The term ‘premium domain’ is frequently misused in domaining industry either deliberately or unknowingly. As a domainer you should know what constitute a premium domain. This will help you not only in distinguishing a premium domain from non premium domains but also go a long way ensuring you remain free from scams and frauds. Further, understanding premium domain is very important because values of such domains are going up day by day.
What is a Premium Domain?
Domainers widely differ in their views on this question but majority of them agree that age, extension, keywords and search volume play critical roles in determining whether a domain is premium or not. Such a definition appears to be correct but unlikely to serve your interest as a domainer. This blog post is an attempt to clear the confusion and helps you understand the concept better.
First and foremost, it is important to acknowledge the fact that domaining market is growing rapidly and values of good domains are skyrocketing. The meaning of the ‘premium domain’ may not be same in future because of the rapid change taking place in domaining market. Any definition of premium domain should be thus temporary.
Definition of Premium Domain
Premium domain can be defined as a domain having minimum value of US $10, 000 or more. This is the simplest and most authentic definition because criteria based traditional definitions are fraught with problems and won’t serve your financial interest.
Consider following examples.
Age of a domain often used to evaluable whether the domain is premium or not. Let me illustrate how such a yardstick is useless.
Take the case of a dropped LLL com domain that subsequently re-registered. Rule defines that once a domain drops its age (from the date of registration to the date of dropping) become irrelevant. If the same domain is freshly registered its age has to be calculated from the date of fresh registration. Even that is the case value of a LLL com domain will not be affected anyway because LLL.com are very scarce.
You might argue that somebody would invariably drop catch such a valuable domain before the domain being dropped. That is correct but not always the case. Few domain registrars don’t participate in drop-catch auctions. In such a case the domain will be deleted and available for fresh registration.
Similarly, when a domain earns huge parking revenue not because of organic traffic but because of the effort of domain owner, the value of that domain would go up regardless of its age and search volume. The bottom line is that the criteria used to do define premium domains are fraught with impracticalities.
In recent times many other factors have come to play. They can affect the future sale of the domain. One such factor is past sales history of the domain. Trading histories of domains are available at sites like \nambio.com, archves.com, estibot.com and dnjournal.com. Buyers refer to these sites before purchasing a domain.
The myth of supremacy of “COM” domains have been debunked with arrival of many ccTLDs and gTLDs. Many gTLDs and ccTLDs are regularly selling five/six figures.
The above discussion clearly spells the issues related with traditional definitions of premium domains. Monetary value of the domain thus would be a better criterion for defining a premium domain.
Types of Premium Domains
So, let’s define premium domains.
A premium domain is a domain having value of at least US $10000. The minimum threshold limit of $10000 is taken because these days a lot of domains are easily selling at four figures. Under this definition most of the following types of domains will qualify as premium domains.
- L com, net and org; LL com and net; LLL com; LLLL com single word (e.g. wild.com, bold.com etc.)
- One tenth of dictionary words (mostly nouns and pronouns)
- N com, net and org; NN com, net and org; NNN com and net; NNNN.com; few NNNNN.com.
- First names of people (e.g, Ruben.com, Mandy.com etc.)
- Names of major countries, cities and towns.
- Domains that earn parking revenue of four figures monthly.
- Meaningful domain hacks like Ameri.ca, Pen.is etc.
- High quality keyword domains like CarInsurance.com, SeniorCare.com etc.
The above definition should not be viewed as water tight compartment. There could be many exceptions. An end user may even pay six figures for seemingly worthless domains. Many companies are also paying millions to acquire not-so-good names to protect their brands.
Often you will be hearing single premium, double premium, triple premium and quad premiums. They should not be confused with premium domains. These terms are used in reference to premium letters present in a short domain, usually up to five characters. For example, RAML.com is a quad premium domain because all the four letters in the domain are premium letters. These domains are having resell value less than $10k.
I hope you gained sound knowledge about premium domains. I am now sure you are in position to protect yourself from domainers/sellers who misuse the word ‘premium’. This blog post will certainly help while buying and selling valuable domains.