There is a lot of money associated with a proper premium domain name. Let us see what are the attributes of a premium domain.
1.Premium attributes
Should be relevant to the current market
Should be easy to recall
Should be short and possibly sweet
Should be relevant to business
Contain only commonly used names and extensions
Easy to type
Goes along well with your branding
Easy to communicate
2.Should be relevant to the current market trends
Unless the product is a new innovation, the domain name must have an upward trend in search engine statistics.If it has a downward trend, it is losing its value.
3.Short, may not be necessarily sweet
Short domain name takes less time to type, is easy to remember and has less chances of annoying typos. This is the reason all 3 character .com domain names are already taken. Choose the shortest domain name which is otherwise suitable for the business.
4.How much premium is “premium”
A premium domain name may command a much higher premium than other premium domain name for the same business, depending on attributes mentioned above. Thus it is important to know “how much premium is your premium domain name?”
5.Compare other similar domain names
Check whether other domain names similar to your domain name are premium and if yes how much premium do they command? This will help you evaluate the value and even if you are going to use this domain name for your own business, will help you establish its suitability.
6.Check the market trend
The trend in domain name pricing is definitely influenced by trend in the growth of a particular industrial sector. If a particular industrial sector is doing well, the price of associated domain names will increase and vice versa.
7.Easy to recall
Consider a domain name hospitalsoftwaresupport_services.ca.it. Although it perfectly represents the business for which it is intended, it is not easy to remember. Unless the user bookmarks it of writes it in his diary, he/she is not likely to visit the site a second time.
8.Is the premium real?
Probably only way to find this out is to put the domain name for sale and find out what offers you get. The premium of any domain name is what the buyer is willing to pay for it.
9.The demand and supply theory of domain name pricing
The pricing theory applies to the domain names as well. Domain name in earlier internet years did not command any major premium, because the demand was low. With many more companies having their web presence those domain names now command a much higher premium.
10.The Geffon paradox of domain name pricing
There may be an increased demand of certain premium domain names by increasing their price. This happens as an exception to the demand-price theory. Such premium domain are a risky proposition.
11.The winner takes it all theory
The proof of pudding is in eating it. If you are able to run an effective business with your chosen domain name, you are successful. If you are able to sell a premium domain name at a price much higher than your purchase price, you are successful.
12.A domain name can be only as good as the business using it
Finally the domain name is identity of the business. It is not the business itself. If the business is not doing well and does not have goods or services of good quality, no matter how good is your domain name, it will not help.
