Understanding a true premium domain

premium domain
Understanding a true premium domain

The majority of so-claimed premium domains are not premium at all because in reality, very few domains are truly premium. If you’re fairly new to domaining then this article should help you get a better understanding of what actually constitutes a ‘premium domain’ and hopefully help curb the blatant misuse of the title.

Just because a domain has a high price tag doesn’t mean it’s a premium domain nor just because some appraisal tool told you so. You need to look a little deeper into the demographics of your domain name to get a more accurate valuation and understanding.

CATEGORY

What category does your domain fit into? Is it a popular industry, place/country, generic product or service? There are countless many categories and new niches emerging on a regular basis. If your domain fits into one of these categories/niches then chances are you’re already on the right track.

WORDS, PREFIXES & SUFFIXES

Ideally a domain should contain a maximum one or two words relating to it’s category, such as designerkitchens.com or fittedkitchens.com the usage of prefixes and suffixes will generally devalue the domain but there are certain exceptions to which these can be applied.

One word category domains like kitchens.com, cars.com or craft.com which have high commercial value will almost certainly be a true premium domain. Prefixed & suffixed domains like ilondoncabbies.com and mylawyersweb.com are generally not likely to hold much value; but there are exceptions. Common prefixes and suffixes include; e, i, first, my, online, web and so on.

RARITY

Sometimes very rare domains can be considered a true premium, for example certain 3 letter .com domains and two letter .com domains of any combination can safely be considered true premium domains given how rarely they are seen on the market.

Of course, this doesn’t apply to just 2 and 3 letter .coms one word dictionary domains that aren’t generally associated with any category, product or service can also be considered premium. Domains like happy.com , slick.com and bounce.com are all highly sought after for their commercial brandability and they appear on the market less often and thus command very high premiums.

TRENDING

New fads & trends are appearing sometimes as fast as they vanish but for an eagle eyed investor a new trend can be very lucrative if it is timed right. As such some domains based on current trends such as BitCoin or Drones can fetch a very respectable price if you get the right keywords but the longevity of trend-based domains can be fairly short lived but some can still be premium none-the-less.

RESOURCES

A good resource you can use to help you get a wider understanding of what a premium domain actually is is to check the top domains section of the Sedo marketplace as the majority of the domains listed in this section all come under ‘premium domain’ banner described within this article.
https://sedo.com/search/searchresult.php4?top=1&tracked=&partnerid=&language=us

Another good area to check is the recent sales or ‘market activity’ section, this will give you an idea of what type of domains are currently selling and perhaps even help you spot developing trends.
https://sedo.com/us/resources/market-activity/?tracked=&partnerid=&language=us

Hopefully this article has provided some valuable insight into what a premium domain actually is so you know when to use the term correctly.

Author: admin

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