Every startup at one point has to choose it’s brand name, and that is usually reflected in the domain names they chose. It’s true that some may think it’s pointless to spend hundreds or thousands on a domain name while you can just hand register available names for $10 or so. But there are other factors that need to be considered while choosing your domain name. After all, it’s your business or brand name which will remain forever.
Chris Zuiker at MediaOptions wrote this article which gives a very clear perspective on this topic and we thought we’d elaborate more in this post.
What is the price of registering a new domain?
One can easily look up online and find that the average registration price for a new (and available) domain in the .com extension costs anywhere between $8 to $12 for a year. That’s so small an amount that the whole marketing budget can be give far more weightage than the cost of the brand name.
So here comes the idea that it’s far more cost effective to register a new available domain which may not be the exact brand name you chose but the brand name can be altered a little to match the domain, right? Or if the .com extension isn’t available, maybe you can go for the other available extensions.
While this is true, remember that brands that established themselves overtime did not achieve this by accident. They have spent years with a huge sum of money to get that brand featured and be remembered by the mass. They spent millions in advertising and marketing their brand so that it’s finally established and well known in today’s market.
Why spend on brandable domains then?
If you’re a startup, we know you want the best and most professional looking domain for your business name. Because changing brand name once established will cost your company unnecessary expenses. It’ll be like throwing away years of hard work and hard earned money. So you want to be very careful while choosing your domain.
Business names which are easily brandable and easily identifiable will help in ranking your brands in a much lesser time. The popular .com extension remains the king and it’s highly unlikely that any other extensions will take over the .com as it simply signifies commercial entity (added to the fact that typing the domain name and CTRL+Return key gives you direct access to the website).
Established brand names will help in the long run
It’s a simple mathematics, register a new domain for $10 and spend $50k in advertising and promoting your brand, or start off with a brandable and easily memorable domain acquired for say $40k and spend nothing on your advertising. If you have changed your brand name in the process, you would be giving away free promotion for the company that took your previous name or brand.
Domain names are unique and so are brands. They are assets and represents business entity. Having brandable domain for your business gives you a boost to start the race. It’s like the wind blowing in your favour in a boat race. That is why, brandable and one worders sell for huge sums of money whereas others think otherwise.
They purchase domains for a fraction of the cost of a brandable name and spend thousands and millions in branding. In the end, it’s more or less the same thing. But when you start with a name already established, it’s similar to starting with the whole team of brand marketing expert who works for you for free.