.com is “a trust signal”
Cal Short is the Founder of a company called Reword, an AI-based article writing tool. The startup has used the Reword.co ccTLD domain name since it was founded within the last year. Last week, Short announced that his company secured its brand matching Reword.com domain name. The cost of the domain name was $85,000.
After acquiring Reword.com and after moving Reword’s website to the .com domain name, Short shared some reasons for acquiring this matching domain name for nearly six figures:
This time last week, I spent $85,000 on a domain
Actually, I spent that just on the letter ‘m’
From https://t.co/FcY6b7F8KR 👉 https://t.co/z7YYYJA4yO
Why did I buy it? Here’s my thought process…
— Cal (@imcalshort) July 10, 2023
I’m in this for the long term
90% of AI article editors won’t be around in 12 months
Our goal is to create a sustainable way to collaboratively write articles using AI.
Buying this domain was an important statement to our customers
We’re not going anywhere
— Cal (@imcalshort) July 10, 2023
I know the value of a .com
At my last company, Beambox, I saw first-hand how impactful a .com can be in the eyes of customers.
It’s a trust signal
The benefit of this trickles down to every single marketing channel
Over years, the impact is huge
— Cal (@imcalshort) July 10, 2023
Plus, I had to be defensive
A competitor or scalper acquiring this domain before me would have caused headaches
What if someone acquired it and set it to redirect to another AI player?
We’d be held hostage
I couldn’t let that happen
— Cal (@imcalshort) July 10, 2023
So – Is it worth $85,000?
Yes, and it would’ve still been worth it to me if the price was $200,000
The painful part…
I had an offer accepted at $50,000 only 6 months ago and missed the deadline.
Oh well 🤷♂️ pic.twitter.com/v0twIeQoIu
— Cal (@imcalshort) July 10, 2023
Short made a shrewd decision to acquire Reword.com. It will ensure customers and prospects aren’t confused when they visit the .com domain name. It will also prevent a competitor or someone else from acquiring the domain name. This, in turn, will ensure emails aren’t mis-delivered and lost. Finally, Short acknowledges the trust factor that comes with operating on a .com domain name, particularly when compared to operating on an alternative extension like .co.
Although Short ended up paying more than he had originally agreed to pay to acquire the domain name due to missing a payment deadline, he likely saved a considerable amount of money had Reword continued to grow in the interim.
Paying $85,000 to upgrade to a .com domain name may seem like a sizable sum of money, but not switching to the .com domain name could have come at a substantial cost to the brand.