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Reasons why people invest in domain names

"No one wants a domain with their name on it owned by somebody else"

-Jack Abramoff

A domain name is 21st century's real estate. It is the text that a user types into a browser window to reach a particular website which acts as one's address on the internet. For instance, the domain name for Facebook is 'facebook.com'. But, do you know Facebook owns many other domain names like Faceobok.com, facwecbook.com, IHateTheFacebookLikeButton.com? Well, not only Facebook but many others have more than one domain name. In fact, most large companies own around 3000 domain names. So, why do people invest in domain names?

There are chances that people may not fully understand domain names when they hear it or make a mistake while typing it, so one wants to own as many wrong spellings of their company names as possible. Sometimes companies even use trendy and creative spellings which are hard to remember so they try to own those names which cover most of the errors. Coupled with this, protecting more than one domain name helps prevent competition from registering with the same domain name which limits online access.

For Search Engine Optimization (SEO) purposes, companies with a variety of products that cater to different audiences often benefit from having specific domains individually. If domain names are according to a keyword strategy, it increases search engine discoverability. The unique number of domain names makes each one essentially valuable and with so many choices, investing in domain names is varied, exciting, and ripe with opportunities.

Brand poaching is also a serious problem for major brands. A competitor with the same name may create confusion and restrict the online reach. So having related or similar domain names helps protect one's brand. These are various reasons behind people investing in domain names and securing more than one domain name.

Thus, there are several benefits of registering multiple domain names. Businesses often purchase more than one domain to protect a user's error and to protect their trademarks.. This provides people more ways to find a website in today's crowded online space which helps one build their personal and professional brand and allows to track the success of marketing and advertising campaigns.


Did you know?

There are companies that own domain names that disparage their site itself. One such example is of Facebook. Facebook is owner of domain names such as 'I hate Facebook credits,' 'I hate the Facebook Like button' and 'Like button sucks.'

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Ensure IAS
Ensure IAS
03 may 2023

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