A domain name is an address where Internet users can access your website. A domain name is used for finding and identifying computers on the Internet. Computers use IP addresses, which are a series of numbers. However, it is difficult for humans to remember strings of numbers.
As there are hundreds of different domains available, from .com to .club, the prices can vary hugely. Each domain name has a different cost depending on the domain extension. There may also be factors such as the support cost, where some domain extensions cost a little extra as they require specific support or set up requirements before they can be used.
This is also because of the demand and supply principle. When the demand for a particular premium domain name increases, its value also increases because of the low supply. A domain becomes premium when someone believes that a particular domain name is more valuable than the average domain. Domains are considered premium for a large number of reasons including length, keywords, and brand-ability.