What Gives a Premium Domains Value

What Gives a Premium Domains Value

What is a Premium domain name?

Premium domains are available for purchase through the domain aftermarket and are considered “premium” because of the keyword strength, and branding potential. When your choosing a domain for your business, it is important to think like a consumer. The same reason you would have chosen a particular domain is usually the same reason your customers would.
Its extremely easy to get caught up in the difference in cost when you are looking at a $15 new registration and a $1500 dollar premium domain. Simply put, it’s difficult to justify spending the money. This is were the credo ROI (return on investment) applies. When you purchase a premium domain you have invested in online real estate and given your business a boost in traffic, branding and resale value. Most premium domains have already been indexed by search engines and currently have relevant traffic meaning your not paying for just the domain, your investing in the traffic. You can use sites like Valuate.com to determine a domains indexing to see the difference in results that you can expect to receive once the site is live.


What Gives a Premium Domain Value

From an appraisal stand point, there are 4 key fields that are evaluated to determine a domains worth.

1. Total Length – The amount of characters used in a domain name are directly reflective of the memorability of the domain / business name. For obvious reasons, it’s much easier to brand a shorter name and remember it as a consumer.

2. Number of Words – A one or two word domain is important for the same reasons that a domain with less characters is desirable. When your advertising your domain or business, consumer retention is going to be a factor. The amount of advertising it takes to solidify a “weak” domain far exceeds the cost of successfully advertising a domain that is memorable to begin with.

3. TLD (.com, .net, .org etc.) – Just like in real estate, location is everything. The .com TLD is what most people associate with trustworthy websites hence, the marketing and search engine results will reflect its effectiveness.

4. Keyword Strength – Search engines rely on keywords to index and categorize your site and using a domain that has strong keywords is crucial. Ideally, a domain with exact match keywords is the most desirable. Keyword strength can be checked by clicking below: