[davidandgoliath]

"At the point of success, you'll have the resources to purchase a better domain."

And it'll cost far more, vs. at this point where it's extremely inexpensive. That price will raise as his service/product gets more successful.

[benackles]

Say you have $10,000 set aside to start a business. If you invest $1,500 in a domain name, before you truly validate your product, then you are throwing away 15% of a very limited budget with $0 in cashflow. Now say your business has been validated and you're making $100,000 per year. If the price goes up to $15,000, you're still in a much better position since you have proven cashflows to legitimize that expense. The original $1,500 was actually much more expensive, relative to your cashflows. You would be buying off the assumption that you're business will succeed, rather than when your business is succeeding.

[illuminate]

"it'll cost far more"

And you'll be able to afford it better then.

"at this point where it's extremely inexpensive"

Not necessarily compared to how much you're investing in it.