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

 

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