Look at the websites of most new startups today. You will notice something different. They are not using .com 100% of the time.

Instead, you see .io, .ai, .xyz, or .co at the end of their web addresses. This is not a coincidence. It is a shift that has been happening for a while now.

The reason?

If you have a great name for your business, the .com version is probably already taken. And if it is available, chances are the owner wants a price that no new business can afford.

Startups got creative. They started choosing domain extensions that are available, affordable, and even help tell people what they do.

So, why are startups no longer insisting on a .com? What alternatives are they using instead, and how can you pick the right one for your own business?

Why New Startups are Ditching .com

The main reasons why startups are leaving the .com are:

Scarcity and High Cost:

The internet has been around for decades, and nearly every short, catchy, and generic .com name has been registered. 

If you have a great business name in mind, there is a high chance the .com is already owned by someone else, even if they are not using it.

If you really want that .com, you have to enter the secondary market by buying it from the current owner or as a premium domain. The prices there are not for startups.

 A quality .com can cost as much as $10,000 (over 1.3 million KES) or even millions of dollars for premium domains.

For a new business that needs to budget for product development, marketing, and operations, spending that kind of money on a domain name is simply not realistic.

Branding and Memorability

A .com has become so common that it often fades into the background. When every business uses it, the extension itself does not help you stand out. 

A creative top-level domain (TLD) can become part of your brand identity.

For example, using a specific TLD can be a conversation starter. It shows you are modern and intentional. 

You can also get your exact brand name without adding weird prefixes or suffixes. You do not have to be businessnameke.com. You can simply be businessname.ke or businessname.tech.

Industry Relevance

A .com tells you nothing about what a company does. It is a blank slate. Modern TLDs are a signal to your customers. 

For example, when a customer sees a .ai domain, they can tell it is an artificial intelligence company. A .tech domain sells off as a B2B SaaS or hardware startup. 

For businesses in Kenya’s growing tech scene, using an extension like .io or .tech helps with categorization. It tells your users what you are about the moment they lay eyes on your site.

SEO & Algorithm Evolution

Unlike in the early days of the internet, Google currently treats all TLDs equally.

Today, startups rely on factors beyond creating high-quality content, earning backlinks from reputable sites, and building a great product that people talk about. 

Your domain extension does not give you an SEO advantage or disadvantage, so there is no reason to overpay for a .com just for search rankings.

Alternative TLDs that are winning with startups

We’ve figured out why startups no longer use the .com. So, what are they using?

.io: This is the top choice for tech companies, SaaS (Software as a Service), and developer tools.

It originally stood for the British Indian Ocean Territory, but the tech world adopted it because “IO” also stands for Input/Output in computing. 

.ai: The go-to extension for artificial intelligence startups. If your business uses AI, this extension sells you as specialized.

.co: a perfect alternative when the .com is taken or too expensive. It is global and feels close to the original .com standard. Many Kenyan startups use .co as a practical alternative.

.xyz: This extension is popular with web3, crypto, and modern, experimental brands. It is used by companies targeting a younger, tech-forward audience. An example is abc.xyz, the parent company of Google.

.app / .dev: These are favored by app developers and software engineers. They have a tech-first feel and are often used for mobile applications or developer platforms.

Niche TLDs: Depending on your industry, you can also find extensions that are a perfect fit. For example, a creative professional might use .bio or .design. A financial services startup might prefer .finance.

A law firm could use .law. These help you communicate your industry immediately.

We have all these TLDs at Truehost for an affordable price.

.com vs Alternative TLDs for Startups

Factor	.com	Alternative TLDs (.io, .ai, .co, .xyz, etc)
Availability	Scarce. Most short, meaningful names are already taken.	Widely available. It is easier to find the exact brand name you want.
Cost	Sometimes, high. Quality/premium names on the aftermarket can cost $10,000 or more.	Affordable. Standard registration fees with most providers.
Branding	Traditional, trusted, and universal. Everyone recognizes it.	Modern, niche-specific, and can help your brand stand out.
Industry fit	Works for any business, but gives no hint about your industry.	Signals your specific industry, like .ai for AI or .tech for tech.
Consumer trust	The highest level of trust and recognition, especially for older users.	Growing trust. Widely accepted, especially among younger audiences.
SEO	No ranking advantage over other TLDs.	No ranking disadvantage. All TLDs are treated equally by Google.

How to choose the right TLD for your startup

This is how you choose the right TLD for your startup:

a) Match Your Industry

If you are starting an AI company, .ai is almost mandatory at this point. It sets expectations for your traffic. 

If you are a local restaurant in Nairobi, a .co.ke or .restaurant domain might serve you better, since your customers expect a local address.

b) Keep it short

You want to have a domain that people can type easily and remember. Avoid long, hyphenated names. The ideal TLD should complement the name without making the entire address too long.

c) Check Availability Across Social Media

Before you settle on a domain, ensure the handle matches on platforms like Instagram, Twitter, and LinkedIn. Having a consistent name across your website and social media makes it easier for customers to find you.

d) Consider the Future.

Think about where you want your business to be in five years. If you plan to sell the company globally to a large corporation, a .com or .co may feel safer and more familiar to traditional investors.

If you are building a niche tech product, a specific TLD might be more valuable.

Final Take

You do not need a .com to be taken seriously anymore. That old rule is gone. Today, startups pick a domain that fits their brand, speaks to their industry, and does not cost them a fortune.

Your domain should be easy to remember and tell people what you are about. If you are building a tech product, go with .io. If you are in AI, .ai just makes sense. 

And if you want something reliable and simple, .co is a solid choice. The real success is to get a name you can build your business around.

Find your startup’s perfect domain at Truehost. We’ve got you with all the best startup TLDs. And if you decide to stick to a .com, you can still register with us for KSh 1200.