“Given the increasing popularity of apps, there’s a question of whether owning the right domain name is as important as it was when the world was driven by dot-coms and browsers rather than iPhones and Android devices. In other words, if you launch an app today–say, Foursquare, for example–is it necessary to purchase Foursquare.com if the primary use of the service is through the mobile app, which does not require a web address?”
The story tells the tale of how the authors friend sold fuzzwire.com for $10K after receiving a $120 offer from Godaddy.
The article then goes on to chat with Fred Wilson who pretty much sets the author straight:
“A good domain name is still important to building a successful consumer product, even it it’s primarily a mobile app. Foursquare, a startup Wilson has invested in, decided to purchase Foursquare.com after launching with PlayFoursquare.com. Wilson advises companies to spend up to $50,000 for the right domain, a price that has dramatically risen in the past year, he says.”
Paul Nicks, GoDaddy’s director of aftermarket services and auction product development was interviewed who said:
“Prices in general [for domains] have actually not been going down with the boom of the app marketplaces,”
“There’ve been several seven-figure sales already this year–the value of a generic domain name is still on its way up, and as the Internet expands beyond some of the more developed countries, certainly prices will continue to skyrocket.”
Nicks believes domain names, especially generic ones, are still important for a startup’s branding, and that dot-com domains very much remain the industry’s standard. “It’s ingrained as the default–iPhones even had a ‘.com’ button,” he says. “A single character can still make a huge difference.”
“Yet while expensive domains might make sense for established web companies like SalesForce, there are plenty of examples of successful app startups that decided against buying an expensive dot-com domain. Rather than purchase Pulse.com, the popular news-reading app purchased the less expensive domain Pulse.me.”
“Jack Dorsey’s Square, which has many web applications, bought SquareUp.com instead of Square.com. ”
“And other startups such as Instagram and GroupMe purchased domains like Instagr.am and Group.me, before purchasing dot-com versions. ”
“In a meeting last week with Scribd co-founder and CEO Trip Adler, I asked how much his startup spent to purchase the domain for his new app service Float. Float.com, he bashfully said, “was a lot.” How much? Adler said he wasn’t sure if he wanted to reveal the cost. Color.com proportions, I wondered? “It was a lot of money,” he said.”
So basically after asking the question does paying top dollar for domains still make sense it appears it does and its happening with more regularity that we know about.
Check out the full article.
“In other words, if you launch an app today–say, Foursquare,”
That sums it up – “launch” – we can lunch BrandNewApp.info today – but how are you going to get it on a phone AND used as an app when there is a sea of seamingly trillions of apps competing out there.
The fundamentals of advertising still exist and the app still needs to be marketed and promoted – so when you advertise your app in hard copy, tv or some other media source – which AD looks better in print:
a QR code by itself, A QRCode with BrandNewApp.info (or some other non intutive URL) or a QRCode with BrandNewApp.com
The rules no not change at all – the later intuitive .com is the only way to succeed
What I took away from that article is that a good .com is important. Those companies that have chosen to go another route did so because it did not make sense for them to pay the asking price for a premium dot com before they knew they were going to be successful.
I guarantee you that Jack Dorsey wishes he could have Square.com at the price he could’ve gotten it before Square became the success that it is.
I’ve seen an uptick in buyers of premiums during the age of the app.
By the way Mike you need a link from your article to theirs . . THanks!
Descriptive domains are fantastic marketing devices.
The day people stop communicating via spoken words- conversations, radio, television, videos- is the day “the domain becomes totally irrelevant”.
A few far-flung examples of awful domain decisions that wound up taking hard (flickr.com) show us that the domain isn’t *everything*, but the entire objective of marketing is setting up camp in the brains of consumers. It’s a LOT easier to do that with a keyword that directly and most succinctly aligns a particular market they may be engaged in.
Good domains are tailwind.
“Great Domains are Tailwind” sums it up as well as anything I’ve ever heard
We also own RecipeCostCalculator.com the site has a 10% conversion rate to an app purchase. Could not live without the exact match domain.
I love that this post barely gets any comments.
How many times have I heard domainers say newspapers, magazine, businesses, etc. “don’t get it”.
WARNING: Apps don’t need a domain to run. I will repeat, apps don’t need a domain to run.
Smart yesterday doesn’t always mean smart tomorrow.
@Tommy
You are right but for every Anger Birds being played by 5 year olds who can’t read or use the internet, there are a million small app owners like me plugging away at a few hundred sales a month. Our .com is our only marketing tool.
@BFitz
I don’t search for apps with a web browser. I search for apps with the built in app search feature on the iPhone.
What is the differnece between an icon on your desktop (with some BS hookie long non-remeberable URL associated with it) and the same graphic (now called an an logo) that essentially functions the same.
So tell me how you get your app on a customers iWhatever amoungst a sea of trillions of of apps vs. an icon their laptop ?
