Mind Share Increases Sales

Studies have shown that generic domain names have a huge advantage over non-generics in advertising, outperforming them by a whopping 42%.

“Because generic domains are memorable, intuitive, referable, and credible, they have the opportunity to go BEYOND the traditional marketing channels into … word-of-mouth marketing.” – Alan Hack

Consider this:

  • Word-of-mouth marketing results in 5x more sales than paid media impressions
  • Brands that elicit a strong, emotional response are 3x more powerful in WOM than brands that do not
  • 88% of consumers place the highest level of trust in personal recommendations from people they know
  • 64% of marketing executives say that WOM is the most effective form of marketing

These statistics further underscore why companies will pay millions for generic, descriptive domain names.

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Value of a Premium Domain Name

In today’s world, meaningful, generic, descriptive domain names are of equal if not more value than company names themselves.

Test it yourself – if ice cream comes to mind, will “Dreyers” be your first thought? Or might you look up IceCream.com instead?

“Premium domain names are expensive for the simple reason that the ease with which customers can remember and access them means that they help websites gain a critical advantage in today’s competitive marketplace.”

Michael Gargiulo
Forbes Councils Member
Forbes Technology Council

It is the reason why Jamie Siminoff nearly bankrupted his company to buy the domain name Ring.com, and why countless others want the “best in class” domains.

“Generic, descriptive domain names are so rare, there just aren’t enough good ones to go around.” “There are a finite number of dictionary words in the English language.”

Frank Shilling, Jeffrey Gabriel

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Chinese Companies, Global Domain Names

U.S. companies have long understood the marketing power of using short and memorable .COM domain names to capture global market share and to command trust and respect in their industries.

Only in recent years are Chinese companies realizing that short, relevant domain names directly impact their global authority, reputation, and sales.

China. The New King of Domains.
Spectacular Domain Prices in China
Companies in China prefer short .com domains

“Good domains are rare — very rare — and with such rarity comes value and prestige. Furthermore, very few great domains are even available for sale.” – NameCorp

微信 – When Weixin rebranded to WeChat.com, it doubled its overseas users in under 6 months from 50 million to 100 million.  Later, Weixin acquired We.com for $8 million.

小米 – Xiaomi acquired Mi.com for $3.6 million to improve their name recognition as they expanded into international markets.  Mi.com is MUCH easier to remember than ‘Xiaomi.com’.

京东 – Jing Dong paid US$5 million for JD.com, upgrading from 360buy.com. They enjoyed a savings of $20 million per year in search engine advertising.

奇虎 – Qihoo 360 (China) paid $17 million for the domain name 360.com to increase its name recognition for potential customers outside China.

Ctrip.com – China’s biggest travel booking company paid millions to acquire the website Trip.com. Why? For international expansion.

The Chinese government, by way of China Radio International, acquired China.com for $11.5 million to bolster the country’s global reputation.

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