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What are the pros and cons of choosing an out-of-the-dictionary word for a startup name (as opposed to a made up word or a combination of 2 words)?
Hi there! Thanks for your question about the pros and cons of naming a startup using an out-of-the-dictionary word vs. a fabricated word. The short answer is that there are pros and cons to both dictionary and non-dictionary business names.
However, based on recent studies and advice from naming specialists, choosing a non-dictionary business name has the most flexibility, affordability, and rates the highest in credibility among consumers. Non-dictionary refers to a name that is fabricated or altered from the traditional dictionary spelling or use.
Below you will find my methodology along with a deep-dive of my findings.
METHODOLOGY
I began by searching for reports and studies on nomenclature for successful startups and businesses. I searched trusted media sources and academic articles detailing surveys, reports, and studies done on this topic. From there, I was able to find several strategies for naming a business, along with pros and cons surrounding both dictionary and non-dictionary words used to name a business.
I also researched the SEO and PPC implications for dictionary and non-dictionary names. Below you will find the most agreed on advice for naming a startup, along with the SEO and PPC implications for company names. Additionally, you will find how dictionary and non-dictionary business names are affected by the elements for a successful business name.
NAMING A COMPANY
Entrepreneur notes that nomenclature strategies for businesses vary. They identify that while "some experts believe that the best names are abstract," others will advise the opposite. Similarly, they find that some experts believe that "names that come from made-up words are more memorable [while] others think they're forgettable." They conclude that either a dictionary or non-dictionary word can be an effective name, so long as it is backed by "the appropriate marketing strategy."
You don't have to spend thousands of dollars to determine the quality of a name. Inbound analyst Dharmesh Shah suggests spending a few hours gathering feedback from your potential customers. And then, spend some time getting feedback from people who you'd like as customers. The bottom line is: don't choose a name that only appeals to you or a small group of people.
According to a study by Alter Oppenheimer on fluency and meta-cognition, English speakers "struggle to pronounce certain company names (e.g., Magyar Tavkoslesi Reszvenytarsasag), and some obscure English words are harder to pronounce than others (euneirophrenia vs. beestings)." They determined that the words that are easiest for English-speakers to pronounce and remember are one with a natural transition between syllables. They give the example of "the glide syllable ld is more fluent than a nonglide syllable such as cd (e.g., falden vs. facden)."
Whether you choose a dictionary or non-dictionary word as your business name, there are some specific guidelines to follow to ensure the business' success. Below you will find the elements for a successful business name, along with more specific information on dictionary and non-dictionary words.
ELEMENTS FOR A SUCCESSFUL NAME
A name should be:
1. Short because they're quicker to type, easy to spell and remember, easier to tweet, flexible for design, and less likely to be shortened by others. TED suggests keeping names to two syllables.
2. Memorable, which can be determined through testing the name on a wide range of people. TED notes that the business's name is part of the first impression, and that "if you have a really bad name, chances are you’re not going to get funded."
3. Available, meaning you can obtain the legal rights and register the domain. Entrepreneur found that "100% of the top 20 YC startups have the .com for their company name. And, 94% of the top 50 do." They advise that the name and the domain should communicate the key element of the business without needing to explain it.
SEO AND BUSINESS NAMES
Gist Brands wrote about the importance of Search Engine Optimization, noting that in the past exact match domains (EMDs) were the "holy grail" of optimization. However, "EMDs are much less important now than a good, memorable brand name." They find that having the domain and a social network following on Twitter, Facebook, etc. is much more important. In fact, studies show that "generic" keywords (i.e., common words we already know) do not sound authoritative or relevant to any consumers.
In fact, exact domain matches can actually work against the company. Gist Brands points out that when looking for tires online, you might not trust a domain titled bestpricetireonline.com. Additionally, Search Engine Journal advises not to pick an Exact-Match Domains for the same reason - they reduce credibility. They say that when it comes to nomenclature, "keywords don't matter all that much anymore." So, if your company name is a non-dictionary word, this could actually boost your SEO relevancy.
When choosing a business name, StartUp Grind finds that you want to align keywords with your business goal. They note that when choosing known words (e.g., "insurance") the intention of the word is not clear. This leads to unclear search results and will require additional information to narrow down the results.
PPC AND BUSINESS NAMES
When bidding on certain words, there are a couple ways to determine the best RIO for your company. In terms of the company's name, StartUp Grind notes "not to underestimate the value of your branded terms." They find that companies that have unique, multiple, or trademarked names benefit from adding keywords to produce high volume searches.
Kreative Webworks's Digital Marketing & Views reports that if your company has a non-dictionary name, the bid will be much lower than a company name based on a common out-of-the-dictionary name. Additionally, bidding on your company's name will give you control over what is written about it on Google.
