CEO of VPN.com. We help Fortune 1000, entrepreneurs and companies protect their brand.
Domaining is what I do, and believe me, I’ve seen lots of interesting transactions throughout my tenure in this exciting, often unpredictable and constantly evolving industry.
I am the CEO and founder of a company that also provides premium domain name brokerage services. When considering any domain transaction, I view domains as a slice of web 2.0 real estate—in the sense that premium domain names grow in value over time and are digital property parcels that headquarter your brand online; much like a flourishing, modern campus might.
If you’re looking to acquire a premium domain name for your business, there is some priceless advice that I can impart to you in advance of your planned transaction; knowledge I have gained from my years spent in this industry conducting large transactions for myself or interested buyers and third parties.
Here’s what businesses looking to purchase a domain name valued at $1m-plus need to know.
MORE FROMFORBES ADVISOR
Instant Credibility And Trust
One of the greatest benefits of acquiring an ultra-premium domain in the seven-figure and up category is the instant credibility and trust that comes with the acquisition.
When assessing domain name value, be sure to consider the following for your planned purchase:
• Age of the domain—older is always better.
• Does the domain have a .com extension?
• What is the existing traffic of the domain?
• What is the SEO and link profile of the domain?
• Does the domain name fit your brand, service, product or niche?
One of the leading reasons why companies are eager to acquire pricey domains in the seven-figure category is because they check all of these above boxes (and more) and deliver an invaluable tangible: instant credibility and trust.
Lower Customer Acquisition Costs
With trust and credibility, not to mention built-in traffic and existing SEO benefits, customer acquisition costs can drop. Not only are premium domain names better drivers of new customer leads and inquiries, but they tend to be easier to market and gain traction in search engine results due to the higher amount of trust placed in them by the search engines, due to their age, traffic and link profile. This can, potentially, save a company a bundle of marketing money in the interim and in the long term.
Better Advertising Performance
Think about this; let’s say you owned an expanding pizza franchise and your current website wasn’t up to the task. Say, for example, you owned XYZ Enterprises and you wanted to offer websites to all of your franchises.
The simple truth is that XYZEnterprises.com isn’t going to help you at all with marketing a pizza business for your partner company or your franchisees. This is where an upgrade to an ultra premium domain name would make sense.
When assessing the cost of premium domain names, it’s also important to understand the value they offer in return. Naturally, an ideal acquisition for something of this caliber could be compared to the purchase of a domain name like Pizza.com, which sold for over $2 million back in 2008.
Why would a growing national franchise want to spend this kind of money on a domain name?
Here are a few things to consider:
• This domain name adds instant credibility to any business selling pizzas.
• It has built-in SEO value and organic traffic.
• Naturally, the one-word, direct relevance would give your business an edge in marketing.
• Geo-targeted subdomains, like atlanta.pizza.com, could be used for all of your franchisee locations, offering local SEO optimization, improved relevance in search results and built-in marketing from the get-go.
• Of course, it goes without saying that if you were to acquire a domain like this for a pizza company, you’d gain immediate relevance in your industry, too.
Premium Domains Appreciate In Value
Along the way, don’t forget that ultra premium domain names tend to age like fine wine. For example, even though Pizza.com has been turned into an informational portal and referral website, likely generating income from referrals to other prominent pizza chains and franchises, imagine what it's valued at today and how this might be a lucrative purchase for another business in the future (should it ever go back on the market).
The Simple Truth
Domain names like this generally continue to gain in value over time as fewer domain names become available—and as more prospective buyers enter the fray.
Why You Should Use A Domain Name Expert
In parting, I offer this last bit of advice: Strongly consider using an experienced domain expert to assist you in your acquisition.
What’s more, businesses looking to make seven-figure domain name purchases should always weigh the innate benefits of using a stealth domain broker when acquiring these premium assets. The expertise and experience of domain name brokers in this industry will help you avoid many common pitfalls you may not have thought about in advance of your purchase.
I hope this advice helps you better understand why businesses routinely purchase seven-figure domains and how they add incredible, immediate value.
Please use this knowledge to spearhead your next digital acquisition. Good luck—and happy domaining!
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