What Is Domain Fractionalization? How to Buy a Stake in Exclusive Domains

When it comes to digital assets, many think immediately of digital currencies such as Bitcoin and USDC, or perhaps even of NFTs. However, there is one rather traditional digital asset that has not only existed since the very advent of the World Wide Web but is indeed still thriving today.

This asset, of course, is domains. Also known as internet addresses, domains can give a business prestige, significantly enhance accessibility and memorability, and, as some might even argue, make or break a business. In the past two decades or so, the most exclusive domains could only be purchased by the extremely wealthy, with prices often reaching seven- or even eight-figure amounts.

In 2025, however, domain fractionalization platforms such as Domora enable anyone to purchase a stake in the most exclusive domains on the planet—much like buying a share in a company. But how exactly does domain fractionalization work, and how can you buy a share of a domain? If you're asking yourself these questions, then read on to learn everything about domain fractionalization in 2025.

Domora
Domora

How much are internet domains worth?

Before we dive into the technical details of acquiring a stake in a premium domain, let's first talk about whether these assets actually make for good investments and what kind of examples history provides.

Generally, unoccupied domains can be registered by anyone for a minimal fee, often less than $10 per year. However, with the internet being the global phenomenon that it is today, it is safe to say that most, if not all, of the very best domains were registered long ago.

Many of the ultra-premium domains are currently up for sale on secondary markets, waiting to be used by businesses and entrepreneurs.

In fact, a number of domains have been sold for upwards of $10 million in recent years, including NFTs.com, Voice.com, Rocket.com, and Chat.com.

In the case of the latter, this might very well be one of the most successful short-term flips of online domains. HubSpot co-founder Dharmesh Shah reportedly purchased the domain for a whopping $15.5 million in early 2023 and then resold it to OpenAI for an undisclosed amount just about a year later. Given the immense success of OpenAI's ChatGPT, which now uses the Chat.com domain, it is safe to assume that substantial profits were made during this transaction.

In another noteworthy transaction, Marc Ostrofsky purchased Business.com in the mid-1990s for only $150,000, which he then resold for $7.5 million about five years later. In 2007, RH Donnelley purchased the Business.com domain (along with the media business built on top of it) for a staggering $345 million.

Generally speaking, single-word or single-letter domains—such as cars, stocks, or x—can generate the highest sale prices during auctions. If a domain correlates with a highly successful business, such as Chat.com or Tesla.com, then the value may be even higher for those specific companies.

How to Buy a Share in a Premium Domain

Let's assume you are looking to diversify your investments into the digital realm. Unfortunately, the very best and most sought-after domains typically exceed prices well over $1 million—undoubtedly too much for the average investor. In this case, the smartest move is to buy a percentage ownership in such a domain.

This is where platforms like the Swiss-based Domora come in. The ICANN-registered platform enables anyone to put up shares in a domain for sale, which can then be resold at a later time to the highest bidder. Investors can acquire stakes starting from as little as $1 in a premium domain, opening the doors to anyone.

This approach not only democratizes access to the most exclusive domains on the market but also provides liquidity to what were previously highly illiquid assets. Owners of premium domains can now easily diversify their investments across many domains without losing exposure to their full portfolio.

To acquire a stake in a domain, users can sign up for Domora, browse through listings of premium domains, and choose to purchase a share in the most promising assets. Similarly, domain owners can prove ownership by transferring their domains to the Freename registrar that powers Domora and then put shares of their valuable domains up for sale.

How to Find the Most Valuable Domains

If you're completely new to domains—or think there's room to increase your knowledge—then your first point of interest might be Domora's help section. Their data-backed tips and resources provide extensive information about general premium domain market valuations. But to give some food for thought, here are three starter tips for finding the best domains.

1. Short and memorable

One characteristic that virtually all valuable domains have in common is that they are short and easy to remember. This primarily includes single- and double-word domains, such as Insurance.com and HealthInsurance.com. Domains with hyphens, numbers, or unconventional spellings are typically less valuable, although there may be exceptions.

2. Stick to strong domain endings

The domain ending, also known as the TLD, plays an extremely important role in the value of a domain. Globally, .com domains are still by far the most valuable. However, other strong extensions such as .de and .fr can also rake in significant sums during auctions. Recently popular domains like .ai, .io, and .app have started to attract substantial interest due to their connection with tech and internet culture.

3. Bet on new fields and industries

Technology evolves faster than ever before, and with this evolution, new trends constantly emerge. As a domain investor, it pays dividends to stay up to date with recent developments and use this knowledge edge to bet on emerging technologies.

For example, investors who purchased AI- or robotics-related domains in the previous decade are now recording millions in sales thanks to the swift and immense growth of these industries. Similarly, any health-, sustainability-, or education-related domains appear to be future-proof choices at the moment.

The Bottom Line

Domains are one of the hottest digital investments in the 21st century. Previous sales have generated tens of millions in profits, with the global domain aftermarket being valued well over $1 billion. With platforms such as Domora, investors of any size can now enter the highly exclusive domain market while also retaining high liquidity. Whether you're a seasoned investor or a curious beginner, the right domain at the right time can be a small purchase that turns into a digital goldmine.

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