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What Is a Premium Domain Name? A Broker Explains

Updated on January 7, 2020
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What's in a name? After all, Shakespeare noted, "A rose by any other name would smell as sweet." Unfortunately, in a business environment that relies on online connectivity with their customers, typing "armadillo" into a Google search will rarely lead customers to your flower shop business. You pretty much need an exact-match name, which is where a premium domain becomes so valuable.

Consider the brand names that have instant recognition in the public's mind. U-Haul. Gucci. KFC. Amazon. In terms of marketing, branding, and your overall approach to grabbing the public's attention, names matter. For this reason, many entrepreneurs consider a premium domain name as the centerpiece of any advertising outreach, and are willing to foot the bill in order to obtain the perfect domain name. That leads us to ask, what is a premium domain name?

The Value of a Premium Domain

Understanding the role a domain name plays in Google analytics and SEO search engines is the first step in appreciating the value of a stellar domain name. There are two primary factors that seem to coalesce to transform an average domain name to the super star status associated with the label "premium" domain.

The first factor is readily evident, and it's a fact we subconsciously key into when beginning an online search for what products or services we might be looking for. As such, the perfect domain will be one that is self evident to online browsers in terms of who you are and what you do for business. Additionally, it adds instant authenticity when paired with the best keywords for your industry.

The second factor has more to do with the inner workings of Google algorithms, and how sites rise and fall in online searches. A premium domain name might be an already registered domain that has been used on a website but is currently inactive.

Premium domain names are those that offer a strong domain history with a proven track record for a good reputation, quality links, and a resultant flow of organic traffic and search engine rankings.

Keyword friendly, short, and brand-able, a premium domain name brings a lot to the table when structuring the long-term thrust of your marketing and outreach efforts.

The Speculative Nature of Domain Names

As any domain broker will confirm, a particular domain is worth whatever price someone is willing to pay for that domain. This leads to an environment that is closely akin to the competition for prime real estate in a downtown business district.

Another option might be purchasing a registered domain name that has yet to be tested on the web, which makes this option a bit of a speculative endeavor. After all, a domain name in its infancy offers no discernible track record when it comes to online performance. That being said, the perfect name is one that will work ideally for your company's branding message.

The key factor you will notice with both a pre-tested domain name and a new, untested one, they will be much more expensive to buy than the typical domain name on the market.

How expensive? Pretty expensive. A premium domain name can cost thousands, tens of thousands, or even millions of dollars, so purchasing one is not for the faint of heart. When you invest in a domain name for your business, that name should be the foundation on which you will build your entire marketing program. Over time you will notice that you are spending less on PPC strategies and enjoying increased organic traffic and word of mouth recognition.

Domain Name vs. Premium Domain

A premium domain name is an expensive proposition, but when considered against the backdrop of your overall startup costs, this investment should be considered a priority.

When contemplating purchasing a premium domain, you will want to reach out to a domain broker that you can trust. With their fingers on the pulse of the industry, a knowledgeable domain broker can provide immeasurable help in your search for the perfect domain.

Remember to do your homework and choose a premium domain broker with an established reputation for honesty, a willingness to work with you, one that offers a verifiable record of successful transactions, and has the vision that matches your ideas for your company's future branding.

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