Category: Domain Investing Math

The business of domain name investing often appears to outsiders as a matter of luck or intuition, but in reality the core of long-term success rests on mathematics and disciplined modeling of returns. While instinct and experience help investors choose names with potential, it is the numbers behind acquisition cost, holding expense, probability of sale,…

Pricing domains is one of the most delicate and consequential decisions an investor must make. A price too low risks leaving money on the table when an eager buyer would have paid much more, while a price too high may scare off potential buyers and prolong the holding period indefinitely. Many investors set buy-it-now prices…

One of the most intriguing puzzles in domain name investing is how buyers respond to changes in price. Unlike commodities with transparent markets and abundant transaction data, domain names exist in a fragmented environment where each asset is unique, negotiation dynamics vary, and information asymmetry dominates. Yet beneath this complexity lies a fundamental economic principle:…

Investing in domain names is often compared to other alternative asset classes, but one key difference is the unique risk profile involved. Domains are illiquid, sales are sporadic, and prices fluctuate widely depending on timing and buyer circumstances. Measuring performance cannot rely solely on raw return on investment or revenue figures, because those numbers mask…

In the world of domain name investing, mathematical modeling is a way to impose order on a market that otherwise feels unpredictable and opaque. Investors build models of expected value, portfolio ROI, cash flow requirements, and long-term survival probabilities, but every model rests on assumptions. The challenge is that not all assumptions matter equally. Some…

In domain name investing, success depends not just on picking good names but on constructing a portfolio that balances risk and opportunity across time. Many investors enter the space by chasing trends or concentrating on a single niche they understand, whether that be technology terms, brandable names, or industry-specific keywords. Others focus on a single…

Domain name investing is not only about selecting strong individual names but also about understanding the distribution of performance across an entire portfolio. In practice, a handful of domains often generate the majority of revenue, while many others sit dormant, accumulating renewal fees but rarely producing sales. This phenomenon is a textbook example of concentration,…

Domain investors face a recurring decision every year: whether to renew a given name or let it expire. On the surface, the decision should be straightforward. The only relevant consideration is whether the expected future value of holding the domain exceeds the renewal cost. Yet in practice, many investors find themselves renewing names year after…

Setting a buy-it-now price for a domain name may appear to be an act of intuition, but in practice it is a mathematical exercise in anchoring, estimation, and probability. The ask price on a domain not only signals to buyers what the seller believes it is worth but also influences the negotiation process, search filtering,…

In the domain aftermarket, negotiations often begin with a buyer’s opening bid that is far below the seller’s expectations. What follows is a series of counteroffers, re-anchoring, and strategic signaling that ultimately determines whether the two parties converge on a price or walk away. While many investors approach this process with gut instinct or anecdotal…