Why should I buy a premium domain name?

High quality domains (or) Great domains which have all premium qualities like shortness, memorable, sexy, generic, brand able, get organic traffic, good keyword position on search engine, high frequency on major search engines, extension ETC.

Although the qualities of premium domains are very nice, such domains are not still available to register, as they are registered long years back and still renewed continuously to sell for great prices at after markets. Hence the prices of premium domains are very expensive. The individuals as well as companies are ready to pay even in millions to acquire premium domain names. Few advantages in premium domain investment includes

Good Return on Investment

Premium domain name is an online property, an asset and you can invest and resell it for multiple times. It is considered to be the best time to purchase domains, as it will have a good demand in future. So it is a smart and wise decision to invest in domains for your business.

Get higher conversion rate

Premium domains are short, sexy, catchy and memorable. It makes one time visitors as regular customers for your business.

Get Branding and Credibility.

Some domain brokers say that Premium domains are two characters, three characters and generic one word .com domains only then what do you think about Creditcards.com, Cellphones.com these two word generic phrases have high branding compared to the keyword present in them. Every thing depends on domain. Such domain name adds prestige and credibility. Either a one word or two word domain. Users are likely to make repeated business with website with premium quality web addresses

Eg. Shoes.com is premium compared discountshoes4u.co.za.

Successful internet companies already know very well that acquiring a premium domain will be the best investment for branding E.g. Cars.com, loans.com, books.com

Search Engine Ranking and credits

Premium domains are keyword domains. If your domains contain keywords, then there are more chances to gains a top position on search engine result pages (SERP). You can have a glimpse on search engine pages of major search engines.

Direct navigational Type in traffic.

Apart from the traffic from search engines a set of people will type directly the domain name in their browser; this is called as direct navigational type in traffic. Premium domain will get around 20% of the available web traffic. This traffic will fetch up to 1000’s of unique visitors to your website. This traffic has a high conversion ratio compared to other sorts of traffic like search engine marketing ETC.

Domain Name Investment Guide.

Mostly all domain sellers as well as domain buyers already know that domain names is an online real estate with a high growth rate. In the recent years the growth is very tremendous. It has attracted more investors to venture in this online property, either by direct registration or by winning a bid at after market auctions. This domain article will help you and guide you how to invest on domain properties up to a certain extent.

If you wish to build a domain portfolio either a small one with 100 domains are a larger one with 100's and 100's of domain names. You have to build a good quality portfolio, so that your investment will keep on rolling high. Similar to real estate principle, domain investors have to make wise decisions when they acquire domain names. There are two factors which mainly determines your portfolio quality

1.) Acquire domains which have an appreciable quantity of type-in traffic. High traffic domains are best; you can get your ROI soon from parking income.

2.) Acquire quality domains i.e. short, memorable, extension, brand able.

A high quality premium domain will fetch you a good price in future.

Generally portfolio owners will go on registering domains for an year, in the mean time they will analyze the quality of the portfolio and they will optimize their portfolio either by selling a few domains or left a few with out renewal. This is the general procedure followed.

Earn from Domain Parking

Your portfolio can be made to earn if you park your domains. Even though parking doesn't earn much, it is the laziest way to earn some bucks. On an average a domain name can earn up to 2 $US per year per, if you own a quality portfolio. Parking allows to you to monetize your domain traffic (Type in traffic) by placing targeted ads relevant to your domain keyword. Most of the domains receive very low natural traffic. A keyword optimizer is used by most of the parking companies which allows its users to optimize to get relevant advertisements.

However such parking companies doesn't have their own ad feeds, they get their ads from Meta search engines like google, yahoo, 7search ETC. So they will fetch you with a portion of their income from your domain names mostly up 20-30 % only. Most of the domain sellers won't concentrate much on parking, but the domain parking income can be used to promote a few domains from your portfolio. More over most of the parking companies have an option to place a button like "This domain may be available for sale by its owner"

Domain sellers generally try to develop some domains, and try to sell some domains picked up by some end users from their portfolio, which will fetch them with great money. Even a great sale of single domain will pay their renewals up to 10 years for a big port folio with 1000's of domain names.

Domain name Market Value.

Along with the investment strategy most of the domain owners as well as domain sellers have an aim and goal to sell their domains at great prices. Expectation is appreciated if you own a great domain name. One of the main things you have to consider is the market value of your domain it largely depends on

1.) Natural organic traffic to your domain name is one of the main things that determine the market value.

2.) Of course the domain length, memorable, extension, search engine ranking, registration of other extensions, frequency of appearance at major search engines, domain age also determines the profitable sale of your domain