What Makes Premium Domain Names So Valuable? An Expert Broker Explains

By Pop Paul-Catalin

Consider the following domain names and reflect what they might have in common; Cars.com, Hotels.com, Beer.com, Toys.com. Each of these premium domain names add value to their accompanying website by being easy to remember, directly advertising the wares for sale, and occupying a strategic place in the Google hierarchy for search rankings.

The other thing these domain names have in common? They all sold in excess of a million dollars. Cars.com earned a historic evaluation of $872 million.

So the question is, what makes a premium domain name so valuable?

Turns Out, the Internet is Not a Fad

Whether a digital business, or a brick and mortar establishment with an online presence, a catchy domain name is key to boosting online traffic and sales.

While Internet fads are the name of the game these days, the value of a premium domain name is here to stay. Having an online presence to buttress your marketing plan is a great way to generate traffic without paying for advertising after the one-off cost of a domain name purchase.

Remember the sites we considered at the top of this article? Cars.com, Hotels.com, Beer.com, and Toys.com are all marketable, premium domain names that are guaranteed to be favored by Google’s algorithms.

The value of that type of exposure is incalculable when it comes to marketing success.

What Constitutes a Premium Domain Name?

A premium domain name is often a registered domain that has been used on a website but is currently inactive. There are instances where a registered domain name has yet to be tested on the web, but they aren’t as common because their value is highly speculative. After all, a domain name in its infancy offers no discernible track record when it comes to online performance.

Often times, brokers and domain investors will put promising premium domain names in the vault and wait for encouraging online trends before listing a name for auction.

The Advantages of Using a Premium Domain

A premium domain name gives you instant credibility with your online audience. Effectively a readymade marketing brand, they are instantly recognizable, easy to type, and impossible to forget.

Customers will have little doubt of what your sites is offering, and by promoting organic traffic, you can rely less on PPC advertising. At the very least, an SEO-friendly domain will reward you with higher placing in Google searches.

Equally important, a trusted domain name invites partnerships with other reputable companies that would be willing to link with your site. It lets Internet users know that your site can be trusted. .

Is a Premium Domain Name Worth it?

Obviously, when it comes to budgeting for a domain name, a seven figures might be beyond your means. Sit down with your broker to discuss different options, as the value of keywords change with online trends. As mentioned, some premium domain names are speculative in nature, so assessing fair market value can be difficult if you don’t have the necessary market knowledge.

An established domain, guaranteed to immediately begin yielding quality visits to your website, is almost always worth the money.

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