Introduction
Buying a premium domain name can be a great way to boost your online presence and establish immediate credibility and authority. Premium domains are short, brandable domain names that clearly communicate your brand or offering to site visitors. These coveted domains are typically one word or two short words that are easy to remember and spell. If you want to take your business to the next level, investing in a premium domain could be worthwhile. This guide will teach you how to find and valuate premium domains so you can purchase one that aligns with your brand and goals.
Domain Name Valuation
Before buying a premium domain, it’s important to understand domain valuations so you can estimate the potential price range and determine if purchasing a particular domain makes financial sense for your business. Some key factors that influence a domain’s value include:
Length and simplicity
Short, one-word domains or domains with two short memorable words tend to be more valuable and in higher demand than longer, complex domain names. For example, Car.com would be considered more premium than FastAffordableAutomobiles.com.
Keyword relevance
Domains that contain highly searched industry keywords or product names command higher prices. For example, Loans.com would be more valuable than general domains like MyBusiness.com.
Type-in traffic potential
Type-in traffic refers to people typing a domain directly into their browser to visit a site, rather than clicking on a link or search result. Domains that are likely to generate significant direct traffic are more valuable.
Brandability
Domains that are short, memorable, and communicate a brand effectively have higher value. Names that can become an established brand over time are ideal.
When estimating a domain’s value, look at recent sale prices of comparable premium domains in your industry to get an idea of the potential price range. Domain valuations can range from a few thousand dollars into the millions for ultra-premium domains.
Finding Premium Domains for Sale
Once you understand domain valuations, it’s time to start your search for available premium domains for sale. Here are some top places to look:
Domain marketplaces
Websites like Metoni.com, Sedo, Afternic, and GoDaddy Auctions connect domain buyers and sellers and make it easy to search available domain names for sale across all extensions (.com, .net, .org, etc). You can filter domain listings by keyword, price, length and other criteria to find options matching your search.
Expired domains
Domains that expire without renewal go into a 30-45 day grace period where the owner can still redeem it. After that point, expired domains become available for anyone else to register. Use expired domain search tools to uncover these recently dropped domains.
Private domain brokers
Domain brokers represent portfolios of premium domains for larger sellers and businesses. They can help you access high-quality domains that may not be listed publicly. Work with an established brokerage to get access to their inventory and domain acquisition services.
Networking events
Domain investor networking events like DomainingEurope, NamesCon and Traffic provide opportunities to connect with domain owners, brokers and aftermarket platforms. You may uncover premium domains that perfectly fit your needs.
When searching, look for keywords, brands and product names directly related to your industry that make good domain name candidates. Avoid trademarked terms or names too similar to existing brands in your market.
Evaluating and Selecting Premium Domains
As you find potential domains for sale, you’ll need to carefully evaluate each option to choose the best premium domain aligned with your business goals. Keep these tips in mind:
- Check domain history – Look up the domain on WhoIs domain search sites to see its registration history and check for any usage or negative associations.
- Conduct trademark searches – Do comprehensive trademark searches to ensure the domain doesn’t contain trademarked terms or brands that could lead to legal issues later on.
- Assess type-in traffic potential – Research keyword search volumes and topical relevance to estimate the domain’s potential to generate direct traffic.
- Evaluate competitiveness – Search for the domain name on Google to see what competing brands rank for it and how competitive it would be to rank with that domain.
- Consider branding potential – Determine how easily the domain communicates and represents your brand. Is it short, memorable and descriptive?
- Compare to alternatives – Weigh the domain against other options you’re considering in terms of branding, traffic potential, competitiveness and price.
Thoroughly vetting domains will ensure you select the best premium name with the highest ROI potential for your business.
Negotiating and Purchasing Premium Domains
Once you’ve identified your ideal premium domain, it’s time to negotiate a price and finalize the purchase. Here are some tips for the acquisition process:
- Determine your budget – Research domain valuations to set your maximum budget for the domain based on its worth and your business goals.
- Make initial contact – Reach out to the seller through the domain listing and clearly express interest in purchasing their domain. Ask about their willingness to negotiate on price.
- Negotiate price – Reference your research on domain valuations to negotiate a fair price in line with the domain’s worth. Many sellers expect buyers to make them an offer.
- Use an escrow service – Protect yourself by using a secure escrow service like Escrow.com to handle the transaction and transfer of funds. This protects both buyers and sellers.
- Conduct due diligence – Do final due diligence like checking WhoIs info and trademark registries before finalizing the purchase. Get all terms in writing.
- Transfer ownership – After finalizing the deal, the seller will transfer full ownership and domain rights to your registrar account to complete the transaction.
With persistence and preparation, you can acquire a premium domain that provides immense value and establishes immediate credibility for your brand online.
Conclusion
Investing in a premium domain name can drive substantial direct traffic to your site and give your brand name recognition and trust from day one. By understanding domain valuations, utilizing domain marketplaces and brokers, thoroughly vetting options, and negotiating a fair price, you can secure a premium domain tailored to supporting your business goals and driving growth.