Investors & Domain Names
Why would your investor say to pass on owning your domain name?
In today’s episode I talk about why a VC would say you don’t need to own your domain name.
POINT #1: The story of why one startup passed on owning their (.com) domain name.
- Chris recently spoke to a startup whose investors told him not to buy their (.com) domain name.
- The investor said that it was not worth the price and their current domain name was good enough.
- Chris had interviewed with a company years ago that was funded and owned by a private equity firm. The strategy of this company was to be sold to a bigger investor in the next three to five years. They were focused on profit and being lean. The shorter picture was more important than the bigger and longer picture.
POINT #2: What is your investors motive?
- Why would investors recommend passing on acquiring their brands domain name?
- What is the motive of the investor?
- Could they be more focused on short term profit then the long-term brand and growth play.
- What would happen to their investment if another brand launched on the (.com) for your brand?
POINT #3: What is your motive as a startup founder?
- If you are looking to build an elite brand then you need to own your (.com) domain name.
- As a founder you are looking at the long-term strategy play and impact to your brand equity.
- Your domain name impacts your ability to control the messaging and positioning for your keyword brand.
- We call this the global positioning.
QUESTION OF THE DAY:
- How good does your brand help you rank and establish leadership?
QUOTE OF THE DAY:
- “What is the motive of your investors and does it align with your motive to build an elite brand?”
– Chris Zuiker