You can register a domain for $10-20 per year. If it is as cheap and easy as that, then why do some people spend hundreds or even thousands of dollars to buy premium domains?
Before I answer this question, and also so many other questions that makes everything clear about the premium domains, whether you should buy them or not, and how you can buy them, I must explain what premium domains are. But you please make sure to read this article to the end to prevent yourself from making horrible mistakes in buying premium domains.
What Are Premium Domains?
Premium domains are the same as the other domains technically. I mean they don’t come from another planet, and they won’t do anything more than what other domains do.
(If you don’t know what a domain name is, please read this article.)
But something that makes premium domains different from other domains is their price. While you can register a regular domain for $10-20 per year, premium domains cost hundreds, thousands, or even millions of dollars. Why?
1. They Are Made Up of Special and Popular Keywords or Key Phrases
For example: Funny Quotes
If you refer to my keywords research tool and make it analyze Funny Quotes as a key phrase, you will see that it reports a 301,000 search volume on Google.com and in the United States.
301,000 monthly searches for a key phrase is a great volume. What if you had a site that was ranked on Google’s first page, or even as the #1 website on Google’s first page, when people googled for Funny Quotes?
Your site would receive hundreds of thousands of clicks per months. If you were smart and skilled enough, you could even increase your website’s traffic month after month by implementing some digital marketing techniques, like building a mailing list from your website’s traffic.
The interesting part is that a domain like FunnyQuotes.com that includes this key phrase has a higher chance to reach Google’s first page, and even get the first position. I say it has a higher chance, because having the key phrase in the domain name is not enough to get ranked on the first page. There are other domains that their names have nothing to do with Funny Quotes, but they are on the first page.
In spite of this, when someone knows how to develop a website to have it ranked on the first page, then having a domain like FunnyQuotes.com gives a much higher chance to get there. And when someone is not expert enough in this, they can easily ruin the best and most expensive domains, and not only get no place on the first page, but also have the whole site penalized or even banned by Google.
This simply means that for a digital marketing and SEO expert, a domain like FunnyQuotes.com is great.
But the question is: how much does FunnyQuotes.com cost?
Someone was lucky enough to register it before anybody else, and they are now selling it for $100,000.
Now, the more important question is: Is it worth to pay $100,000 to buy FunnyQuotes.com???
My answer is NO.
1. There are currently 1,640,000,000 other websites indexed and ranked by Google with Funny Quotes as the key phrase. Does buying FunnyQuotes.com mean that you can leave these 1,640,000,000 competitors in the dust, and reach the Google’s first page? Absolutely not!
As I said, having the key phrase in the domain name is a big advantage, but it is not everything. If you can’t believe me, just google for Funny Quotes and you will see that many of those that are on the first page, don’t have funny and quotes in their domain names. For example, the domain of the website that is currently ranked as #1 is Parade.com, which has nothing to do with Funny Quotes. However, there is another one that has got the 3rd and 4th positions, while it has both of the Funny and Quotes words in the domain name: CoolFunnyQuotes.com
What does this mean?
Again, it means having the keyword/phrase is an important factor, but it is not everything.
You can reach the first page easier with FunnyQuotes.com compared to Parade.com, or even CoolFunnyQuotes.com, but this has no guarantee when you don’t know how to build a website that can reach the first page.
2. Let’s say you pay $100,000, buy FunnyQuotes.com, and reach the first page too. Does it mean you will make money?
I don’t say you won’t, but the traffic you receive through Funny Quotes as the search term is not something that generates revenue so easily, because those who google for Funny Quotes and visit your site are not after spending any money on any website. So you cannot sell anything to them. They are not even after clicking on the ads, so that the won’t make any money for the website owner through Google Adsense. They are just after killing some time and having some fun. Not any kinds of traffic equals making money for the websites.
Therefore, if I wanted to spend $100,000 on a premium domain, I would never do it for FunnyQuotes.com. It is the most stupid thing one can ever do.
Let me give you another example which is even worse and more stupid:
LoveQuotes.com was for sale for $750,000 the last time I saw this domain about two months ago or so. As of writing this article (June 16, 2020), I checked to find out whether they are still selling it for the same price or not. I found out that someone has bought it, and so the domain is not for sale anymore. Although Love Quotes has a search volume of 823,000 on Google.com and in the United States, I wouldn’t pay even $5,000 to buy the LoveQuotes.com domain for the same reasons I explained about the FunnyQuotes.com case.
