Greg Isenberg's Experiment: The Impact of Premium Domains on Conversion Rates

Greg Isenberg, a well-known entrepreneur, recently shared an enlightening experiment on Twitter about the value of premium dotcom domains. You can follow him at @gregisenberg for more insights into his entrepreneurial journey.

The Initial Skepticism

Greg initially believed that investing in premium dotcom domains was a waste of money. He thought that the funds could be better spent on paid ads, viral videos, and other marketing strategies that directly acquire customers. The idea of spending $500,000 on a domain seemed frivolous to him.

The Experiment

However, Greg decided to test his assumptions by acquiring some premium domains for a relatively low cost, some under $10,000. He ran an experiment where he took the same product and rebranded it with a new premium dotcom domain instead of a dot co domain.

The Results

The results were surprising. Greg observed that the conversion rates for the product jumped 2-3 times with the premium dotcom domain. The product remained the same, but the new domain attracted more customers. He attributed this increase to the added trust and improved organic search performance that come with a dotcom domain.

Conclusion

Greg’s experiment led him to a new realization: premium domains can be a valuable investment, particularly in the B2B sector. They offer short payback periods and significantly enhance brand trust and visibility. As a result, Greg is now considering only starting companies with premium domains, recognizing the importance of a strong, trustworthy brand name in today’s market.