Greg Isenberg - How to name a business

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I made a mistake of naming a business and it probably cost me $3M.

The right name for your business is an asset that keeps paying you.

Oreo was a good name in the 60s/70s. When you could take big TV ads and push your message. Or you could rely on a slogan to get your point across.

But today, a name like Oreo would be stuck in its tracks.

And that’s because in the age of Instagram, X and TikTok, how we discover products has completely changed.

The social internet makes it possible for your name to spread to millions pretty instantly.

You don’t want a lazy name. You want a name that’ll work hard for you.

So it has to stick in the brain and roll off the tongue. It has to be something people want to pass along—not because they have to, but because they want to.

There are only two types of startup names:

Names people forget (I call them tofu names), names people remember (I call them magnet names).

Here's a guide to naming your business that cuts through the noise, designed to stick in people's minds and wallets.

#1 - Magnet names

Magnet names will be your best friend. They attract your community. They connect the dots.

How to spot a magnet name:

1. Make you curious. Choose a name that raises eyebrows and sparks questions. It should be a bit of a brain teaser that makes people want to dig deeper.
2. Make you feel something. The name needs to resonate on a personal level. It should speak directly to what your audience cares about, making them feel like it’s tailored just for them.
3. Made for sharing. This name should sound so cool that people can’t help but talk about it. It needs to be snappy, memorable, and perfect for hashtags.
4. Simple yet snappy. It’s easy to grasp but sticks with you because of a clever twist—whether that’s a pun, a play on words, or a cultural reference.

One example of a company that wouldn’t be a billion dollar company without it’s name is Liquid Death. This brand sells canned water, but with a name like that, it sounds more like a a product from a collab of Harley Davidson and Jack Daniels.

It’s unexpected, edgy, and memorable—exactly what you need to cut through the noise. Plus, it turns the mundane act of drinking water into a conversation starter.

From the founder of Liquid Death Mike Cessario:

“You kind of have to trick your brain to come up with a bad idea to truly be thinking in innovative territory.

It works really well because you start thinking, like, oh, what’s the dumbest possible name for a super healthy, safest beverage possible? Liquid Death. Probably the dumbest name.”

Dumbest name? I don't think so.

Once Cessario trademarked the name in 2017, he felt that he was on to something.

“If someone I knew saw that in a store, I’m pretty sure they’re going to have to pick that up and be like, ‘What is this?’” he said. “And once someone picks something up, you’ve basically won.”

That’s a “magnet name” doing its job.

#2 Tofu names

Tofu names are dangerous. On the surface, they’re not bad names, just not particularly good.

Tofu names are bland, forgettable, and utterly “mid,” as the kids say.

They don’t evoke any sort of feeling out of anyone and that’s a show stopper in today’s internet.

How to spot a tofu name:

1. Generic city. These names are so plain and common that they vanish into the sea of mediocrity. You see them, and then you forget them because they’re just like every other name out there.
2. No feels. They don’t spark any emotions. There’s no excitement, no intrigue, nothing to hook you in. And when people feel nothing, they share nothing.
3. Tongue-twisters.: If it’s a hassle to say or spell, people just won’t bother remembering it. It’s that simple. Accessibility is key to sticking in someone’s mind.
4. Confusion. When your name doesn’t clearly connect with what you’re selling or the vibe you want, it just creates confusion. A name has to make sense for your brand, or it’s just noise.

Tofu names are essentially the background noise of the branding world—they’re there, but nobody really notices or cares.

I did this with a brand we started called Dispatch and it cost me ~$3M. We launched a design agency a year ago called Dispatch. People pay monthly get beautiful design assets like websites or social media post.

But, even though your friend might have told you how amazing his new website was from Dispatch, the name doesn’t stick.

So, today, I’m happy to announce we changed the name of Dispatch (and the product). It’s now an AI-assisted design agency called DesignScientist.com.

​DesignScientist is a magnet, it invents a new category for people who want design to scale their revenue.

And I bet it adds $2-3M of top-line revenue to our business this year.

We have a name that makes potential clients pause and think, “Wait, what’s a Design Scientist?” And that’s the kind of intrigue that turns into revenue.

You could have the best product in the world, but if your name doesn't stick, it’s like running a marathon with weights on your ankles.

The right name is an asset that works for you.

And sometimes you need to turn a tofu into a magnet.

It's worth it.

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Next up, bookmarks I saved this week worth reading

#1

Norgard @BrianNorgard In the tech business even when you are winning you know something is coming to kill you. 1:57 AM • Apr 21, 2024 12 Retweets 139 Likes Read 12 replies

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Only the paranoid survive.

#2

Eric from Exploding ideas @ericlamideas There's a obvious gap in this industry the next doola/ZenBusiness will be owned by an influencer Someone who can explain the concepts well and build a team around providing the service these companies put out really poor content when I set up my LLC I didn't even see them in… https://twitter.com/i/web/status/1783276283209851058 7:26 PM • Apr 24, 2024 0 Retweets 3 Likes Read 4 replies

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This is a really good free startup idea. Note: Eric has done some great workshops available in Community Empire (waitlist only now).

#3

Andrew Rea @andrew__rea Prediction: the majority of tier 1 multi-stage funds will have buyout funds in the next 2-5 years. Soon a16z and Vista will compete to buyout companies. I'm actually kind of shocked that a16z hasn't formally announced a buyout practice yet. General Catalyst is already quietly… https://twitter.com/i/web/status/1781809655221567951 6:18 PM • Apr 20, 2024 19 Retweets 336 Likes Read 33 replies

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I think this is probably right. VCs will become the new PE.

#4

Tiago Forte @fortelabs Notetaking isn't just about remembering—it's about connecting dots Those dots reveal patterns over time And those patterns live inside your Second Brain, becoming incubators for your best ideas, your creative work, your important projects and the meaningful areas of your life 3:0 PM • Apr 20, 2024 7 Retweets 53 Likes Read 3 replies

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This sent a lightbulb off in my head.

New episode of the pod is live

I chatted with Jason Cohen (Founder of WP Engine $100M+ ARR business) about his favorite startup ideas. He had one around productizing his Twitter workflow which I thought was really cool.

You can watch/listen on your favorite podcast platform:

​YouTube​

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​Apple Podcasts​

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Before I head off... some resources to help you grow:

1. ​DesignScientist.com - if you want to grow your business, you need design assets that perform. Websites, social media assets, email templates, A+ copywriting, landing pages etc. DesignScientist.com is the only AI-assisted design agency that will build you designs that will scale your revenue. Learn more here.

2. Update: Community Empire membership has moved to waitlist only due to demand. If you want to level up your business, this is the membership that will bring you around other internet entrepreneurs who are building cash-flowing businesses using internet audiences and communities. Learn more here.

3. I used to think SEO was dead. But I was wrong. The folks at BoringMarketing.com showed me with their AI-assisted approach that with the right tools and technology, SEO is a goldmine. Learn more about them here.

Thank you for reading Greg's Letter. I hope you found it valuable. Forward to a friend if you did or share on social to get others thinking.

I'll keep writing if you keep reading. I read every reply if you care to reply :). You might get an answer back.

Until next week.

Be well,

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