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There is no doubt that a domain name is an online real estate. It’s where your brand lives and conducts business. It is where you drive potential customers to buy and it’s where you build your expertise and authority. Thus, picking a domain name is an important decision and having one is asset to your business.

Primarily, your domain name is your internet address and it is where your business resides within the World Wide Web. Generally, it should be related to your business and preferably be short as most people may forget a long or complex name. Below are reasons why a domain name is important in business:

1. For business credibility

Having your own domain name makes your company look professional. In fact, using a high-value domain for your website and your company’s email address helps establish authority, credibility and professionalism, both online and offline. It ensures your customers will notice that you are an established, legitimate business and as a result trust you more easily.

Generally, free hosting sites do not inspire confidence in a customer. Again, since many people do not fully trust the Internet and e-commerce, you will want to do what you can to prove that your small business deserves their money. If you are not willing to pay the money to register an appropriate domain name, why would consumers think you would put any effort into creating valuable products or services?

2. It enhances your brand identity

In business, a brand is as reputation is for a person. Ultimately, a domain name plays a pivotal role in branding as it is a unique identifier that represents you and your business on the internet.  It is essential that your business secures an online presence and a domain name does this by giving you an exclusive address on the internet. Prospective customers will more readily transact with businesses with a professional, established online presence, made possible with a personalized domain.

3. Increases your web traffic

A lot of registered domains receive traffic. This traffic principally comes from direct type-in or referral traffic. Type-in traffic basically means that someone who is searching for a product decides to bypass the search engine by typing the keyword of the product they want directly into their browser. This is the best kind of traffic as it is highly targeted and costs no effort to obtain.

Contrarily, referral traffic normally comes from links from other websites. Plenty domains come with a high amount of backlinks resulting in a higher amount of quality traffic.

4. Increases search engine rankings

The more keyword-rich your domain name is, the more likely it is that you will rank high in the search results. Good domains are often stuffed with high-quality keywords. So while a domain name may not contribute to your rankings, it can also provide higher click-through rates, more trust, more attention in the search results pages and more brand potential.

5. It adds mobility to your internet presence

Owning your own domain name allows you take that name with you if you transfer Web hosts or switch to your own in-house server. On the other hand, if you do not own your domain name, you will have to take a new URL, which will destroy the branding that you built up with your first address. Hence, the importance of domain names in business.

6. It is a marketing strategy

A high-value domain name is generally short, descriptive and easy to remember. It gives customers and search engines an easy and intuitive way to remember and find you. Having a great domain results in high visibility, reputation and natural traffic but without the recurrent cost.

7. To personalize your business

Nowadays, customization and personalization are at the core of every business. Looking to gain a competitive advantage and encourage brand loyalty is not always easy. On the Internet, your domain name is your unique identity. Therefore, any individual, business or organization planning to have an Internet presence should invest in a domain name. A domain name directly appeals to your customers by creating a call to action out of the name of your business. Also, your business domain name can help you capture the essence of your brand and make it memorable.

8. It allows you to acquire multiple domains with different suffixes

As mentioned earlier, owning your own domain name lets you take that name with you if you transfer Web hosts or switch to your own in-house server. If you do not own your domain name, you will have to take a new URL, which will destroy the branding that you built up with your first address. As a result, your own domain gives you the opportunity to acquire multiple domains with different suffixes related to your business. Hence the importance of a domain name in business.

9. To protect copyrights and trademarks

Having your own domain name, website and email addresses not only gives you and your business a more professional look but also protects your business copyrights and trademarks.

For instance, if you were to register McDonalds.com as a place to sell your own frozen hamburgers, you would be infringing McDonald’s trademark and they could take legal action against you to confiscate that domain from you. Even if you had a very good reason, they could still take it from you under the theory of trademark dilution. Therefore, registering your domain name gives you the same set of rights.

10. For competitive advantage

Having a domain name for your business is a great way of gaining competitive advantage. In truth, a domain name creates a unique online identity for your business. You wouldn’t want your prospects to confuse you with your competitors to the extent of purchasing from them. Thus, the importance of a domain name in business.

In conclusion, a good domain will not only protect your brand and make you look more professional, it also improves search engine rankings, generates traffic and it is a virtual asset which tends to increase in value over time. Therefore, a great domain name makes great business.


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