3 Reasons a Domain Name Can Make or Break Your Online Business

By | November 15, 2022

Your domain name is one of the first things your prospects and customers experience when getting in touch with your online business. Some would argue that today domain names are not as important as they were back in the day.

Have you ever heard of Google, Facebook, or YouTube? Of course, you did. These three domains generated the most web traffic in 2021, each recording tens of billions of monthly visits.

Domain names still matter, and there is no reason to suspect things will change in the foreseeable future. To help you understand why a domain name is vital for your online business is always attractive, we’ve put an ultimate mini guide on domain name importance.

What’s a domain name?

Before we dive into the importance of a domain name, let’s see what it is exactly. A domain name is a string of text, but what makes it unique is that it maps to a numeric IP address. One unique domain name is mapped to one unique IP address.

Whenever a user types your domain name into a browser address bar, a domain name server (DNS) performs a lookup, and the user gets routed to your website. Currently, there are over 300 million registered domain names.

Now that you know what a domain name is in technical terms, let’s see how it can make or break your online business.

It can help you win consumers’ trust

Did you know that your potential customers see your domain name as one of the most important trust signals your website can send? Trust is a crucial factor when doing business online. It can help you build long-lasting relationships with your customers, ensure repeat business, and grow your business.

A reputable and easy-to-remember domain name can help your online storefront to appear more trustworthy. These domains often reflect the products or services that online shops are selling. The domain extension also plays a role here. You can play the familiarity card with the “.com” extension to win the consumers’ trust and easily do business online.

It’s embedded in your brand image

Consumers recognize businesses by the logo and the name. Several factors make up your online brand image, including your website’s color palette, logo, and domain name. In other words, your domain name is deeply embedded in your brand image. It especially applies to businesses with a domain name that matches their company name.

In this case, a domain name reinforces the brand and plays an essential role in increasing brand awareness and image. It will appear in your online paid ads, search engine result pages, and social media shares. It will contribute to consumers remembering your company, which can boost your passive word-of-mouth marketing and bring more traffic to your site.

You gain business flexibility and mobility

One of the most important things you can do for your online business is to buy your domain name. As the sole owner of your domain name, you can gain more flexibility and mobility. Let’s say you are no longer satisfied with your hosting provider. If you own your domain name, you can quickly transfer to one that offers more services at affordable prices.

However, if you don’t own the domain name but have to switch a host or move your site to an in-house server, you will have to buy a new domain name. All your branding efforts and the rank position you achieved in search engine result pages will be in vain, and you’ll have to do it all over again.

Choosing the right domain name

There are two ways to obtain a domain name. You can buy an already-established domain or go with a brand-new one. If you decide to buy an established domain, you should use domain appraisal to discover the value of domains so that you can choose the one that packs the most value and that you can afford.

If you decide to go with a brand-new one, you should follow the following tips:

  • It should reflect your business;
  • It should be easy to remember (short);
  • It should be easy to advertise;
  • It should be unique;
  • It should mention your location if you are doing a strictly local business.


Your domain name plays a vital role in your business operations despite the size of your company or the industry you are in. It can help you increase awareness, build trust, gain mobility, and rank better on search engine result pages. When choosing a domain name, you should take your time and do your research to make the best decision possible, as the choice you make will impact your business in the long run.


Category: Startups

About Joshua Taylor

Joshua is the Senior Writer at VOIVO Infotech. He covers news on Android and iOS Apps. He is also a design director at Credit Karma. He is excited about the latest startups in the market. He constantly thrives to work on new ideas and projects. To get in touch with Joshua for news reports you can email him on joshua@voivoinfotech.com or reach him out on social media links given below.