Let’s talk about one word domains. Why do premium single word domain names cost so much?
Getting straight to the point. One word domains are rare and brandable. There’s a total of 1200+ TLDs available, including .ai, .app, .co, .com, .io, .net, .org, .to, .vc. However the most registered and most valuable domain extension for business is the .com.
There’s no doubt that the most valuable domains are single word domain names on a .com. Be it voice.com selling for $30M, diamond.com for $7.5M or ice.com for $3.5M it’s no surprise that one word .coms regularly sell for six and seven figures.
It’s all about supply and demand.
A good example to virtual real estate is naturally physical real estate – there are huge differences in address desirability. When the demand of a particular premium domain name increases, its price and value increases due to the supply being quite low. At the moment there is a huge demand for insurance, health and care domain keywords and prices for these domains are skyrocketing!
Reasons Premium Domain Names are Valuable
- Credibility. A business needs the right premium domain name otherwise it will not gain credibility in the online world. Looking for investors or even media attention, the domain name can speak positively or negatively to how serious you are about succeeding.
- Memorable. An instantly recognisable online identity can be the difference between a sale and a missed opportunity. If you have an existing brand name and you can’t change it for any reason, you absolutely need a digital match for that name. Fair warning that you can spend a fortune in both money and time trying to rank a brandable domain.
- Type-In Traffic. You can also easily spend a fortune trying to brand a made-up name. Alternatively your business can invest in a premium domain name comprising of the keywords your customers use when they search online. Single worded or double worded common and popular names. You’ll automatically receive some traffic without any marketing efforts because of being searched for in that area.
- Uniqueness. The value of premium domain names increases due to the sheer number of domains name being registered on a daily basis. The value of the .com is widely expected to substantially increase in the next few years.
- Return On Investment (ROI). Premium domain names are investments just like physical property in real estate assets and other traditional investments. If you’ve got a great keyword domain you can always sell it on.
Big Spenders. The companies buying domains and redirecting them to public sites.
Ingles.com $400,000 – Ingles is Spanish for English. The domain name forwards to spanishdict.com, a translation site.
Podcast.com ($?M) Purchased by Amazon and now forwarding to a page within its Audible brand.
Lendable.com $125,000 – Lendable Ltd, a UK lender, forwards the domain name to its site at Lendable.co.uk.
Wbs.com $115,000 – Wisenbaker provides services to help homebuilders. The domain name forwards to its website wisenbaker.com
Vaninsurance.co.uk $106,769 – A .co.uk domain. The site compares van insurance in the UK.