The answer is YES. The more choices and competition you get, the more important your BRAND becomes. No matter what you sell, you must own the .COM of your brand. Period.
“WARNING: Apps don’t need a domain to run. I will repeat, apps don’t need a domain to run.”
They sure don’t need one to run. Just like any business doesn’t need a domain to do business. According to the 2009 census there were 27.5 million businesses in the US alone. How many do you think need a domain to run ?
They need one to build a brand. They need one to send email. They need one to expand their products and services.
@Tommy . comments on the fast company article seem to be closed or under heavy moderation.
@Tommy
Many people are like you and many are not. There are 100 million plus apps, any edge we can get we’ll take. The exact match URL for a utility app is highly useful for tweets, links, etc. It’s like any other investment, we could have paid a premium for recipe calculator dot com but decided to hand reg the longer version.
“WARNING: Apps don’t need a domain to run. I will repeat, apps don’t need a domain to run.”
—–
Smartphone apps don’t need a domain, however it’s worth pointing out that eBay is a web based auction app, Facebook is a web based social networking app, Google is a web based content search app. Amazon is a web based shopping app, and on and on…
Are smartphones and mobile browsing become more relevant?
You’d have to be Stevie Wonder to not see it… Will everything revolve around an icon? Possibly, particularly for web based applications that are ‘part of the internet furniture’. For everything else, though, as long as there’s a need to search and compile content, there will be a need for domains.
As long as advertising wizards continue to use offline media to market their online presence, there will be a need for domains and the mode descriptive and definitive, the better.
@Brian Wick
“…but how are you going to get it on a phone AND used as an app when there is a sea of seamingly trillions of apps competing out there.”
So true.
There are millions of apps. It always hard for me to search the right information in apps, I get lost in millions of apps that I eventually gave up
Instead, I go to Safari search in iPad, and I get the right info I want…So easy in web browser than the apps.
So, having domain name is still important for any business.
Having an exact domain name website with an exact app logo application is a better option.
“Having an exact domain name website with an exact app logo application is a better option.”
agree…I have a couple of Apps and linking to the websites and getting lots of traffic
Simple:
http://itunes.apple.com/us/app/winesensory/id447550032?ls=1&mt=8
Working on making more apps.
@BullS
“Working on making more apps.”
I want to learn to make apps, is it difficult to learn to develop app from Apple app store?
Any suggestion?
@Ray….
making Apps is easy…email me and I can SHOW YOU THE PATH TO RICHES!!
Why create Apps?
Increase traffic to your sites and you MAKE MONEY!!!
and lastly, it adds value to your website.
For example:
http://itunes.apple.com/us/app/winesensory/id447550032?ls=1&mt=8
http://itunes.apple.com/us/app/malaysian-food/id447550665?ls=1&mt=8
It is so easy, you need to have a Mac and sign up for the Apple Developer ID($99)
I use this service:
http://www.snappii.com
So Easy to use just like installing wordpress.
I am working on more Apps for my sites and more $$$$
@LS,
All this nonsense is is just a reminder I made some correct turns a long long time ago.
iWhatever APP / .co nation – just do not go too crazy – the general public will find your rhetoric on deaf ears – but at the same time I respect the fact that you folks are so much smarter than me !!!! – but not at making dough
Yahoo points flicker.com to flickr.com. They’re a winner either way.
@BullS
Thanks for your guidance. I appreciate your good advice.
Will email you for app development application.
Thanks.
@Ray..
anything to help my fellow domainer to make more money.
Now you know about domains, wordpress , it is time to dig deep to step up into the next gear of App Development.
It’s mainly about Identity (Name – Brand – Product – Service,+ Adress. There’s no business without business partner (Identity+Location+Product/Service+Business Mind Set). It takes People+Contact Medium (Postal Mail, Courier Service, Telephone, Fax, Email, etc. or Simply enter the Business Office itself. Anyway: An address is required. Handy is it if a name is all together used to identify the Product, Service, Creator, Manufacturer, Seller, Headquarter, etc. If a domain SLD is all that together, it’s a good thing for all involved parties. About extensions: It is since long a trend to accept that only wealthy companies have a .com domain. Call it insight or vanity: Dot com represents usually top quality product and service. .Com is here to stay on top for a long time. Who is going to end the domain industry with the millions of related jobs and incomes?
One thing people are leaving out of the consideration is that a great app becomes a great app because it’s functionality is great, not it’s name. A domain name can’t be replicated as easily as an app. If i want a travel app, i can’t own the word Travel in the App store or android market.
Lets build a great app, have millions of people on it, only to give the domain owner of the same name free revenues and visitors. They can and will live together as they should. Apps need domains, domains need apps so its not a either or, get the best of both to create that synergy in creating value of your product or service offering. To not fully go to market with a complete strategy that includes the domain is just wasting valuable and lost resources. After your worth millions, you realize you should own the traffic not lease it….Most smart people realize this early on…
Functionality determines a great app.