Are you still on the fence about investing in a premium domain name for your business? Are you wondering why domain names are so pricey?
Well for one, domain names can make or break your business; they have power behind them. Whether it's a given name, a nickname or a company name, it tells your story. "When you have a great name, people will remember it, talk about it, and develop an emotional connection to your brand". Furthermore, a name always carries a legacy(whether good or bad). It's connected to an experience: people may not remember a product, but because a brand has built a certain culture or brand story.. they remain successful and relevant.
Find out why brands and startups are paying so much to acquire the right name?
1. Brand Identity
Did you know that many of the brands you wear or use are family names(last names)? You are literally a walking billboard for someone else's family. Here are a list of brands that are actually last names: McDonald's is a last name. So is Armani, Gucci, Hennessy, Harley Davidson, Hilton, Honda, Porche, Rolls Royce, Wells Fargo and even Welch's grape juice is a last name. "So you are wearing more than a product. You're saying look at this family!". Now when you are buying a name, even if it's not a given name...it's still going to end up being your family name. It's going to be your business, your kids inheritance, your legacy, your brand. The name is more important than even the equipment you're buying for your business. But alot of people don't understand this. Because they can't physically hold it; they think it's not valuable. Love is probably the most valuable thing in this world. You cant hold it like a diamond, but you can express it. You can hug someone, or do something amazing for them. It becomes a verb to show it's real. So are names; there's a culture built by repeated actions. So even without metrics, names are highly valuable.
2. Location, Location, Location!
Domain names are otherwise known as virtual 'online real-estate'. In real estate, billions have been paid for premium locations- whether on the beachfront or main street. Online your location is your domain name." You can attract more customers and even investors if you set up shop on a premium domain name. It may cost more, but the reward is the lifetime value you get in return. Some domains get tons of traffic, which means more money to be made. A small store in the state of Delaware, won't make even a quarter of what a store located in the Times Square, New York would. Did you know that LasVegas.com sold in 2005 for $90 million dollars(payment agreement)? This is probably the largest reported domain name sales ever(to the best of my knowledge). Just like any business, if the buyer was not making any profit.. then the sale would not of taken place or they would have opted out of the deal when that window came. In other-words, the domain name you choose can make or break you're business.
3. Catchy (Easy To Remember).
Wow! I can't say enough about this one. A great domain name is both memorable and catchy(complimentary). It should pass the radio test, meaning if someone hears it, they should not have a hard time spelling it. And even more, it should be catchy. Just like a song that keeps playing in your head... you heard it one time and you can't forget it. You can't easily just register names like these and thus you have to buy them from their respective owners. Names like, Uber, Kodak, GoPro, HappyEscape, Zoom, and so on. Brands pay for these kinds of names, because they know they can save millions of dollars if a name is memorable. If you register a long name for $8, like coollogodesignagency.com, then you will get $8 results. Firstly people are going to wonder if you are legitimate, because you didn't even invest in yourself; your own company. So how can they trust you with their brand identity(logo)? A name like 99Designs, would be considered memorable. I have used other companies in the past and i can't even remember their names. I have only used 99designs once and I have never forgotten the name.
4. Quality Domains Are Like Good Sauce
I have visited a number of eateries that I have had some connections with. Close enough to where I can suggest sauces and ideas to them(I love to cook). One of these in particular, said the sauce I recommended cost too much. Now it was only like $1 more. They saw that as a loss. And we can justify that in our heads. But this where I'm different. I see that $1 more as a value added investment, because people love quality good tasting, finger licking food. Those customers will become like family, because they will be loyal and keep returning and even provide free marketing, because they will recommend your eatery. On the other-hand, when you serve bland food you wont have returning customers and thus your income will not be consistent. Unfortunately, though not surprising..that business had to close their doors. I don't ever like seeing a business fail, but the lesson is, don't skimp on quality. If you see a domain name and you want it, then that's because something within you is telling you..it's worth it. You have to see your name in ads, on TV, on buildings, on apparel etc. Don't get this thing called rejection fever: where you start playing down the value of a product or person because you didn't have your way. If you really want a name, then save and buy it. Or make an offer with the best you can afford. Or ask the seller, if they offer a payment plan. It all comes down to how much you value your own brand. I can say this, because I was flat broke with i invested 4 figures in a domain name for my own business. I used credit and went into debt. And i don't regret it. Because the value far exceeds that sacrifice.
5. Adds Credibility To Your Business.
Who would you take seriously or trust: a storefront with legit products or someone selling you products out their car trunk? Now I'm not trying to knock the hustle. But we all know the products you get out of a trunk or from someone passing through your barbershop or hair salon are usually imitations. Having a quality domain name, gives your business a professional appearance and it inspires confidence into your customers. "And since many people don’t yet trust the Internet and e-commerce, you’ll want to do what you can to prove that your small business deserves their money." To reiterate what I said earlier, If you’re not willing to invest the money to acquire an appropriate domain name, then why would consumers think you’d put any effort into creating valuable products or services?
They are so many other benefits a premium domain name offers, but these are my top 5!
I would love to hear from you if you have any thoughts or questions....Simply leave a comment below, or message me at email@example.com.