Although it may be the easiest and fastest way for you to finally come up with a company name, the use of acronyms is not the best idea. We know that the process of finding a great company name can be difficult, soliciting and also time consuming but it’s worth it at the end.
Many companies manage to find the phrase that best describes their work and get stuck here. So, in order for things to go forward as fast as possible, they opt for the acronym. Company names such as Web Design Studio sound pretty common so for a little boost some could change it into WDS. And why not do it? If IBM and KFC pulled it off, so can you, right? Wrong! Unless you have the financial power to market your business as well as these two, you may encounter lots of difficulties.
Here are the main problems you will confront with when choosing acronyms for your company name:
SEO troubles
Here’s a test. Choose any three letters and type them into Google. A lot of companies who tried the same thing as you, right? You must understand that ranking acronym brand names, especially for new brands is extremely difficult. Also, for the majority of the companies, their top 10 keywords that bring visitors to their site are brand related. Imagine keywords for WDS. Further more, think of the ads you may run on TV, radio or banners. The customers remember your name, go home, google the acronym and get… oh so many results that they might even quit before getting to your website.
Domain Name troubles
The domain is most certainly going to cost a lot. Thinking that you may go for the extended version of the company name is wrong because it will make things even worse. If you promoted the company under WDS, but the domain is webdesignstudio.com, then you may end up with a bunch of pretty confused people.
Legal troubles
Assuming that WDS is going to become a highly successful company with a powerful brand, how are you going to protect that brand? Attorneys say that unless the mark is virtually ubiquitous, enforcing a mark like WDS is very difficult.
So, unless you want to deal with these sort of problems, put a bit more thought and consideration into the process of creating your company name.