In business, mistakes are inevitable. Whether you’re a startup or an established company, challenges are a natural part of the process. You might hire the wrong person, launch a product that doesn’t resonate with your market, or form a partnership that falls short of expectations. These setbacks often teach valuable lessons that can lead to growth and innovation. But while some mistakes are unavoidable, there’s one area where you can—and should—avoid taking unnecessary risks: your domain name.
Why Your Domain Name Matters More Than You Think
Your domain name is a core part of your brand’s identity. It’s often the first thing people see when they come across your business online, and we all know how important first impressions are. A strong, memorable domain name makes it easier for people to find and trust your brand, while a weak or confusing one can drive them away, often to your competitors.
The Risks of Using a Compromise Domain
When your Exact Brand Match (EBM) .com domain name seems out of reach, it’s easy to think that adding another word, choosing another extension, or inserting a dash will solve the problem. You might tell yourself that it doesn’t really matter—after all, big names like Tesla, Slack and Close didn’t start with their exact match domains. Tesla started with TeslaMotors.com, Slack with SlackHQ.com, and Close with Close.io, and they turned out fine, right? So why not just pick something close enough and save the cash?
While it’s true that a great domain can’t rescue a bad product, and success relies on hard work and innovation, these companies understood the importance of securing their EBM domain as their brand grew.
Compromising on your domain name might save money upfront, but it can also lead to significant costs down the line—costs that far exceed the price of securing the right domain from the start.
1. Loss of Credibility and Trust
With so many brands competing for attention and consumers flooded with information, gaining their trust and making your brand stand out is more challenging than ever. Imagine trying to build a brand called “Example” but directing people to getexample.io. Every time a customer has to remember to type in an extra word or unusual extension, you risk losing them.
People naturally prefer simplicity. When they hear about your brand, they assume that typing Example.com will take them to your website. If it doesn’t, they might feel confused or even suspicious, which can erode the trust you’ve worked hard to build. Worse yet, you’ll likely miss out on emails sent to the wrong domain, lose traffic, and ultimately, lose money.
If you’re talking to someone at a bar about your company, they just won’t remember TeamworkPM.net. One of our competitors is Basecamp, which has Basecamp.com. If someone is comparing Basecamp.com against TeamworkPM.net, many will choose the .com because it has credibility and the right image.
Peter Coppinger, CEO of Teamwork.com
2. Brand Consistency
Consistency is key when it comes to branding. Your marketing team already has a tough job—creating a cohesive message that resonates with different audiences on different platforms. A domain name that doesn’t match your brand name only complicates their work.
Inconsistencies, even small ones, can dilute your brand message and make it harder for customers to remember and recognise your brand. Consider the cost of losing even one client due to brand confusion—can you afford that risk?
Investing in a premium domain has proven to be a transformative decision for my business, offering immense benefits from enhanced credibility to marketing advantages. While it presents challenges, including high cost and strategic planning, the potential for a strong ROI makes it a worthy consideration for small to medium-sized business owners looking to elevate their digital presence.
Jim Campbell, CEO of Honeymoons.com
3. The High Cost of Lost Word-of-Mouth Marketing
Word-of-mouth marketing is one of the most powerful tools at your disposal. According to a Nielsen study, 88% of people trust recommendations from friends and family over any other form of advertising. But word-of-mouth only works when someone hears about your brand, *and* they can easily find you online.
Imagine a customer named Anna loves the shoes she bought from “Example” and tells all her friends about them. If you own Example.com, her friends will likely find you with a simple, intuitive search. But if you’ve settled for getexample.io, they might type in Example.com out of habit and end up somewhere else entirely—perhaps on a competitor’s site. Instead of benefiting from free, organic word-of-mouth marketing, you now have to pay for ads to redirect traffic back to your site, struggling to capture the attention of customers searching for your brand, relying on third-party platforms.
You will lose all word of mouth marketing if you don’t have a good name. Most people choose their name because the domain is available. That’s a really bad idea. I spent 3 months and $182,000 negotiating for Mint.com, and it was the best purchase I ever made.
