What Makes An Exact-Match Domain Name So Expensive? Are They Worth The Price Tag?

Michael Gargiulo - CEO, VPN.com

By: Michael Gargiulo, CEO at VPN.com

Updated: 6:24 AM ET Mon, January 25th 2021

Companies are leveraging exact-match domains to increase their brand value. As a result, buying and selling exact-match domains has become a lucrative business.

Many new domains have popped up in recent years, diversifying the domain name landscape. The price of exact-match domains has only increased because of this influx of Internet parking spots because people still have more trust in brands that end in .com, .net, .gov., and .edu.

The right exact-match domain can your business to reduce its marketing spend. A brand name that organically identifies a product will naturally rank higher in search. Search Engine Optimization (SEO) continues to become an important component of standing out in a crowded internet landscape, and this directly correlates to the rising price of exact-match domains. Voice.com, for instance, sold for $30 million in 2019.

As more businesses and brands arrive online, it’s important to have a domain name that is easy to understand and connects directly to your brand. But what exactly is an exact-match domain name and why are they so expensive?

What’s An Exact-Match Domain Name?

Exact-match domains are the best online addresses that a brand can have. These domains use relevant keywords that align completely with your brand or product. When people search for a specific product online your company will come up because the domain is an exact match. Over 70% of consumers do their purchasing research online. Making sure that you are discoverable is a key factor in activating new leads.

Showing up as a top organic result in search can bring in millions of new customers or clients. Brand awareness is one of the biggest focuses of marketing at the moment. Exact-match domains offer year-round brand awareness because the name matches the product. Brands such as Hotels.com, Cars.com, and Insurance.com all benefit from having this organic alignment.

Another benefit of having an exact-match domain name as your web address is that you can distance yourself from your competitors. By having a domain that matches a popular product (such as Vacationrentals.com), you make it more difficult for other companies to rank high in search engine results. For these companies to stay competitive with your brand, they will have to spend large amounts on sponsored ads and search engine optimization campaigns.

A limited organic reach makes a company less attractive to potential clients. Today’s consumer is very astute when it comes to marketing. As a result, they are less likely to respond to advertisements.

What Makes An Exact-Match Domain Name So Expensive?

Elevate your company with a premium domain.

Exact-match domains are expensive because they help to generate millions of dollars in revenue. With the right brand name, you have new ways to access an untapped customer base. 

Google also improves the value of these domains in their algorithm, meaning they receive priority in SEO search rankings. Previously Google had down-ranked companies with exact-match domain names. But in 2012 they reversed this, meaning that a premium domain name that aligns with your brand will connect you to new leads without advertisement.

How Do You Choose A Domain Name?

Find your premium domain.

A domain name represents your company online. When choosing a name consider whether or not it is brandable. Ideally, your domain name will be short and simple so that consumers can remember how to find you online. The domain should also end in .com to build both value and trust. However, these are just a few of the factors to consider when deciding on a company domain name.

It might seem that your domain name isn’t a vital component of your brand. But in today’s current marketplace, building brand loyalty from the beginning will determine the future success of your brand. Without trust, you will have to spend more money or marketing and brand awareness campaigns.

Wrapping Up

Brands and Entrepreneurs are increasingly aware of the potential that having an exact-match domain name brings. This is why One Planet Ops bought california.com in 2019 for $3 million. New companies will continue to show up on the internet making the ability to streamline the user experience more important than ever. Exact-match domains add long term value to your brand and are very much worth their higher price tag.

If you’re looking to purchase a premium domain name, we have years of expertise matching brands with domains ranging from $25,000 to $25,000,000. Contact us today to help build your brand value.

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