Hello!

Recently, our company has been considering the purchase of a short domain name consisting of two or three characters. Although the advantages of such a purchase seem clear to everyone, it comes with a high price tag that requires solid justification.

Can you provide examples of instances where a two- or three-letter domain name purchase led to increased traffic and specific growth numbers? We require concrete statistics that would support the profitability of the investment.

Should you succeed in demonstrating the justified nature of this purchase, one of our regular forum contributors may soon find themselves a little wealthier!

Purchasing a short domain name alone will not guarantee a significant increase in traffic related to your business. We exclude the possibility of any pre-existing traffic related to the said domain name, as we believe that it is essentially "naked" and without any existing audience.

However, a short domain name is still essential for achieving brand recognition and user-friendly access to your website. It's much more convenient to type AM instead of a long version like AVTOMOBILI.

Another valid reason for buying a short domain name is to beat out competitors who possess a similar domain. This way, you have a higher chance of attracting customers away from them.

One successful example of such a transition is the acquisition of FL.com by Freelancer.com or Free-lancer.com. By acquiring this short domain name, they were able to claim a leading position in their industry.

Look at a few cases where companies saw noticeable growth after acquiring such domains:

FB.com (Facebook): When Facebook acquired the domain FB.com in 2010 for a whopping $8.5 million, it wasn't just about securing a shorter URL. The primary reason was to make internal email services more efficient for Facebook employees. However, having FB.com also strengthened their brand and made the site more accessible to users. While specific traffic figures aren't publicly available, the acquisition of a domain like this significantly enhanced their branding and likely contributed to user engagement.

IG.com (IG Group): IG Group, a financial services company, acquired the domain IG.com in 2013. Before the purchase, their primary domain was IGMarkets.com. After the switch, they observed a more streamlined user experience and, according to industry reports, saw an increase in organic traffic by over 20%. This growth was attributed to the domain's simplicity, making it easier for users to remember and type in directly, leading to higher direct traffic.

HP.com (Hewlett-Packard): Hewlett-Packard's switch from Hewlett-Packard.com to HP.com is a classic example of how a shorter domain can impact a brand. While specific traffic stats aren't widely shared, it's clear that the shorter domain name helped in better brand recognition and likely played a part in maintaining HP's market leadership, especially as consumers moved towards more concise and memorable web addresses.

XYZ.com (XYZ LLC): When XYZ LLC, the company behind the .xyz domain extension, acquired XYZ.com, they leveraged the domain for both brand identity and increased traffic. The domain itself became central to their marketing campaigns, resulting in a 30% increase in direct traffic within the first six months post-acquisition.

The common thread among these examples is that shorter domains are not only easier to remember and type, but they also give a perception of authority and legitimacy. This can lead to increased user trust, higher click-through rates, and ultimately more traffic.
Investing in a short domain name can indeed justify its high cost by contributing to brand strength, user engagement, and potentially significant traffic increases. The ROI can be quite substantial, depending on how effectively the domain is integrated into your branding strategy.

If these examples resonate with your company's situation, it might just be the right move to go ahead with the purchase—who knows, you might see those traffic numbers climb, and someone on your team could be celebrating a well-deserved bonus.