As there exist around two billion websites, it is not easy to find an available catchy domain name. Individuals and business owners are more informed about the factors that make a domain name desirable. These elements can be the length, ease of pronunciation, branding, keywords, etc. Hence, the majority attempts to get domain names with such characteristics.
As a result, it is harder than ever to find the domain names that are the people's first choices. They need to adjust a name or change it dramatically to find an available domain. Alternatively, they can purchase the unavailable name for a higher price if negotiation is possible. That is where the premium domains start to matter.
In this guide, we will discuss the main elements that people should know about premium names. If there is a need to find out whether to purchase a premium domain name or opt for a standard one, this article will help you make a better decision.
Choosing Premium Domains
When individuals create websites, one of the first things they do is selecting a name for it. This name is the domain name that identifies the website address uniquely. People type this domain name in their web browsers to access the site. Usually, choosing and registering a website name is a simple process.
In general, business owners try different versions of their company name, slogan, or values to determine if the domain is available. However, sometimes, the name that they want to get has already been sold. Considering that there are around two billion websites, it is highly likely that the name they wish will not be available.
While some individuals actively use those domain names, others abandon or purchase for resale. This is where the premium domains take the stage.
What is a Premium Domain?
The domain name that an individual is looking for can be unavailable for several reasons. One of the cases happens when it is already owned/registered by another person or organization. However, the only purpose of the second party is reselling the domain name. These names are premium domains.
There are a few reasons why premium domains exist. First, some people purchase the name and use it for some time. After a while, they do not need the domain anymore. It can be due to a failing business or rebranding. In this case, they can relinquish their domain names. However, some of them continue payments for a bigger goal- selling it for a higher price.
Those people know that their domain names are unique or catchy, so others can be interested in paying a premium price. Hence, they keep the premium names until they find someone to sell it.
Another case happens when individuals make it their business to find attractive domain names and turn them into premium domains for sale. They usually purchase the name, but they do not use it for any purpose. Instead, they market the domain names with a marked up price. Alternatively, domain registrars can also sell or market some names as premium domains if they are catchy enough.
Standard vs. Premium Domains
A question might arise on what makes a domain name premium. There exist some factors that categorize the domain names into two parts, standard, and premium. For instance, length matters. When a domain name is short, it is easy to memorize. Hence, companies and individuals, usually, attempt to get short names.
However, as many entities have the same purpose, short names quickly get sold. It is hard to find a relatable, short name with one or two words. Hence, they become premium domain names.
Brandability is another factor. The website name should be able to communicate a brand message to the target audience. It should speak for the business, signal its benefits, and create a trustworthy or innovative brand image, depending on the wishes of the business owners. Hence, domain names that can attract the focus of the potential target audience of different businesses quickly become unavailable.
Keywords also play a massive role in premium domains. Keywords are related to the business, and they can make the website more visible for search engines. For instance, a home renovation business might want to have keywords like "home," "renovation," "remodel," etc.
In this way, there is a higher chance that when people look for these services online, their websites will appear on top search results. That is why domain names with keywords are attractive for individuals to purchase quickly and resell for a higher price.
An individual can opt for getting a premium name or a standard domain. However, this decision is also complicated. If they do not know what a premium domain is and why it is a better alternative, they will end up wasting their money on useless names. Hence, they need to consider several factors.
When are Premium Names Suitable?
In general, decision making for premium domains involves a cost-benefit analysis. Such names have many benefits. For instance, they can bring more traffic, be visible to more people, and the potential audience can quickly memorize them. On the cost side, its price is more than ten times standard names, while people can purchase corporate website names for $10 to $30.
However, premium ones can cost hundreds, if not thousands, dollars. Hence, evaluating the benefits and finding out if the advantages cover the costs are important decision-making factors.
Factors Affecting Decision Making
Sure, one of the first things to consider is the budget. Usually, newly established businesses try to get a website. At that stage, the budget of the company is not high. Hence, purchasing a premium domain name can be prohibitive for them. After all, the business's success is uncertain, and spending thousands just on the domain name might not be a wise decision.
However, if the website involves monetization, premium names can be worth it. It means, owners can cover the costs of premium domain names with the revenue if they aim to use the website to generate substantial profits. For instance, e-commerce websites can opt for premium ones. First, the site is not an informative, educational one. Instead, the owners target profit generation.
There is much probability that they can cover the costs of the domain name. Additionally, premium names will bring visibility to the potential audience. In this case, the traffic will be massive, and the sales will boost.
For other websites with low monetization, owners can decide after thorough research. They need to check other options for the name and see if they are available. There exist many different strategies for the cases when the desired domain is not available. For example, changing the Top-Level Domain or playing with the words can be effective strategies. As a result, individuals and business owners will save a lot of money from the domain name.
In short, if the website has a huge potential audience, and it serves for massive profit generation, the premium domains can be useful. However, if the site is more like a blog, and serves a small audience, there is no need to waste much money on a domain name.
Purchasing a Premium Domain Name
When people decide a domain name, they need first to check if it is available. In case if the name is already sold, they have two options. First, they can find the owner of the name and contact him/her directly. This is helpful in this stage because they help users to find owners of domain names.
