In the domain name industry, “Premium Domain Names” is a term thrown around a lot. There are even “Super Premium” and “Ultra Premium” domain names whatever that might mean. For purpose of this article we will consider premium domains to mean scarce and highly desirable domain names that fetch 5,6,7 and even 8 figure price tags. They are usually english dictionary words, involve keywords for lucrative industries or short (1-4 characters). And they are usually dot com.
The following are facets of why one should invest in the best possible domain name they can afford for their business.
Positioning and Authority
The best domain name creates a sense of instant authority. Owning the best domain name positions a company globally and for that industry as the best.
There are hundreds of factors that go into a website’s search engine ranking. Domain keywords, age and historical links are a piece of this pie and often come with premium domains. A premium domain name will make people more likely to link to your website. Click through rates increase for better domain names as there is a higher sense of trust.
Consider how much marketing has been done on the domain extension. Billions of dollars have been spent on marketing of .com domain names. After decades of people seeing .com on billboards and television makes it the assumed extension.
A domain name doesn’t just match a brand – it very much is a brand. The best domain name takes control of the mindshare of that word. When you buy your exact match domain name, you’re investing in your Brand Equity.
Length and memorability matter most with domain names. Both of these constraints make it easier for customers to find a website from advertising or with word of mouth.
When a high quality premium domain name is used, customers can feel more assured that they are dealing with a legitimate website. Spoof websites are less likely on say a 3 letter .com. Email security is increased with premium domain names with less chance of emails being lost, sent to competitors or worse.
A domain name is the cornerstone of a business. It’s like the physical store front of a store but more. When you tell someone your domain name it’s like giving a virtual business card. A business has to work really hard in terms of marketing with a bad domain name. Inversely, a business’s efforts are amplified with the best domain name.
Lesser domain names such as composite words can pigeon hole the business. Owning the more generic, shorter brand name allows the company flexibly to pivot in its business without changing the domain name.
Domain names are digital assets and hold value. For example, if your company is sold, the domain name is an asset and included in the sale. The value of the domain name assets is factored into how much the company is worth. If a company is shut down, the domain name(s) still remain and can be resold.