Should I Buy a Premium Domain Name?

Premium domain names can be pricey, so many people find themselves asking “should I buy a premium domain name?” The simple answer is, if you found the right domain for you and you have the money to spend on it, yes.

A premium domain name can help your business stand out from others online because they are considered profitable names that are likely to grab attention and be memorable, which is why they sell at such high price points. 

This article will help you consider if purchasing a premium domain name is the right decision for you.

What is a premium domain name?

A premium domain name is a high-quality domain typically owned by a domain investor or registrar looking to sell it at a profit. Premium domain names tend to be short, catchy, and memorable making them valuable. Premium domain names can sell for thousands or even millions of dollars.

Many factors influence what makes a domain premium such as:

• Length: short names are easier to remember versus long ones, and are usually more appealing to a wider audience.
• Brandability: Catchy and unique names that directly say the brand name or niche, help the brand stand out.
• Keywords: Particular brand keywords or business keywords can become more relevant and memorable when paired with the right extension.   

GoDaddy’s domain search page focuses on premium domains.

Why are premium domains costly?

A good premium domain name can help boost a website and its traffic. Because only one person or business can own a domain, it makes certain domain names popular and can raise the price significantly if multiple businesses in a competitive sector are interested.

What are the benefits of a premium domain name?

Premium domains offer up the exclusivity brands need in order to be distinguished online. Buying premium domains is a long-term investment for your brand. You are investing in a memorable address that will help your brand gain authority in whatever market you’re in or cater for.

Here’s why businesses invest a large amount of their marketing budgets to buy a premium domain name:

1. Premium domains bring in more traffic

Buying a premium domain name can help you boost your traffic online. A premium domain name is often a short, catchy name that attracts more clicks from search engines and more traffic from people who are likely to remember the name.

2. Premium domain names are marketable

Because these names are short, memorable, and meaningful, they are perfect for marketing both online and off. In the digital world, you want a domain name that’s easy to remember and to say out loud.

3. Premium domains build authority

If you want to become a leader in your industry, buying a “category-defining” domain is important. A premium domain name is a great way to establish brand positioning and credibility.

Premium domain names and domain investing

Buying a premium domain name is just a part of the process of successfully growing your business. You also need to build and market your online business in order for it be a success.

Your domain name could go up in value in the future; meaning, even if you don’t use the domain for a specific project, you could make a profit on it later on. This is known as domain investing. Just know, like any speculative investing, it’s also possible you could lose money on the domain name.

Are premium domain names worth the purchase?

A premium domain name alone won’t make your business successful, but it can help your business significantly. If the right name for your business just so happens to be a premium domain name and you have the money to buy it, it certainly won’t hurt your chances of getting noticed online.

How can I buy a premium domain name?

If you’re curious about a domain name or want to buy a specific domain name you think might be premium, the easiest thing to do is to use a domain search tool like GoDaddy’s. GoDaddy’s search tool lets you know which domain names are available for purchase, listed for sale as a premium domain name, and registered to someone else and not listed for sale.

If the domain happens to be registered already, you can do a WHOIS lookup search and make an offer to the current domain name owner. If it’s listed as a standard domain, then you’ll have to wait until it gets listed on the market.

If it’s listed as a premium domain, you’ll gave to pay a premium price. Normally, you’ll only pay extra for a premium domain the first time you register it. Then you’ll be able to renew it at the usual price in the future. Domains can be easily transferred between registrars to make management easier.  

Begin your premium domain name journey today

Premium domain names are expensive because they offer memorability and brandability for online businesses. The potential for online growth with a premium domain name is a lot higher than with other domain names.

Investors can also make good money by purchasing premium domain names and selling them. Now that you understand what premium domains are and what they can do to benefit business, search for a domain today with GoDaddy and see if the one you want is available.