Choosing the right domain name seems like a huge challenge, but you should aim for a brand, rather than a domain. Image: Flickr /ivanpw / CC-BY
Picking a brand name and domain name is one of the most important steps in creating a profitable business. The planned sale of Pay.com for an estimated $2 million to $8 million is raising the specter of a bubble in domain name prices. There are arguments on both sides of the debate over the importance of owning the right domain name.
The increasing value of domain names
Just a few months ago, Sex.com sold for $13 million. Social.com has been auctioned with a starting bid of $5 million. This is in comparison to registering a new domain name, which costs between $10 and $30. The DOMAINfest Barcelona auction has more than 70 domains up for sale, including seoagencies.com, semexpert.com, data.com and skills.com. The current IPv4 protocol can support about 4.5 billion IP addresses, a number that experts estimate the web is quickly reaching. This does not mean that the web is running out of text domain names, just the numerical IP addresses associated with those domains.
The argument for strong domain names
One side of the domain name argument says that a strong domain name can make or break a brand. Domain names are increasingly becoming the most common way a customer will interact with your product or service. Having a domain name that matches your brand makes it easier for customers to find your website. A strong or popular domain name can also create a buzz of its own that can help your business develop. Logical domain names also require less explanation, which makes marketing easier.
The argument against expensive domains
Some are spending thousands or millions of dollars on a “just right” domain name, but it may not be worth the effort. The reality is domain names are a dime a dozen. The DOMAINfest sale includes Fares.com, which is being put up for auction by the owner of LowFares.com. Bing.com, Google.com and thousands of other popular domains were almost completely unknown before strong brands, good marketing and a popular service made the domains valuable. You should keep an eye toward domain branding when choosing a brand and domain name, but good marketing and strong branding can make any domain name work.
