What Is a Premium Domain and Is It Worth Getting One?

Last Updated:
September 28, 2021

Premium Domain

With over 1.8 billion websites on the internet, finding a suitable domain name can be a challenge. Often this leaves businesses purchasing a premium domain name. Premium domain names are either already owned by someone or have simply been judged to be of high quality. Thus, they have a steeper price point than standard domains. However, is a premium domain worth it?  Below are all the details you need to know about premium domains!

What Makes it Premium?

Premium domains are usually viewed as valuable for a variety of reasons. This includes;

  • Length - shorter names tend to be more memorable and appealing. The ideal domain is often between 6-10 letters long.
  • Brandability - catchy and unique names that immediately communicate a product or niche.
  • Keywords - high-traffic keywords within a domain are extremely valuable.
  • Availability - most of the best domains are already taken, however, some are not currently in use.

When a domain name registers as premium it is because of one or more of these reasons. Many people will buy a specific domain name in a niche with the plan of selling it later. Thus, driving the price and the demand up. If the domain you want is already taken, you can try to negotiate to purchase it or try another name.

Benefits of a Premium Domain

Generate More Traffic

This is possibly the biggest benefit of most premium domain names. After all, it was the first thought you had when creating your web presence, therefore it makes sense for potential customers too. Additionally, these domains are usually shorter, and therefore easily remembered by potential and current customers.

Marketing Friendly

Most premium domain names will seamlessly fit with your business branding, especially if using your business name or industry as the domain. The best domains typically do not contain numbers and are often industry keywords making it easy to slip into marketing. After all, people are more likely to remember a single word over a phrase. Plus, having a shorter domain helps build credibility as people are more likely to click on cars.com over cars756.com.

Downsides of a Premium Domain


The majority of premium domains cost upwards of $500 compared to a standard domain at $15. If you need a domain name for a small project or personal website, the cost might not be worth it. You should always review your budget and decide how much the domain is worth to you. You may be able to save hundreds of dollars by creating a slightly different domain. Not only can this save you money, but it could help you target your niche marketing.

Copyright Issues

If you choose to purchase a premium domain name, ensure that you do your research first. If the domain name contains a trademarked brand or keyword, you could easily lose it. This is possible because domain systems do not register whether something is trademarked or not. So, if you buy a trademarked domain, the company that owns the trademark can file a lawsuit and take the name.

Buying a premium domain name can be worth it, however, it is a big investment. Consider the details above and the details in the infographic by SBA Loan below before making your decision.

Premium Domain Infographic

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