Your domain name has a big impact on your business. Choose the right one, and you have a brandable web address that people remember. If you select the wrong one, you risk obscurity or confusion with your prospective users.
When you go through the process of picking your domain name, you may find the best option is a premium domain. This guide will share what you need to know about premium domains and when paying for one is worth it.
What Is a Premium Domain?
A premium domain is one that an individual or company owns and has made available for sale. Premium domains may have been formerly used for a now-obsolete website, or bought by a domain registrar, company, or individual in order to sell it at a mark-up.
Premium domains’ value is based on their:
- Short length — usually one or two words
- Keywords — high-value words that people tend to use in search
- Brandability — catchy and memorable name
What Should You Ask Before Paying for a Premium Domain?
Standard domains usually cost between $10 and $30, while a premium domain can be hundreds to thousands of dollars. Before you purchase a premium domain, here are some questions to consider:
- Have you explored other options for a domain name? Did you follow a process to try to create a domain name that will work well for your app?
- Will this premium domain name help you draw traffic to your app or help you grow your business? Can you justify the expense against expected future revenue?
- Is the cost of the premium domain in your budget? Do you have the funds to pay for it or can you get access to funds?
How to Purchase a Premium Domain
You have two primary options to purchase a premium domain. First, you can contact the owner directly. In order to find the current owner, you can use a domain lookup tool like whois.net to find the information.
Second, you can use a dedicated domain marketplace like BuyDomains or Afternic. These organizations list thousands of privately-owned domains available for sale. Domain marketplaces have policies in place to protect buyers and sellers, so they’re good to consider.
How Much Should You Pay for a Premium Domain?
The cost for a premium domain depends on the perceived value to the buyer and the seller. What is it worth to you to get this specific domain name? Whether you are working with an individual, an organization, or a domain marketplace, you may pay the asking price, or you have the option to attempt to negotiate a lower price.
There’s a lot riding on your domain name, so you want to be confident in your choice. If you have the option of paying for a premium domain for your app that offers increased brandability, it’s worth weighing the value against the cost.
Want to talk about your app idea? Get in touch and we’ll schedule a call.