Why Premium Domains are Worth the Investment

Written by Ankit
3 mins, 2 secs Read
Updated On November 22, 2023

The individuals investing in the domains have the anticipation of an increase in the future, and that increase will be in the name of those domains they just invested in. But well, they are not the only ones who are smart enough, a major proportion of the domains have already been taken up now. So, their next option is to invest in premium domains, which is also called the “Domain aftermarket”. 

What are Premium Domain Names?

There are two types of premium domain names, the first one is the one that is referred to as a name with high marketing value, the one that is quite remarkable. Just like PrivateJet.com which was sold for $30.1 Million. 

The other domain name is not registered by any individual company, it’s the one that is already being ranked higher to give it a top-level extension. These domains are known as “registry premium domains”. 

What Makes a Domain Name Premium?

People might be arguing over the fact that what makes a domain name premium, while the primary requirement is that the domain name itself is a keyword that holds some specific qualities:

  • A word with absolutely no negative reference or phrase
  • Most likely a noun or a verb
  • The one that is quite short in length, like-less than 12 characters. 

The most thrilling fact about its name is that the right one can take its domain price from a few thousand dollars to millions within a very short period. 

Now one might wonder if it’s worth investing in a premium domain or not, well, we have the answers for you. Let’s have a look:

Why You Should Invest in Premium Domains?

There’s a reason why people prefer investing in the premium domain and consider it so valuable, let’s see why:

They Appreciate in Value

One of the best parts about premium domains is that as time passes, they appreciate in value. Unlike stocks, domain names are one of a kind, so as time goes by, the domain value increases. 

They Enhance Brand Potential

Another one of the biggest benefits of investing in a premium domain is that they tend to increase your brand’s potential and its visibility over the internet, making your brand even more worthy. And as mentioned before, a good domain name should be easy to remember and is the one that helps create an assertive first impression with the customers. 

Helps in Increasing Security and Protection

If a domain name attracts high traffic and is well-known, it can prove to be a very powerful asset. This is why a premium domain name comes up with high security like privacy measures to get protection from phishing attacks. And all of this ultimately helps your website to keep your important data and files safe. 

Gives Instantaneous Credibility and Authority

When you own a premium domain name, you and your website have an edge over the competition, with that domain, you are being stood out from the crowd. And this is done by your premium domain name, as it tells the customers that they are a credible and authoritative source. And in today’s online marketplace, this can prove to be really helpful. 

Creates an Affordable Way to Get to the Marketers

Investing in a good and beneficial domain name makes your way through the global market and its audience. The premium domain name that you purchased helps you expand your business internationally. 

Delivers Huge Returns

Over the past years, we have witnessed so many domain names worth just a few thousand dollars converted into game chargers. This is exactly what a premium domain does, they have this unique feature of changing a few thousand dollar domains into a million one.  

Proves to Be an Easy Way for Improving Your SEO

While ranking a website, what Google considers one of the most important aspects is the website’s domain authority. And hence, a premium domain name can help your website get authority while fostering your SEO ranking.  

For almost 25 years now, Domains have been registered and for that long only, they have been registered solely for one purpose, that is profit. Even though the purpose of registering the domain is personal or business, the one thing that stays in mind while having it registered stays the same. 

Looks like it’s pretty much clear now how a premium domain changes the entire scenario of the market and how much it is really worth investing in one.