For people with little time, there is a quick summary of this article at the end.
Premium domains are domain names that were identified and classified as exceptionally valuable domain names, by the registry.
There are various criteria used by registries to define which name is premium. One of which is the length of a domain name. For example, one and two letter domains like “a.kiwi” or “be.kiwi” are generally classified as premium domains. Other candidates are popular one-word or product related terms, such as “hotel”, “shoes”, books” and so on.
These so-called “exact-match” domain names receive a lot of “natural” traffic from people typing them into their browser. Imagine the amount of people who search every day online for “shoes” or “books”.
Exact matching domains like “shoes.com” or “book.shop” are very memorable and brandable and get a lot of natural traffic from people searching for these terms exactly. As each domain name is unique, the premium domain names play an important role for online businesses. Imagine how much additional revenue businesses can generate with the high traffic these type of domain names receive.
For these reasons, registries want to see as many of their premium domain names developed and used. It increases the visibility of their domain extensions and their overall brand value.
Because of the millions of domain names that are registered but not used under the original extensions like .COM, .NET and .ORG, the newer registries were concerned that all their good names might end up in the portfolios of domain investors who have no intention to use the names, but simply hold them to sell them for a profit in future.
To prevent this from happening, the new registries came up with the premium domain model. Domain owners, who plan to acquire a domain name for their business, would not fear higher registration and renewal costs. Using the domain name to generate income, plus the additional traffic premium domain names can bring, makes up for the higher initial costs.
Whereas for domain investors and speculators who don´t use the domain names actively to generate income, would shy away from registering them, as the yearly renewal costs would decrease their possible profit every year in which they simply hold the domain. It makes the premium domains a less viable investment for them.
If you consider registering a premium domain name, but you are not sure about it feel free to get in touch with us. We are happy to help you with some free advice.
What are premium domain names?
Premium domain names are domains that were identified and classified by the responsible registry as particularly valuable, high quality, premium domain name.
Are premium domain names technically different?
No, technically they are just like all other domain names. The only difference is the higher price tag because of their intrinsic higher value.
Why are premium domain names more expensive?
Premium domains are usually shorter and more memorable and are therefore more brandable and offer the chance for more traffic. They come with a higher price tag to prevent domain investors from simply registering all the good names and thus stop actual businesses from buying, developing and using these domains.
Can Moreweb NZ reduce the price for premium domain names?
The responsible registries set the prices of the premium domains and Moreweb NZ simply forwards the price to its customers. Only some registries are willing to negotiate the price of their premium domains, and only if the future owner plans to use the name actively. You may always contact us if you plan to acquire a premium domain, and we will see what we can do for you.
