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What is a Premium Domain?

What is a Premium Domain?

Kean Ong
Nov 28, 2023 • 5 min read

After browsing through potential domain names you may start noticing that some domain names under the same domain extension are more expensive than others. There could be a few reasons, but most commonly this is attributed to premium domain names. Whether you’re planning to create a website, rebrand your business or invest in domain names, understanding what a premium domain is and why it may be worth acquiring can be helpful. In this blog we’ll dive deeper into the ins and outs of premium names. 


What is a premium domain?

Premium domains are domains that hold a higher value compared to an average domain. This is usually because they have a specific characteristic or quality that is sought after by many. Premium domains are desirable for their potential to enhance brand recognition, credibility, and search engine visibility.


This can make buying premium domains a worthwhile investment in today’s digital landscape. Due to their nature of higher value and desirability, domain registries  markup the price to keep select stronger domains available while creating more opportunities for profit. Users willing to spend the often hefty upfront registration cost know that the domain being acquired is valuable for a variety of uses.


There are many great reasons to use a premium domain for a business or for personal use. They can have a huge impact on one’s online presence, elevate a website, or be a long term investment to add to an investor’s domain portfolio. Premium domain names, like many great domains, can create future opportunities for both new and current domain owners.


Are premium domains worth it?

Investing in premium domains can become beneficial for businesses and individuals seeking to establish a strong digital presence. However, while most premium domains have higher upfront cost compared to regular domains, the pros could exceed the initial investment. 


These domains could result in better search engine rankings and increased organic traffic due to their tendencies to be memorable, brandable and have better keyword relevance. Due to these common attributes tied to premium domains, they are often perceived as a credible domain by users who engage with them, which helps the brand and domain holder build a positive brand image. 


Additionally, purchasing a premium domain can amplify marketing efforts and promotions by naturally attracting more visitors due to its intuitive and recognizable nature. Overall, the advantages of registering a premium domain in terms of branding, visibility, and potential long-term value make them a valuable opportunity for both businesses and domain investors.


What makes a domain premium?

Several factors determine whether a domain is a regular or premium domain. Premium domains have specific qualities and characteristics that make them more desirable and valuable to be purchased by users.


These domain names typically consist of short, catchy, memorable, brandable, and keyword-focused words that make them intrinsically more valuable, with that value often differing between individuals.


Premium domains are often composed of popular extensions such as .com, .net, or other top-level domains that increase their originality within the digital space.


Additionally, they might have a history of high traffic, an established online presence, or be associated with popular or influential brands. The limited availability of domains that can be easily remembered and keyword-rich, combined with the potential to enhance a website’s credibility, digital presence, and search engine optimization, are all contributing factors that make a domain premium.


It should be highlighted that registries set the prices for unregistered domains categorized as premium or with a higher premium price point.


As an example, according to Google, was sold for $49.7 million in 2019, which is quite shocking that someone is willing to pay this much for a domain. It goes to show the value that an individual domain may vary if it’s the exact domain someone else wants.


How much do premium domains cost?

Various elements have an impact on the cost of a premium domain. These factors include domain length, market demand, keyword relevance, popular extensions (.com, .net, etc.), and the perceived value of the domain. You can find more information about why some domains cost more than others in our recent blog post, ‘Domain Name Prices’.


The price range of premium domains could vary from a few thousand dollars to millions for extremely rare, unique domains that are highly sought after. Premium domains, which are highly marketable and limited, are typically characterized by being short, memorable, and brandable, with significant commercial potential. These are the types of domains that domain investors are always on the lookout for.


Furthermore, it adds considerable value if a domain has already established substantial traffic, consists of relevant keywords, and has maintained a strong online presence for a long time, all of which can significantly impact its price.


There is a substantial difference between an aftermarket and domain registry premium domain. An aftermarket premium domain price is determined by the domain seller based on various factors such as perceived value, demand, and market trends. A domain registry premium domain price is determined by the registry itself based on factors such as domain quality, desirability and market demand.


Despite the numerous factors influencing the price of a premium domain, determining its exact value is challenging. Various platforms at Dynadot, including user auctions, domain aftermarket search, and forums dedicated to buying and selling premium domains, play crucial roles in establishing a premium domain's price. These avenues consider the unique characteristics and perceived value of each domain within the digital space to reflect its market worth accurately.


How to purchase a premium domain?

If you've reached this point and still have burning questions about premium domains, Dynadot offers an extremely useful help section to address any inquiries about Premium Domains.


There are several steps involved in purchasing a premium domain: 


  1. Choose a reputable domain registrar with years of experience in dealing with premium domains and access to domain marketplaces. At Dynadot, we provide access to multiple tools necessary for securing premium domains. 
  2. Research to determine if the specific domain aligns with your needs in terms of relevance, memorability, and potential impact on your online presence. 
  3. Select your preferred domain and check its availability.
  4. If you find your premium domain through registries then it will be a simpler process for selecting the premium domain.
  5. If it’s through a broker or seller the premium domain price can be negotiated directly Note: Be prepared to pay a higher-than-expected cost or establish the maximum price you're willing to pay for the premium domain. 
  6. Upon reaching an agreement, purchase the premium domain using a secure and trusted payment method. 
  7. Finally, transfer the domain to your preferred registrar and complete the necessary administrative processes to obtain full ownership and control over your newly acquired premium domain.

There are numerous steps involved in purchasing a premium domain. As a trusted domain registrar, we can assist you through the process and provide guidance on any premium domain acquisition questions you may have. If you’re ready to start searching for your perfect premium domain, start your domain search today!

Kean Ong
Digital Marketing Specialist

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