Catch All Emails

A Case Study in Human Nature

“The problem with not having the .com of your name is that it signals weakness.”

This is not a quote by a domain name broker.

This is a quote by one of Silicon Valley’s leading Venture Capitalists. In August 2015, Paul Graham, co-founder of the Y Combinator seed capital firm, penned an article titled, “Change Your Name.”

He goes on to say, “Unless you’re so big that your reputation precedes you, a marginal domain suggests you’re a marginal company.”

Again, these are not words of a domain name broker. These are words coming from somebody who has invested millions of dollars in companies and certainly understands a thing or two about branding.

With that said, there are always two sides of a fence and some may debate that a great domain doesn’t always matter. We obviously would disagree with this side, but deciding whether or not to acquire a domain name should never be about the sales pitch, automated valuation tools or comparable sales. Your decision should be directly correlated to the value proposition a great domain name holds to the value of your business.

Does Amazon need to own every specific product domain name, such as babybeds.com or weddingrings.com?

Of course not.

In fact, some would argue this type of domain is only valuable to a brand for: (a) a redirect, (b) brand protection, and/or (c) a defensive play.

Why?

Because Amazon is the brand, and the danger of diluting that brand by focusing on keyword domains is very real. It also costs a lot more to manage a sea of smaller brands, has possible negative workplace culture effects not having all employees working for the same brand and more.

Buying a Better Domain

Let’s look at the more-common scenario of why companies buy domains. Many acquisitions today are not the result of a name change, but of companies acquiring a better version of their domain. Almost any brand expert will tell you that consistency is the key to branding.

Target is Target.

Target cannot be Target in one place, Target Inc. in another,