SMEs looking to establish a presence on the internet should choose a domain name that is "not too complicated and easy to remember", one expert says.
Adam Wayland, editor of Smallbusiness.co.uk, said: "It's going to be a benefit if someone is looking for a business and your [domain name] is very straight-forward."
However, he added that there are other factors.
Mr Wayland said: "It's probably more important that you have keywords and the content on your website to push up your ranking in search engines."
He said that search engine optimised content and a good domain name could help cut marketing costs.
But with so many companies out there Mr Wayland said that new SMEs might have to be "a little bit clever" when selecting a name for their website.
Research by technology company VeriSign found that in early 2007 there were 128 million registered domain names worldwide.
In the first quarter of 2007 10.7 million new domain names were registered, the same study showed.