Aaron Patzer, Mint.com
4. The Risk of a Forced Rebrand
Over time, the importance of owning your EBM domain only grows. Imagine you’ve built a strong brand with your compromise domain, but then someone else acquires Example.com. Now, not only are you competing with them for search rankings, but you’re also at risk if their business conflicts with your brand’s values or if they offer a competing product.
This scenario could force you into a rebrand. The expenses of changing your brand’s name, logo, marketing materials, and domain are just the beginning. You’ll also lose the brand equity you’ve built up over the years, starting from scratch in the minds of your customers. Is this risk worth the initial savings? More often than not, the answer is no.
If you have a US startup called X and you don’t have x.com, you should probably change your name.
Paul Graham
As a side note, this quote aged well with the Twitter/X rebrand.
5. Security Risks
Using a domain that isn’t an exact match to your brand name can also expose your business to serious security risks. Consider the story of Stoggles, a company that initially operated under the domain wearestoggles.com. The previous owner of stoggles.com had created a ‘look-alike’ site by copying Stoggles’ photography and text, which was linked to an Amazon store selling imitation products. Customers who inadvertently visited the wrong site were at risk of purchasing counterfeit products, which could lead to a loss of trust in the brand.
After disputes and complaints with the domain’s owner, Stoggles finally secured stoggles.com, protecting its brand and ensuring customers were directed to the correct site.
Securing the stoggles.com domain was a hugely important step for our business. We’ve had wearstoggles.com, which just doesn’t hold the same brand power. Operating through stoggles.com helps us to reach more people and follow our purpose of inspiring the importance of everyday eye protection through innovative and seamless design.
Max Greenberg, CEO
The True Cost of Not Owning Your Exact Brand Match Domain
When you consider the risks—brand confusion, lost trust, fragmented marketing, diminished word-of-mouth impact, security risk and the potential need for a rebrand—the true cost of not owning your EBM .com domain becomes clear. You’re, in fact, not saving money by avoiding the purchase of the perfect domain; you’re paying in other ways, often without even realising it.
Every time a potential customer can’t find your website, every dollar spent on additional marketing to compensate for a confusing domain, and every missed email because it was sent to the wrong address—these are all hidden costs you’re incurring by not owning the right domain. And the longer you wait, the more these costs can add up.
We actually started with “hellopublic.com” – was just the cheapest among all the options we plugged into a spreadsheet during a brainstorm. But they don’t call it “internet real estate” for nothing. Just like it matters for your brand whether your store is on 5th avenue or in a random alleyway – it matters what your domain is.
Jannick Malling, Co-founder & Co-CEO of Public.com
Learning from Those Who Got It Right
Tesla eventually acquired Tesla.com, Close secured Close.com, and Slack did the same with Slack.com. These decisions weren’t just about prestige—they were strategic moves to protect their brand, simplify their marketing, and make it easy for customers to find and trust them. Hundreds of entrepreneurs upgrade to their perfect domains or rebrand if it’s not reachable.
They invest in their brand’s future by acquiring the right domain, ensuring that they could fully control their online presence and avoid the pitfalls of a compromise domain.
Beyond just the benefits of properly aligning our brand with the .com name, we knew that owning this domain would illustrate to future customers that we’re here to stay for the long haul.
Steli Efti, CEO of Close.com
You’re Gonna Make Mistakes—Don’t Let Your Domain Be One
Mistakes are a natural part of running a business, but your domain name doesn’t have to be one of them. Learn from successful entrepreneurs who have prioritised their domain names as a key part of their strategy.
Your domain name is a valuable asset—one that can drive growth, build trust, and ultimately, be worth far more than the price you pay for it today.
While it may be tempting to save money by opting for a cheaper, compromise domain name, the potential loss in terms of brand recognition and revenue should not be underestimated. Investing in a premium domain name is a smart business move that can pay off in the long run. Contact us to learn more about our premium domain options and how they can help your business grow.
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