Definition of a premium Domain name:

A premium domain name is a domain name that can be used successfully for commercial and branding purposes.

Premium Domains

In the realm of digital real estate, a premium domain name stands out as the sought-after luxury property. Just like prime physical real estate, premium domain names are often short, memorable, and marketable. These domains come with a higher price tag compared to regular domain names due to their inherent value and potential benefits.

Premium domain names are typically concise, often consisting of one or two words. Shorter names are easier to remember, type, and share, which enhances their marketability.

A premium domain name is catchy and easy to recall. It often has a broad appeal and can be easily associated with a brand or business.

Due to their desirability, premium domain names are in high demand. This demand can drive up the price, as businesses are willing to invest in a valuable digital asset.

Characteristics of a Premium Domain Name

The domain name must be C.O.M.M.E.R.C.I.A.L.
Commercial
Original
Memorable
Meaning
Extension
Radio Test
Correct
Infringement-free
Alphabetical
Length

Commercial

A premium domain name should should be able to successfully brand a website that is used for trading purposes such as the buying and selling of goods and/or services. The key role that the premium domain name would play here in terms of its commercial characteristics is the creation and establishment of credibility in the respective industry, trade sector or niche.

A premium domain name can instantly elevate the credibility and trustworthiness of your brand. Consumers are more likely to engage with a business that has a professional and authoritative online presence.

Original

A premium domain name must be original. It must be one of a kind. It must not be easily confused with another. Owning a premium domain name should present a significant advantage in your niche or industry. For example, how much more advantage would you have if you owned Aeroplanes1.com over a business that owns Aeroplanes2.com? None. However, Aeroplanes.com would be an instant winner!

Memorable

A premium domain name must be memorable. It must stand out in the crowd. This will help your business to gain repeat customers. A domain should be difficult to remember and/or spell.

Meaning

A premium domain name should have meaning. It should not be some random concoction of words. For example “singing” and “dog” are 2 very popular words. However SingingDog.com would not be an ideal domain name to use as a brand name. BarkingDog.com would make more sense.

For your brand name, you can either opt for domains with keywords, such as “PropertyRates.com, or a brandable domain name.

A brandable domain name is a unique and catchy web address that embodies a brand’s identity and makes it easy for customers to remember and connect with the brand. Unlike generic or keyword-rich domains, brandable domains are more about creativity and memorability than about fitting specific search terms.

Extension

A premium domain name is more valuable if the Top Level Domain (TLD), more popular known as the domain extension is .com. The .com extension is universally known, widely accepted and used globally. Other popular domain extensions are .net, .org, .co and .io.  A country code top-level domain (ccTLD) such as a .co.uk or .uk domain name is also a very popular choice for branding locally within the respective national market.

Radio Test

A premium domain name should pass the radio test. The radio test tells how easily someone will recognise the specific domain name when they hear it. For example Ad.com and Add.com sounds the same. However, both would be premium domains in this case, given that they are both short, consist of only one word, and appeal to a very wide market. The radio test is extremely important, especially when it comes to word of mouth and actual radio advertising. A premium domain name should be easily and correctly identified when it is heard.

Correct

A premium domain name should be correctly spelt. Typographical errors or misspellings greatly reduce the value of a domain name. Not only should the spelling be correct, but the domain name should also be easy to spell.

Infringement-free

A premium domain name should not infringe on the trademark of others. It is illegal to use domain names that violate the registered trademark of individuals and companies.

Alphabetical

A premium domain name should be purely alphabetical – that is, only consist of letters. Numbers devalue domain names. Website visitors are always confused about where to place the numbers in a domain name, and also tend to forget which numbers to use. In exceptional circumstances, if the number is quite popular, then it may be OK to use. .

Let’s say for example your domain name was “YourDomain4U.com”. Your customers could end up typing the following domain names trying to locate your website:

YourDomainForU.com
YourDomainFourU.com
YourDomainForYou.com
YourDomainFourYou.com
YourDomain4You.com

When customers experience difficulties locating your website, it simply means that you are losing customers. A lost customer means the loss of a sale or repeat sales.

The domain name should not contain any hyphen (dashes). Website visitors are always confused about where to put the hyphens. Domain names with hyphens are also a bit challenging to type on mobile phones.

Length

A premium domain name has more value when it has all of the above characteristics, and is short in length. The shorter the domain name, the more value it has.

Other Characteristics of a Premium Domain Name

Metrics

Metrics are the stats relating to a domain name. These include search volume/frequency, bids for keywords(cost per click) and the amount of traffic that the domain receives.

Whereas metrics can be useful, they should not be relied on heavily when valuing domain names. Stats can be easily falsified and are not entirely reliable. If you use stats to value domain names, you should have the data triple verified.

Market

The target market is quite important as well. For example Funds.com would be more valuable than Lamps.com. The money market is much larger and more lucrative than the lamp niche.