Is it worth buying a premium domain

For certain domain names, website operators have to dig deep into their pockets. But is the investment in a premium domain worthwhile at all? This is the topic we will be exploring in the following article.

Every domain name on the internet is unique. Especially under popular domain extensions, such as a .COM domain for internationally oriented web projects or a .DE domain for web projects targeting the German-speaking market, the best names are usually no longer available. Only by purchasing a premium domain is there a chance to acquire one of these sought-after names. However, the owners of premium domains usually charge a high price for this. Is the purchase even worth it?

What sets premium domains apart?

Premium domains are particularly attractive domain names that have been registered for a long time and usually change hands for very high amounts of money. Often, these domain names were registered in the early days of the internet by savvy entrepreneurs who believed in the future importance of good domain names and the rise of the internet. They are usually generic terms like "car", "insurance", or "gold", which are naturally ideal for web projects in their respective fields. In the early days of the internet when the demand for such domains was not high, they could either be newly registered or acquired for low amounts by domain traders. Nowadays, premium domains are often traded for five-figure sums, with some even fetching prices in the millions.

Characteristics of premium domains:

• Short and memorable name
• Often a generic term
• Direct association with a specific topic
• High domain age

Why is investing in a premium domain worthwhile?

Of course, not every company has such a high budget available for their own domain name, but in some business fields, investing in a premium domain can still be worthwhile. Because these special domain names come with various advantages:

• Brand Building
• Utilising a premium domain contributes to enhanced brand building for your own company. Due to their easy memorability, these names tend to stick in the minds of potential customers. Especially with generic terms, one can directly infer the business field from the name and associate the company directly with it. For example, with the domain auto.de, everyone immediately knows that it's about cars.
• Search Engine Optimization
• Despite continuous improvements in search engine algorithms by providers like Google or Bing, fundamental factors such as the domain name still have a significant impact. Search engines can more easily associate a domain like auto.de with the topic of cars and consequently preferentially place the website in search results for relevant queries in this area.
• Visitors
• The number of direct visitors is often underestimated. While most internet users rely on search engines or social networks to be directed to websites, many users also directly enter terms into the URL field. Someone looking to find information about cars, for instance, would simply type auto.de into the browser's address bar. The number of these visitors, who often have a strong interest or even specific purchase intentions, should not be neglected.

At first glance, investing in a premium domain may seem unprofitable. However, if your business benefits from the associated advantages over an extended period, the investment often proves to be very profitable in retrospect. Use our domain check to find out if a specific domain name is already registered or available.