Rhonda Abrams in the USA Today explains that no business name — regardless of how memorable or even how well-established — is critical to success:
Remember one of Rhonda’s Rules: A name is only as valuable as the marketing dollars and the business behind it. You need both a marketing budget and a well-run company to make a name or trademark meaningful. Otherwise, it doesn’t matter how memorable or clever your name is.
For instance, there is absolutely nothing memorable or even distinguished about the name a small technology company trademarked in 1976, but that name today is a household word — Microsoft.
On the other hand, many companies with great or even long-established business names have failed, such as PanAm, Pets.com, HomeGrocer. Great names can’t compensate for the lack of a good business model or adequate financing.
Sometimes even a bad name can be good. When Arthur Andersen Consulting services split away from the Arthur Andersen accounting firm, it chose the name Accenture. I thought that was a terrible name, and I still do. But when the Enron accounting scandal brought down the accounting company, it was a darn good thing that Accenture had dropped the name Arthur Andersen.
Moreover, every name — no matter how seemingly valuable — can be changed. It’s easy to believe that customers know us so well we can’t ever change our name, but it’s just not true. Small companies often change names when they change ownership, typically with positive rather than negative effects. Even very large companies change corporate names and are able to keep, even expand, their customer base.
Steven on November 7th, 2005 at 8:09 am
Norm Brodsky had a very similar topic in his Inc. Magazine Street Smarts column in the November 2005 issue.
Both authors have good points. Spend your time in other “productive” activities instead of hours of namestorming…
Startup Fever on November 7th, 2005 at 4:25 pm
What’s in a Name?
Rhonda Abrams for USA Today:
Remember one of Rhonda’s Rules: A name is only as valuable as the marketing dollars and the business behind it. You need both a marketing budget and a well-run company to make a name or trademark meaningful. Otherwi…
Marketing Headhunter on November 8th, 2005 at 6:18 pm
I dunno … Currently, I’m reading “The Origin of Brands” by Al & Laura Ries (which is excellent, by the way), and the authors insist that a good name is absolutely essential to developing a strong brand. Certainly I’m no expert, but Al Ries is the guy who co-wrote “Positioning, the Battle for Your Mind” — so at least he and Laura offer an informed opinion to the contrary.
Elie on January 17th, 2006 at 5:45 pm
I think it’s a great article, short and to the point.
According to Elie of EventionLab, “it is hard to put a price tag on a name, however, if we were to ask the CEOs of top ten fortune 500 companies what their companies name worth. There is a great probably we will get mix answer. In comparison companies are like people, some people value their name to the extend they are willing to do any to protect their name. Unfortunately, there are those who wouldn’t do a den thing even if their name is stolen as a result of identity theft.