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GlossaryPortfolio and economics

ROI

ROI (return on investment) is the profit from a domain name, or a whole portfolio, divided by everything it cost, including the purchase price, renewals, fees and commissions, usually expressed as a percentage.

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Also called return on investment

ROI, explained

For a single name, take the net sale proceeds after commission, subtract the purchase price and every renewal paid while you held it, and divide by those total costs. A name bought for a low three-figure sum that sells in the mid four figures after five years looks like a large multiple, but the true return depends on the renewals and commission and on how long the money was tied up.

The number that matters is portfolio ROI, not the ROI of your best sale. Every unsold name adds renewal costs, and most names never sell, so one large sale can hide a losing portfolio. Track total spend, total net proceeds and your annual sell-through rate, and compare the result with what the same money would have earned elsewhere. Domain investing is speculative: past sales, yours or anyone else's, do not predict future returns.

Example. An investor who spent a mid five-figure sum on names and renewals over five years and received about the same in net proceeds has a portfolio ROI near zero, whatever the best single sale looked like.

Go deeper Is Domain Investing Still Worth It in 2026?

Education, not financial, legal or tax advice. Domain investing is speculative and most domain names never sell. Read the disclaimer.

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