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Naming Two-Step Process: Word Selection + Construction — The Systematic Method for Creating Memorable Names

The Framework

The Naming Two-Step Process from Allan Dib's Lean Marketing provides a structured method for creating names for products, services, programs, methodologies, and businesses. Instead of brainstorming in the dark, the two steps separate the creative work into manageable phases: first choose the right type of word, then choose the right construction method. The combination produces names that are distinctive, memorable, and ownable.

Step 1: Word Selection

Choose which type of word will form the foundation of your name. Dib identifies five categories:

Descriptive. Words that directly describe what the thing does or is. "Quick Books" (fast accounting), "General Electric" (electrical products). Descriptive names are immediately understandable but harder to trademark and differentiate because they use common words in expected combinations.

Suggestive. Words that evoke an association without directly describing. "Amazon" (vast, everything), "Sprint" (speed), "Uber" (beyond, above). Suggestive names balance recognizability with distinctiveness — they hint at the benefit without spelling it out.

Arbitrary. Real words used in unrelated contexts. "Apple" (technology, not fruit), "Shell" (energy, not seashell), "Virgin" (airlines, not a description). Arbitrary names are highly distinctive and trademarkable but require marketing investment to build the association between the word and the category.

Invented. Completely new words. "Google" (from googol), "Kodak" (no prior meaning), "Xerox" (coined). Invented names are the most trademarkable and distinctive but require the most marketing investment because they carry zero inherent meaning.

Foreign. Words borrowed from other languages. "Volvo" (Latin: "I roll"), "Audi" (Latin: "hear"), "Häagen-Dazs" (no meaning, just sounds European). Foreign names carry exotic appeal and are often easier to trademark in English-speaking markets.

Step 2: Construction Method

Choose how to build the name from the selected word type:

Singles. One word: Apple, Amazon, Uber. The simplest construction. Works best with arbitrary or invented words that are distinctive enough to stand alone.

Multiples. Two or more words combined: Facebook, YouTube, PayPal, WordPress. Multiples allow more meaning to be encoded in the name but are longer and potentially harder to remember.

Compounds. Words fused or blended: Instagram (instant + telegram), Pinterest (pin + interest), Microsoft (microcomputer + software). Compounds create new words from recognizable components, balancing meaning with novelty.

Misspellings. Deliberate alternate spellings: Flickr, Tumblr, Lyft, Krispy Kreme. Misspellings create domain availability and visual distinctiveness while maintaining phonetic recognizability.

Acronyms. Initials of longer names: IBM (International Business Machines), BMW (Bayerische Motoren Werke), SaaS. Acronyms work when the full name is too long for everyday use, but they sacrifice meaning and memorability unless the acronym itself becomes iconic.

The 5×5 matrix (5 word types × 5 construction methods) produces 25 possible naming approaches for any single product — giving you a systematic exploration framework rather than hoping for inspiration.

Cross-Library Connections

Hormozi's MAGIC Naming Formula from $100M Offers (Magnetic reason + Avatar + Goal + Interval + Container word) provides an alternative naming methodology specifically designed for offers and programs. Dib's Two-Step Process is broader (any name), while Hormozi's MAGIC is narrower (offer names) but more prescriptive.

Dib's Ten Copywriting Commandments include "Name It" (Commandment #4) — the principle that named systems carry more perceived value than unnamed ones. The Two-Step Process provides the methodology for creating those names.

Hormozi's own A/B testing approach from $100M Leads (testing "Leads" vs. "Advertising" vs. "Marketing" vs. "Promotion" for his book title) demonstrates Step 1 (word selection) in practice: testing different descriptive and suggestive words to find the one that resonates most with the target audience.

Hormozi's MAGIC Naming Formula from $100M Offers provides the specific structural template for Step 2: the name should include a Magnetic element (emotional hook), Avatar (who it's for), Goal (what it achieves), Container (program format), and Duration (timeframe). Dib's two-step process ensures the name works functionally (communicates and differentiates), while Hormozi's formula ensures it works persuasively (activates the prospect's evaluation in favor of the offer).

Implementation

  • Choose your word type first. Is your category crowded (use Arbitrary or Invented for differentiation) or new (use Descriptive or Suggestive for clarity)?
  • Generate 10+ candidates using each construction method for your chosen word type. Don't filter yet — quantity first.
  • Test against three criteria: Memorable (can someone recall it after hearing it once?), Spellable (can they type it into a browser without help?), Ownable (is the domain available? Can it be trademarked?).
  • A/B test the top 3 candidates with your target audience before committing. Small-scale testing (social media polls, landing page tests) reveals preferences you can't predict.
  • Apply the MAGIC Formula if naming an offer specifically. Use the Two-Step Process for everything else.

    • The naming process should be iterative: test 3-5 name variations with a sample of target customers before committing. Berger's Social Currency from Contagious predicts that the name which produces the strongest 'tell a friend' impulse will also produce the strongest market traction — because a name people want to share is a name that generates organic awareness. Track which name variation produces the most organic mentions, referrals, and sharing behavior during the test period.

    📚 From Lean Marketing by Allan Dib — Get the book