strategy There Are Many Ways To Diversify A Domain Name Portfolio – But Should You?

Is it better to concentrate on just a few, or even one, type of domain name, becoming an expert in that niche, or is it better to diversify?

If you specialize in just one type of domain name, the good times may be very good, but the bad times can be horrendous. On the other hand, if you invest in almost every extension and niche, you will become expert in nothing.

The Case For Specialization

There are sound arguments for specializing in one or a very few types of domains, including the following:

1. You become an expert in that niche, knowing how to price domain names, which names are more likely to sell, and possible buyers.
2. You get to know the best ways to obtain domain names in your area of expertise, and instinctively know appropriate wholesale prices.
3. It is more efficient of your time, since the time per domain to research and price will be substantially less. Also the time spent searching and listing will probably be reduced.
4. It is possible to come to know that sector, and its leaders, and that networking may lead to domain name sales.

The Case For Diversification

But there can also be risk in specializing in only a single niche or type of domain name. The main one is that if there is a sudden negative change in that sector, you will feel the pain. Of course, if the change was an upward tick in interest, you could also benefit.

Lots is written in the conventional investing world about the virtues of diversification – invest in equities from different sectors and geographical regions, mixed with bonds, income instruments such as REITs or dividend paying equities, commodities or currencies, and possibly other types of investments.

The arguments for a diversified domain portfolio parallel these, and would include:

1. If there is a loss of value in one type of domain name, the rest of your portfolio can help soften the blow.
2. You may be able to chase some trends without undue overall risk if you make the trend names only a limited part of an overall diversified portfolio of domain names.
3. By being open to many types of names, you can take advantage of all investment opportunities.
4. While it will not be as efficient, in terms of time, you may find it more interesting to handle domain names of different types and sectors.
5. Related to the previous point, handling a diversified portfolio may provide better overall learning opportunities.

What Might A Fully Diversified Portfolio Look Like?

For the extreme of a fully diversified domain name portfolio, it might be argued that it should be structured to reflect the dollar volume in sales in different extensions. I used NameBio to look at the previous 24 months of data (for a period ending after middle of June 2024), and it suggests a percentage breakdown as shown below.


It is no surprise that most of your portfolio should be in .com, about 77.5%, with only 1.9% in .net and 5.9% in .org. The .ai extension has been surging, and the last couple of years suggests that 3.5% would be in .ai, compared to 1.6% in .io and 0.8% in .co. There is still a lot of strength in other country codes, both national and ones that have become generalized, suggesting 5.2% holding in other country code. The biggest single investment in new extensions should be .xyz, but that would only be 1.3% of your portfolio, with all other new extensions adding another 2.1%. The ‘Others’ category includes extensions like .info, .mobi, .biz, and .pro that do not fall into one of the other groups.

If we make it more concrete, in a 1000 domain name portfolio, about

• 775 names would be .com
• 59 .org
• 35 .ai
• 19 .net
• 16 .io
• 13 .xyz
• 8 .co
• 21 other new extensions
• 52 other country code
• 2 or so in other extensions like .info or .biz

Of course strictly speaking we should really diversify by invested funds, not by the number of names.

Diversification is More Than Extensions

But really a diversified portfolio should consider more than simply the breakdown by extensions. You also diversify in the type of domain names, for example between single and 2-word names, made up brandables, numerics, alphanumerics and so on.

Also, you could take into account diversification according to the sector, for example some of your names in fintech, SaaS, space, environment, health, fashion, travel, artificial intelligence, gaming, gambling, cryptocurrency, art, education, services, retail, real estate, and so on. I will provide a more detailed look at this aspect in a later NamePros Blog article.

The Domain Matrix

Just to demonstrate some of the many types of domain names that are possible, even without considering different industry sectors and niches, I created a 7x7 Domain Matrix. Just to be clear, I am not encouraging you to invest in all of these, rather view it as a checklist if you are on the hunt for a new niche to consider.


