How do you decide what's a "premium" domain?

[Kay]

I occasionally hang out at a couple of dedicated domaining forums and look at their marketplaces - for sale, wanted, etc. I can never understand what their criteria are for listing domains for sale as being "premium" domains.

Sure, a short, generic word on the .com is likely to be valuable. Even some EMDs on the .net or .org could have value, especially if you're chasing AdSense and have done your research on the high value keywords. But I simply can't understand why gobbedlygookblooklook . info or something like that can be a premium domain.

Maybe I just don't 'get' it, or maybe the domaining forums aren't particularly fussy about what they'll list as a premium domain.

If we have any experienced domainers here, please tell us how you would classify a premium domain.

[DomainMagnate]

it's a rather loose term and very often misused in sales pitches, so it can be confusing. Different domainers may also definite it differently. E.g. the top result in G for the keyword is currently this, but most of the domains listed as examples in the article are clearly not premium: reach-me.com, happy-cats.com, DetroitBeer.com - these in fact have no resale value.

There are some clearly premium (like cars.com) and clearly non premium domains (like goodcars25.com) and a huge grey area in between. Personally I'd only call a domain that has a clear resale value of at least $x,xxx premium.

[Kay]

...most of the domains listed as examples in the article are clearly not premium...

That's what I was thinking. I wouldn't buy some of these even if they were in the bargain bin.

Thanks for giving a clue about the price range, as in $x,xxx, that's useful. But how do you know its resale value unless you try to find end users and try to sell it?

Do you think that age matters when it come to being premium or not? Is it just the word(s) in the domain?

[crabfoot]

There can be circumstances where a fairly ordinary name can become valuable. I have a couple of .co.uk domains which are NLL (n is number, L is letter). Those are worth about £30 in the trade. But I also have a set which are LL0 to LL9 - ten domains with the same LL combination - and in the right circumstances, such a set is worth far more than £30 each.

It's like those antique dealers on the telly - a pair of vases is worth more than two individuals, four matching candlesticks are worth more than two pairs.

[DomainMagnate]

That's what I was thinking. I wouldn't buy some of these even if they were in the bargain bin.

Thanks for giving a clue about the price range, as in $x,xxx, that's useful. But how do you know its resale value unless you try to find end users and try to sell it?

Do you think that age matters when it come to being premium or not? Is it just the word(s) in the domain?

Well, the $x,xxx range is somewhat subjective, others might put it higher, or lower. Age does matter, but only because higher quality domains have been registered long time ago, so to be worth $x,xxx it'd usually be a domain that's been registered some 5-10 years ago. It might have dropped also then age is reset. So generally these are good 1-2 word generics and 1-3 letters names and some 4 letter domains in .com and top generics and 2-3 letter names in net/org. Also top generics and short names in some other tlds.

Resale value is based on what you can get for the domain from other domainers on the open market, it can also be determined from similar previous sales.
E.g. if you sell it quickly on dnforum or sedo auction. So for example any 3 letter .com name, like xwz.com would have a reseller price of at least around $4k (more for better quality letters). So any experienced domainer can give you pretty good assessment of a resale value of any domain, just like a real estate broker can easily tell you how much a house in a certain area can be worth.

End user value is quite different and depends mainly on your ability to find an interested buyer who is willing to pay more than the resale value. A domain might have no resale value, but sell to an end user for $100k (it's rare, but happens), but that wouldn't change the fact that it has no market value.

[Fish]

Rule 1: If it's called a "premium domain," it's not one. It's like "world-class city" in that way. Premium domains speak for themselves. I have yet to find a premium domain that is actually labelled as such on a forum. "For Sale. CarLoans.com, a premium domain," would sound ridiculous. Of course it's premium. "Premium" is just a word to suck in buyers who don't know what they are doing.
Rule 2: Domains are, for the most part, not easily appraised. I think the meaning of "premium" depends on who you are. If you're a top domainer, premiums are those one-word category killers like car.com, sales.com, etc. 5 figures bare minimum, even to resellers. On the other had, to a new domainer, any clever (or not) word they find unregistered in premium. Like some guy on one of the forums yesterday asking for 5 figures for theultimatehybridmachine.com.

So far as age, it's useful when trying to narrow down lists. But there are many old crap names, and the changing nature of language means that there will always be new premium names to come.

In the end, trust your instincts, and forget about descriptions such as "premium." There are politics and networking involved in domain names, and a well-known domainer can get just about anything listed as premium. If you have a name that describes a profitable business in a succinct and commonly used way, you probably have a premium.

