When you’re a startup, it’s hard to tell where things are heading and what your business will look like in the future. This uncertainty can make it difficult to choose a domain name and get your website up and running.
One option is to go for a branded domain. If, say, your business is “PC Garage,” your domain name could be something like “PCGarage.com” or “PCGarage.ca.” Basically, it would incorporate your brand name.
Another solution is to pick a keyword-rich domain name like “ComputerParts.com.” Some experts say this approach can boost click-through rates (CTRs) and website traffic, but that’s subject to debate.
Both options have pros and cons, and there are several factors you need to consider before making a choice. For example, think about your long-term goals, such as building a brand or simply increasing sales.
With that in mind, here’s what you should know about keyword-rich vs. branded domains and their impact on SEO and customer recall.
Should You Choose a Keyword-Rich Domain Name?
Keyword-rich domain names revolve around the search terms used by potential customers. For example, an exact-match domain (EMD) will include the keyword you want to rank for, such as “BloggingTips.com,” “CheapCarRentals.com,” or “CarInsurance.com.”
EMDs and keyword-rich domains in general were once considered essential for SEO, but that’s no longer the case. In 2023, Google Search Advocate John Mueller advised against using EMDs, pointing to their association with spam.
He also suggested that keyword-rich domain names can hamper business growth due to their high specificity.
Say you run handmadebags.com, an online store selling handcrafted bags. If, at some point, you decide to start selling handmade scarves and other products, your domain name won’t be relevant anymore. It could actually confuse customers and affect your branding efforts.
However, there are cases where choosing a keyword-rich domain makes sense. Let’s see a few examples:
- Your domain name is rather generic and allows for business expansion (e.g., “Hotels.com,” “CreditCards.com”)
- You run a local business (e.g., “WholesaleFlowersOrlando.com,” “DallasPlumbing.com”)
- You sell very specific products in a niche market (e.g., “KayakFishingSupplies.com”)
- You have no intention to build a brand
Pros and Cons of Keyword-Rich Domains
Using a keyword-rich domain is a matter of personal preference. It won’t help or hurt your SEO efforts, but it can impact business success.
Potential advantages include:
- Higher CTR: A keyword-rich domain tells potential visitors what your website is about, which can result in more clicks. However, you first need to ensure your SEO strategy is on point; otherwise, your site will get buried in search results.
- Increased traffic and sales: More clicks to your website equal more traffic. And the more people discover your site, the higher the chances of making a sale.
- Greater visibility in local searches: If your domain name contains a local keyword, then local customers may be able to find it more easily. But, again, this will happen only if your website is optimized for search results and provides value to its audience.
- Easier recall: Keyword-rich domain names tend to be short and easy to spell, allowing customers to remember your business more easily.
Now let’s break down the potential drawbacks of a keyword-rich domain:
- It may come off as spammy: Keyword-rich domains are often associated with spammy practices and can reflect poorly on your business. Would you visit or buy from a website called “cheap-computer-parts-uk.com?” Probably not.
- Limited room for growth: A keyword-rich domain name could limit your ability to expand your business in the future.
- Low availability: These domain names, especially those consisting of one or two words, are often unavailable or very costly. For example, “CarInsurance.com” was sold for a whopping $49.7 million in 2019, whereas VacationRentals.com was acquired for $35 in 2007.
- High competition: If you register a keyword-rich domain, you might end up competing against dozens of other websites with similar domain names. Some have been in business for years, and you may never be able to outrank them.
- Difficulty building a brand: A keyword-rich domain name may work for a generic business, but it’s not ideal for a company looking to grow into a brand.
All in all, a keyword-rich domain doesn’t guarantee higher traffic or increased sales. Sure, you may reap these benefits if you optimize your site, but the domain name itself has nothing to do with it.
What about Branded Domain Names?
A branded domain will include the name of your company, product, or brand. For example, Slack.com or Asos.com. Unlike a generic domain name, it’s unique to your business and can enhance brand recall.
Consumers associate these domain names with specific brands and products. When you think of Coca-Cola, you can mentally visualize a bottle of the beloved beverage. But if its website was called “softdrinks.com,” you’d have a completely different image in mind.
Branded domain names don’t directly impact SEO, but they have their perks. For instance, they don’t limit your ability to enter new markets or diversify your products.
A company like Skype could sell anything on its website, not just VoIP services. Similarly, Slack or Asana could start offering new products or services anytime without having to change their domain names.
Pros and Cons of Branded Domain Names
A branded domain may or may not be right for your business, depending on your long-term goals. But, for most companies, it’s a better choice than a generic domain name that can easily get lost in the crowd.
Here’s why you should go for a brandable domain:
- Brand recognition: A domain that includes your company’s name will keep your brand top-of-mind with customers. The more often someone is exposed to your brand, the more likely they are to remember it.
- Increased trust: Branded domains are often perceived as more professional and trustworthy than generic or keyword-rich domain names.
- More room for growth: With a branded domain, you have more flexibility to expand your product line or even change industries.
- Customer loyalty: Over time, customers may begin to associate your domain name with quality, reliability, or great shopping experiences. This can encourage repeat visits, leading to increased loyalty and sales.
- Higher website traffic: As your business grows, a branded domain name can lead to more brand-related search queries, such as “Nike shoes,” “Skype pricing,” or “Wix website templates.” The result? Increased organic traffic and conversions.
- Competitive advantage: A brandable domain can help you establish a distinct identity, setting you apart from competitors.
However, branded domains come with their share of challenges and don’t guarantee success. Below are some potential drawbacks:
- Customer confusion: If there are no keywords in your domain name, you may have a hard time reaching new customers. Someone who is not familiar with your brand and products may not immediately understand what your site offers.
- Diminished visibility in search results: When your business is new, a branded domain name may not instantly signal its purpose to Google and other search engines. For example, “Asos.com” says nothing about what the company does. This can result in poor visibility in search results, but it’s just a temporary roadblock if you put in the time and effort to promote your brand and products.
- Risk of misinterpretation: Some branded domain names have multiple meanings, leaving room for interpretation. This aspect can lead to missed sales opportunities and hamper your marketing efforts.
Google’s John Mueller advocates for branded domain names, but the choice is up to you. Think long-term, set clear goals, and consider your target audience.
If all you want is to build a business that generates revenue, a keyword-rich domain will do. But if you wish to create a brand or develop your own products, consider using a branded domain.
Either way, choose a domain name that’s short, memorable, and easy to spell. Also, make sure it gives you the flexibility to grow your brand and sell a wider range of products or services if you ever decide to do so.
