How to Value Premium Domain Names
What do you do when you’re trying to decide if something is worth the price? You think about how frequently you will use it, and then you do the math. For example, let’s say I’m debating purchasing of an article of clothing, a jacket. I think about how many times I am going to wear this jacket, divided by the cost of the jacket. Putting it into perspective this way gives me a better understanding of the value of the jacket. Or when you’re debating going to the grocery store versus going out to dinner. A dinner might cost you an average of $10-30 depending on where you go, or you can spend $20 at the grocery store and cook a meal that provides you with a few meals for the rest of the week. We all do this, don’t we? We even do this when we value premium domain names.
Not everyone understands the intrinsic value of domain names. When you have the perfect match domain for your brand, it goes unnoticed. It’s a natural thing that people expect. It’s when a brand doesn’t own their perfect match domain that people take notice and wonder how such a great company and product could not own their domain name. It’s hard to wrap your head around. This is the moment when people begin to value premium domain names as more than just a website address.
People purchasing domain names go into it thinking the cost will be somewhere in the $8 range, because .com domains are all that they are familiar with. When they search for a premium name and find that it’s in the thousands range, they are shell-shocked.
If you want elite results, you need to pay the price. Iconic and elite brands own their perfect match domain names. Domains names are assets. High-level executives may understand the value premium domain names offer for marketing and branding, whereas a startup entrepreneur may not. The Internet is second nature to business in today’s day and age. There are more and more startups, small businesses, and elite brands competing for the same names which increase the value of one-word premium domain names.
There are 2 ways to purchase premium domain names
- The first is from the domain registry. The registry will value premium domain names which you can purchase directly from a registrar like 101domain. This is the case with many of the new TLDs. Most domains have premium domain names, that are widely available during new domain launches. Domain investors tend to stay clear of new TLDs so unless a trademark holder registers the domain name before you, you can pretty easily secure a premium domain name this way.
- The second way you can purchase a premium domain name is from the domain owner. Not all domain owners will be interested in selling their domain name, but almost everyone has a price. Classic domains like .com domains have been in existence for so long that all of the great premium domain names are already owned by a domain investor waiting for the right buyer like yourself to come along. The longer you hold onto a premium domain name, the more valuable it becomes. Domain investors will have a specific price they want for the name but you may be able to negotiate a better deal. GDPR has made acquiring domain names even more challenging, due to the removal of WHOIS. We can help locate, engage and negotiate with a domain owner on your behalf through our domain concierge service.
When you’re trying to decide if a premium domain name is worth the price, think of it as you would when buying a jacket or groceries. Think of how often your domain name will be used by customers interacting with your website and the return on investment as the branding of your product and company. When we value premium domain names like we do with everything else the decision becomes clear.