Phil Lodico, the Head of GoDaddy Corporate Domains, leads an innovative corporate domain name registrar. He emphasizes the value of generic terms, whether in search terms or domain names, as they define categories of information, products, and experiences. Consumers using generic terms are often undecided on a brand, presenting a significant opportunity for businesses.
Generic .com domains, despite being mostly acquired over 20 years ago, are still valuable when used effectively. They can provide a substantial return on investment through customer acquisition, new sales, and reaching customers in segments where direct marketing is restricted. Examples of successful utilization of generic domains include Abbvie’s ownership of RA.com and HubSpot’s acquisition of connect.com for $10 million.
The history of generic domains includes Elon Musk’s ownership of X.com, which was originally associated with an online bank he co-founded and later merged with PayPal. Musk repurchased X.com in 2017 and rebranded it as X for Twitter features in 2023, making it one of the most talked-about brands. Premium generic domains like flowers.com and florist.com have proven to be successful for top merchandisers in the flower delivery business, attracting traffic to their websites.
Generic domains play a crucial role in driving customer and prospect traffic to websites and signaling marketplace dominance. They also serve as a strong defense strategy, blocking competitors from owning generic domains in the same category. Companies like 1800flowers and FTD redirect their generic domains to their main sites, ensuring their dominance in the market.
To strategically use a generic domain, companies should ensure it passes the “radio test” by being short and memorable. Check for existing use of the domain and be cautious of legal issues related to trademark infringement laws. Companies may seek help from consultancies or corporate domain registrars to navigate domain purchases and portfolio management. While generic premium domains can be as valuable as gold when used effectively, companies must have a solid plan for their utilization due to their potentially high costs.
Overall, the strategic use of generic premium domains can help companies enhance their reputations, solidify their competitive differentiation, and drive traffic to their websites. Despite their initial costs, these domains can provide significant returns on investment when incorporated into a well-thought-out plan. As businesses continue to recognize the value of generic domains, the demand for these valuable assets is expected to grow.
