A premium domain is a domain name that is very valuable because it has potential for becoming a memorable web address. Because of this value, they cost much more than a typical domain name registration.
Premium domains are also known as: aftermarket domains, secondary market domains, high-value domains, great domains, or top domains.
Why should I buy a premium domain?
Registering a good domain name is the first step in building a successful online business. There are two ways you can go about this. One, you can register a unique name that isn't already taken or two, you can buy a premium domain name.
If you register a unique name, it can take considerable time, effort, and money to brand your website. It will be very difficult for users to find your website since the same is unique and they have never heard of it before. In addition, they will have no idea what your website does if it's not obvious in the domain name. Why not take advantage of the intrinsic value of a premium domain name?
Purchasing a premium domain offers you a shortcut in your marketing efforts. You will not have to spend a majority of your budget on branding and educating your potential customers. Also, users will have an easier time finding you on search engines, leading to more traffic and potential sales.
If you do not have a business, you can always buy and hold like a good piece of real estate. A good domain name will always go up in value; you can make a profit by buying low and selling high.