Next, individuals can communicate with the owners and convince them to sell the name. If they are lucky, the websites will not be used actively. Therefore, owners will be willing to sell the name.
Alternatively, individuals and business owners can look for the premium domains for sale in exclusive marketplaces- domain platforms. There can be a small fee for the platform, but they ensure the deal. When contacting directly, there is high risk because the payment is made before getting the name's rights.
Buyers pay the premium price and wait for the owners to transfer the name as they promise. However, there exist cases when the money is wasted, and buyers are left with no name. Professional platforms eliminate this risk because they have rules and regulations to protect the buyers.
Regardless of the way people purchase premium domains, they need to be careful not to overpay. Sure, the premium names are expensive, and sellers get a markup from the sales. However, potential buyers have to check if the name is worth it. They need to know what factors make the domain name premium.
As discussed before, the length, branding, or keyword inclusion can be some of these factors. The list can be longer depending on the business type and purpose of the website creation. It is not desirable to overpay for a standard name that looks like a premium one.
Negotiating with the Seller
Domain name reflects the brand elements, such as identity, image, values, benefits, etc. Very few brands can establish a compelling image without having an attractive and relatable domain name. It is not surprising that some of the shortest and most memorable, premium names can cost thousands.
While small businesses might not be able to afford thousands of dollars worth of domains, they can get at least popular names at a few hundred dollars. Though premium domains bring many benefits, buyers should be attentive not to waste money more than necessary. Here are a few strategies to get the best deal in a premium name by negotiating with the seller.
Sure, negotiations are useful when people purchase the premium domains for sale from individual sellers. Before contacting the seller, it is essential to do some research on the name and the seller. Buyers need to find out how much the name is worth by looking at factors like their previous selling price and the effectiveness. Also, negotiating with an owner can be much more comfortable than doing so with a professional reseller.
There exist some platforms, such as the Estibot tool, to determine the value of the domain name. However, if the name costs a considerable amount, such tools can be less helpful. It is better to get help from a personal, professional appraiser. They can evaluate the name from many different perspectives that algorithms cannot. Later, potential buyers can compare the appraiser's value and the selling price to see if there is a vast difference. If the price is much higher than the value, it can be a strong argument in negotiations.
Negotiation is desirable, no matter the budget size. Sellers are better off by demanding higher prices than the actual cost of the domain name. It does not mean that the name should cost a list price because it always has the premium markup. Yet, too much markup is not necessary. Hence, buyers need to dedicate time for negotiations.
Usually, there is not anyone else trying to get the same domain name. Therefore, the buyer has plenty of time to wait and get the best deal. However, this strategy will not be useful if there exist competitors or an important event such as the launch of the project is due soon. Time limitation can be a barrier to effective negotiations in these cases.
No matter the effectiveness of the name, paying more than the premium price of the domain is not wise. Usually, there exist only a few bidders, so this factor cannot raise the price significantly. Sure, the premium domains bring many benefits, but it is still questionable whether it is worth to waste money on them. If the price is too high for the budget, the buyer should state it and walk away. There exists a high chance that the sellers also know that they are charging over. Hence, they can rethink and come up with a better price.
Sometimes, larger organizations provide the payment plan for the buyers if the price is high. In this case, owners can pay the cost in installments. Hence, buyers can ask if there is a chance for the payment plan. If they are negotiating with the individual sellers, they might not be able to provide any program because they lack the infrastructure for designing it. In this case, buyers can get help from the legal businesses and draft a contract for the payment plan if they can convince the seller.
What If There Is No Way of Getting a Premium Name?
Unfortunately, in most cases, the businesses or individuals do not have enough budget to purchase the premium name. If the budget is limited, it can still be a good idea to get premium domain names because it is one of the biggest investments a business establishment makes in upfront costs. Later, they will notice the returns of their investments in sales and branding. However, if the budget is lower than the price of premium names, people need to utilize other techniques.
One of the strategies to apply when the desirable domain name is not available is changing the extension. By purchasing a different Top-level Domain, the name can be available. Also, creative name extensions will catch attention. For example, instead of purchasing petshop.com, people can attempt to get pet.shop. As .com extensions are popular, it is hard to find the preferable name on that top-level domain.
Another technique can be modifying or adjusting the name slightly. One of the popular methods for this strategy is adding a definite article. Instead of petshop.com, people can get thepetshop.com. Adding adjectives, playing with the words, or using relatable keywords can be useful.
For example, putting keywords like shop, market, bazaar, or emporium, keeps the domain name relatable and can make it available. Lastly, if the company owns the rights for the name, they can sue the owner of the domain. Yet, it is a costly process.
Value and quality do not come cheap. Like clothes or gadgets, domain names also demand a premium price for premium quality. Some names are more catchy and visible to the potential audience, which makes them more desirable. In most cases, these domains are not available because either someone bought it to use for his/her purpose or resell it at a higher price as premium domains.
Such business names are easy to remember and bring more sales to businesses. However, as they are incredibly pricey, one should carefully evaluate the costs and benefits before purchasing it. Though they can be advantageous, in some cases, benefits do not cover the cost. For more informative websites such as blogs, it is not advisable to get a premium name. However, websites that involve massive monetization, like e-commerce sites, a premium domain is useful.