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When searching for the perfect domain name for your business, you may come across the term “premium domain.” While it sounds enticing, it’s also not always clear what does ‘premium’ stand for and how is the offering different from the regular domains.
Think of the last time you’ve bought plane tickets. Your rational side would advise going for the base fare, since it’s the cheapest way to fly from point A to point B. But then you start thinking about the extra legroom and luggage, priority check-in, chef-cooked meals and other perks of flying business. Maybe you’re travelling for a special occasion, or just want to arrive at your destination well-rested – and here you are, booking that coveted seat 1A.
The concept of a premium domain is not unlike the idea of flying business class – or, on occasion, even a private jet. You can perfectly run a successful website on a regular domain (aka getting from point A to B), or you can splurge on a premium. But what’s the difference? Let’s break down what premium domains are, why they are considered valuable, and whether you need one for your business.
Source: Pexels
A premium domain is a domain name with characteristics that make it more desirable than others. Premium domains often:
Because of these features, premium domains often cost more than standard domain names. While a usual domain costs a few dozen dollars per year to register, a premium domain can range anywhere from a few hundred to millions of dollars, based on its perceived value.
While the cost of a regular domain is often standardized, the price of premium domains is always defined by supply and demand. Short, memorable and keyword-rich domain names are scarce, and as businesses compete for visibility online, the limited availability makes demand more intense and pushes prices up.
The demand for some premium domains can go extreme – and here are the examples:
Those and many more examples prove the fact that some premium domains can increase in value quickly if they have a broad marketing appeal or tap into a fast-growing industry.
Of course, with the new TLDs like .shop, .ai or .tech, businesses get more opportunities to find a domain name which would be considered premium in a highly coveted .com zone. Yet the appeal of premium domains doesn’t seem to wear off – in the first months of 2025, we’ve already seen a sale of commerce.com domain for $2.2 million.
Many domain registrars clearly label a domain as “premium” when you search for it. Alternatively, if you see a domain listed at a high price beyond the standard registration fee, that is a strong signal that a domain is considered premium.
Source: Dynadot
Clearly, owning a premium domain comes at a price, but it also carries certain benefits:
On a downside, a premium domain:
Source: Pexels
Now that you know the basics, you can decide whether a premium domain is worth for your business. To make an informed decision, ask yourself those questions:
On a final thought, while a premium domain isn’t a silver bullet for succeeding online, it can provide an additional assurance to your customers, investors and partners that you’re serious about your business and willing to invest in its digital image. With the right strategy, a premium domain can become a powerful tool for driving credibility, conversions, and growth.
Ready to explore premium domains? On it.com Domains you can find a name that is short, memorable and aligns with your business (availability and prices current at time of publication):
Looking to boost your online presence? Visit it.com Domains for expert tips and user-friendly domain solutions.
Continue reading at the it.com Domains blog...
Think of the last time you’ve bought plane tickets. Your rational side would advise going for the base fare, since it’s the cheapest way to fly from point A to point B. But then you start thinking about the extra legroom and luggage, priority check-in, chef-cooked meals and other perks of flying business. Maybe you’re travelling for a special occasion, or just want to arrive at your destination well-rested – and here you are, booking that coveted seat 1A.
The concept of a premium domain is not unlike the idea of flying business class – or, on occasion, even a private jet. You can perfectly run a successful website on a regular domain (aka getting from point A to B), or you can splurge on a premium. But what’s the difference? Let’s break down what premium domains are, why they are considered valuable, and whether you need one for your business.
Source: Pexels
Understanding premium domains
A premium domain is a domain name with characteristics that make it more desirable than others. Premium domains often:
- Are short and catchy, consisting of a single word or a short phrase that is easy to type and spell, and has a potential to drive direct traffic.
- Are brandable, memorable and versatile, offering use cases across products, campaigns and even future projects you might consider.
- Include popular keywords like ‘insurance.it.com’.
- Come within a coveted domain extension (TLD – top-level domain) with a track record of credibility, such as .com (and .it.com by extension), .net, or .ai.
- Have a good domain history and authority.
Because of these features, premium domains often cost more than standard domain names. While a usual domain costs a few dozen dollars per year to register, a premium domain can range anywhere from a few hundred to millions of dollars, based on its perceived value.
