Premium Domains

October 5, 2010 5 Comments

what is a premium domain? What is a Premium Domain? Premium domains are simply generic keyword terms that are either one or two words and typically encompasses the .Com extension. The extension is also known as a TLD (Top Level Domain) and there are many to choose from, but to date .Com trumps all. Investing in a premium domain name is an essential step in bringing your business online. Below you will see reasons why most businesses and entrepreneurs invest in premium domains:

Increase Visibility: The reason why a premium domain is highly sought after is due to the traffic it can generate. In short: Lead Generation. There are two forms of traffic that come from a premium domain: Direct navigation & search volume. An alarming percentage of Internet users still type in specific names directly in their browser completely bypassing search engines. Direct navigation has proven to convert the best. However, search volume commands much more traffic than direct navigation and the benefit is the SEO can be optimized. This in turn promotes business growth and allows you to reach a larger audience.

It’s an Investment: Domain names are virtual real estate and premium domains are similar to properties on Rodeo Drive or Fifth Avenue. Just like purchasing a fixer upper in a nice neighborhood you can score a premium domain and increase its equity via development and marketing. Traffic, conversions & revenue all increase a domains equity which in turn allows you to sell the domain for a nice profit or sell the domain along with your business for multiples of the revenue it produces. Unlike costly PPC campaigns that stop driving traffic when the campaign ends, premium domains that are developed and ranking in search engines continue to drive leads with out the exuberant cost of an ongoing marketing campaign. All in all a premium domain is an investment in your business and your marketing objectives- “Domains have and will continue to go up in value faster than any other commodity known to mankind”-Rick Schwartz


Credibility: Premium Domains offer a sense of credibility to the business that owns it. End users who are searching for a product or service trust a specific term like Dictionary.com over webstersonlinefreedictionary.com- With a domain like Dictionary.com you’re the definitive resource online for that niche. Owning a premium domain also allows you to create email addresses specific to the domain instead of a generic email service like hotmail or yahoo. This promotes professionalism and unity in your online presence. ex. info@dictionary.com vs nimajacob454@hotmail.com. All in all a premium domain should be a category killer. That means it’s the dominant search term in its vertical and is a generic term.

Brand Protection: If you own the rights to a specific term it is in your interest to acquire premium domains that revolve around your vertical to prevent competitors in your space. Descriptive domains are an advantage to any business and help drive hundreds of thousands of potential clients to your website. Acquire premium domains around your vertical before your competition! Utilize free keyword research tools to secure keyword specific domains in your niche.

It’s a known fact that owning a keyword specific domain can help a website rank faster in the search engines. Nothing beats it, I’ve tried and tested this method myself and it definitely saves time & money. In the domain industry it’s not about quantity, it’s truly about quality. Focus on 10-100 premium domains rather than a large portfolio of poor quality domains. In the end you’ll be happy you kept speculation to a minimum and invested only in premium domains.

“ At the end of the day domains are only valuable when someone else wants it.”- Nima

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  • http://justinfinkelstein.com justin

    another grandslam post! great article.

  • Alan

    I like the post, have a few questions here though:

    I want to make residual money by domain parking, however most of the domain
    names that are available are taken, what are some good aftermarkets to look at?

    I read that quality is always better than quality, whats the best way to get started
    in domaining? I would like to increase my portfolio to around 200-300 domain names, but
    i dont want to get garbage domains though.

    How much would I want to place into my domain portfolio as an initial investment, I.E.
    price point for domain names since im a rookie. should i start by looking at a
    specific auctions house?

    • http://nima.co NJN

      Thanks Justin!

      @Alan- I personally despise cash parking because it really only serves domainers with category killers. If you’re new to the industry then focus on acquiring domains with high search volume. High PPC is good, too, but focus on search volume.

      I’m a Go Daddy guy so I’m partial as far as the auctions go. I can’t bid on Go Daddy’s Auctions, but if I could I’d say this is the list:

      1)Go Daddy Auctions
      2)Sedo
      3)Aftermarket.com
      4)BuyDomains
      5)Snap Names
      6)I personally like working with brokers: Kevin Leto, Rick Latona, Adam Strong & Justin Godfrey to name a few.

      It’s hard to throw a dollar figure out there with out knowing what your strategy or plan is. But a rule of thumb is spend as much on acquisitions as you plan on spending on development. If your development budget is $2k, don’t spend more than an additional $2k for the domain. It’s always quality over quantity. I’d rather have 10 domains that are producing substantial passive income rather than 1000 that are costing me money. Give me a call so we can consult in further detail.

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