123-Reg warns UK businesses to think about domains in over-crowded market
123-Reg, one of the UK’s leading registrars, is urging companies to think laterally about domain names for their online businesses, as the rise in competing for an online presence reaches an all time high.
The warning comes as the result of recent statistics from online company formation group, Companies Made Simple which shows the sharp rise in online businesses in the past 12 months. In the past year they alone have formed over 150,000 businesses online. The steep rise the UK is seeing in online businesses is perhaps no surprise considering that in the last ten years internet usage around the world has increased dramatically. For example, China had just over two million internet users in 1998 compared with almost 300 million in 2008. Similarly in 1998 there were eight million internet users in Germany and over 60 million ten years later.
However as the internet becomes increasingly populated, businesses are being placed under increasing pressures. Thomas Vollrath, chief executive of 123-Reg explains, “The British economy has seen a significant surge in start-up businesses in the past year, many of which are either solely e-commerce based operations or have a significant need for a web presence.
“I’m sure everyone would agree that the growth of online British businesses should be actively encouraged – an online presence creates great opportunities for organisations to reach and communicate with new audiences. However, as an increasing number of businesses set up online, the internet becomes at risk of domain-overcrowding which presents tremendous threats to businesses. This threat is particularly prevalent for small start-ups that have limited cash flow and now face bigger hurdles than ever before in ensuring they stay ahead of the competition.
“One of the most increasing pressures businesses face in competing for an online presence comes from business owners which are buying more domains and using them for different purposes, such as marketing campaigns for certain products or services to direct to the main site.
“For example, we recently launched a pre-registration for .co domain names which aren’t due to register until 20 July, yet we have already seen thousands of pre-registrations. This high uptake of the new .co domain should act as a warning to businesseses that if they fail to protect their brand by registering under a number of donmain names, they are at risk of competitors hijacking their established brand by registering the name instead.
So what are the options for businesses?
Thomas concludes, “For businesses that are looking to register a domain name and find the name is already taken, there are a number of options available. If the name is a trademark, the trademark owner can pursue it via domain name resolution services which are offered by the domain name registries. However be careful; this could cost hundreds if not thousands of pounds to get back and can take months. Sometimes it can be quicker and cheaper to make a nominal offer to the current owner rather than take legal action.
“If the domain name is not a trademark, a store owner can consider purchasing the domain from the current owner. By using a WHOIS service, details of the domain registrant is shown and the store owner can then contact them with the information provided.
“Finally, think laterally. Not every company needs to end in a .co.uk or .com extension. There is a huge variety of domains available that can enhance a business or play on its brand presence. We have seen some wonderful, creative ideas from extensions such as .me, .in and .be. Those who need a domain name for a business have the opportunity to be as creative and ingenious as they can allow themselves.”
About 123-reg
123-reg is one of the UK´s top registrars, registering every fifth .co.uk domain. It leads the market in both domain name registration (2.5 million domains) and web hosting solutions. With extensive experience of the industry, the company is able to offer high quality, technically advanced yet cost-effective products to a wide range of customers. 123-reg was voted most popular domain name provider by Domain Directory for five consecutive months during 2009. In April 2010 123-reg UK was voted fourth most popular web host by Web Host Directory and ranked ninth in The Best 10 Web Hosting awards.
www.123-reg.co.uk is part of the UK’s leading web hosting group and Sunday Times Deloitte Buyout Track 100 (2010) company, Webfusion. The group also consists of www.webfusion.co.uk, www.corporate.webfusion.co.uk. www.donhost.co.uk and www.supanames.co.uk, each making every step of setting up online as easy as 1, 2, 3.
Follow 123-reg on Twitter – http://twitter.com/123Reg
About Companies Made Simple
Companies Made Simple offers company formation and company registration services. Having formed over 150,000 companies, the group is the leadning online company formation agent in the UK.
Further information can be found on http://www.companiesmadesimple.com/
Follow Companies Made Simple on Twitter – http://twitter.com/madesimplegroup
