A premium domain is an intrinsic part of creating a brand in a digital world. It is a strategic asset that provides a considerable long-term competitive advantage.
Premium domains are, by definition, very limited. Combined with a suitable business, they can be a game changer for capital, sales, brand equity, corporate identity, long-term competitive advantage, and company valuation. Investing in a premium domain is a far better bet than plowing funds into a hard-to-remember name.
Realtors often differentiate between excellent, decent, acceptable, and poor locations. Excellent locations command the highest prices and are sought after. It’s the same with premium domains. These may consist of dictionary words or numbers that are easy to remember, appealing, and brandable. They are very limited and in high demand.
In the digital world, a premium domain is the equivalent of a great address. It is the location, location, location of the internet!
In the last forty years, the number of active websites has increased from one to roughly 200 million. Add about 1.7 billion parked domains and over 250,000 websites created each day, and you get the picture. A huge number of significant businesses are solely online, many are both online and physical, and those that are only physical still utilize the internet for their business one way or the other.
Covid19 has accelerated our understanding of being online and interconnected and magnified the benefits of a digital world. The trend toward digitization is irreversible, and the importance of an online location cannot be emphasized enough.
The move to a digitized world has accelerated. The importance of your location is critical. Will it be a 5th Avenue address or something else?
While most Fortune 500 companies had the foresight to adopt a premium .com domain, many entrepreneurs are still struggling with the idea of investing in their brand, despite the magnitude of their online business. Trying to create brand equity out of a hard-to-remember name has consequences for brand recognition, sales, and advertisement expenses. The overall cost of supporting a poorly named domain for years may far exceed the acquisition cost of a premium domain in the first place. We could compile a vast list of companies that have disappeared in just the last few years, including some giants. They had various issues, but one common factor was their domain names were difficult to memorize from day one.
Poor names have a high chance of being a poor choice, despite pouring in funds.
Even today, one can encounter multinational companies with weird and difficult-to-remember names with zero affinity with the underlying business. How can that be? Shouldn’t they know better? Does human nature get the better of us? Maybe engineers manage many of these domains and companies rather than marketing-oriented people. No offense meant, but something isn’t right here!
On the positive side, a significant number of established businesses have rebranded using a premium domain. We expect the trend to continue until no premium domains are left.
The next evolution in the online world will be a rebranding wave, with a scarcity of premium domains and record prices.
Domain names have been at the heart of the internet revolution from the beginning, and they lead the digitization of our world. They define how we communicate, how we connect to the world, how we inform ourselves, how we shop, how we sell, and much more.
A premium domain is a key strategic asset in a world overloaded with content. It is your business address where people can visit you, spend time, and obtain information, products, and services.
There is no doubt that finding and securing a premium domain is not simple. That is where we can make all the difference. Please, talk to us.
NOTE: We also offer top-class domains (not premium but still memorable and brandable) that are affordable for now. But they are not easy to come by and are selling out fast.
