Noob question, what makes a premium domain, and are they easier to sell?

[Interhacker]

I read that its the size of the site & its the extension but i don't see how that works.

For instance, i look at premium auctions and there will be something like snbg.com selling for 1k GBP , yet something like mod2.com sells for 250GBP.

 

[Edwin]

snbg.com could be an abbreviation for something or the initials of a company. mod2.com is meaningless. I know they're just examples, but it kind of proves the point you're asking about...

 

[Uvex]

There is a correlation between the domains that are sold for the most. There are also very rare circumstances where a buyer will pay over the odds for a domain, simply because it fits within their operations or they have plans for it and know they have a higher budget than others.

If you look at places like DNJournal and DomainPrices, you will start to see that correlation to which has already been referred to.