Justifying the Cost
Simply put, a premium domain can greatly impact whether or not your startup or product succeeds or fails. Once you’ve determined that a premium domain has value to your company, you still have to contend with the purchase price. How can you justify paying $10,000, $100,000 or more for a domain?
Let’s consider a $10,000 domain name that you want to buy for a new product launch. That figure might seem crazy. However, ask yourself how the cost compares to your other expenses for the product: your marketing budget, product development costs, etc. It might be that $10,000 might be small compared to other costs. If getting the right domain name contributes to the product’s success, it’s a small price to pay.
Also consider that the $5,000 cost is a one-time expense. If you think you’ll use a domain with all benefits at that cost for ten years, your annual cost is really only about $500.
Here is a brief rundown on some benefits of a premium domain name:
INSTANT TRUST AND AUTHORITY
Premium domain also give customers a sense of trust and authority. Users will, for instance, have more trust in doing business with www.CuteCars.com or CarSales.net versus www.Find-Cars-Online.us. This gained trust is mostly due to the fact that today’s online shoppers generally understand domains like CuteCars.com are rare and expensive; fly by night operations are not run on such an expensive property. This trust and authority directly influence users purchase decisions leading to a higher conversion rate. Best of all trust flows into other marketing aspects like email and display as the domain is at the base of those efforts.
PERSONAL AND/OR BUSINESS BRANDING
Branding is very important in the online world, so you’re missing a trick by not having your very own domain. If you’re a business, you absolutely need to have a branded website because this is the main way that people can find you and understand your business online. It doesn’t matter if you only sell one product or offer one service, you can let people know what you’re about on a simple one-page website. We guarantee your customer base will grow as a result. Owning a premium domain can help you make a statement.
DIRECT TRAFFIC AND SEO BENEFITS
Single, two-word and rich domain names are easy to type and hence receive more type-in traffic. Depending on the name and its vertical, certain premium domains carry large volumes of direct type-in traffic. The result is an instant flow of high quality traffic; in fact direct type-in traffic usually carries extremely high conversion rates. Premium domain names can effect search engine rankings as well Great domains provide a sense of trust and authoritativeness with webmasters which helps with outreach and link placement. You are less likely to spend on PPC because organic search rankings are greater for premium domain names.
Having a premium domain can help you with a number of things including credibility. It is common for consumers to favor industry leaders over small independent shops, this means that standing out from the crowd online isn’t always easy. Owning a premium domain can help you stand our from your competitors.
Having a premium domain tells your customers that your business is large, well-established and here to stay. Plus it shows you have thought about your business and what you want from it. For example fastcars.com looks far more credible than yourfastcarsolutions.com
MARKETING BENEFITS/ VIRALBILITY
Memorable names enhance word of mouth (viral) referrals that your business generates, and these are one of the most valuable lead sources. Direct referrals typically carry one of the highest conversion rates among traffic types. For example you may say ‘I got this movie on ‘GreatMovies’ because GreatMovies is a well-established easy to remember domain. Whereas if you bought it from moviesandgamesforyou.com then you’d be less likely to quickly tell someone. Also, when your employees give their email address out over the phone, they’ll be able to do it without spelling out the email address because it’s memorable. That’s a big time saver and will avoid confusion in the long run.
Buying premium domain names are very similar to investing in property – its value increases over time, especially as each year more and more websites are created. Just as you would consider factors like location and future potential when buying a house, investing in a good premium domain names has its benefits. The premium domain name becomes the foundation of any successful brand. Beach-front real estate that adds long-term equity. Assets which were bought and registered by insightful, forward thinking entrepreneurs are now being sold for huge figures.