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One other point I always make to my friends in other businesses when they ask me why they should pony up big dollars for a premium domain instead of into advertising a lesser quality name is because of a ppc example.
Lets say you own lofts.com and a competitor owns myloftbuy.com etc or any other variation of a hard to remember name, you both have adwords campaigns running for the keyword "lofts" he visits both sites by clicking on our text ads. He likes both sites and the content they have but is at work and needs to show his wife a few properties that he thinks would be a good fit for them. He returns home from work and they sit in front of the computer trying to remember the urls of the two sites he visited. Well most likely he will remember my name lofts.com and then do another search on google to find the other site, click again and incur more ppc costs to that competitor.
Think about that case on high traffic domains and keywords. You are always going to remember the short category killer domain.
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