Does it matter? I'll give you some real figures from one of our non .coms which is branded "ourdomain.tld"
All figures from Jul 27 - Aug 26.
Total Visits: 4,702,217
Type ins: 2,214,766 (47.10%)
Google (organic): 926,313 (19.7%)
Google (CPC): 390,382 (8.30%)
And then a very long tail featuring Yahoo (2%), Live (0.6%) and 1000s more.Now for the interesting bit - of the keywords for those Google referrals:
38% were for our brand name without TLD e.g ourdomain (in other words, "radar")
33% were for a variant of our domain name e.g. ourdomain.tld, www.ourdomain.tld, ourdomain.ccTld etc.
So again, does it matter?Obviously this is only data for one site so it's impossible to say anything conclusive, but my feeling is that by building a strong brand around the domain you own it doesn't matter too much whether it's a .net .
MSIE: 78.10%
Firefox: 16.92%
Safari: 3.84%
Opera: 0.55%
Now I think about it, although type-ins is convenient marketing/analytics speak - and it's the label for that field in the report - it's a bit misleading as the total would include bookmarks. Youtube
stubhub
priceline
If you can't do that, think of spelling it wrong-- google
kongregate
flickr
or a portmanteau startuply
Those are just names off the top of my head. There are tons of ways to avoid the subpar .net domainhttp://sethgodin.typepad.com/seths_blog/2005/10/the_new_rule...
They will forget the extension, but remember the name and be surprised with a nasty link-squatter or worse.
Work with what you have. Build value. Build a brand. The name will not matter as much as the product. If the product is good, people will remember the name, no matter how bad.
Lastly, one good thing about the lack of common names is it forces you to be creative. Perhaps startups should not seek common names or phrases. You want a brand name. Something you can trademark. Something memorable (the way flickr and del.icio.us force memorisation). Something that does not bring up too many unrelated hits in Google (you can dominate for the term, can promote it for cheap due to less AdWord competition, etc. etc.).
There's also the practice of using .com for the public site and .net for the company intranet, which can be nice for making it obvious what's protected behind the firewall.
.net is fine, just make sure to brand and market yourself well. for example, don't refer to yourself in promo materials as "mystartup" -- use "mystartup.net".
i can think of quite a few successful .net companies. the .net won't preclude your success. a .com name will just act as a crutch for the mainstream audience if you want to tap that market.
but that would be like saying that all the .tv domains are sites based in tuvalu.