What are the advantages of purchasing expensive (premium) domain names?

Looking over domain marketplace listings, you may note that some similar-looking domains are in some very different price categories, ranging from $50 to a five-figure price.

The first question that would come to mind is why are some of these domains that much more expensive, and do they provide any advantages over others?

The answer to this question is not a simple one and it demands that we discuss it from several important points of view.

Marketing and branding advantages of a premium domain

In order to discuss marketing and branding advantages of premium domains, we need to take a look at a very good example from 2019 where the domain “voice.com” was sold for a hefty $30 million.

Indeed, it is one of the largest domain transactions to date, for the company that acquired such an expensive domain has an elaborate marketing plan behind this purchase and the domain is an instrumental part in it.

expensive domains can provide advantages

The main goal for such a domain is to make a business recognizable among others, and a great domain name can have an amazing impact on online recognizability and success of your business.

Naturally, if you want to market a brand through online means, the best brand recognition can be made through a website with a domain name that is a perfect match for the brand.

Another good marketing example is expensive one-word domains that clearly communicate what the user will find when they visit that particular website, such as “cars.com” or “meat.com”.

Such a domain name is very easy to remember and when used in marketing means like billboards, business cards, and brochures people retain the domain very easily as it is easy to remember and it is much more likely that they will visit it again, which is an advantage.

While the domain price looks expensive, in the long run, it actually saves a lot of money for the company – money that would have to be spent on branding and brand recognition.

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Overall higher quality of pre-owned aftermarket and premium domains

Pre-owned domains have another advantage, with a higher than average domain authority and very likely daily visitor traffic.

The fact is that some domain traders invest in a domain name, by building a website upon it, even if they do not intend to keep that website.

Over time the website builds visitor traffic while the final goal is to improve the domain authority of the domain name it uses, with the target audience or specific business niche in mind. 

There are reasons and advantages behind buying a premium domain name

The website is built using content that provides SEO value to the most desirable business niche and in turn, increases the value of the domain name, hence a $50 domain can reach up to five-figure price over time.

Another advantage is that It also helps in your email outreach for backlinks when your open rates increase due to your domain’s trustworthiness.

Alternatives to expensive pre-owned and aftermarket (premium) domains

While large companies can spend exorbitant sums of money to proceed with a perfect marketing campaign, small and medium companies must satisfy their needs with more affordable choices.

Our opinion is that if your marketing budget does not allow you to purchase a fitting (premium) .COM domain name, then you should try to get a good domain with your target audience ccTLD or general-use domain (such as .IO, .AI …).

Such alternative choices, while they can provide options for registering an available domain, will also require time and effort invested into building that domain authority.

Conclusion

The advantages of a premium domain name can provide depend on the specific domain name. The domain is only relevant if it can indeed provide true advantage within your business niche.

As a business owner, you have to decide if it’s worth paying and what will be the return on your investment.