When your organisation owns more than one company, the question of how closely associated these firms should be can raise complex issues. If you're in charge of branding and promoting these companies, one of the key decisions that you'll have to make is whether you should set up a separate domain for each one or design one website that includes information about multiple companies. Let's look at the pros and cons of each option.
Using A Single Website For Your Companies
Including all your companies on one website can be useful if you want your organisation to project an ‘all-in-one-place’ message and make it obvious that the businesses within your group are closely linked. If one of your businesses has already gained an impressive reputation, its customers may be more likely to use your new company's products or services if it's clear that the firm is connected to the brand they already like. That could be particularly beneficial if the existing company has a large customer base, as you could increase your new brand's profits more rapidly by promoting both ventures together than by promoting them separately.
Of course, this tactic only works if the other companies in your group share a target market. If your other brands/businesses sell products or services that your main company's customers are never likely to buy, promoting both businesses on a single website could confuse or even alienate potential clients.
If including details about multiple companies on one domain works well with your wider business strategy, however, it can be a cost-effective option. You'll only need to pay for a single domain name, one set of hosting fees, and the delivery of a single digital marketing campaign. What's more, you'll be able to focus all your efforts on promoting your main website, which could boost its performance and, in turn, your return on investment.
For more about this read our article ‘How Many Websites Should Your Business Have?’.
Creating Separate Sites For Each Business
While setting up different domains for additional companies in your group can be a more expensive tactic, it's advantageous in certain circumstances. If the products and services that each company sells seem at odds with each other or the demographics of those businesses' target customers differ, promoting each brand on its own website may be the sensible thing to do.
What's more, as you'll already know, your company's reputation is essential to its success or failure and there's always risk involved when you're launching a new brand. Creating distance between your new and existing ventures will enable you to minimise the chances of all of your brands being damaged if your fledgling business isn't as successful as you'd planned.
Making The Best Choice
While both options have something to offer, therefore, the best solution for your company will depend on what you're hoping to achieve. With so much at stake, we recommend you speak to experienced business growth specialists, such as the knowledgeable members of our team, before you make your decision. We can examine your business model and help you to develop an appropriate strategy to suit your organisation's needs. Call 01332 343281 to find out more.
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