DICTIONARY WORDS:
When using an out-of-the-dictionary word to name your company, you have the advantage of selecting a name people will know. As long as the name is simple, short, and easy to spell, this can work well for a startup. Below are some pros and cons of selection dictionary words for your company name.
Pros: English speakers like words they don't have to work to remember. If you are selecting a short and simple name, there is a lower risk that it will lose its impact when the name becomes less trendy. Shah points out that "when something is 'trend,' chances are there are a hundred other startups all following that trend." This means, by selecting a "timeless," or out-of-the-dictionary name, you can avoid being lost in the mass of similar-sounding startups.
Cons: Using a known word can cost much more in PPC when bidding for your company's name with Google. Additionally, finding a domain to properly identify your company' s purpose, while also sounding credible is much more difficult. Oftentimes, domains for out-of-the-dictionary words have already been taken. This problem is often avoided when fabricating a new word.
Additionally, out-of-the-dictionary words can lead to ineffective networking on social media like Twitter and Facebook. Utsav Agarwal, founder and CEO of nwplying stated that while "Nowplaying described the product in its simplest form . . . it was too common a hashtag for us to possibly differentiate ourselves and create a brand around it." Thus, by removing the common vowels, the company's hashtags became unique.
Finally, it should be noted that some states restrict the use of certain words. For example, many states do not allow the word "bank" in your business name. Additionally, other words like "Olympic" and "Trust" are outlawed in several states. Choosing a non-dictionary word would be the best way to avoid any of these legal issues involved with business nomenclature.
Below you will find the pros and cons of the top three most common ways to create a non-dictionary business name.
NON-DICTIONARY WORDS:
Naming specialist David Clark wrote for Novanym about the top ten successful businesses with non-dictionary names. Clark finds that non-dictionary names can be powerful because "if your business is successful, over time your ‘meaningless’ name will come to mean something." He notes that it may feel safer to choose a word from the dictionary, but that is "not what all businesses do." His examples include Häagen-Dazs, Vitol, Accenture, Xerox, and Kodak. With each of these names, they capture the goal of the business.
Häagen-Dazs wanted a European feel that represented folk culture and craftsmanship. Vitol uses a combination of "vitality" and "oil," without complicating the word. Clark notes that "it feels right for a major player." Accenture uses a compound of accent and future without making it seem obvious. The combination works to sound "authoritative, a bit clever, and positive." Xerox came from a series of much longer and more complicated words like "Xerography." This word is an example of how a shorter version of a longer word makes for a strong brand name. Kodak chose their name because the founder wanted a word that could be trademarked. Specifically, he "wanted it to be short and simple so that it was easy to say and easy to spell." Other great examples are Domo, Trello, Uber, and Gusto. These are startups names are made accessible to the consumer because they are simple and catchy.
1. Choosing a totally fabricated word:
Inc.com found that in a recent study of 700 companies, "41 percent of newer, venture-funded startups (founded in or after 2012, with at least $3 million of venture funding) have "invented" names." Additionally, they found that "88 percent of the startups in the study have dot-com domain names." This is important because, without the domain (having x.com), your company will not seem established.
Pros: Can help your company become synonymous with your product or service. Additionally, you can almost guarantee the domain. Additionally, "coining names can be easier than trying to leverage real words and have benefits from a marketing and promotion perspective."
Cons: Choosing a totally fabricated word runs the risk of sounding fake or being forgettable. It should be noted, however, that this can be addressed through market-testing the name.
2. Changing the spelling
TNW finds that oftentimes, common words are difficult to tweet. Alternatively, you should "'create alternative spelling for common, everyday words,' says Utsav Agarwal.
Pros: Changing the spelling of a word can help secure the domain and add character and help a product or service stand out. It can also add character to a word that can otherwise be flat.
Cons: Changing the spelling can be confusing to say and spell out loud. This is mostly an issue with names that include ".com," ".ly," or ".net."
3. Combining two out-of-the-dictionary words:
Entrepreneur gives the example of "Italiatour." This name was developed "to help promote package tours to Italy." Though it's not a real word, the name is meaningful. Customers recognize immediately what's being offered - Italian tours. Entrepreneur also finds that the name "evokes the excitement of foreign travel."
Pros: Combining two words can help identify the businesses' purpose without sounding long and boring (e.g., imagine if "Italiatour" was "The Italian Tour Company").
Cons: If this combination is too specific, your company name might limit its ability to expand (without having to change the name first).
CONCLUSION
In short, there are pros and cons to both dictionary and non-dictionary words used as business names. However, it is important to remember the necessity of obtaining a valid and legal domain name. Additionally, it is important to select a name that is simple, easy to remember, spell, and pronounce. Because of this, fabricating an entirely new word (or removing vowels from a pre-existing word) can be the easiest way to avoid issues in any of these areas.
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