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Domains are crucial assets for both domestic and international companies like JD, 360, Xiaomi, Alibaba, Google, Amazon, Apple, Microsoft, and more. But why do these companies place such a high value on domains?This is primarily because the
Domains are crucial assets for both domestic and international companies like JD, 360, Xiaomi, Alibaba, Google, Amazon, Apple, Microsoft, and more. But why do these companies place such a high value on domains?
This is primarily because the internet is continually shrinking the "distance" between people, enabling economic globalization. Domains serve as the internet's storefront, an indispensable part of this process. As long as users know a company's domain, they can access its webpage anytime and anywhere, allowing businesses to promote their products to a global audience. Moreover, a good domain has many other hidden advantages.
1. Domains Provide Strong Support for App Development
Apps have been booming, but they have limitations. They occupy limited "space," depend on third-party platforms, must adhere to their terms of service, and may be taken down for policy violations.
Domains, on the other hand, offer flexibility. They don't need to be downloaded or installed; users can access them through a simple URL. Memorable domains increase website traffic, as users can quickly enter the domain and access the desired services.
2. Good Domains Facilitate Website Promotion and Product Marketing
Memorable, concise domains that align with a company's name or brand enhance user retention and attract potential customers. Users can quickly recall and enter such domains, reducing traffic loss and amplifying a company's influence.
3. Good Domains Prevent Malicious Competition
To safeguard their brand image, companies must secure domains related to their business and prevent competitors from acquiring them. Acquiring mainstream domains relevant to your brand is essential. The infamous "Real vs. Fake Kaixin" incident was caused by domain confusion. The real Kaixin used kaixin001.com, while the fake one used kaixin.com, misleading users and causing significant damage.
This incident underscores how a good domain can significantly impact brand awareness, user engagement, and the long-term success of a business. For instance, 360 spent 100 million RMB to acquire the domain 360.com, highlighting the critical role of domains in brand protection.
4. Good Domains Are Essential Intangible Assets
Due to their uniqueness, good domains are considered scarce resources. They represent a company's distinct online identity, encompassing its products, services, image, and reputation. Domain value increases with its influence and can be used for trading, parking, financing, or even as collateral.
For example, 58.com faced financial difficulties in its early days and survived by selling high-quality domains under its ownership.
With numerous examples of effective domain use, how should companies choose their domains?
1. Domains Should Reflect the Brand
Domains function as identifiers of goods or services, just like trademarks. Companies should integrate their core trademarks and business names into their domains. This approach helps closely associate the domain with the brand, establishing a positive interaction between the two in users' minds.
Many Chinese companies have recognized the importance of a unified business identity, as seen with domains like taobao.com, youku.com, baidu.com, huawei.com, and loupan.com.
2. Opt for Industry-Relevant Domains
Industry-specific domains are highly representative of a sector, making it easy for users to understand a website's business focus. These domains naturally attract traffic because they use high-frequency keywords.
For instance, travel platform Ctrip acquired and used Trip.com for international expansion, while job portal Zhaopin adopted the industry-focused zhaopin.com.
3. Keep Domains Short and Memorable
The length of a domain can indicate its value. Short domains are unique and therefore scarce. Single-letter domains like .com only have 26 options globally, and two-letter domains offer only 676 possibilities. Short domains are not only valuable but also easy to remember and type.
Examples like 58.com, QQ.com, IQ.com, QY.com, and JJ.com are all short, reflecting their companies' strength and influence.
A well-chosen, meaningful domain is the first step toward success for any business. If you have domain requirements, please scan the QR code below. We hope our domain consultants can assist you and your company!
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