Domain names can be the decider of whether a brand can be successful or not. It is a really crucial element, that’s why entrepreneurs tend to really grab their wallets and pay the moons for a domain name.
In the last couple of years, people started to distinguish premium domain names from common domain names. In this article, we will introduce the first, with its opportunities and downfalls. But before that we need to understand the difference between the two!
What are premium domains?
It is clear that officially there is no such thing as a “premium domain”. Experts tend to call those domains with this name, which are either expensive or hide real value. But it is still a bad way to refer to them.
Imagine: Just because a user tries to sell a domain over price, we must consider it a premium domain? He might think that it’s premium, but the very moment when another user buys the domain from him that’s when the domain is converted to a premium.
Typically, we can describe how a premium domain name looks: It is short, catchy, and has a premium extension. But their real value depends on the popularity of the word. Let’s play a game: What do you think, which domain name is the more expensive to grab, football.com, or snooker.com?
Well, it’s hard to decide because both domain names are taken, but still, snooker.com is listed for sale, but football.com is used by a very popular football platform. But the thing is, football.com is more expensive because more people are interested in this hobby. It is a very popular sport, with millions of supporters, and almost one billion potential viewers. This popularity makes a domain name premium, and this is what describes a premium domain name the best.
Where can you grab a premium domain name?
The good thing is that you can get a premium domain name from almost every domain name registrar. The bad thing is, they do not always indicate which domains are premium, and which are not. Although you can make conclusions about the price of each domain name, it would definitely take you in the wrong direction.
First, you need to do competitor analysis, and industry research to understand what words your potential buyers use for searching, and what words your competitors already use. After conducting these searches, you need to compare them. If you find powerful words that your competitors still do not use, but yet there is huge potential in them, use those. Therefore, you don’t need to pay an extreme amount for a premium domain name, but you still get the same effect.
If the best keywords are already reserved with a “.com” extension, think of using other extensions. For example, if you only want to go to the UK market, a “.uk” domain extension increases your chances of being on the top of the search pages.
What are the opportunities of premium domain names?
The main opportunity of premium domains is quite simple, but a really strong factor: your website can attract more attention in the short term. Although, with a very effective search engine optimization strategy, every website can be highlighted from a mass of websites, but not in a short time. If you want immediate effects, a premium domain, and a very in-depth marketing strategy will be the winning idea.
Then also, in the case of a premium domain name titled website, more visitors will believe that it is a reliable website. Just think of a scenario, when one website is called “car.com”, and the other is “carxy.bg”, which one seems more safe? We assume that what is expensive, is less likely to be a complete scam. And even though it is not completely true, that’s how our brain works, and we can’t forget this little psychological opportunity of having a premium domain.
And the most important: a premium domain name is most likely a very catchy word. If your buyers remember your website’s name, and they had a positive buying journey, they will buy from you again and again. And much research has previously pointed out the positive effects of repeat customers.
What are the downfalls of premium domain names?
Definitely the price. The price of a premium domain name can vary based on the industry you are in, but in some cases, you need to really steal the stars from the sky.
For example, the domain name “Voice.com” was sold for $30 million in 2019, and “360.com” for $17 million in 2015. And even if these are the rare exceptions, you should not spend all of your resources on grabbing the perfect domain name. It is crucial to not believe that a premium domain name will definitely lead your brand to success. It isn’t a guarantee of anything!
Who do we recommend using them?
We recommend using them, if there are no other possible options, and you want to create a well-known global brand. Or, if you have a global brand indeed, but you are building up your online presence now.
Premium domains are expensive to buy, and we still have not mentioned the high renewal prices these can have. So, be sure that your revenues will skyrocket very quickly. On top of that, be sure that the chosen premium domain has a real value for your specific niche. So, even though you grab “cars.com” if you are selling silk clothes it was a goofy decision.
What are your alternative opportunities?
Of course, you have some alternative opportunities in order to avoid spending too much. The best way is to use a different TLD, most likely an alternative of “.com”. These can be “.co”, “.io”, or “.ai”. It is important to know that alternative TLDs may not work in conventional industries, rather than are recommended for startups, and in innovative industries. In this case, market research will help you to get a conclusion.
In other cases, a little modification of your desired domain name can still be an option. For example, instead of “car.com”, try “getacar.com”. It can also give context to your brand, which can have a positive effect.
Conclusion
A premium domain name can really be a blessing or a curse for your business. That’s why before purchasing a very expensive domain name, do research about your market, and explore other opportunities. But if it’s a blessing, your whole success will be laid under this decision.
Loading comments...