When It Comes to Naming Your Startup, Simple Is Better

Doostang? Thoof? Tech companies move from bizarre to brand-friendly By Christopher Heine

 

Ever hear of Doostang? Probably not. The careers site, born during the Web 2.0 era, ended up as a poster child for oddly named digital companies. Its Wiki page reveals that the name was loosely based on the Latin phrase "dos tango," translated as "I reach for talent." Even with its weird name, it managed to attract $5.8 million in funding up until 2011 when Talent Inc. acquired it. But by late last year, its social media presence disappeared, and more recently our attempts to find someone to talk to there failed.

Ironically, the company's bizarre name may have turned out to be its most lasting influence. It is regularly mentioned in lists of the worst names ever for tech startups—not quite the influence it was seeking. But Doostang is hardly alone in committing the sin of dubious digital nomenclature. Take now-defunct examples like Qoop, Fairtilizer, Ipipi.com, Heekya and Thoof.

Today, tech entrepreneurs seem to better understand the power of branding, choosing names like Dropbox, Banjo, Rent the Runway, Secret, Mailbox—you know, actual words. "We wanted a word that meant only one other thing, like Apple and Amazon," says Damien Patton, CEO of Banjo, a social analytics provider. "It is a real word, it's easy to pronounce, it's recognizable, and it's short."

Advisors are schooling up-and-comers like Patton on the marketing benefits of a simple, easy-to-remember brand name.

"Odd names are distracting and confusing," says Kelly Hoey, an investor and consultant. "Startups are often given feedback to simplify their pitch [to make it] understandable to their parents or grandparents—aka a nontech audience. The trend to use normal words is in line with that guidance. A normal word creates a clear visual association of what the product is."

It's not just about breaking through the clutter and connecting with everyday consumers. Startups need to appeal to investors as well, notes consultant McAdory Lipscomb Jr. "Entrepreneurs are starting to see that they need to streamline their pitch to get their message across to investors," he explains. "I also think there's a new kind of maturity with people who are starting these businesses—they are not so dorm room-oriented. They're more business savvy. Some have spent a few years in banking or consulting. And the advice we are seeing given these days is focused on, how do I define something against all of the noise?"

In an increasingly competitive sphere online, it is wise not to force consumers to think too much about what you're selling.

"It's one thing for Procter & Gamble or Coca-Cola to develop something out of a meaningless name because they can spend a lot of money on it," says Frank Rimalovski, executive director at New York University's Entrepreneurial Institute. "But for a real startup, that's quite a challenge." Read full Articles here