Ever had someone reach out to you selling a premium domain? Let’s say you’re in the business of accounting and you’re based in Exampleton. Someone calls you up and says “Hey, I’ve got this great domain. It’s exampletonaccountants.com and it would be perfect for your business, it’s only $1000…” or something like that.
How to tell if buying a premium domain is worth it?
Here’s some advice on working out the value of a premium domain for your business, and avoid getting scammed in the process.
Firstly, what’s a premium domain? Well it’s a domain that contains commonly searched for keywords relevant to your business. They will often contain the type of business you do, as well as the locality that you do business in. Premium domains are often short one or two word phrases, that are easy for potential customers to remember and speak to exactly what you do.
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So how do you tell if a premium domain is worth it? Well worth is subjective, and a domain is only worth what someone is willing to pay for it, but here’s some great ways to do some quick research into the premium domain you’ve been offered, or looking to buy.
- Does the keyword in the domain gets searched for often?
Take the keyword(s) in the domain and chuck them into Google Trends to check their popularity. The more hits the keyword gets, the more value you could get from a domain having that same keyword in it. Take this statistic with a grain of sale though. Having the keyword you are targeting in your domain, is no longer as big of a deal for SEO as it used to be. Yes, it will have some positive impact, but it is by no means the main metric, and simply having that domain is not going to magically make you show up for all the searches related to it. You can rank well for any domain with the right SEO as long as the content on the page matches the keyword being searched for. Also remember, people don’t just willy nilly type domains into their search bar anymore and hope to find a website. That’s not how most people search. They open a web browser, and type a phrase or keyword in there, which then suggest a website to visit. - Is the domain memorable or easier to use then your current one?
If the domain speaks for itself or if someone can tell what you do and where you do it, simply be seeing your domain, they are more likely to remember that domain when searching for it later. As a rule of thumb, shorter, easier to read domains are better and more memorable. Also, pay attention to bad word mashups. ‘Staff Fund’ may look good on paper, but as a domain it’s stafffund.com and would be prone to typo’s or mispronunciation. - Are you actively targeting the keywords in the domain?
If the keyword in the premium domain is heavily contested by your competitors, or is actively represented in the campaigns and marketing you run, then it can be beneficial to your efforts, especially if the domain is linked to a page with content that specifically mentions those keywords. So if you’re actively running ad campaigns around it, a premium domain is more worthwhile. - How much is a lead worth to you?
If the domain costs (x), how many leads will it take to recoup the cost? If one lead is worth a lot more than the value of the domain, it’s likely a worthwhile marketing strategy. If you only need a few leads to cover the cost, then it will still pay for itself quickly. If you’re not going to actively use the domain, then it could take a lot longer to see a return on your investment. - A domain is an asset you can sell, either with your business or seperate.
You’re looking at buying a domain… so you can simply sell it again down the line. You can recoup the cost or perhaps even profit from the transaction. Remember, a domain is as valuable as the market will pay for it. You can use tools like Domain Price Check or Estibot to find an estimate worth of a domain. Either for buying or selling!
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A premium domain can be a worthwhile asset to your business, but do your due diligence first, and avoid scams using the tips below.
- Check if the domain seller has a website or other platform to verify their identity.
- Check whois to see if the seller is the current owner and authorised to sell it.
- Transfer the domain using the same domain registrar as the seller. So create an account in whatever platform they use, and shift the domain there. This requires a domain change of ownership form that is managed by a 3rd Party (the Domain Registrar) and is one of the surest possible ways to ensure you receive the domain you are buying. You can always transfer the domain away to a different platform later.
- If you are using a different platform, request a transfer code, EPP or UDAI code first before paying, and only pay once your Domain Registrar has confirmed the domain migration as successful.
So there you have it. Some ways to work out if you should buy a premium domain for your business and stop yourself getting scammed in the process.
