The days when people picked a creative name and hoped for the best are gone. In today's competitive environment, a poorly chosen name can be the end of a company's growth, exposing them to litigation risk.
This guide details the process of developing an effective brand name with detailed steps for determining whether a brand name meets legal requirements, evaluating whether it is memorable to humans, and acquiring an internet address that conveys trustworthiness.
Analyzing the Market Data
The market data demonstrate that best practice is to start with a large number of raw name ideas and cut them down to 50. Then conduct rigorous name tests regarding spelling, pronunciation, and international connotation.
Additionally, brand names that are 4-12 letters long and contain 1-3 syllables will decrease the likelihood of a future lawsuit and enhance the success of marketing campaigns.
How to Invent Winning Tech Company Names
Technology company founders typically begin searching for tech company names by using name generators from websites such as Shopify, Wise, LegalZoom, or Wix.
While generator tools assist with the first step of generating potential names, the name itself must also be easy to pronounce and difficult to mispronounce under likely usage scenarios. When a potential customer hears the name of your company mentioned in conversation or on a radio program, they must be able to remember precisely how to search for that name on the internet.
The Mass Production of Ideas
Do not limit yourself to creating only 20 possible names. The standard process involves creating at least 1,000 potential names. This will consist of combining various keywords, utilizing a thesaurus, and creating new words altogether. When creating this list, it is imperative that you keep in mind some basic industry standards.
Your goal is to reduce your list down to a top 50-100 to encourage creativity while avoiding the temptation to take the easiest names on your list. Most of the time, people tend to stop brainstorming names too early.
Thus, the initial names listed tend to be either taken or far too generic. The real value of your brainstorming session comes when you break through those obvious names and begin to combine concepts within your company.
Trends in Naming
The newest trends in naming lean towards short, inventive words. Ideally, a company’s name should contain between 4 and 12 characters long. Having strong consonants in your name makes it very easy to remember.
Some companies are even combining the use of letters with numbers as part of their names, i.e., "Brand-9," "Grid-X," etc., which gives the company a very modern feel that is directly tied to its focus on technology.
While many huge companies, such as Apple, Amazon, Google, and Microsoft, were able to establish their brands under a very simple consumer name, B2B software companies now rely heavily on abstract names to build their identities rather than naming their products after the functions they provide. This provides the company with a great deal of freedom to change the focus of its product line without the necessity of rebranding itself.
Real World Examples of Rebranding
When looking at examples of established businesses, we can see the benefits that a well-named business can provide to the owner. A new name can provide a company with a new source of capital and a better position within its market. Rebranding is not just a simple creative exercise. It is a major financial commitment.
Sonos
The founders of Sonos derived the name from the Latin word "sonus" (sound), which reflects the company's desire to create an operating system with the purpose of providing consumers with quality sound. You have a two-syllable common term that is identically spelled both forwards and backwards. It is also extremely easy to remember.
The present-day company now employs approximately 1,800 people and is valued at over $2 billion. The word enabled them to grow from having simple speaker products to building extensive home audio systems.
Vercel
Originally known as Zeit, this company changed its name to Vercel in April of 2020. Zeit had a lot of competitors and was easily confused with other words/brands when searching online. The name means time in German and made it challenging for Zeit to compete in the search engine space.
With their rebranding to a distinct word, they secured $293 million in funding and achieved a valuation of $3.25 billion. Vercel currently powers some of the largest digital platforms in the world, including Stripe, Uber, and Nike.
Navan
Navan is a corporate travel management company, formerly known as TripActions. In 2022, they rebranded as Navan to indicate their broader focus on more than just travel booking. It included expenses and corporate cards, in addition to full financial software.
The original name limited them to one focus area. Rebranding allowed Navan to secure hundreds of millions of dollars in both equity and debt financing, resulting in a valuation of $9.05 billion.
Domain Availability and Legal Steps
Finding the name is only the first step. You also need to have legal ownership of it and an internet presence.
Trademark Screening Procedures
Before falling in love with any name, you should perform a search on the United States Patent and Trademark Office database (USPTO). Most companies will use the TESS system for searching trademarks. Checking business registries is crucial to avoid costly trademark conflicts.
Software companies typically file under Class 42 or Class 9. You need to verify that no one in your industry uses a similar term within the same classification before proceeding with your trademark application.
