(Tue, 16 Sep 2008)

Small firms may wish to consider investing in a premium domain name as a way to attract new business, an industry expert has suggested.

According to Ron Jackson, editor and publisher of Domain Name Journal, there are several advantages to owning a generic and popular name.

He said that ideally, people choosing a domain name should select a phrase or word that is relevant to the product or service they provide.

Mr Jackson added that such a name could create a steady flow of qualified customers and could prove to be a good way of attracting new business as well.

He explained that purchasing a domain name could be more effective in the long-term than buying other media advertisements where a company does not retain ownership interest.

"You can keep the domain and its flow of steady traffic forever and odds are that the underlying domain asset will continue to appreciate in value over the years," he said.

According to figures from the Confederation of British Industry, some 63 per cent of businesses claim the internet helps them improve customer satisfaction and retention.