The Insane, Unjustifiable, and Possibly Corrupt World of Domain Name Ownership
A recent revelation by AI companion startup Friend has sent shockwaves through the startup community: they spent a whopping $1.8 million on the domain name www.friend.com. But is this move a brilliant strategic play or a reckless display of corporate excess?
As the debate rages on, we spoke to industry insiders who revealed the dark underbelly of domain name ownership. It’s a world where companies are willing to shell out millions for a simple string of characters, all in the name of branding and marketing.
The Domain Name Cartel
Alex Harris, co-founder of startup marketing firm Fiat Growth, revealed that the domain name game is rigged. "The right name or domain can help startups be not only easy to find but also easy to remember," he said. "And let’s be real, ‘com’ domains are king. Sorry, ‘ai’ companies."
But what about the cost? Harris shrugged, "If buying that domain helps the company’s business, which I predict it will, that purchase will pay for itself over time. And a good domain like that can double as solid IP that can be sold if needed."
The Great Domain Name Heist
But what about the companies that can’t afford to play this game? Are they doomed to be relegated to the dusty corners of the internet, forced to share their name with a million other companies?
Olivier Toubia, a marketing professor at Columbia Business School, warned that there are clear advantages to locking in your branding early on, but companies must also make sure they don’t paint themselves into a corner with a name or branding that could make it hard for them to pivot later.
The Domain Name Mafia
And then there’s the issue of domain name squatting. Companies like Friend are willing to pay top dollar for a domain name, but what about the small-time entrepreneurs who can’t afford to play this game? Are they forced to choose a name that’s already taken, or are they stuck with a generic domain that’s hard to remember?
The domain name game is a rigged system, where the big players get to call the shots and the little guys are left to fight over the scraps. It’s a world where branding and marketing are more important than actual products or services.
The Final Verdict
So, did Friend overspend on their domain name? Probably. But in the world of domain name ownership, it’s every company for themselves. If you want to make it in this cutthroat world, you have to be willing to spend top dollar to get the name you want.
And if you’re not willing to play by these rules, then you might as well pack up your bags and go home. The domain name game is a game of winners and losers, and only the strongest will survive.
