Premium Domain Names: What Drives Their Value & Cost

Search Engine Optimization
Premium Domain Name

Have you ever searched for premium domain names online? So, you’ve probably experienced a phenomenon common to auto stores and auto dealers worldwide. You see the high cost of your choice domain and unsure how you can justify paying such a price for the Domain of your choice, even if it is the perfect choice for your small business.

Before you click the back button on your dream domain, you should take a few minutes to read why these prices are not as high as you might think. You may find that the cost of your desired premium domain is appropriate and reasonable as part of your overall marketing budget.

What is A Premium Domain?

A premium domain name is a domain that is already owned by someone or the registry. They can cost significantly more than purchasing a regular domain – from hundreds to hundreds of thousands of dollars – because of their perceived value.

Why Are Premium Domains Cost So Much?

It is only because of the supply and demand principle. Because when the market for a specific premium domain name increases, the value also increases due to low supply. To find the perfect premium domain name for your business, make sure you take some experts’ help as per digital marketing service providers.

However, it is because they will help you save money and will assist you in negotiating. Premium domain names are also more expensive as they add some hidden costs. So, in this segment, we will reveal some of them. Have a look:

WHOIS and Domain Privacy

ICANN is a non-profit public interest company responsible for coordinating the assignment and maintenance of domain names. They require each domain registrar to collect the website owner’s contact information. This information can be accessed by the public using WHOIS data. Other businesses and companies can use this information to contact you about possible business partnerships.

Having WHOIS data available to the public can result in unwanted phone calls and emails. However, this is why some domain registrars sell an addon called Domain Privacy. As per AppStudio, a well-known agency, this addon usually costs an additional $ 9.99, and this is entirely optional. The problem is that most times, your registrar adds them to your cart automatically, and you have to manually delete them if you don’t want to pay for them.

Business Email Domain

When purchasing a domain name, you’ll likely see an addon for email domains to set up a professional business email address. You don’t have to buy this as you can get a free business email address with most web hosting companies.

If you want a more professional option, we recommend purchasing this directly from G Suite or Microsoft Office365, so you aren’t locked out of a registrar. Some registrars like allow you to pay for several years in advance. Moreover, for several years, it is great to get an introductory discount.

Since you have to pay for domain renewals every year, paying upfront over several years can be significant savings. However, it’s not to mention but saves you from future price increases. But this explanation of hidden costs and domain fees is mainly for new domains that are available for registration. What about premium domains or domains that you bought from someone else? Let’s take a look at the cost of premium domains in detail.

Annual Renewal

Domain name registration will carry out annually. You can maintain control of your domain name as long as you continue to renew your registration every year. Moreover, many domain registrars provide discounted domain names for first-year purchases, but their renewal fees are much higher than you ever expected.

Also, if you’re looking at a promotion where you can pay $ 0.99 for a domain name, be aware that it’s usually only for the first year. Your annual renewal will cost you a lot more.

Final Words

Most of the time, companies hire Certified SEO Consultants instead of investing in premium domains. However, registering and maintaining ownership of a domain name is cheap. Premium domain names can cost you hundreds or thousands of dollars. Therefore, buying a single decision is not a decision that can be taken lightly.

Whether a premium domain name is worth it or not, the cost depends on how much it benefits your site. If you want to attract a valuable audience and make money, the right name can be worth the investment. Also, it’s easy for most areas to find a common domain name that works just as well. Therefore, if you are one of those who still have questions related to this topic, let’s discuss it with us. We will help you effectively.

Frequently Asked Questions 

Q1. Why does Domain cost money?

Domain names cost money because almost every single person is willing to pay for them. In making scarcity publicly available, you and I usually, the simplest democratized way of doing it, are through the market. The entire DNS and ICANN infrastructure is expensive.

Q2. Is buying a domain name proves an eminent investment?

Potential buyers should weigh these risks carefully before investing in a domain name. Most stocks and bonds can be bought and sold quickly through a broker, but domain names can be much more difficult to sell. Domain names can be an inherent business from a legal standpoint.

Q3. Why isn’t the Domain free?

Domains are not free because they are recognized to make money. If the Domain is free, it will only be occupied and unfamiliar to its full potential. Not to mention that after a while, you won’t be able to register a single word in English as ALL of them will be listed.


Welcome to AppStudio: a leading mobile application development company that is disrupting the status quo by leveraging the power of technology and user-centric design. Renowned brands such as Riyadh Season, Settlyt, Skills Competences Canada, Amy Macedo, and others have partnered with us & attracted millions of new users on their platforms. We are the architects of creating unique digital & mobile experiences and empower our clients to trigger unstoppable success. Connect with us to script an amazing success story! Android | iOS | React native | Flutter | IoT

Leave a Reply

Your email address will not be published. Required fields are marked *