Phil Lodico, the Head of GoDaddy Corporate Domains, discusses the value of generic terms in domain names. Generic terms can define categories of information, products, and experiences, providing an opportunity to reach consumers who are undecided about which brand to choose. Lodico emphasizes the importance of generic .com domains, many of which were acquired over 20 years ago but still hold significant value in today’s market. These domains can produce a substantial return on investment by helping companies acquire customers, drive sales, and reach new market segments.
One notable example of the potential impact of owning a generic domain is Abbvie’s ownership of RA.com, which informs customers about rheumatoid arthritis while navigating direct-to-consumer marketing regulations in the pharmaceutical industry. In another case, HubSpot acquired connect.com for $10 million in 2022, reinforcing its brand message of connecting people. Lodico also tells the story of Elon Musk’s ownership of X.com, which has evolved from being the name of an online bank he co-founded to becoming a brand used for Twitter features in 2023, showcasing the power of a single-letter domain.
The benefits of using a generic domain are illustrated through examples in the flower delivery industry, where top players like 1800flowers.com and FTD.com leverage generic domains like flowers.com and florist.com to drive customer traffic. These generic domains help companies establish marketplace dominance, defend against competitors, and enhance their reputation and competitive differentiation. By owning generic domains like aspirin.com and mortgage.com, companies like Bayer and Citi can attract and funnel online traffic related to their products and services.
Lodico provides strategic guidance on how companies can effectively utilize generic domains, emphasizing the importance of choosing a domain that passes the “radio test” and checking for existing use before making a purchase. He highlights legal considerations related to trademark infringement laws and advises companies to seek assistance from consultancies or domain registrars when acquiring generic domains. While generic premium domains can be valuable assets, companies should have a clear plan for how to leverage them effectively once acquired.
The article also mentions the Forbes Business Council as a premier organization for business owners and leaders seeking growth and networking opportunities. By establishing a solid understanding of the value and strategic use of generic domains, companies can enhance their online presence, attract more customers, and strengthen their competitive position in the marketplace.
