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Naming expert shares the process behind creating billion-dollar brand names like Azure, Vercel, Windsurf, Sonos, Blackberry, and Impossible Burger | David Placek (Lexicon Branding)

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Key takeaways

  • A compelling brand name is a company's most enduring and frequently used asset.
  • Clients often fail to recognize the right name because they seek comfort, which often equates to familiarity rather than boldness.
  • The three-step naming process involves identifying the desired experience, inventing a wide range of ideas, and implementing the chosen name in the market.
  • Linguistic analysis is crucial in ensuring a brand name resonates positively across different cultures.
  • The diamond framework helps startups clarify their objectives and fosters creative naming processes.
  • In the digital age, having a strong name is more important than securing a .com domain.

Summary

The Importance of Brand Naming

David Placek, founder of Lexicon Branding, emphasizes that a strong brand name is often a company's most used and longest-lasting asset. He shares insights into how names like Azure and Sonos were created, discussing the need for a name to evoke emotion and provide a unique identity in the marketplace.

The Psychological Dynamics Behind Naming

The podcast delves into the psychology of choosing a brand name. Placek discusses why companies often struggle to recognize the right name when they see it, emphasizing the importance of comfort vs discomfort in the naming process. He highlights that great names often polarize opinions, which is a strong indicator of their potential success.

Three-Step Naming Process

The episode outlines Placek's proprietary three-step naming process: identify, invent, and implement. The 'identify' phase focuses on understanding the behavior and experience desired from the name. The 'invent' phase is about generating a wide array of creative name ideas, often through the collaboration of small teams working on different perspectives. The 'implement' phase involves testing the names with real customers and preparing presentations.

Linguistics and Branding

Placek explains the integral role linguistic analysis plays in naming. His company employs linguists to assess the cultural implications and resonance of names, ensuring that they evoke the intended feelings and do not have negative connotations in any relevant markets.

Practical Naming Advice for Founders

For startups on a tight timeline, Placek suggests a framework to clarify their objectives named the 'diamond exercise'. This helps teams articulate what they need to win by defining their vision and target audience while also opening up creative channels. He advises to generate a massive number of name ideas without immediate evaluation to foster creativity.

The Evolving Landscape of Domain Names

David underscores the diminishing importance of having a .com domain name in the current digital and AI landscape. He advises that while having a strong name is critical, flexibility in domain choice is acceptable to reflect the right brand identity.

Sponsors

  • WorkOS · Modern identity platform for B2B SaaS, free up to 1 million MAUs
  • Stripe · Helping companies of all sizes grow revenue
  • OneSchema · Import CSV data 10x faster

Show notes

David Placek is the founder of Lexicon Branding, a company that focuses exclusively on the development of brand names for competitive advantage. Lexicon is behind iconic names such as Sonos, Microsoft’s Azure, Windsurf, Vercel, Impossible Foods, BlackBerry, Intel’s Pentium, Apple’s PowerBook, and Swiffer. Over 40 years, David’s team has named nearly 4,000 brands and companies, employing over 250 linguists and pioneering naming innovation.

What you’ll learn:

1. The three-step process that generated names like Windsurf and Vercel

2. How a name can give you the edge that no marketing budget can buy

3. Why you won’t “know it when you see it”

4. Why Microsoft called Azure “a dumb name” before it became their billion-dollar cloud platform

5. Why polarizing opinions are the strongest signal that you’ve found the right name

6. How every letter of the alphabet creates a specific psychological vibration

7. The diamond framework: a 4-step process any founder can use to find their perfect name

8. Why domain names don’t matter anymore in the age of AI

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Brought to you by:

WorkOS—Modern identity platform for B2B SaaS, free up to 1 million MAUs

Stripe—Helping companies of all sizes grow revenue

OneSchema—Import CSV data 10x faster

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Where to find David Placek:

• LinkedIn: https://www.linkedin.com/in/david-placek-05a82/

• Website: https://www.lexiconbranding.com

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

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In this episode, we cover:

