What is a Domain Name?: 11 Reasons Why is it Important for Startup’s Success

Your business domain name is simply your website address. It’s what your customers type in to locate your online estate. This is where you host your products and services for your clients.

domain name

Domain names are a very vital key to growing your startup. And while they might seem like an expensive option, it does pay off in the long run. When starting your business, you’d want to acquire and that’s why you create a website. But to make the most out of that website, you need to first find a domain name that encapsulates your entire business plan and objectives. 

Still skeptical about investing in one? In this post, we’ll be showing you why getting a domain name is crucial to your startup’s success. 

Why Domain Names Are Important

1. You Become Credible

Using a generic domain name can make your business look tacky and unprofessional. Usually, customers would either think your products are of low quality or that you’re just not willing to invest in your business. That is if they don’t think your business is a fraudulent one.

For example, if you had to buy gadgets from a company that has a domain listed “supergadgets.com” or one that has a domain called “supergadgets.wordpress.com” which would you find more credible? 

If you’re an eCommerce startup, you’re rarely going to get any conversions because people will rarely enter their payment details. They won’t trust you with their money and personal information.

  • When choosing a domain name, make it credible by using .com, .gov, or .net
  • As a startup, you should use .com as it is the number one most trusted TLD with .co coming in second

Did you know? Smiley

When people try to remember a URL, they’re 3.8 times more likely to assume it ends in .com.

2. Domain Name Offers Enhanced Visibility

Using simple yet effective domain names helps your startup stand out in the market. It gives you great visibility and traffic without having to spend a lot on maintaining costs. While this is significantly tied to SEO it’ll bring to your site, you can also get enhanced visibility from word of mouth. 

For example, if a customer stumbled on your brand online and then had a conversation with a friend who might need your solution. At that moment, their ability to remember your domain name is important. Because it’ll determine if you get a new prospect or not. 

Buying a memorable premium domain name helps your prospects find you faster and easier. Ensure it’s short, descriptive, and easy to remember. 

Did you know that the most popular domains in the world are Google, Facebook, and Youtube?

3. Your Pages Get Enhanced SEO

Your domain is directly responsible for how high your business pages rank in search results. Google has ever-changing requirements for ranking pages however, it is always directly tied to how users find that page useful. So start by adding relevant keywords to your domain name. 

For example “Luxuryutilities.com” and “Luxe.com” which of these domain names target users who’d want to speak to a utility provider? Search engines will prioritize the former option which is fine because more people would want to click on that domain. 

So, focus on getting a domain name that is easy to remember and share. If it’s prone to typos and other errors, you’d get lesser backlinks too. And it wouldn’t be because people didn’t like your brand.

When picking out a domain name;

  • Use your target keywords to set up a domain name or ensure your name is at least a match for your target keyword
  • Make it simple so it’ll be easy to backlink to and share

Did you know? Smiley

More than 90% of online experiences start with an online search. Now you know how powerful it is!

4. Domain Name Creates Your Brand Identity

When you think about big brands like Amazon and Apple, you can’t help but think about how they’ve become established household names. While other branding and marketing assets also contribute to this, it starts from their domain name.

Brand Identit

Over time, when you’d want to create other subdomains, your customers need to be able to immediately differentiate your brand from a scam page. Having a domain name helps you build your brand name because, at the end of the day, they are the same thing. 

If your brand name is different from your domain name, then it creates room for skepticism. And you might find it harder to convince your clients that they are the same.

For example, you’re in the travel industry. If your business name is ‘magstravels’ and your domain name is “Magrets.net”, it’s going to raise an eyebrow.

However, if you have the same on both ends, it creates a distinctive identity for your prospects. So;

  • Make it easy for clients to locate you by having a clear domain name
  • Ensure your domain name and company name are the same

Did you know? Smiley

Most of the first 100 domains that were registered were brand names. They are the best way to connect to your customers.

5. Domain Name Provides User Accessibility

Your clients will probably want to go through some sort of research before patronizing your startup. So they’d want to learn about your website and see what services/products you offer. 

Having your domain makes your business very accessible to prospective clients. 

When they can easily find your website from a single search, it’s memorable and easy for them to visit. This is why it’s important to pick out the right domain name. 

You’d typically want a name that would be nearly impossible to input wrong. Because the thing is, if they enter a wrong name, they will either land on a page that doesn’t exist or land on Google’s search results which can push them to the competition.

For example, if your domain is “Bettie.me”, you have to constantly explain to people that it’s not “betty.me”. Which could have been avoided when picking out.

So ensure that;

  • You avoid using slang and words with multiple spellings in your domain name
  • You set up redirects for internal pages that may no longer exist

Did you know? Smiley

56.3% of .shop domains are malicious or spam.

6. Domain Name Can Attract Walk-in Business

If you eventually pick out a good domain name and it boosts your SEO, you’ll have more offline visitors too. 