Domain Name Options and Strategy
The standard .com domain name is the most trusted by consumers; however, it is often difficult and expensive to locate an exact match. Due to this limitation, many new companies have chosen alternative extensions such as .io, .ai, or .tech.
When developing your domain name strategy, you need to execute the following:
Check for the exact .com domain name and the selling price.
If the .com is unavailable, consider using a .io, .ai, or .tech domain name instead.
Append terms like "labs", "hq", "systems", etc., to your .com name.
Establish matching social media handles on major platforms.
These alternative extensions are valid domain name strategies for software startups. As the enterprise continues to grow and invest in additional equity, it is also common for them to purchase the premium .com domain name later.
Global Language Check
When looking at selling your software globally, make sure that your brand name translates well into other languages. Run language checks on your proposed name with native speakers in all of the countries where you plan to sell.
Use those same native speakers to listen to your name pronunciation in their respective country slang. A good translation activity can help prevent a major global launch catastrophe.
Brand Architecture and Growth Planning
Plan ahead for growth! When considering a corporate identity, it is essential to decide early on whether your company is best represented by using one overarching name that encompasses many different products or by creating individual brand identities for each product.
The creation of too many sub-brands can create confusion for customers and have a negative impact on the ability of search engines to index your products/respective sub-brands effectively. Instead of creating a different brand every year, expand your primary brand by adding simple and descriptive names (i.e., brand extensions) that accurately reflect the products associated with your main brand.
Testing Tech Company Names
Friends and family are not reliable sources to evaluate the effectiveness of potential tech company names. A name must be tested using a rigorous testing protocol that utilizes actual market data.
The Radio and Spelling Tests
You need to conduct tests of your top 20 to 50 potential names directly with individuals who comprise your target audience. During the test, have them listen to the name being pronounced aloud. Will they be able to spell that name correctly on their first attempt? This is referred to as the "radio test."
A potential customer listening to your name being discussed during a podcast should be able to type your name accurately into a search engine. However, if they misspell your name by adding extra letters or utilizing incorrect vowels, you will lose substantial amounts of organic traffic.
Measuring Memorability and Association
Wait 3-4 days and then ask the same individuals if they recall the name. Evaluate how easily the name comes back to their mind. Ask those individuals what type(s) of associations they made with the name. Associations may not be appropriate for your product name based on the way the product sounds and feels in relation to the environment it is meant for.
A cybersecurity company, for example, would likely want to choose a name that conveys a sense of heaviness and security, while a consumer application would want a name that sounds lightweight and fast. In this sense, "mind feel" of the word should match the "physical experience" of the product itself.
Operate Your Brand Naming
Brand name development is a clearly defined business process. To name your company properly, you need to generate volume, identify and clear potential legal issues, establish digital real estate and test the name with real users.
The goal is to choose a name that will allow you to grow to your full potential without the risk of legal action against you. Your choice of name should be dictated by the data, driven by the test process, and serve to establish long-lasting market credibility.
Naming and Brand Strategy Q&A
Why Do Startups Face Early Trademark Threats?
Early-stage startup teams typically don't invest in thorough legal research when it comes to trademarking their brand. Instead, they perform simple Google searches, buy a domain name through Namecheap or GoDaddy, and assume everything is good. Most of the time entrepreneurs and their teams don't perform thorough government database searches to verify their exact trademark classifications. When they finally file for their trademark a year down the line, larger, established companies usually raise flags and take immediate legal action, forcing them to change their brand name.
How Do You Measure Brand Name Recall?
To test for brand name recall, you can perform controlled memory tests (CMT). Show your target buyers a list of your new company's brand name along with five competing brand names. After three days or so, follow-up with a survey asking them to identify the name(s) they remember. If your brand name is at the bottom of the list of names, it is either too difficult to remember or too 'boring' to survive in the market.
When Will Sub-Brands Impact Organic Search?
Brand name proliferation can adversely affect organic search metrics, particularly when you create multiple web sites for every new product or service you offer as sub-brands of the main brand. By doing this you will fragment your audience and decrease overall traffic to your single primary site. This will result in decreased search engine ranking for all your sub-brands. It will also require users to remember five different product names instead of just one primary brand.