(00:00) Introduction to David and Lexicon Branding

(04:44) The story of Sonos

(09:27) The psychology of naming

(11:33) The initial resistance to Microsoft's Azure

(14:35) The importance of a great brand name

(18:11) The three steps of naming: create, invent, implement

(28:23) Qualities of great brand name creators

(31:24) How long the naming process takes

(32:12) The Windsurf case study

(36:10) Naming in the AI era

(39:37) When to change your name

(43:10) The role of linguists

(45:54) The power of letters in branding

(48:15) The Vercel case study

(50:12) The implementation phase

(52:52) Client management and market success

(55:16) The diamond exercise

(01:04:23) Suspending judgment

(01:07:31) Polarization and boldness

(01:11:01) Domain names

(01:12:48) Final thoughts and lightning round

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Referenced:

• PowerBook: https://en.wikipedia.org/wiki/PowerBook

• Pentium: https://en.wikipedia.org/wiki/Pentium

• BlackBerry: https://en.wikipedia.org/wiki/BlackBerry

• Swiffer: https://www.swiffer.com/

• Impossible Burger: https://impossiblefoods.com/

• Vercel: https://vercel.com/

• Windsurf: https://windsurf.com/

• CapCut: https://www.capcut.com/

• Azure: https://azure.microsoft.com/

• Sonos: https://www.sonos.com/

• John MacFarlane on LinkedIn: https://www.linkedin.com/in/john-macfarlane-08a8aa20/

• Harry Potter: https://en.wikipedia.org/wiki/Harry_Potter_(film_series)

• The Call of the Wild: https://en.wikipedia.org/wiki/The_Call_of_the_Wild

• Everyone’s an engineer now: Inside v0’s mission to create a hundred million builders | Guillermo Rauch (founder and CEO of Vercel, creators of v0 and Next.js): https://www.lennysnewsletter.com/p/everyones-an-engineer-now-guillermo-rauch

• Sound symbolism: https://en.wikipedia.org/wiki/Sound_symbolism

• Anduril: https://www.anduril.com/

• Anthropic: https://www.anthropic.com/

• Inside Bolt: From near-death to ~$40m ARR in 5 months—one of the fastest-growing products in history | Eric Simons (founder and CEO of StackBlitz): https://www.lennysnewsletter.com/p/inside-bolt-eric-simons

• The rise of Cursor: The $300M ARR AI tool that engineers can’t stop using | Michael Truell (co-founder and CEO): https://www.lennysnewsletter.com/p/the-rise-of-cursor-michael-truell

• Building a magical AI code editor used by over 1 million developers in four months: The untold story of Windsurf | Varun Mohan (co-founder and CEO): https://www.lennysnewsletter.com/p/the-untold-story-of-windsurf-varun-mohan

• Y Combinator: https://www.ycombinator.com/

• Chevrolet Corvette: https://en.wikipedia.org/wiki/Chevrolet_Corvette

• Viagra: https://www.viagra.com/

• In vino veritas: https://en.wikipedia.org/wiki/In_vino_veritas

• Infoseek: https://en.wikipedia.org/wiki/Infoseek

• Andy Grove: https://en.wikipedia.org/wiki/Andrew_Grove

• Churchill at War on Netflix: https://www.netflix.com/title/81609374

• Yellowstone on Prime Video: https://www.amazon.com/Yellowstone-Season-1/dp/B07D7FBB8Z

• 1883 on Prime Video: https://www.amazon.com/1883-Season-1/dp/B0B8JTS8QW

• 1923 on Paramount+: https://www.paramountplus.com/shows/1923/

• Taylor Sheridan on X: https://x.com/taylorSheridan

• Hardy fly rods: https://www.hardyfishing.com/collections/fly-rods

• T.E. Lawrence quote: https://www.goodreads.com/quotes/11340-all-men-dream-but-not-equally-those-who-dream-by

• Lawrence of Arabia: https://www.imdb.com/title/tt0056172/

•DreamWorks: https://www.dreamworks.com/

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Recommended books:

• Thucydides’ Melian Dialogue: Commentary, Text, and Vocabulary: https://www.amazon.com/Thucydides-Melian-Dialogue-Commentary-Vocabulary/dp/0692772367

• Resilience: Hard-Won Wisdom for Living a Better Life: https://www.amazon.com/Resilience-Hard-Won-Wisdom-Living-Better/dp/054432398X/

• Churchill: Walking with Destiny: https://www.amazon.com/Churchill-Walking-Destiny-Andrew-Roberts/dp/1101980990

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Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

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Lenny may be an investor in the companies discussed.



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