I have been writing about business plans for some weeks now, and have mentioned their importance in many blog pots over the past year. In case you missed the latest posts you can read them here:
What Is A Business Plan?
Why Do You Need A Business Plan?
The Contents Of A Business Plan.

The idea of having a business plan fo domain/web development seems to have caught on in the domain industry, and it is really about time this happens.

In the domain industry, domainers focus a lot the domain name, and just the domain name. They can afford to, because as with domain parking, they do not even need to have common sense in order to monetize the domain name.

However, if you are going to develop a business with the domain name, then when the business plan is drawn up, you will realise that the domain name bears less than 5% importance. Any business can be launched on any domain name. The domain name used is only important when one starts looking at branding.

The process of branding can only commence after the execution of a good business plan. Well, you can start the brand awareness process long before launch, but your branding efforts will only be successful if you plan well. Nonetheless, it is wise to secure the perfect domain name as soon as possible.

In case you are a bit confused, lets look at an example. Facebook is one of the biggest Internet brands today. However, when they started, I believe they were using TheFacebook.com. When the concept became successful, they realised the need for a better domain name and acquired Facebook.com. I believe I read somewhere that they paid some $200,000 for Facebook.com. (Please use the comments section to point me to the right data, if you can).

So, yes the domain name is really important, but the business plan is even more important. Without a good business plan, the domain name is absolutely useless, regardless of how much of a premium domain name it is.

Domainers (people selling domain names on the aftermarket) often criticise companies for going public about products or services  before securing the domain name. Well, whereas in today’s world, where cybersquatters are still at large, you can’t really blame these companies for not paying much attention to the domain name. They are doing the right thing. They may work backwards, but at least they spend time focusing on the right thing.

These companies spend time focusing on the product, service or business as a whole. They draw up the plans that will ensure the viability of the business. If it will be an online venture, then the domain name will only bear importance as a means to an end, as they will have to use one in order to be in business. It’s like drawing up the plans for a store, and then hunting for a space to lease in a shopping mall.

No one leases a space in a shopping mall and then go about deciding what kind of business they will put in it.

This is where domainers get it wrong. However, don’t get me wrong, if you are launching an ebusiness, to secure success, you will at some stage need to start thinking about branding. The right domain name will be your perfect weapon. It is in your best interest to secure the domain name at your earliest convenience.

Domain names are only important to eBusiness owners when they are focusing on branding. Domain names are important to domainers because they often caught up in a get-rich-quick mentality.

The more domainers realise that a good business plan supersedes the importance of having the “perfect” domain name, the more we will see domainers setting more realistic prices for their aftermarket domains.

Stay tuned for more.

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