That’s why I am writing this article. I want to prevent you from making similar horrible mistakes. It is really stupid to pay $750,000 to buy a domain like LoveQuotes.com.
Is it always like that?
I mean is it always wasting of money to buy the keyword specific premium domains?
No, it is not. Sometimes it is worth every cents to do it.
For example, someone (not me) is selling LearnFrench.com for $49,999 now. Although Learn French has been used as a search term only for 18,100 times during the previous month in USA and through Google.com, it is still worth to have LearnFrench.com, because many of those who will visit it through that key phrase are seriously after learning French and will spend money on it too. You can launch online French courses, and also sell books, videos, etc. on LearnFrench.com, and make thousands or even millions of dollars, if you know how to do it properly.
Therefore, the conclusion so far is that you must be able to distinguish what I have explained above, otherwise you will waste your money on useless premium domains like FunnyQuotes.com and LoveQuotes.com that I wouldn’t spend even $5,000 on them, let alone $100,000 or $750,000!
I haven’t learned these lessons so easily and for free. I have wasted lots of money on garbage so-called premium domains, until I learned how to choose and buy the ones that are worth every cents.
For example, I have recently bought a domain for $999 only. But I won’t sell it now, even if someone wants it for $1 million. The reason is that the domain name and the website I will build on it will generate a steady stream of easy income for me, because it has all the conditions I explained above:
- The key phrase has a great monthly search volume.
- The competition is too weak.
- The traffic makes money, because they are seriously after resolving a problem, and so they pay to resolve it, or to learn more about it.
2. They Are Too Short and Made Up of Special Names or Words
Short domain names are valuable. But not that you spend thousands of dollars on a domain name just because it is too short. A longer regular domain name that can be registered for $20 per year handles the same job that a too short meaningless and irrelevant domain name does.
At least when you pay for a premium domain name that covers a strong key phrase, you do know what you are paying to receive free organic traffic from Google. So you have a good reason. But what is the point to pay $3,299.99 for stars.site or $2,395.00 for HeroTest.com? 😀
So, Is It Worth to Buy Premium Domains?
If you analyzed a premium domain the way I did above, and you came to this conclusion that it will make money, then it is worth to buy it, while its price is reasonable as well.
You must develop the above vision to become able to analyze the for-sale premium domains, before you waste your money on the garbage ones.
If you want to start an online business, and you can shorten your way toward generating income through buying a premium domain name, why you shouldn’t do it?
If there is a premium domain name that meets all the conditions I explained above, while it is not too expensive and you can afford the price too, you should buy it, because if you don’t do it, it can take you much longer to start having income through your new online business.
Similarly, in case you have a traditional brick-and-mortar business, and you want to promote it on the Internet through building a website for it, you’d better to buy a premium domain that covers the main key phrase related to your business.
For example, if you are wedding photographer in Toronto, while a premium domain like WeddingPhotographerInToronto.com is being sold with a reasonable price, then you should buy it, because it will drive lots of customers to your business within a shorter time. Having a premium domain like that can take your business a head and shoulders above your competitors.
Therefore, it is worth to buy premium domains that are literally and really valuable while their prices are reasonable as well.
But I must emphasize one more time that having a premium domain doesn’t necessarily equal getting ranked on Google’s first page. There are so many other factors involved, and several other conditions that have to be met:
A Good Premium Domain + Proper SEO and Quality Content = More Targeted Traffic
Don’t Buy Garbage: Being Listed As a Premium Domain Doesn’t Mean It Is Valuable
You can register a domain for $10, and then list it as a premium domain to sell it for $10 million. Anybody can list their domains to sell. It is free, and once you list a domain to sell it, it will be called a premium domain. But is your domain really worth $10 million?
There are thousands of garbage domains out there, listed as premium domains, just because their owners “think” that what they have registered as domain is a treasure. I mean there are so many garbage domains that are listed as premium domains based on their owners’ illusions, not because they are really valuable.
I see some people are selling some domains for some strange prices like $4,000 or even $48,818 and above, while I wouldn’t even spend $10 to register their domains, if they were available to register. So, don’t let the illusions of some digital marketing newbies make you spend your hard-earned money on garbage.