Offline store

For example, if you have a domain name that says ‘legaladvise.com’ and you have people searching for legal practitioners nearby, your business will pop up on their results. Especially when you put in resources in your local SEO. This is because your domain name connotes some sort of relevance to their query.

And if they do review your website, they’ll see your contact information and they can book an appointment with you. Some might just decide to do a stop-by at your building. 

  • Ensure that whatever domain name you pick out is relevant to your niche
  • You should also invest in local SEO like business listings and Google My Business

Did you know? Smiley

Using hyphens and numbers in your domain name can negatively affect your search rankings. You now know what you really need to avoid.

7. Set User Expectations

Closely related to brand identity and accessibility. Users have certain expectations when they see your domain name. 

If you see a domain called ‘FarmFresh.com” you’d immediately think along the lines of organic food or produce. You could also imagine it’d have something to do with maybe managing a farm? And that’s fine. Because the domain already set that expectation.

However, if we told you it was a vet store, you’d probably be puzzled at first. The chances that someone who’d be interested in a pet store will search for ‘Farm’ are very unlikely. Because there’s no link between those two items. This is why you need to ensure that you meet the expectations of your prospective clients with your domain name.

  • Once you have a business, find the appropriate name to match.
  • Spend time brainstorming. The best domain name won’t come by so easy

Did you know? Smiley

.com is the most trusted TLD.

8. Domain Name Allows You to Control Your Brand

If you don’t purchase a domain name very similar to your business name, someone else can purchase it and then take control of your brand. If your business name is ‘Sipandpaint’ you’d want a domain that’s ‘sipandpaint.com’ or something very similar to that. 

If you don’t secure that domain name, a competitor can purchase it and take away your customers. So you’d have clients booking on their website without even knowing it. The resources you’d have to spend on channeling that traffic back to your other domain name will also be a lot.

Even if a competitor doesn’t purchase that name, you stand a high risk of a fraudster using that domain to defraud your customers. And in the long run, they could damage your reputation.

  • Domain names are always increasing in value. Secure that domain today.
  • Ensure that your proposed domain name has not been trademarked by another business

Did you know? Smiley

Elon Musk purchased the domain Tesla.com for $11 Million in 2016. It shows how valuable domain names can be to your brand.

9. Domain Name Provides Internet Mobility

Having your domain name allows you to switch between web hosts or even migrate to your in-house server. 

However, if you don’t have your domain this means you’d have to constantly pick up a new URL every time you attempt a move. For example, if you’re migrating from WordPress to Wix, you’d have to switch your business name from “rouge.wordpress.com” to “rouge.wix.com”

Asides from losing your entire search engine rankings on the previous URL, how do you convince your entire customers that you’ve switched URLs? Your entire branding would have to take a fresh look and that means reinvesting into rebranding. 

With your domain name, there’s stability. You can move offices, relocate to a different country, switch servers as many times and you’d still have your rankings and branding intact. 

  • Register for a whois domain privacy especially if you’re using top domain sites like .co.Uk, .com, etc
  • You should have only one domain name for the same website to prevent SEO issues

Did you know? Smiley

There are over 367.3 million domain name registrations in the world.

10. You’d Get the Right Clients

With the right domain name, you don’t have to worry about getting clients or traffic that are not aligned with your business offerings.

Right Client

Usually, customers spend time searching for services they need online. Search results simply share a list of what they think is relevant. 

However, if your domain name is misleading, they might waste time reviewing your website and find out it’s not even a fit. Not only does this put a dent in their searching experience, but you might also waste marketing resources by targeting these people when they land on your website.

Premium domain names will allow you to get traffic that is warm leads. And you’re assured that your marketing resources won’t be channeled to the wrong audience. 

Did you know? Smiley

The most visited sites in the world have an average of 9 characters in their domain name.

11. Gives You a Competitive Edge

If your startup plans to be an industry giant especially if you’re breaking into a new market, securing a premium domain is a heavy investment. This is because it positions your brand as the blueprint for other competition that might spring up. 

If you get a regular domain, a competitor might invest in that premium domain and then take up all your prospective clients. To avoid losing a ton of potential clients, get that domain while you can.  

It also works both ways. If your competition isn’t making use of a solid domain name, you should seize that opportunity to close the competitive gap.

  • Always seize a premium domain that is linked to your business name. Especially when the competition hasn’t bought it yet.

Did you know? Smiley

Domain names were free until 1995.


We understand that as a startup, cutting costs to launch your company would be on top of your priority lists. However, not investing in a good domain name should not be your go-to budget cut. 

It’s better to invest now and continue accumulating the above-listed benefits over time. Don’t spend resources on building your brand only to lose it when you’re ready to get a more suitable domain. Purchase a premium domain name with Domainify today.

Shopping Cart