Company Name Strategy: Understandable or Unique - Or Both?

You know it all too well. While brainstorming, ideas come quickly. You literally spit them out one after another. But the time comes when you have to check your many ideas to see if they are appropriate for everyday use.

When it comes to creative brainstorming all ideas are allowed, no idea is too weird or outlandish and in general: There is no bad idea! But then what to do with a bunch of ideas that are perhaps a bit extravagant or impractical, or where you end up being the only one who understands the joke behind it? It is often similar when it comes to finding a name for a company. All ideas are good at first, but in a second step they must be checked and, if necessary, changed to make them easier to understand. Comprehensible names increase the recognition value and ensure the long-term success of a business.

Why Clear Business Names Are Important

What distinguishes a comprehensible company name from other names? Nobody wants a name that is incredibly long, hard to pronounce and practically a tongue twister. A concise name, on the other hand, not too long and not too short, which is also easy to remember and easy to pronounce, is at the top of the wish list for a name.

A company name should therefore be simple and at the same time stand out from the competition. Think of names like realtor.com, realestate.com, or realtytrac - it’s difficult to tell whether they belong together or are competing brands. To customers, this creates the impression of interchangeability and lack of uniqueness.

Stand Out with a Unique Company Name

A name that is perceived as unique clearly distinguishes a company from its competitors. This increases attention and contributes to long-term success. So when choosing a name, it's often wise to take a more unusual approach and avoid sticking too closely to the obvious or to industry "buzzwords" - such as "real..." in real estate.

One outstanding example is Zillow, the leading real estate portal in the USA. The name is a portmanteau - a creative blend of "zillions" and "pillow". Unusual, but highly memorable.

Examples of Successful Unique Names

Sometimes a name’s meaning is only recognized at second glance. Take Apple, for example. A short, common word that now stands for one of the world’s most innovative tech companies. Or think of modern insurance companies like Friday and Lemonade. These names have no direct link to insurance, but they’re easy to remember and create a positive image.

Friday evokes the start of the weekend. Lemonade is refreshing and enjoyable. Comprehensibility doesn't mean the name must be descriptive - it means the word itself is easy to understand, pronounce, and associate with something positive.

How to Test If a Business Name Works

How can you find out if the chosen name resonates with your audience? Start by saying it out loud. Does it sound pleasant? Is it a tongue twister? How would a Frenchman or Englishman pronounce it? If you're aiming for international markets, a language check by a professional might be worthwhile.

Tips for Name Testing and Feedback

Ask friends or colleagues to pronounce the name. Try it out on the phone - does the person on the other end understand it immediately, or do you have to repeat it? These are simple ways to check whether a name is intuitive or needs explanation.

Surveys can also help assess spontaneous pronunciation and associations. But be cautious: people often prefer the familiar over the new. Unique names may not test well initially - even “Google” probably wouldn’t have. For more on this, check out How to choose a business name.

Final tip: Unusual names often become loved if the brand behind them is strong. “Google” sounded strange at first - now it’s a verb. So don’t be afraid to go bold. Success speaks for itself - and for the name.