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The generic naming strategy is virtually never used offline, but a very few small stores do business under generic names such as the “Mattress Store” in Annapolis, Maryland. Offline, anyone can use the same generic name and open a store name “Mattress Store.” Online, ownership of the domain name MattressStore.com can only prevent competitors from using the same exact domain name.
Since, generic names cannot be trademarked, competitors can use Hotels.NET, Rooms.com, Hotelrooms.com, Motels.com, Hotel.com (singular), Inns.com Hotels.us, and so on. Often, there are a half dozen simple generic names for each industry not to mention generic names with a prefix (e, i) or suffix such as eHotels.com.
Since competitors can use similar generic names, developing a distinct, memorable brand is difficult. Memorability or the need to spend less on advertising is often an argument for high domain name prices – but this argument is only half true. At the same time, with only a few first-rate generic names in each industry, the generic domain names may be unavailable or overpriced, and are rarely bargain-priced. A generic name also hampers brand extension beyond the generic category – Hotels.com selling plane tickets?
Another quality strategy is unrelated, arbitrary dictionary words. Examples of unrelated dictionary word names include Amazon.com Yahoo.com, Google.com, Target and Staples. Both the words yahoo and google are in the Oxford dictionary, but were rarely used prior to becoming famous brands.
Compared to generic names, it was not immediately obvious what business Amazon, Yahoo or Google was in. On the other hand, Yahoo can legally prevent competitors from using similar names such as FreeHoo via trademark laws.
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