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Premium Domain Names

What is it that makes a domain name a premium domain name? Certainly it can't have much to do with the name itself. I've seen some stupid domain names that are considered premium domain names. So, I did some digging. Actually, a lot of digging. For those of you who are really curious as to what determines if a domain name is a premium name or not, this article should provide some interesting answers.

Okay, first let me give you the "technical" definition of what a premium domain name is and then I'll explain to you what this really means. A premium domain name is one that has previously been registered and is now up for sale, usually in an auction to the highest bidder. Sounds pretty simple, wouldn't you say? But the reality of trying to get one of these names is a different story altogether.

The first order of business is to explain how a domain name gets to be a premium domain name to begin with. Well, that's actually quite simple. Somebody buys a domain, puts up a site up on it, works on building up traffic, gets a high PR and search engine ranking and then decides that they want to sell it and make a killing. How much of a killing depends on several factors.

The first factor is how much work has been put into the site. If it's very popular, that will greatly affect the value of the domain. Some people make a living at this by simply creating great sites and then selling them at auction.

The second factor is who the person is putting the domain up for auction. If somebody like the Rich Jerk puts up a domain name, like he did once on Ebay that sold for $500,000, you can guarantee that the domain is going to sell for a pretty penny, assuming that he lets it be known that it's his domain. Some people would rather fly under the radar.

The last factor is how much in demand that domain name will be. If you're selling a domain name with a keyword or keyword phrase that isn't searched for much, you're probably not going to get much for it. But if you've got a name like income.com, which John Reese recently bought for $1 million, then you're going to make a pretty penny off of the sale.

If you're planning on buying or selling a premium domain name, make sure you do your research. Find out what it's really going to be worth to you if you're buying it and then find out what you can realistically expect to get for it if you're selling it. Both things will depend on lots of keyword and market research.

Premium domain names don't always sell at a premium.



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