Examples of generic names are Hotels.com, Shoes.com and Furniture.com. The generic name strategy was always controversial and peaked during the dotcom bubble.
The generic naming strategy is virtually never used offline, but a very few small stores do business under generic names such as the “Mattress Store” in Annapolis, Maryland.
Offline, anyone can use the same generic name and open a store name “Mattress Store.” Online, ownership of the domain name MattressStore.com can only prevent competitors from using the same exact domain name.
Since, generic names cannot be trademarked, competitors can use Hotels.NET, Rooms.com, Hotelrooms.com, Motels.com, Hotel.com (singular), Inns.com Hotels.us, and so on. Often, there are a half dozen simple generic names for each industry not to mention generic names with a prefix (e, i) or suffix such as eHotels.com.
Since competitors can use similar generic names, developing a distinct, memorable brand is difficult. Memorability or the need to spend less on advertising is often an argument for high domain name prices – but this argument is only half true.
At the same time, with only a few first-rate generic names in each industry, the generic domain names may be unavailable or overpriced, and are rarely bargain-priced.
A generic name also hampers brand extension beyond the generic category – Hotels.com selling plane tickets?
Generic Name Quick Summary:
Image B (sometimes associated with Internet bubble)
Memorability B (easy to remember category from name, but difficult to differentiate)
Trademark B (can’t be trademarked, but can’t be sued by others)
Cost D (highest cost, proportional to industry size, few sellers)
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