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Why Do You Need A Domain Name?

Increases your name recognition. Makes it easy for your customers to remember your address 
Indicates you are a serious Internet player. Helps brand your image. Adds a level of trust and integrity to your site. Many search engines refuse to list pages from free sites. Some search engines will only index the first page of a domain site. Domain names containing 'keywords' aid in higher search engine ranking. Allows you to use your domain address (www.yourname.com) and virtual email addresses (yourname@yourname.com) on your business cards and letterhead. Once a domain name has been registered, it is no longer available. The most popular and easily-remembered domain names are being reserved daily, at the rate of one domain name every 5 seconds! At that rate, in the near future, only obscure domain names will be available to the general public. Avoids somebody else from registering the name you want. Lets you change your current email provider and still keep the same email address. Protects your Internet advertising investment from failure of your Internet Service Provider.

How To Select A Domain Name:
Make it as short as possible - Make it memorable - Make it easy to spell - Make it pronounceable 
Make it a name you can brand - Make it non-confusable with another domain name 
Make it not conflict with an existing trademark - Make it easy to say 
Make it trust-worthy, not off-beat (i.e. a .com instead of a .to or .ws) 
Make it directly related to either your business name or  
Make it directly related to keywords from your industry or 
Make it descriptive of your site's content 

Consider multiple domain names: obtain similar names to avoid competitors confusing your customers obtain misspellings of your domain name to keep competitors from taking advantage of misspellings obtain names for future offerings (services or products) 
link to your main site from additional domains to aid in your search engine ranking (major search engines use link popularity in their ranking algorithms)
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