There are various reasons someone might want to buy a premium domain name.
For the purposes of this article, let’s focus on the first two reasons. If you want to build a website or to monetize through ad revenue, you’ll want people to visit your website. The best way to direct online traffic to your website is through an effective domain name.
Why? Let’s compare domains to old-fashioned physical business addresses. If you ran a clothing store, would you rather be on Main Street or on a back road out in the middle of nowhere? If you ran a restaurant, would you rather be on Main Street with accessible parking or in a business park on the outskirts of town? In both of these examples, it’s best to be in heavily trafficked areas that are easily accessible for potential customers. It’s the same for domains.
Premium domains can provide businesses with online presence that is easily accessible for the highest number of potential customers. For example, if you had a cleaning company called Kleen Services, you’d get the most traffic with KleenServices.com. This would be your restaurant on Main Street. Other alternatives, like KleenCleaningCompany.net or a Facebook page would take you further away from Main Street, and further away from your potential customers.