Is Investing in Premium Domains Worth It?

Is It Worth Investing in Premium Domains?

Choosing a company name and the domain are important decisions, especially when you are launching an online business or e-commerce site. It is the first impression you make. If you are having difficulty finding a standard domain that fits your brand, then you might consider buying a premium domain name. However, some of them will cost you a king’s ransom. So you have to ask yourself, is it worth investing in premium domains?

What Are Premium Domains?

Premium domains are higher-value, more desirable domains with more branding potential. These domains are more likely to become popular, so they come at a higher price. While some of them are expensive, they are also more memorable and easier to find through search engines.

When it comes to premium domains, there are two different types. Aftermarket Premium Domains are ones which people already own that are for sale. Registry Premium Domains are ones which the registrar has determined to be more valuable. However, they are not yet registered to a company or an individual.

A domain can receive a ‘premium’ designation for many reasons. However, these are the most common attributes that help determine if it is a premium domain.


Short names are easier to remember and more appealing to a wider public. In fact, the shorter the name, the better. Two-letter and three-letter names are almost always premium domains since they can be used for abbreviations.

Search Engine Optimization (SEO)

The right domain name should draw higher volumes of internet traffic. If the domain contains a popular keyword or phrase that people frequently search, it makes the domain much more valuable. Sometimes, it can be difficult to find names that contain them. So, people are willing to pay more money for a premium domain that brings more people to their site.


While this factor is more subjective, a domain’s branding and marketing potential also affect its value. Catchy and unique domains make for more effective branding campaigns. A brief and descriptive domain tells visitors or customers exactly who you are and what you provide. Therefore, it would make sense that domains with more brandability go for a higher price.


Ultimately, a domain’s value is whatever people are willing to pay for it. Names that you would think nothing of could cause a bidding war. New companies and products are willing to pay top dollar for premium domains if it fit the image they want to portray.

When Are They Beneficial to You?

When deciding between a standard and premium domain, the primary question is how will it benefit you? If you are able to find a low-cost domain that fits your needs, then it probably doesn’t make sense to pay exorbitant rates for a premium domain. However, if a premium domain serves a specific purpose or meets an important business need, it may be beneficial to buy one.

Premium domains do offer certain advantages. First of all, investing in premium domains means you usually get a name that will be easier for people to remember. This is crucial when launching a new site or online business since you can build your brand around the domain.

Then, there are the technical advantages they bring. As a general rule, premium domains also have higher SEO rankings. When you have existing domain authority, as many premium domains do, it enhances your ranking in search engines. Your site will appear in the first few pages instead of being buried in the search results. This helps potential customers find you more quickly.

Although there are several benefits to owning a premium domain, only you can ultimately decide if it is worth the investment.

Is Investing in Premium Domains Worth It for You?

This sticking point for most people is that premium domains come at a higher price. Standard domains run between $10 and $30 while premium domains could cost you hundreds, or thousands, of dollars. It is a very personal decision, and warrants careful consideration. If you are looking at purchasing a premium domain, here a few questions to ask yourself before you make the plunge.

1. Is it in the budget?

Ask yourself, can you really afford the price tag on a premium domain? If the majority of your budget is going towards the domain, you should reconsider. You don’t want to go bankrupt before you even get off the ground.

2. Are there alternative names or other workable options?

Although a premium domain name is your first choice, is it the only choice? Try not to get hung up on more expensive options simply because it is a premium domain. If there is something more suitable or appropriate available, choose the cheaper option. Having some flexibility could save you a ton of money.

3. Do you have plans for monetization?

If you have plans to monetize, it might justify the cost of a premium domain. The site could pay for itself. Finding ways to earn money and attract more internet traffic could offset the expense.

4. Do you need to draw traffic?

Finally, how important is traffic to the success of your site? If you need a high-traffic site, a premium domain could help you reach those goals.

Where Can You Buy Premium Domains?

If you decide to invest in a premium domain, there are several ways to purchase them. You can buy them directly through domain registrars if no one owns them.

However, you can contact the owner directly to purchase a specific domain. If you aren’t sure who owns the one you want, you can look it up here to find the current owner. There are also dedicated marketplaces like DomainAgents and Afternic where you can buy them at set price points or make an offer.

Remember that online purchases always come with a risk. You have to trust that they will fulfill the sale and transfer ownership once payment is received. Marketplaces reduce the risk by using an open forum. And, of course, be wary of investing in premium domains that aren’t worth the price. Take time to evaluate your decision before investing in something you may not need.

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