Does a business have to have a good domain name?Is a domain name really so important?

As a public account in the domain industry, we have always been committed to spreading the value of domain names. However, readers often ask, "Is the value of domain names really that high? Why do businesses need a good domain name?"

In fact, this is an age-old question, and the actions of major companies in protecting domain names have already provided us with an answer. Today, let's talk again about the relationship between domain names and businesses.

1. Connecting Users and Establishing Officiality

In the internet age, when we want to determine the credibility of a business, aside from flashy advertisements, many people turn to the internet to check if the company has an official website. Clearly, a business with an authentic official website is more trustworthy than those that cannot be found online. This is where domain names play a significant role.

Domain names not only serve as a bridge of communication between businesses and users but also play a role in showcasing a company's brand image. A concise, memorable domain name that aligns with the brand is more likely to help users distinguish and remember it, subtly contributing to brand promotion.

Official domain names in SMS messages verify the authenticity

In today's world, where fraudulent information is rampant, users can identify authenticity by recognizing official domain names. For instance, domains like QQ.com for Tencent and Taobao.com for Alibaba's Taobao are well-known, making it difficult for counterfeit domains to thrive. This helps prevent negative events such as brand image damage due to malicious impersonation.

2. Cost Savings and Enhanced Brand Image

A good domain name can save a company significant advertising expenses, and this is not an empty claim. Although there are now various entry points for web traffic, domain names remain the most prominent one on the internet. The traffic brought in by domain names cannot be underestimated!

A prime example is JD.com, which initially had a poor brand domain name and later acquired the brand domain JD.com for a whopping 30 million dollars. Prior to this acquisition, JD.com had to pay approximately 60 million yuan annually to search engines for traffic. With the new domain, experts estimate that JD.com saves at least 100 million yuan in annual advertising costs!

In summary, having an apt and memorable domain name not only facilitates user recall and fosters a positive website reputation but also substantially reduces expenses related to search engine traffic and marketing promotions, making it a critical step in brand promotion.

3. Independence and Freedom from Third-Party Constraints

Today, mobile app development is robust, and the saying "Domain names are outdated; it's the age of apps" is widely heard. However, despite the flexibility of apps, their limitations are apparent:

First, apps have limited "living space" on a user's device, as device memory only allows for a certain number of apps to coexist. Second, app development involves significant work and costs. Most importantly, apps do not generate private traffic! Surrendering user data and control to third-party platforms comes with the requirement to adhere to their terms of service and pay fees, and there's also the risk of being delisted for violating platform rules.

Previously, well-known apps like Xiaohongshu (Little Red Book), Didi, and Toutiao (Today's Headlines) experienced delisting incidents. Additionally, apps rely on domain name resolution, but this is often hidden from the user on mobile platforms. Therefore, building an independent website not only allows for the cultivation of true private traffic but also frees businesses from being harvested by large platforms and third parties.

As Lei Jun, the founder of Xiaomi, once said, "A company must have a domain name. If I can't buy it, I won't use it." This clearly demonstrates the crucial role domain names play in a company's development. In conclusion, you may access a website without using a domain name, but domain names remain the foundation of a company's presence on the internet and have become a valuable intangible asset for businesses.

A good domain name not only enhances website visibility and helps build a company's brand image but also saves on advertising expenses, reducing promotional costs. Most importantly, it can increase website traffic, improve conversion rates while attracting more customers, ultimately representing the value of domain names to businesses.

Therefore, from the perspective of a company's overall development strategy, owning a good domain name and proactively protecting related brand domains are essential!