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A premium domain name is a domain that has characteristics above the norm. Such characteristics could such as short, catchy, keyword rich, brandable, and generic or descriptive. The initial acquisition of a Premium Domain is oftentimes high, however it will renew at the regular renewal price for whichever domain extension it uses.
Shorter domains are sought after as marketing tools and as investments. Other Premium Domain Names may be memorable or highly brandable, catchy, and make great calls to action. Good domains are a strong asset and a long-term investment in your business helping you build a strong brand and optimize marketing campaigns.
Premium domains can be owned by a company, broker or individual. You can use a number of services online to try determine the ownership and contact the owner or you can hire a domain broker who will do that for you.
Premium Domain Names may cost anywhere from few hundred dollars to tens of millions of dollars. The price is oftentimes dictated by supply and demand. Ultimately, as domain names are unique, the final price is determined by what a seller is willing to sell and a buyer is willing to buy. According to Wikipedia, some notable sales are Insurance.com (US$ 35.6 million), Hotels.com (US$ 11 million), Fb.com (US$ 8.5 million), Loans.com (US$ 3 million).
The best way to value Premium Domain Names is to base your valuation on your own business and your own expertise. You need to come up with a set of questions that ultimately will determine if buying a Premium Domain Name is right for your business. A good question to ask is not what does it cost to buy it but what does it cost you not to buy it? What do you lose in traffic, in people spelling your name wrong or forgetting it, in your competitor getting the name etc.
The .Com registry, operated by Versign, does not charge premium renewals for Premium Domains. The yearly expenses for a premium domain name renewal after purchase is the same as any other domain and typically, based on the registrar your domain is hosted with, ranges between US$ 10 to US$ 30 per annum.
Tracy Fogarty, Founder & CEO at eNaming With over 20 years in the brokerage business, Tracy has helped thousands of clients achieve their goals on both sides of the negotiation table. Creative and result oriented professional, Ms. Fogarty strives on honest communication, value proposition, the big picture perspective, and bottom-line profitability.
Areas of expertise:
- Naming Consultants
- Premium Domain Name Sales
- Stealth Domain Name Acquisitions
- Active, Proactive, And Defensive Domain Name Registration Strategies