Domains are deemed “premium” and expensive if they are memorable, and easy to spell; two branding elements that are normally very expensive to acquire.
Premium domains also give customers a sense of trust and authority. Users will, for instance, have more trust in doing business with www.Cars.com versus www.Find-Cars-Online.us
Premium great domains help with link acquisition. Great domains provide a sense of trust and authoritativeness with webmasters which helps with outreach (higher email outreach open rates) and link placement.
Depending on the name and its vertical, certain premium domains carry large volumes of direct type-in traffic. That is people who just type in the full domain name in the browser bar to search for something (as opposed to going through search engines).
A premium domain name is the perfect base for all non-internet based advertising like billboards, print ads, TV, radio, etc. Because premium domains are short and memorable, physical strategies that utilize great domains have a high success rate of users retaining the URL and visiting when they are ready.
As a conclusion, a premium domain means, besides all these extraordinary benefits and a lot of money you save. For example, online advertising can cost up to 70% less.