price tags, you may be wondering if they are actually worth investing in. They absolutely are, if you know what to look for – and this piece shows you exactly how to go about buying a premium domain.

In the world of digital assets, premium domain names are the crème de la crème of domain names. Premium domain names are extremely valuable because they are memorable, catchy, short, and exceptionally marketable.
However, premium quality usually means stiff competition. Most premium domain names are either already registered by someone else who may or may not be looking to resell, or registrars who have marked these domains as ‘Premium’.
And what’s more? Premium quality means premium prices. Some premium domain names can go for between 5-7 figures. Now the question is – are premium domains worth it?
In the rest of this piece, we’ll discuss exactly what premium domains are, what makes a domain premium and stand out from a regular domain, the benefits of premium domains, where to find and buy a premium domain, and important considerations to make before you checkout. But first…

What is a domain?

A domain or domain name is the website address you type in a browser when you want to visit a website. For example: Amazon.com, Facebook.com, etc., are both domain names.
A domain name is basically the website name and is a crucial component that contributes to a website’s overall performance.

What are Premium Domains?

Premium domain names are domain names that are particularly catchy, short, memorable, relevant, keyword-rich, and unique. In the sea of generic domain names that are either too similar, unexciting, and just ‘one of the others’, premium domains make sure to stand out.
A premium domain’s value lies in its ability to resonate with a business’s audience, generate more clicks, and become a powerful brand that everyone associates with the particular business.
The best premium domain names are either extremely descriptive or so unique, that website visitors can’t help but connect emotionally with them. But what makes a premium domain ‘premium’ and how are they different from regular domains?
Let’s find out.

What Makes a Domain Premium?

They are easily memorable

Premium domain names are first of all, very memorable. A domain name that is easy to remember will generate far more visits than one user must always second-guess when spelling out.
Some of the factors that contribute to a domain name’s memorability are how short it is and how clear it is even just from the pronunciation. Premium domains are usually composed of short, real words that people use in everyday conversation – they are so easy, that not even a child will misspell them.
A premium domain name is also incredibly clear. They are easy to pronounce and are easy to spell by ear. The best measure of a domain’s clarity is the domain radio test. The radio test is simply a way to check how easily people can spell and find your website by just hearing it, without any prior knowledge of your brand.
Premium domains pass the radio test with flying colors and are easy to recall once a customer thinks of your brand.

They are short

We covered how premium domains are short above but we need to drive this point home. A premium domain very rarely contains more than one word in the main domain name and if it must include two words, usually includes them as the extension.
Single-word domains are quick and easy to type and therefore, ensure fewer visitors bouncing and more clicks and visits to your website or store.
Premium domains also tend to avoid unnatural word combinations with hyphens or underscores. Simple is the watchword. Finally, a premium domain will usually contain a maximum of two to four syllables.

They are easily brandable and unique

Brandable domains are domains that don’t necessarily describe what a business is about but make up for this with novelty and pure catchiness. These domains have the potential to turn into an incredible brand name and even become a household name.
Think of Google.com – ‘Google’ isn’t a real word but just sounds nice and catchy. Once you hear Google, the Google company and the popular search engine are what comes to mind. This is the power of brandable domains. They allow you to create a ‘niche of one’ and when users hear your domain name, they think only of you and not your industry in general.
Premium domains that aren’t keyword-rich, are incredibly brandable and ultra-unique. Their pronunciation and spelling stand out on their own and they may not necessarily be real words. Some premium domain names will combine a keyword or a variation of one to blend the best of both worlds – descriptiveness and uniqueness.

Keyword rich

While betting on a brandable premium domain can be a gamble, keyword-rich premium domains take no chances and guarantee that your customers will know exactly what your business is about even they visits and that’s why these domains get the most clicks.
A good example of a keyword-rich premium domain is Cars.com – no one needs to tell you what the website is about; everything about cars!
Most premium domains are valued for their keyword richness and may many times contain only the keyword itself. While the domain name isn’t a direct ranking factor on search engines like Google, if you were looking for generic information on cars, you are far more likely to click and remember cars.com than say another domain getcarinfo.io.
Cars.com looks and sounds incredibly trustworthy and there is something about brevity that speaks class and finesse, that appeals to people.

Highly relevant

As an extension of being descriptive, premium domain names are very relevant. Readers and visitors want to see the kind of content they are looking for and if what’s on your website is conflicting with your domain name, it can do more harm than good as people will begin to bounce.
A premium domain name that is descriptive will give users an idea of what they should expect even before they click. This will filter out your traffic to only highly relevant leads that are far more likely to engage and do business with you. And the more time they spend on your website, the better you perform in search.

