It’s one of the first decisions that a business owner has to make: what should you name your brand? And there are loads of factors to consider. Should your brand name consist of a catchy word pairing, following in the footsteps of Facebook and JetBlue? Should you create an entirely new word, a la Skype and Pepsi? Or should you be direct and to-the-point, like Free Conference Call or It Works? Here’s a run-down of the three most popular types of brand names, as well as which type makes the most sense for your business.

1. Invented

Invented brand names are pretty self-explanatory: they’re made-up words like Twitter or Geico that you won’t find in a dictionary.

Pros: The primary advantage to invented brand names is that they’re linguistic “blank slates”: given that they’re made-up words, you have a large degree control over what kind of associations people make about your brand (hopefully, positive ones).

Using a made-up word for your brand is also advantageous in terms of domain name availability: whereas domain names for existing words can easily reach six or seven figures, it’s unlikely you’ll be paying exorbitant prices for an invented domain name.

Cons: The aforementioned “blank slate” effect is a double-edged sword: given that your brand name is an invented word, your clients won’t immediately know what exactly it is that you do.

Therefore, invented names require businesses to put in a lot of effort building a brand, so that people learn what the brand does, associate it with positive qualities, and get the name to stick in their memories.

Should I use it for my business? Michael Rader, CEO of Brandroot, a marketplace for .com domain names, recommends invented names if you’re willing to devote plenty of time and effort to market your brand.

“With invented brand names, you need to put in significant branding muscle to get people to recognize your brand and equate it with positive associations,” Rader explains. But if you manage to do that, you can end up with a brand that sticks for life (think of Pepsi, Xerox, or Audi).

“With an invented name you are able to create a new culture around your service or product,” Rader adds.

2. Generic

The converse of invented brand names, generic names like Free Credit Report are based on actual words, and very literally describe what your business does.

Pros: There’s no denying that generic names have an immediate appeal: there’s no mystery behind what Free Credit Report offers its customers.

Cons: Unlike the “blank slate” effect of invented brand names, generic names consist of existing words that we’ve heard thousands of times. Because of this, it’s very hard for generic brand names to develop their own brand identity, as they’re beholden to the associations that we already have in our brains.

Should I use it for my business? Proceed with caution. Many famous dot-com failures — such as pets.com and toys.com — used generic brand names. And domain names for popular generic words can be very pricey. Further, generic brand names can often come off as “spammy” in an age where our junk folders seem to be growing faster by the day.

3. Word Combinations

Word combinations, like MasterCard or FitBit, combine qualities of invented and generic names. While they consist of words that already exist (like generic names), they pair these words in novel ways, and thus create a unique brand identity (like invented names).

Pros: You can usually tell what these brands are about just by looking at them — we know that MasterCard is some kind of card, and FitBit has to do with fitness, for instance. Still, given that we rarely heard the words “master” and “card” in combination before the advent of MasterCard, they benefit from the “blank slate” effect of invented names.

Cons: Word combinations seriously limit your ability to expand. For instance, if MasterCard wanted to start selling wallets, they’d have to fight an uphill marketing battle (and MasterWallet just isn’t so catchy).

Should I use it for my brand? To Rader, it boils down to how sure you are of your business plan. “If you’re 100% positive that your business won’t take unexpected directions down the road, word combinations are a great choice,” Rader says.

But if you decide to change your company’s focus or diversify its offerings, you’ll still be stuck with your original name, which can present a roadblock to expansion.

4. Misspellings/Play on Words

This category encompasses those brand names that intentionally misspell words (such as Froot Loops and Dribbble), as well as those that add prefixes, suffixes, or other tweaks to existing words, such as Flickr or Todoist.

Pros: Like word combinations, misspelled or tweaked versions of existing words are immediately identifiable without sacrificing brand identity. For example, by combining the phrase “to-do” with the suffix “ist,” Todoist expresses its purpose — to help people manage their to-do lists — while still creating a totally unique brand name.

Cons: There are so many ways to misspell a word! Surely, Dribbble has lost a good deal of traffic to people who “incorrectly” spelled the word with two Bs, and ended up at the nonexistent dribble.com.

Should I use it for my business? If your brand very strongly correlates with a particular misspelling (for instance, Flickr is naturally evocative of film and cameras), a misspelling or play on words might be a good choice for your brand. “Just be aware that you might lose some traffic to those who misspell your misspelling,” Rader warns.

5. Arbitrary

Arbitrary brand names, like Apple, consist of real words applied to irrelevant contexts. It’s a bit of a misnomer to call them completely arbitrary, though — there’s a reason why Apple is not named, for instance, Prune or Broccoli. Often, “arbitrary” names are suggestive of qualities the brand hopes to evoke (think Jaguar cars evincing a sense of lithe muscularity).

Pros: Arbitrary brand names are easily memorized, and can instantly imbue your brand with certain qualities you hope to emulate (e.g., apples are wholesome and generally well-liked).

Cons: You’ll have to do a good amount of brand-building to break people’s association with the original name (i.e., stop associating Apple computers with fruit). More pressingly, you can run into serious issues finding a domain name that doesn’t cost a fortune.

Should I use it for my business? The near impossibility of finding a reasonably priced domain name makes arbitrary brand names less appealing, reports Rader.

For instance, if you have a marketing firm called Orange, even if you can snag orangemarketing.com (which, at the time of this publication, is still available), you’ll confuse a lot of customers who mistakenly try to find you at orange.com (an internet service operator used in Europe and Africa).

As you can see, there’s more to selecting a brand name than meets the eye. It’s a big business decision that can bear significant effects — both positive and negative — on your business’ success. Choose carefully — the right brand name can guide you along your path to becoming the next Twitter, MasterCard, or Flickr.