So you start a new business, and you get a website built. Then, you are looking on a registrar site to register your domain (the name of your website) such as GoDaddy.com or BlueHost.com. You are shocked to discover the domain you want costs thousands of dollars. This may seem crazy, but some people have made a fortune from selling their premium domain, even 7 digit figures!
Why is the domain I want so expensive?
- Some of the most expensive domains out there are pretty boring names. The reason is because they easily climb the Google rankings. Do a Google search of the word “business” for example, and one of the first sites you’ll see will, of course, is business.com.
- Domain names that exactly match a geographic location product, service, or industry can also be pricey. Having the perfect name many people would type if searching for you is free marketing.
- Acronyms or short, easy to remember names are often pricey.
- Domain names that contain words/phrases that Pay-per-click (PPC) advertisers are competing for are expensive as they bring more traffic.
- At times, it is simply a matter of demand. Names that are trendy can be expensive although their price will drop when the popularity does.
- Sometimes domains are so costly because the website is a well-trusted domain by Google already. In the past, site owners tried to buy one of these trusted sites as a means of instantly ranking well with Google. Beware that Google is smart. They are aware of this tactic, and suggest you go about it the right way (albeit the hard way), and do some standard search engine optimization.
What are the benefits of owning a premium domain?
- Short, memorable names work well on social media platforms.
- Consumers are more likely to remember premium domain names when they view them on advertisements such as on print ads, banners, billboards, and tv commercials.
- You can save on advertising. Traffic is better for a higher ranking premium domain name.
- If you own “dogs.com” for example, customers know what they’re going to find on your site. Dogs.com is owned by PetSmart by the way, allowing them to redirect you to PetSmart.com.
- Premium domain names evoke trust and authority. Therefore, reputable companies feel encouraged to link to your site.
- You are more likely to refer someone to a site when you can remember the name.
Do I need a premium domain?
Well, probably not. For small and medium-sized businesses, it is probably not going to be a tragedy to have to pick a domain that isn’t your first choice. If you were Target and didn’t own Target.com though, that might be a big problem! When your business gets as big as Target one day, you can probably then afford to pay the big bucks for the domain of your choice.
If you decide you can’t live without it and are willing to pay big bucks, services exist to help you negotiate with the seller. You may feel like you’re buying a house before it is all said and done. Contracts will be drawn up and you may even need to open an escrow account!
What should I do if I decide to go with a cheaper domain?
So how much should you spend on a domain? Anything from the $8-$30 range is probably good and efficient to meet your needs.
If you have other questions about domains, reach out to us!