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"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.

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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.

"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.

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