When you're doing business online, standing out from the crowd is crucial. Picking a memorable domain name is an important part of that.
Domain name registries know this, too. They are effectively domain wholesalers, at the top of the supply chain. So if you're in the process of registering a new domain and you've just encountered something called a "premium domain", you've asked for a name that the ultimate supplier thinks is worth more than most.
Perhaps investing in a premium domain name could give you the competitive edge you are seeking. However, it's worth careful consideration.
You won’t encounter premium pricing on popular options like
.nz,.au,.com,.netand.org.
Let’s delve into the realm of premium domains, exploring what distinguishes them and why they command a higher ongoing price. We’ll also look into the reasons why premium prices pop up so late in the registration process, and what other options you have. Read on, and you'll soon be ready to make a more informed decision.
Only some TLDs have premium pricing
Firstly, it is important to note that only some top-level domains (TLDs) are affected by premium pricing, with .biz and .co being common examples. These TLDs tend to be run privately-owned registries, like GoDaddy Registry in the case of these two examples. Prices are unregulated, so the registry is free to charge as much as they like - and to change the price each time you renew your domain. Understanding this can help you make a more informed decision about whether a premium domain is the right investment for your business.
A lot of popular TLDs, including .nz, .au, .com, .net and .org, never use premium pricing. These examples are all managed by more publicly-minded entities.
What premium domains are - and what they are not
Premium domains are often marketed as short, memorable, and highly brandable - essentially prime real estate in the digital landscape.
Premium domain names can pack a punch for several reasons. They are often short, or they could include industry-relevant terms that are easy to remember. Another common indicator is high-volume search keywords, which can potentially improve search engine rankings. These characteristics can make them attractive to businesses, but it’s important to evaluate whether these benefits align with your specific needs and goals.
Is there a longer term investment case to be made for premium domains? Some people might believe that premium domains could hold or increase their value over time, but it’s important to note that this is not guaranteed. The resale market can be unpredictable.
Choosing your domain
Choosing your business domain is a big decision, and it’s important to pick wisely because changing it later isn’t a walk in the park. Especially with premium domains, once you’ve made that choice, the price tag is set and it's unlikely to ever decrease. So, before you make the leap, take a moment to think it through.
Premium domains and the registration process
When it comes to registering a premium domain, the process differs depending on whether you’re on a postpay or prepay billing arrangement. One thing stays the same, though - spotting premium prices isn’t simple.
Domain pricing and premium surprises
We display a single price for each TLD in our control panel. For instance, right now .biz domains are listed at $40/year, while .co domains are priced at $80/year. Registries that go beyond flat pricing and operate premium pricing add a layer of complexity to the registration process.
Premium domains are often marketed as short, memorable, and highly brandable - essentially prime real estate in the digital landscape.
We do not have control over which domain names are considered premium or how much extra they cost. It is just as surprising to us as it is to you when it occurs. If this has caused any inconvenience or caught you off guard, we apologise. It mostly happens due to technical limitations between the systems that connect us to a reseller, and that reseller to the world’s suppliers of TLDs like .biz and .co.
When you search for a domain, those systems check with the relevant registry to see whether it is available. That check isn't able to tell us anything about premium pricing.
It's only at the next step - when you go through the checkout to register the domain - that registries tell us that certain domains are “premium” and charge us more to register them. When this occurs, we have to pass on those higher costs to customers like you. The choice to pay a premium price is completely up to you.
At this point, the domain is reserved automatically, giving you time to decide without anyone else snapping it up. If you opt to proceed, the domain is yours for registration. Otherwise, you can continue your search.
Postpay billing: With postpay billing, there’s no upfront payment required for domain registrations. Instead, your charges are collected into a monthly invoice. If you select a premium domain, we’ll communicate with you to confirm the additional cost before finalising the registration.
Prepay billing: Prepay billing involves topping up your account before registering domains. You know the cost before you decide to go ahead.
How to avoid premium prices
Looking to steer clear of premium prices? Your best bet is to opt for TLDs that aren’t privately owned. Many widely-used TLDs operate with broader goals beyond just turning a profit. For instance, you won’t encounter premium pricing on popular options like .nz, .au, .com, .net and .org.
If you have a domain - even a non-premium one - on a privately-operated TLD, there’s no regulator to protect you from price-gouging. The owner has costs to cover, profits to make, and not many other incentives to consider. This means you may be subject to face sudden price jumps or unexpected changes in terms of service.
However, if a premium domain aligns with your investment strategy and the price is okay by you, the choice is yours. Either way, we are here to get the domains that you want registered and ready to go.
Main image by StockSnap from Pixabay.
Quoted domain prices accurate as of 5 August 2024.