I was chatting with a couple of business folks recently, neither knew nor cared about the value of a domain name. Of course, they didn’t know my background and I didn’t tell them.

Both of them liked catchy names better than keyword domains. I tried to give them a few examples and explain the difference but it seems they were set on their choice and it wouldn’t be that easy to convince them otherwise.

I had heard the same thing from another business person a few weeks ago and I’m starting to think that this may be a more wide spread problem.

Yes, it’s perfectly ok to start a startup on a catchy domain name; we see a lot of them these days. However, if you are given a choice, would you go with a keyword domain or a catchy name?

Sometimes this can be tricky, but most of the time keyword domain is a winner in my book. But again, if you’re going against business people, you may have hard time convincing them.

So what is the greatest value of a keyword domain name? nope, it’s not the google ranking or SEO benefit. Google ranking used to play a big role but with the recent updates, keyword domains are losing this advantage.

The biggest value for me is the fact that people remember it! Let’s pause for a second and think about the startups you’ve heard in the past few months and see if you can remember their catchy names vs those that had a keyword name?

Only recently, I visited a site that had a great idea, it was something about social marketing your startup. I want to go back to the site, but guess what, I forgot their name; they had a catchy name. Have you had this happen to you?

When I chose a name for my startup, LocalClub.com, I thought about this long and decided it was the right choice and I think I was right. When I tell people about LocalClub, it sticks. I had told about LocalClub to a few friends of friends a few months ago and when I recently saw them again, guess what? They remembered it and asked how LocalClub was doing without me bringing it up.

Given all the other benefits of a keyword domain name, I think this is the greatest benefit. Especially, if you want people to remember it and it’s a consumer facing site.

So how do you convince business people that this is true?