Premium domain names are those available for registration for which a higher price than the standard fee must be paid, as the registry has deemed them to be particularly valuable. Typically, these are short, easy-to-remember or frequently searched-for terms, such as hotel.online or pizza.shop. This article explains what makes a name ‘premium’ and how its price is determined.

Two types of ‘premium’ domain

The word ‘premium’ is used to refer to two different things, and it is important to distinguish between them:

• Registry premium name: the domain is available; no one has registered it yet, but the registry has classified the extension into a higher price category. Such names mainly occur among the new generic extensions (e.g. .shop, .online, .app). These can be acquired in the usual way, by registration, but at a higher cost.
• Aftermarket domain: the domain has already been registered by someone else and is being offered for sale. In this case, it is not a matter of registration but of changing the domain holder; the price is set by the seller. This is covered in the articles ‘Buying a domain’ and ‘Registering a domain’.

There is no ‘premium’ category for the .com extension: the names advertised as ‘premium’ there are second-hand names being sold by their current domain holders.

What determines whether a domain name is classified as ‘premium’?

Each registry compiles its own premium list and rarely discloses the exact criteria used. However, some characteristics are clearly evident:

• Short names: names consisting of one, two or three letters, or short numbers, are almost always premium names.
• Common terms: general, frequently searched-for words (e.g. accommodation, restaurant, car, marketing, online) used in a context appropriate for the extension.
• Words associated with the extension: the list varies for each extension, as each has a different profile. For a .lawyer extension, for example, the names of legal specialisms often appear on the list, whilst for a city-based extension, tourism-related terms are frequently included.
• Well-known brand names and geographical names: some of these are not sold as premium domains by the registry, but are reserved, meaning they cannot be registered at all.

How is the price calculated?

The price of premium domain names is set by the registry, and the registrar adds its own fee on top of this. Domain names are generally categorised into price tiers, and the price of a single domain name can range from several times the standard fee to very high amounts. The two main pricing models are:

• Premium pricing throughout: the domain name is charged at the premium rate not only in the first year, but also on every renewal. This is the more common model, so always check the renewal fee before making a purchase.
• Premium pricing applies only in the first year: the initial registration is expensive, but renewals are charged at the standard rate for the extension.

Some registries charge higher fees for the transfer and restoration of premium domain names. The registry may also change the classification and price over time, so the price of a domain name seen last year may not necessarily be valid today.

Is it worth choosing a premium domain name?

It may be worth it if the domain name directly describes your business, is short, and you plan to build on it in the long term. However, if the domain name is only marginally better than a standard-priced alternative, or if the renewal fee is consistently high, you are often better off with a similar, standard-priced domain name or one with a different extension.

Premium domain names at aWh

We do not sell premium domain names: we register standard-rate names with the extensions listed on the domain registration page. If the name you have chosen is classified as ‘premium’ by the registry, it cannot be registered with us. In this case, it is advisable to choose a similar name at the standard rate or a different extension; if you are unsure about a name’s classification, please ask us.