It’s no secret that economic times are tight, and it’s quite possible that no group is more profoundly affected than small business owners. Every penny counts these days, and it’s important that every investment yield a significant return. So in this economic situation, why would you even consider paying top dollar for a premium domain name? The answer is that premium domain names, also called “simple domain names,” can make a huge difference for your business.

What is a premium domain name, you ask? A premium domain name is a domain name that was registered at one time but is now available again. Shrewd business owners bought up the most intuitively-named domains long ago such as http://pizza.com and http://flowers.com. But owners of these domain names are now willing to part with them for the right price. Some domain names have gone for as much as $7 million, but many are available for anywhere from several hundred dollars to several thousand dollars.

Given the amount that a domain name can cost, why would you choose to pay for a premium domain name? Here are 3 reasons.

1. Instant Branding. When you use a premium domain name, you automatically brand yourself. Not only will your domain name be a breeze to remember, but people will instantly associate your product with your name. If your domain name is http://vodka.com, you won’t need to spend much time trying to educate your potential customers about the nature of your product.

2. Increase Search Engine Ranking. Search engines take into account the relevance of your domain name to your product or service, so the easier it is to associate your domain name to your product, the higher your search engine ranking will be.

3. Increased Traffic. Direct navigation occurs when an internet user types a search word directly into the browser address line rather than using a search engine. So if a person types “shoes.com” into the address line, comes up with your website, and clicks the link to your site, that user has navigated directly to your site. As you might imagine, having a premium domain name can make a huge difference in the amount of traffic that comes to your site via direct navigation. And you didn’t spend a single penny on marketing that would direct that user to your site!

When you consider the fact that 80% of adults in the United States use the internet regularly, it seems like a good investment to spend whatever it takes to purchase a premium domain name.

If you’re a small business owner, consider the possibility of purchasing a premium domain name and set some of your marketing budget aside to do so. Go to the website “register.com” to see if there is a domain name available that is relevant to your product or service, and then do some research to see what kind of return on your investment you might see if you purchase that domain name. If this kind of research seems overwhelming, consider consulting an internet marketing professional to help you determine whether a premium domain name is a worthwhile investment for your business. An internet marketing professional can also help you access search tools that will tell you which domain names will benefit you the most.

Although it seems like a big investment, purchasing a premium domain name can make a huge difference in the success of your business. A premium domain name will allow you to cut down on marketing spending in the long run, it will increase your search engine rankings, and it will help potential customers associate your business with your name. Consider the investment. It may be well worth it!