Rick Schwartz, one of the leading domainers and creator of the TRAFFIC domain conference, highlighted the value of descriptive domains from a brand perspective:
NATURAL BRANDING or BUILD and CREATE BRANDING
This alone is worth the price of admission. Brad told us his story of spending millions and millions to advertise and brand with his original 3 word creative domain name. When he switched and used a fraction of those ad dollars to buy a category killer domain name, he transformed his business. The dollars he was using to brand was now freed up to do other acquisitions and grow his business in a more dramatic way. NATURAL BRANDING may be the simplest way to describe what a great domain brings to the table.
If you have to make people aware of who you are AND what you do then you are going to need to spend a lot more money on marketing than a business which is built around existing market demand.
What is the leading brand of hammocks? If there is not a clear market leader then Hammocks.com would be a nice spot to set up business.
As the web gets more competitive and generics get established as category leaders there will still be a need for specific brands to differentiate between services, but if you are part of the 99% of small business marketers lacking a large branding budget then buying a category leading domain is an obvious sustainable competitive advantage over other businesses that are in the same position you are. Every market has to have a winner…may as well be you. 🙂
More: continued here