A premium domain is a high demand name which is already registered and available to purchase on the domain name aftermarket.
Premium domains can be valuable for a number of reasons including:
They contain generic keywords and terminology
Are short and easy to remember
Have established SEO and SEM strategies
Are of interest to a wide selection of businesses and prospective customers
Already have an established brand and marketing strategies
Viralbility/ Word of Mouth
Short and memorable names- which are usually .com- enhance word of mouth (viral) referrals that your business generates, and these are one of the most valuable lead sources. Direct referrals typically carry one of the highest conversion rates among traffic types. For example you may say ‘I got this movie on Amazon’ because Amazon is a well-established easy to remember domain. Whereas if you bought it from moviesandgamesforsale.net then you’d be less likely to quickly tell someone.
Funding and Partnerships
As well as attracting and converting potential customers, building your business on a premium domain can help improve your chances of securing funding or forming strategic partnerships with established companies within your industry. These valuable parties can help make or break a start up company and can ensure their long term survival.
For example would you rather partner and fund a company called cars.com or buy-some-cars-here.biz?
Having a premium domain can help you with a number of things including credibility. It is common for consumers to favour industry leaders over small independant shops, this means that standing out from the crowd online isn’t always easy. Owning a premium, high quality domain can help you make a statement.
Having a premium domain tells your customers that your business is large, well-established and here to stay. Plus it shows you have thought about your business and what you want from it. For example citybreaks.com looks far more crediable than travelsolutioncitybreaks.com
SEO Advantage- Exact Match/ Keyword Rich
Owning a domain that contains a keyword phrase that is directly related to your industry could save you a lot of money on advertising. One of the key metrics in SEO is called domain trust, and having the primary keyword at the beginning of the domain will earn you extra points.
Domains are assets which are expected to climb in value in the future, especially as each year more and more websites are created. One of the factors which determines a sites value is it’s age, and assets which were bought and registered in the 90’s by insightful, forward thinking entrepreneurs are now being valued and sold for huge figures.
This industry also has it’s very own price index which goes hand in hand with NASDAQ. You can read more about the index on the following sites: IDNX Official and Sedo’s Contribution.
It may also be useful to read our article about factors which determine a domain’s value.
In simple terms, diversifying your domain portfolio by securing key properties within your industry is a good idea. It is sometimes referred to as defensive registration, as by registering these domains you are minimizing your competitor’s options.
If you can’t optimize the exact match domains for the related search phrases by creating landing pages with relevant keyword friendly content (their optimal use), then you can still redirect them to your primary site. While you may lose organic traffic, you may still benefit from some inbound type-in traffic.
We hope that you will find the information which we have provided in this article to be useful. Feel free to browse through our inventory of premium domains and if you have any questions or comments please do not hesitate to give us a call.