Premium Domain Names are domain names that can be valued way above the normal registration fee. There are a lot of speculators, or domainers, who invest their time researching, and their money buying, premium domain names.
But what makes a premium domain name? Why are some Domains more valuable than others? There are a variety of reasons that a domains could be considered premium.
Firstly, think about brandability. Does this domain name sound like it could be a brand name? More to the point, does it sound like it would be a good brand name? If so you may have a premium domain on your hands. Brandability as a concept is incredibly difficult to define, but if you read a domain name and it sticks in your head as an interesting name, it’s probably brandable!
Being rich in keywords could also make a domain valuable. For example, if you registered bikes.com you would be incredibly happy. ‘Bikes’ is probably a term that is searched for extremely regularly online. This domain is going to help the website it’s assigned to get found. People searching for ‘bikes’ are likely to come across bikes.com.
Human names can also be valuable. The more common the name you’ve registered, the more value your domain name is likely to have. For example, John is a very common name. Therefore, if you had John.com you would have a very valuable name on your hands. Balthazar however, isn’t quite so common. Therefore, Balthazar.com wouldn’t be able to command the same value. This isn’t always set in stone though. As with all domain names, they are only worth what someone is willing to pay!
Geographic domain names have increased in popularity over the last few years as local search marketing and local data become much more prevalent. With the increasing popularity of ‘local’ apps and localised search results, these domains are only likely to increase in value over the next few years. Geographic domains can simply be place names, like England.com, or they can be geographic industry names, like newyorklawyer.com. As a general rule; the higher the search volume for the area, the higher the value of the domain.
A great indicator of the possible value of a domain name is the ‘Cost per Click’ value of the phrase you’re registering as a domain. The Cost per Click (CPC) value is a broad estimation of what marketers will pay to target users searching for that keyword. The higher the cost per click of your domain name, the higher the value of your domain name. As an example, cheapinsurancequotes.com might not be particularly brandable, but it costs $50 to target a user who searches for this term, all of a sudden the domain becomes very valuable.
Finally, if you’re getting offers for a domain name, the chances are it’s worth something! Consider a premium domain as those that get offers! A fairly simple and effective measurement!