[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.