Research consistently shows that most successful businesses worldwide operate on Exact Brand Match (EBM) .com domain names. These global brands treat domain names as strategic assets, protecting their brand and enhancing their marketing efforts. Often, they leverage these domains creatively, unlocking their full potential as powerful tools for brand differentiation and customer engagement.
However, for less experienced entrepreneurs, investing in the right domain name can feel like navigating a maze full of uncertainty and hesitation. Below, we address some of the most common challenges entrepreneurs face when entering the domain name arena.
There Are So Many Extensions – What’s the Difference?
When choosing a domain extension, the .com TLD remains the gold standard. While alternatives like .net, .org, or industry-specific extensions (.tech, .store) are available, they lack the same level of trust and recognition. A .com domain is universally recognised and communicates credibility and professionalism. It’s no coincidence that the world’s top brands operate on .com domains, making them easier for customers to find and trust.
In domain names—dot com remains the one everybody wants and everybody thinks of. Everything else is just noise.
Troy Dunn, Owner of HomeGym.com
How Do I Know If This Is the Best Domain for My Brand?
Choosing the right domain for your brand requires careful consideration of several factors. Your domain should be memorable, easy to spell, and closely aligned with your brand identity. It’s essential to ensure your domain name resonates with your target audience by reflecting your brand’s mission and values. It should be catchy, easy to remember, and capture your brand’s essence while being simple enough for customers to type into their browsers easily.
We wanted a strong name, a name that would send a message, a name that could communicate that we were serious about this company idea.
Zeno Rocha, Founder & CEO of Resend.com
An Exact Brand Match (EBM) domain strengthens brand identity and enhances your marketing efforts across all channels. It creates a consistent and recognisable brand presence that customers can easily connect with, whether they encounter your brand through social media, email campaigns, or traditional advertising.
What If My Team and Stakeholders Don’t Understand the Investment?
Securing a premium domain is a significant investment, and it’s natural for your team, co-founders, or key executives to have concerns about the expense. To gain their support, highlight the strategic value of a strong domain name. Instead of seeing it as a mere expense, present it as an investment in the brand’s future. A premium domain enhances credibility, attracts organic traffic, and creates new opportunities for marketing and growth.
Having the domain name Teamwork.com gave us the credibility we needed, and we started getting bigger customers and more referrals. At this point, everything took off at lightning speed.
Peter Coppinger, CEO and Co-Founder of Teamwork.com
At that time, we were six people in an office above a fried chicken restaurant. $400K was a lot of cash. We only went for it because we had raised a $3M seed round, and I believed that the long-term branding benefit outweighed the short-term cost.
Waseem Daher, CEO of Pilot.com
Is the High Cost of a Domain Name Justified? Am I Overpaying?
The cost of a premium domain can feel overwhelming, leading you to question if the investment is worth it. A domain name is often the first touchpoint with customers, and a strong name can make all the difference in building trust and encouraging engagement. Investing in a premium domain is a wise decision that can help a brand stand out and succeed in the long run. It can also help to create a positive first impression with potential customers and can help to differentiate a brand from its competitors.
I used to think buying premium dotcom domains was a waste of cash… But the dotcom adds trust and organic search. Same EXACT product, just a new domain, more customers. Pretty wild.
Greg Isenberg, CEO of Late Checkout
While the upfront cost may appear high, the long-term benefits often far outweigh the initial investment.
What About Tax Implications and Accounting for the Domain as a Long-Term Asset?
Tax implications and accounting for domain names vary by country, but here’s a general overview based on U.S. law:
- Capitalised and Amortised: If a domain name is considered a capital asset, it can be amortized over its useful life, typically 15 years under IRS Section 197, which covers intangible assets, including certain domain names.
- Expense Deduction: If the domain is purchased for short-term use or deemed an ordinary business expense, it may be fully deductible in the year it’s acquired. This often applies to less expensive or non-premium domains.
Understanding these implications can help justify the investment to stakeholders and ensure compliance with tax regulations, supporting long-term financial planning.
What Will Investors Think About Spending Big on a Domain?