[akirk]

out of interest I have pasted below the list of 'premium' - top 200 domains of 6 characters and below available for back order from name jet...
not sure that I would consider any of them premium

Alasdair

12zzz.com
6868bm.com
genzao.com
20x.cc
6870bk.com
geoac.net
22862.net
6870ke.com
gep7.org
228gm.com
687486.info
geryco.info
22921.net
6880.cc
gg0772.com
22928.net
688879.com
ggate.net
22962.net
688w.info
ggaway.com
22979.net
6898.cc
ggcz.net
229w.com
7574.info
gh5533.com
22bc.net
7578.info
gizvo.com
22by.net
757pk.com
gj555.com
22diy.net
75lun.com
gjhyw.com
24code.net
78-d.com
gjj365.com
24diy.net
780n.com
gjmf.info
24fj.net
787168.com
gjmt.info
24gk.net
7gfg.info
gles.info
24gx.net
800nyc.com
grupos.net
25pips.info
848168.com
gvc.biz
26a.com
848606.com
hennys.com
26clan.com
888kk.info
icast.net
26earl.com
91256.info
ig2p.net
26hao.net
930p.com
jobwob.com
26hi.net
93352.com
jqxm.com
2decal.com
98-d.com
jqyl.org
2juy.info
980kxw.com
jr918.com
2k2s.com
981388.com
kmw.biz
2kid.org
981588.com
leyg.com
2okc.com
981pt.com
mnsk.com
2parks.net
98416.info
mooos.net
30339.com
98887.net
mstro.com
41461.info
988w.info
mvbhs.com
415418.info
988web.com
offris.com
41595.com
989789.com
omdt.com
416875.info
99bjys.com
pk36.com
46164.info
99iii.com
pk699.com
46216.info
ahwsts.com
plesk1.com
46493.com
azj.biz
pletco.com
46627.com
bjorn.org
plexr.info
466414.com
cira.tv
pmcrc.com
46657.com
ddyy.cc
pomars.info
4d-tvs.net
eenrum.com
pomosh.info
4dfx.com
fium.com
pookeo.net
4ory.com
fv432.com
poris.com
4utb.info
fxgdba.com
pvf.biz
4uuuu8.info
fxpda.com
rdmi.com
500068.com
fxtag.com
reis-s.com
5115.tv
gabric.org
rotted.com
511bj.com
gambuh.com
s0tk.com
51j.org
gamssa.net
shalin.com
51jkzs.com
gamssa.org
shavon.com
51njyh.com
gan185.com
sipii.com
51p8.net
ganjeh.net
sportz.org
51qsf.com
gatsas.com
tuc.biz
532jf.com
gatuco.com
uncel.com
5icqww.com
gb2888.com
uwie.com
5iyi.net
gbcweb.org
vposta.com
5iyyy.com
gbgcpa.com
wbdn.com
5izq.info
gbt-i.com
wei360.com
5taoku.com
gbtfs.com
wolga.org
5taot.com
gbtzb.com
wsj2.com
5ters.com
gcady.com
xaf.org
5v8q.info
gcbhof.com
xoio.com
61321.info
gcblg.com
xuppa.com
61561.info
gccmu.org
ymb.biz
61651.info
gcydy.com
youbay.com
66yx.com
genspe.com
ysh.biz
682008.com
genut.com

[benitez17]

The only one in that list that I'd even consider calling premium is rotted.com and that's a stretch.

[KenW3]

I don't see any premium domains in the above list. None can be branded nor are descriptive enough for development. Premium does not have a standard definition, but the Namebio.com link provided by DomainMagnate above is an excellent tool for comparison valuations.

Even looking at PremiumDomains.com, not everything there is something I'd consider worth an investment. For premium names there, it would be easy enough to build a decent SaaS business around the name Avatars.com, an entertainment and education company with Quiz.com, or a great referral service for tax attorneys and accountants with Audit.com.

Some of the other names, while appraising very high, do not readily lend themselves to specific businesses (and some are priced much too high). I'm sure there are names in that list that would attract other people, as premium is more of a perception of value than a definition.

[crabfoot]

There's a recent UDRP decision that should be scaring a lot of "premium domain" vendors to take action stations.

Ignoring all the domainers' protests about this decision, a couple of points come out of it that reinforce some things that happened in the recent past.

The ICANN rules were changed a while back to give heavy emphasis on the rights of TM holders regarding domains and sites.

ICANN has made statements against "domain squatting" previously - this has not been heavily enforced, so most domainers have not been doing much about it.

My take on the events is that eLegalSupply took a conscious decision to avoid paying a Premium Price for LegalSupply .com, and found a cheaper (but slower) way to procure the domain. If the asking price had been acceptable, you could see the hoohah being avoided.

I'm fairly sure that if LegalSupply had been in use, rather than "on the shelf", the decision might not have been so straightforward, especially considering that usage of the domain for 18 months or more could convey TM rights in the US, even if the mark was not registered.

Perhaps vendors of "premium domains" should set their prices so as to avoid the chance of someone taking this alternative route to possession of a domain.

Remember, it is also possible to challenge a TM if it is not being actively used - I've never heard of it happening, but I know it could happen.