What Are premium Domain Names

Have you ever searched for a domain name and discovered that the cost of it was very high? Most times you may want to buy a domain name and then you perform a search and see that the domain name has already been registered and it is offered for sale at a very high price. This type of domain name is referred to as a premium domain.

Premium domain names are domain names that have already been registered by someone or by a registry. These domain names usually have keywords which are highly brandable and easy to remember. Many of them are already receiving a considerable amount of organic traffic and rank very well in search engine results pages (SERPs).

Domain names are like a virtual real estate. A unique domain name will always increase in price value. When someone buys a domain name with an important or sought after keywords, he may decide to keep it, wait and then offer it for sale. Most of these domain names are what people directly search for on the internet when in need of a particular service or product. For example, a person who wants to buy a domain name may likely type domain.com on his web browser. This is a perfect example of a unique domain name which is currently in use by a domain name registrar.

Most big business owners buy a premium domain that tells people more about their business. Car.com will let you know that the website is about cars without being told. Premium domain name can have the name of a location, physical product or service and most usually are the .com extension. But of recent other domain extensions such as .org and .net have been flagged as premium domains.

When a domain name is flagged as premium, it can be sold for thousands of dollar but renewal fee will always be the same as the regular cost for that TLD. Some premium domain names expire and are available for registration. Some domain name registrars will give you the opportunity to acquire such domain names and some may not. Domain investors (domainers) makes a lot of money by acquiring premium domain names and selling to other investors or those who need them for their business at a high value.

What Determines The Price Of  A Premium Domain Name

Age is always the first factor in the evaluation of a premium domain name. There are some domain names that have been registered since the year 2000. You can't expect such domain names to be sold for just few hundred bucks.  Other factors are domain keywords (spelling or wording), traffic the domain is already receiving from search engine or direct traffic.

Can you use your money to buy a domain name sold above the regular cost? 

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