Why are premium domains valuable?
While the cost of a regular domain is often standardized, the price of premium domains is always defined by supply and demand. Short, memorable and keyword-rich domain names are scarce, and as businesses compete for visibility online, the limited availability makes demand more intense and pushes prices up.
The demand for some premium domains can go extreme – and here are the examples:
- Business.com first sold for $7.5 million in 1999, but then reached the price of $345 million in the aftermarket in 2007.
- Voice.com – sold for $30 million in 2019, setting the record at that time for a public domain-only sale.
- Hotels.com – sold for $11 million in 2001 and is often cited as an example of how investing in a strong and relevant domain name can positively impact branding.
Those and many more examples prove the fact that some premium domains can increase in value quickly if they have a broad marketing appeal or tap into a fast-growing industry.
Of course, with the new TLDs like .shop, .ai or .tech, businesses get more opportunities to find a domain name which would be considered premium in a highly coveted .com zone. Yet the appeal of premium domains doesn’t seem to wear off – in the first months of 2025, we’ve already seen a sale of commerce.com domain for $2.2 million.
Many domain registrars clearly label a domain as “premium” when you search for it. Alternatively, if you see a domain listed at a high price beyond the standard registration fee, that is a strong signal that a domain is considered premium.
Source: Dynadot
Pros and cons of owning a premium domain
Clearly, owning a premium domain comes at a price, but it also carries certain benefits:
- Instant credibility amongst potential customers who tend to trust a clear and short domain name, which is memorable and easy to recall.
- Boost to promotion activity due to a domain which is easy to type and pronounce.
- Potential increase in organic traffic – if users trust your domain, they are more likely to click on it, especially if it includes relevant keywords.
- Win over the competition – a premium domain gives your business a level of authority that’s hard to replicate with a long or complicated address.
- Long-term value – buying a premium domain is like a digital real estate investment which has a potential to be sold later for a profit.
On a downside, a premium domain:
- Comes at a higher upfront cost, especially for a small business or a bootstrapped startup.
- Carries a risk of overpaying or depreciating in value over time, since the demand can be impacted by market trends.
- Attracts unwanted attention from cybercriminals, since premium domains are often targeted by techniques such as domain hijacking and spoofing.
Source: Pexels
Does your business need a premium domain?
Now that you know the basics, you can decide whether a premium domain is worth for your business. To make an informed decision, ask yourself those questions:
- Does this premium domain align with my long-term vision? If you are planning a global expansion or aiming to be a leader in your market niche, a premium domain will pay off over time. However, for a short-term or a small local project, a standard domain name would suffice.
- Would the purchase of a premium domain drain my budget? Buying a domain name should not come at a cost of critical aspects of your business, such as product development, talent or marketing. Ensure your budget can handle this expense without hindering the rest of business.
- Does it have a reselling potential? If you’re buying a premium domain which is 100% branded and associated with your company only, it probably won’t have the same reselling potential as a keyword-rich domain name. However, it’s only an issue if you definitely plan to sell it in future and hope for it to grow in value.
- Am I buying a really premium online asset? Investigate the domain history and previous ownership to ensure that a domain (as attractive as it may be) was not previously associated with spammy or other inappropriate online activity.
- Are there any alternatives? Research the desired domain names across all relevant TLDs as well as consider subdomains such as .it.com to compare prices for premium domains across different zones.
On a final thought, while a premium domain isn’t a silver bullet for succeeding online, it can provide an additional assurance to your customers, investors and partners that you’re serious about your business and willing to invest in its digital image. With the right strategy, a premium domain can become a powerful tool for driving credibility, conversions, and growth.
Ready to explore premium domains? On it.com Domains you can find a name that is short, memorable and aligns with your business (availability and prices current at time of publication):
- vision.it.com – premium domain
- see.it.com – premium domain
- explore.it.com – premium domain
- drone.it.com – premium domain
- learn.it.com – premium domain
- do.it.com – premium domain
- save.it.com – premium domain
- watch.it.com – premium domain
- order.it.com – premium domain
- create.it.com – premium domain
Looking to boost your online presence? Visit it.com Domains for expert tips and user-friendly domain solutions.
Continue reading at the it.com Domains blog...
