Part II: Investor-facing Credibility

Domain names are concrete assets on corporate balance sheets, plus they offer brandplay opportunities in a unique, valuable way. Check out Part I about How Premium Domains Provide Consumer-Facing Credibility too!

Startups Show Focus by using Premium Domain Names

For startups in each funding stage, investors want to see focus. A focused, premium domain name truly can “say it all” about a startup. Look at Mint.com; they credit their domain name choice as two of the primary factors in their success. Turn to an experienced broker for a true startup name generator.

A domain broker typically helps a startup to identify and acquire domain names that allow for growth and change, withstanding market shifts and preserving possibilities.

Check out Zeal.com, a domain name that we assisted its buyer, a serial entrepreneur, in acquiring for his latest startup. “Zeal” showcases core values. Today, it’s a platform for students, connoting hope for the future. But investors have two additional hopes- which all investors like to have in their back pocket… Worst case, the domain name could always be sold to return their funding if things don’t pan out.

Best case, as startups so often discover a vital need for a tweak, the right domain name can allow for room to realign product or consumer base without losing that primary value. Want a perfect example? Uber.com- whatever they sell or become, their branding is uber, excellent, more than expected. That’s a powerful domain name that can pivot the brand into almost any space. No wonder they are backed by Google.

Established Brands Expand Engagement

Established brands seek premium domain names to build value for their brands, too.  Whole Foods recently launched DarkRye.com as an online magazine supporting consumer rapport and lifestyle. It allows for brandplay, expanding the range of consumer involvement, while reflecting a focus on core values.

Johnson & Johnson runs Baby.com, with no advertising for their products or brand, just as a community welcoming their consumers. Amazon acquired Diapers.com and continues to run it separately, knowing the value of the search engine standing as well as the alternative brand engagement options the exact match domain provides.

Brand value on the balance sheet

Domain names are valuable, hard assets that provide investors with confidence and an additional exit strategy. Startups more than anyone else should leverage domain value as they seek funding.

Whether a startup or a public company, domain names are assets that literally can – and should- be on the balance sheet. Some brands like Nike create such brand value that it’s included on the balance sheet as an asset.

But beyond that, domain names are real and tangible assets that absolutely belong on a balance sheet. When Ondova Limited Company filed for bankruptcy in 2009, their primary asset was their domain name, Servers.com, which sold at bankruptcy auction for over $300,000.

When Pets.com famously went out of business, PetSmart acquired the domain name asset.

Bottom line: premium domain names boost investor confidence.

Premium domain names equal strong brand equity. If you’re developing a forward-looking brand, speak to a domain name broker today! An attentive broker will be able to structure a deal with the financing or other terms you may require for success.