Long gone are the days where catchy domain names were easily bought. Domains are increasing in value, but they are frequently overlooked by business start-ups and investors. However the simple truth is, that many successful brands have premium domain names.
Either they bought them as they were starting up their business online or they upgraded to premium later on. The benefits are many and range from increasing your site's SEO to making your brand name more reliable. In this article, we'll share insights on the value of purchasing premium domains.
Advantages of premium domains for businesses
Are you running a business and do you have a website to present yourself and your services or products online? Or do you have an established online business like an online shop, a directory website or anything else? Then you probably know how important a catchy domain name is to ensure that your website visitors or potential customers can easily remember and associate with your business. Here are 11 reasons why premium domain names carry value for your business:
- Brand reliability
- Semantic value
- Product scarcity
- Partnership building
- Social media sharing
- Physical marketing
- SEO benefits
- Link building
- Direct traffic
1. Brand reliability
Having a valuable premium domain name can establish your brand reliability. It can give customers the confidence and commitment that you are there for them. Also, one word premium domain names that end with .com communicate that you are an authority in your industry. Being trusted as an authority can be beneficial for your business and might bring more customers. Usually a domain name like cars.com can seem more reliable compared to buygoodcars.com.
2. Semantic value
When investing in a premium domain name, you are also buying into the generic meaning that name is associated to. This is one of the many reasons why brands purchase the generic domain associated with their trades. Besides, you also purchase the semantic value of a term when buying a premium domain name. This can be a strong step for any business since you eventually want customers to associate your brand with the industry that your business is operating in.
3. Product scarcity
Usually customers are more inclined to believe a product is valuable and high-quality when it's available in limited quantity. That means if a product is limited, customers often times conclude, that it must be a great product and will more likely purchase it. The same applies to premium domains, as they are limited, so potential customers will often see your domain as special, especially when they see that other big and successful companies use premium domain names as well.
4. Partnership building
Having a premium domain name for your business might also attract new partnerships. Some business owners – especially when it comes to online businesses – prefer to partner with reliable companies that have premium domains that are short and memorable over long names.
Such partnerships could be essential for your (new) business to flourish and help your company grow and be more successful. These partnerships could be advertised on your site as well, along with some meaningful testimonials that might increase the reliability of your brand.
Catchy domain names could also be quite useful in generating more referrals and customers for your company. The amount of traffic might significantly increase when more and more people talk about your website and spread the word. Some would even regard virability as the greatest source of traffic there is. Examples of premium domain names that people can quickly spread are expedia.com, amazon.com or xing.com – whereas buybooksnow.com would be more difficult to spread.
6. Social media sharing
Spreading the word about your business can be a lot easier if your domain name is kept short and memorable. When it comes to social media many people usually use URL shortening tools, this sometimes covers the actual domain name and could prevent people to notice your brand.
However, if your domain name is short already, people might be less inclined to use URL shorteners when sharing your content. In the end, each social media post could create a lasting impression for more and more vistors from social networks to come.
7. Physical marketing
Having a short domain name isn't just beneficial for your online presence. It's also increasingly important in the offline marketing world as well. In general, people are overwhelmed with information from every direction – just think about banner blindness. So it matters whether your customers can remember your domain name or not. Again, short trendy names are far easier to remember than long ones and could be used offline as well (e.g. printed on merchandise).
8. SEO benefits
Search Engine Optimization (SEO) is one of the key principles of online marketing. When customers see your domain name while performing a relevant search, this always is beneficial for your company and may increase your traffic and revenue. Also, by taking up premium domain names, you are reducing your competitors' options. This is called defensive registration.
Relevant domain names may rank better in search engines. That means when your domain name matches the keywords of people's searches, it is more likely that your domain name ranks higher in search results. But in general ranking on top even with an exact match is getting harder and harder. However, premium domain names have another advantage, which brings us to the next point.
Since premium domains are frequently more relevant to any industry, it will also accumulate more references from the internet. This form of citation, called co-citation, can be immensely important to your site's marketing efforts and can save you some trouble from physical advertisement.
10. Link building
Whenever a website links to your domain, then it's very likely relevant to your particular business. Having many high-quality sites linking to your domain will allow your domain name to rank higher in search engine results. Premium domain names combined with relevant content and information could therefore be of great advantage when it comes to link building, since most websites prefer to include links to websites with short and authortative domain names.
11. Direct traffic
Premium domain names tend to attract more direct traffic. Direct traffic means that people simply type in your domain name in the browser to access your site, which is in contrast to using search engines. Lots of direct traffic usually is a sign for a strong brand and may lead to increased revenue.
Premium domain names for investors
Premium domain names have been a profitable investment for many years already, with some lucky investors landing as much as $9 million for reselling their domain. Now let's take a look at 5 reasons why investments in premium domain names makes sense:
1. Accumulative value
Premium domain names may increase in value over time. More valuable domain names are taken with each new website. This means that the longer your domain name ages, the more it can be worth. Some people even buy premium domain names with the intention of selling them later on.
2. No maintenance
When it comes to holding premium domains, then this doesn't require lots of effort. In fact premium domain names don't require any maintenance and there is no tax or insurance involved. That means usually your only expense is the renewal fee once a year or else.
3. No security fees
In addition, domain names are portable and don't require storage or security fees. People usually need to keep their valuable goods such as money or jewelry in secure locations. Premium domains, on the other hand, can be owned without the hassles of security.
4. Passive income
Domain names can be used to generate passive income as you wait to resell your domain. You can display paid advertisements when people visit the premium domain, allowing you to earn income without having any upkeep. This practice usually is called domain parking.
5. Global opportunities
Premium domain names and domains in general allow you to attract buyers from all over the globe, whereas, real estate or other forms of large properties may only attract local buyers. When your domain name has accumulated enough value, you can sell it worldwide.
Conclusion: Choose premium domain names
Whether you are a (online) business owner or an investor, the premium domain you purchase can be beneficial in various different ways. Some people decline buying premium domains due to the higher expenses because some domain names rank already well in search engines, making them much more valuable. However, excellent domain names usually don't fail to benefit both business owners and investors. What is your experience with premium domain names? Let us know.