Why does it make sense to choose a name for a company that has nothing to do with the product?

Attorney Michael Lasky explains why it works well to choose a company name different from the product it produces.

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Transcript:

So the question is why does it make sense to use a name that has nothing to do with the product? For example, Amazon.com has nothing to do with books wouldn’t it be better to choose books.com? And the answer is absolutely not because books.com is not a trademark it could never have brand equity. But there’s an even more important reason, actually, if you think back to how Amazon became very successful it was not that they just put books on the internet but they actually did data mining. So when you looked at a book online the computer would search through the records who had bought similar books and said well, you looked at this book why don’t you look at this other book. Now that is something you would not want to have happen in actual bookstore it might freak you out but online it’s perfectly acceptable. So Amazon built a community that helps you make difficult purposes and that they have infused in the name. And by the way, if Amazon.dot had chosen books.com where would they be with respect to 80 percent of the business, which is not selling books. Really, the decision worked out great for them.