They speak credibility – Trustworthy TLDs

A premium domain makes your business look credible and trustworthy. Premium domains also contain the most trusted top-level domains (TLDs) – the ‘.com’, ‘.net’, ‘.org’, and more recently the ‘.io’ TLD for tech-themed websites and companies, and these are what you will find in a premium domain.
By default, any user who hears of your business will assume the TLD is ‘.com’ or ‘.org’ when typing in your website address in a browser so it is important that the ‘.com’ TLD is what you go for. You can opt for the other two if the ‘.com’ is not available. The ‘.io’ TLD has become very popular recently in the tech community because it looks and sounds ‘geeky’.
Premium domains don’t contain TLDs like ‘.country’, ‘.xin’, ‘.gdn’, ‘.jetzt’, ‘.bid’, etc. because they just look and sound sketchy and can chase potential visitors off.

In excellent health

The best premium domain names, especially preowned domains, also have a healthy history. They have minimal or no history of penalities with search engines, excellent backlink profiles, good social media popularity, excellent ranking potential, and high search volumes, and have been around for a long while.

Benefits of a premium domain

Now we know how to spot a premium domain and some of its qualities, but how exactly can a premium domain help your website’s SEO and overall performance? Let’s see how:

Better SEO performance

Premium domains ensure better SEO performance and more time spent on your website thanks to their relevance. Premium domain names focused on relevance pull the best possible traffic – people who are interested in what you’re offering – to your website.
Poor quality visitors who are just browsing and may not necessarily be interested in your business won’t have to click as they know what to expect.
For example, a domain name called shoes.com is a premium domain that can have incredible pros for SEO if the website it’s hosted on is also about shoes.

Can generate more clicks

It’s a positive reinforcement cycle. The more people stay on your website, the better search engines figure out what your website is about and the kind of audience to show your web pages to for queries related to your industry.
With better context, your website will be served only to visitors who care about what your business is about and will consequently get more clicks. More clicks mean more conversions and more business for you!

Better marketability and value retainment

Premium domain names are far more marketable than regular domain names thanks to some of the elements we saw above. But even more importantly, if you are in the business of buying and reselling domains, premium domains retain their value forever.
A keyword-rich premium domain, in particular, will always remain relevant for as long as the industry or service it is describing remains relevant.

Where to Find Premium Domains

Now where to find a premium domain?

Registrars

Domain registrars are your first place to look when searching for a premium domain name.
On these registries, you’d easily recognize them with a ‘premium’ badge or a star attached to them. While most premium .com domains will be taken, you can find closely matched variations, also trusted TLDs, tagged as premium domains.
Most premium domains that are not currently tied to a live website are owned by domain resellers looking to resell them for a profit and they will usually list their domains for sale on these platforms.
For example, the ‘gadgets.org’ premium domain in the photo above is only available for sale on a few registrars including Namecheap.

Auction sites

Domain auction sites are exactly what they sound like – marketplaces where people bid on domain names and then the highest bidder wins. Premium domain resellers flock to auction sites thanks to the promise of getting even more than what the domains are actually worth.
If you are looking to buy a premium domain, an auction site is an excellent place to find them but be careful with overbidding.

Domain listings

Domain directories and listings like expireddomains.com make it easy for you to find the best premium domains for the best prices possible. You have all the best domains, including the ultra-premium, brought to you.
Our list features links to the current auction pages for these domains, the number of bids, the current maximum bid price, and over a dozen other metrics. And the best part? You can filter the results to domains with a particular number of words, and brandability, based on the TLD – all the essential qualities that make up a premium domain!

Consulting a domain broker

Domain brokers or broker services deal exclusively with facilitating the sales of domains – especially pricier ones – to ensure you get the best deal possible. A domain broker will help you track the current owner of an already taken domain, make an offer, and negotiate a final price on your behalf.
Domain brokers will also conduct a market analysis to know the true value of a domain. If you choose to consult a domain broker, look for one with an impressive portfolio of high-profile deals and minimum commissions.

Buying a Premium domain name – factors to consider

Before buying a premium domain name, what are some boxes you should check?

Your budget

Premium domains are generally far pricier than regular domains so before you enter the market, make sure you have a budget in mind. So whether you decide to buy from a registrar or go the auction route, ensure to stick to your budget and dont overbid. And if you can’t find the exact domain within your budget, it may be worth it to look for something else.

Your brand

If you are going for a keyword-rich premium domain, then you need to consider your brand, what you stand for, your goals, your services, etc. so you can choose a domain that’s incredibly relevant to your industry.
Would your potential customers be able to take one glance at the domain and guess what your business is about accurately? If yes, then that may just be the one for you!

The domain history – for expired domains

If the premium domain is an expired or preowned domain, then it’s important to do a little digging into its history. How much traffic was the domain generating in the past, what are the metrics on social media popularity and search volume, and the Moz domain authority?
You can also check the wayback machine to see how the domains have evolved over time. These metrics will help you know the health of the domain and its potential to perform well in search.

FAQs

What is a GoDaddy premium domain?

GoDaddy premium domains are premium domains that are listed on GoDaddy for sale. These could either be native to the GoDaddy platform itself or were purchased by someone else and then listed on the GoDaddy auction platform.

Why are premium domains expensive?

Premium domains are more expensive than regular domains because they have the most potential to drive an online business’s success. They are short, catchy, memorable, and speak credibility and that’s why they are so sought after.