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Your success or failure depends on how easy it is for people to locate your website. Domain names are store fronts. A good domain makes an easy to remember destination.
Your premium domain will give customers an instant sense of trust, credibility and authority! This valuable trust will lead to higher conversions.
Owning a great domain name naturally lends itself to link building. Webmasters are far more likely to link to your website if it is built on a premium domain name.
Your short, memorable and exacting domain name will increase direct word of mouth referrals which typically carry extremely high conversion rates.
Domain values increase over time as domain authority grows. If you consider that your domain is really an online storefront, it makes sense to invest in the best "location" you can afford.