Beware the Pitfalls of a Company Name Contest

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Beware the Pitfalls of a Company Name Contest

by Marcia Yudkin

Need a new company name or new product name quickly on a small or non-existent budget? Many business owners and non-profits believe the hands-down answer to that dilemma is a naming contest.

In some instances, a naming contest generates so many brilliant entries that it's hard to choose the best one. Sometimes, however, the contest leads to an embarrassing disaster.

Avoid the pitfalls of naming contests by structuring yours with these pointers in mind.

Naming Contest Pitfall #1: Making competitive information public. To facilitate on-target names, you must provide strategic information about your company or product - how it differs from the competition. Are you certain that you want to put on the public record the advantages and disadvantages of your offering vis-à-vis other companies, products or organizations? If you think this kind of openness might turn around and bite you later, do not run a contest. Hire a naming company instead, confidentially.

Naming Contest Pitfall #2: Insufficient entries. If you already have tons of followers on Facebook, Twitter and Linked In, as well as the capacity to get the media and colleagues interested in spreading the word about your contest, terrific! But if not, be aware that you might not generate the buzz needed to inspire sufficient high-quality entries. A small reward or simple glory does not necessarily get smart people putting on their creative caps for you in all seriousness. And of course, if you had the resources to offer a large reward, you'd be much better off hiring an expert for your naming challenge.

Naming Contest Pitfall #3: Unwise selection procedure. Do not under any circumstances promise to award the name to the suggestion that gets the most number of votes. Why? Because the voting process is highly susceptible to irrelevant influences. When NASA requested name ideas for a new room on future American space stations, Stephen Colbert told his fans to suggest it be called "Colbert." The comedian actually received 40,000 more votes than the next most popular name. NASA then had a public relations problem on its hands. Remember: Those entering or voting in a contest do not have the best interests of your organization in mind. Judges are the better option for a contest.

Naming Contest Pitfall #4: No vetting process. Also remember that contest or no contest, names generally have to be pronounceable, spellable, distinct from names that are already trademarked or used by close competitors, meaningful to your core customers and unlikely to offend them, and more. Avoid getting carried away by enthusiasm for a clever name that is overly trendy, obscure or legally troublesome by setting out a clear, explicit internal set of steps and criteria for screening name suggestions prior to launching the contest.

Kraft Foods Australia fell into the last of these traps in 2009 when it asked the public to suggest names for a new Vegemite spread. (Vegemite is an extremely popular food paste that Australians spread on toast or biscuits.) The company selected the entry "iSnack 2.0" as the winner from some 50,000 submissions, then had to retract their announcement four days later because it caused a national uproar of fierce derision.

Carefully sidestep the pitfalls above, and you may be in for positive publicity when your contest culminates with an appealing, well-chosen winner.


Marcia Yudkin is Head Stork of Named At Last, a company that brainstorms catchy tag lines, company names and product names according to the client's criteria. For a systematic process of coming up with a compelling new name or tag line, download a free copy of "19 Steps to the Perfect Company Name, Product Name or Tag Line" at Name Your Company, Product, Service or Event in 19 Steps .
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