Investors might be cautious about spending heavily on a domain name, especially if its value isn’t immediately clear. Securing an Exact Brand Match (EBM) domain shows that your company is serious about its brand and committed to long-term success.
EBM domains are often seen as the digital equivalent of prime real estate, consistently delivering positive returns over time. Studies have shown that domain names, especially brandable and memorable .com domains, can outperform traditional investments like stocks, bonds, and real estate in terms of stability and ROI, consistently proving to be valuable brand assets that appreciate over time. Highlighting these factors can reassure investors that a domain name is a valuable asset set to contribute significantly to the company’s future success.
…unlike other investment instruments such as bitcoin, stocks and bonds, the vast majority of domain name returns over the past 17 years has been positive.
Escrow.com domain investment index report
You made a big investment getting that domain name, which means you have a big idea. This makes you serious in the eyes of an investor. When I see that I think this person has got it together.
Jason Calacanis, interview with Calm.com co-founder Alex Tew
Can I Easily Offload My Domain If My Business Changes Direction?
If your business pivots or changes direction, you may need to sell or transfer your domain. The good news is that good domains often retain or even increase their value over time. Domains can be listed on marketplaces or auction sites, where they may attract significant interest from other businesses looking to strengthen their online presence.
I bought CallTracking.com for $20k one time & tried to build a simplified call tracking app on it. The project failed. But I was able to sell the domain for $120k about a year later.
Peter Askew, Founder of Deep South Ventures
How Will My Customers React If I Switch to a New Domain?
Switching to a new domain can be a double-edged sword. On one hand, it might better align with your brand’s evolution; on the other, it can confuse or alienate existing customers. The key to a successful transition is clear and transparent communication.
A successful rebrand/upgrade should actively involve customers by listening to their feedback and making the transition seamless. It’s important to ensure that the new domain aligns with your brand’s growth and enhances the customer experience, making their interaction with your brand easier and more intuitive.
We continue to be inspired by how teams use our platform in ways we never imagined. It is our brilliant and creative user community that helped us define what we’re here to do. As we grew, we refined our values and our voice. The only thing missing was a name that epitomized our transformation, until we found monday.
Eran Zinman, CTO and Co-Founder of monday.com
Promoting your new domain name consistently across all marketing campaigns, as seen with Monday.com, ensures that customers remember and directly access your site, avoiding third-party platforms like Google or Facebook.
Switching to Paw.com has had a tremendously positive impact on our company. There’s a sense of trust and authority that comes with a great name like Paw.com.
David Gimes, Founder and CEO of Paw.com
Ultimately, if the new domain better represents your brand and is easier for customers to remember, the switch can strengthen your brand’s relationship with its audience.
Will a New Domain Hurt My SEO?
One of the biggest concerns with changing a domain is the potential impact on SEO. Search engine rankings are important for driving traffic to your site, and any disruption can have significant consequences. With careful planning, the impact on SEO can be minimised or even avoided.Â
When you buy an Exact Match Domain you get free traffic on day 1. Maybe that free traffic is 1 hit per day, maybe 1,000. It can take time to build up, but it’s worth the wait.
Chris Koerner, Owner of CoFounders.com
Maintaining consistent, high-quality content, updating backlinks, and using tools to inform search engines of the change are essential steps to mitigate any negative SEO effects.
Search engines prioritise the best content for their users, and a strong domain combined with consistent branding aligns with their goals of delivering quality results. Making your brand more accessible and trustworthy helps your audience discover and engage with your business, which, in turn, encourages search engines to favour your site.
Final Thoughts
Navigating the world of domain names can be complex, but addressing these common concerns with a strategic mindset can lead to long-term benefits for your business. Whether it’s choosing the right extension, justifying the cost, or ensuring a smooth transition, each decision you make plays a critical role in shaping your brand’s online presence. A well-chosen domain name is an asset that will drive growth, build trust, and position your brand for success in the digital landscape.
Premium domain names are an important investment for any brand. If you’re ready to take the plunge and secure a premium domain name for your business, don’t hesitate to reach out to us for assistance. We’re here to help you choose the perfect domain name and get it set up for your brand.
Previous Next