I hope that some readers will share in comments below how many of the 49 boxes they have at least one retail sale (let’s say $500 plus sale to an end user). One domain name sale can check off more than one box in some cases. Any purists with all sales in a single box? Anyone have a diverse sales records with 25+ boxes ticked?

In case you are wondering about the seeming random order of the boxes, I generally placed the more common options near the center. Probably almost all investors have 2-word .com, and many also invest in .io, .org, brandables, etc., so those are near the center. Fewer invest in a domain twin, or an emoji or decentralized domain names, so I placed those near an edge.

More Information on Domain Matrix Terms

I think most of the terms in the Domain Matrix are obvious, but here are some quick explanations and links, arranged alphabetically:

• 2 Word .COM is probably the most invested type of domain name.
• Short names are special, even in extensions other than the top few. Have you sold a 2L (two letter) domain in any TLD (extension)?
• Use the 3+ Word .COM box for any .com retail sale with 3 or more words.
• 3L .COM are so rare and valued that they may be outside the range of many investors, but have you owned and sold one?
• 4L .COM is for a four-letter .com. The requests section at NamePros shows how sought these are, and often fairly liquid investments. The NamePros Blog covered An Outsider Look at 4-Letter .COM Domain Names. Note that a four-character name, that is a mix of both letters and numbers, would be placed in alphanumeric, not this box.
• Acronym domain names are usually just 2-4 letters long, with the letters representing something else, such as MRI for Magnetic Resonance Imaging.
• Across Dot means a name where the two parts seamlessly make an expression, such as ‘vacation.rentals’ or ‘betting.online’. While many are new extensions, they don’t need to be, since names like ‘meet.me’ would also be an example.
• .AI has been prominent in domain investing, especially during the last couple of years. The NamePros Blog has covered the extension a couple of times, including The .AI Extension: Sales, Pricing, Auctions, Use.
• Alliteration is desired in some brands, usually as a two-word name with both words starting with same letter. There is a NamePros showcase for alliterative domain names.
• ’7Up’ is an example of an alphanumeric domain name, containing both letter(s) and number(s).
• .APP is perhaps the second most valuable new domain extension, after .xyz. It is time for an updated article, but a few years ago the NamePros Blog covered Two Years Plus of .APP Domain Name Sales.
• .BIZ extension names are discussed in the Official .BIZ Discussion and Showcase.
• Brandable here specifically refers to creative word combinations, made-up words, creative spellings, word merges, etc. that would serve as a brand name. While a generic term can serve as a brand, note that there is a separate box to record those.
• While .CC is the country code for the Cocos (Keeling) Islands region, .CC is recognized by Google as a global extension and is promoted as such. The NamePros Blog covered the extension a few years ago in A Close Look At The .CC Domain Extension.
• .CO is the country code for Colombia, but it has long been promoted as a global alternative for any sort of company.
• The most narrow definition of a Domain Hack is when a word or brand is split by the dot – e.g. ‘li.me’ or ‘pep.si’. Check out Gaze at Domain Hacks with DomainGaze.
• Among the most rare domain names are Domain Twins, in which the term on both sides of the dot is the same. Examples include ‘win.win’ or ‘one.one’. I wrote about them in A Look At Domain Name Twins.
• Emoji domain names were more popular a few years ago. There are numerous NamePros discussions on them – find many of them using the #Emoji tag.
• By First Name we mean names of people, like Bob or Jane – there is a separate box in the Domain Matrix for place names.
• Generic .COM refers to a single-word term that is listed in a dictionary and is not a specific product or service term (there are separate boxes for those).
• While GEO could well mean any name with a geographical place, and the NameBio Category setting treats it like that, I have a separate box called place for pure place names, so for the purposes of my Domain Matrix GEO refers to names like ‘NewYorkHomes’ that combine a place name with a product or service.
• While .GG is the country code for the Bailiwick of Guernsey, the extension is widely adopted by the gaming community. The Official NamePros Showcase for .GG is here.
• Hyphen names are popular in Germany, and are used by some major brands like ‘Coca-Cola’. The NamePros Blog has considered the topic a few times, most recently in An Updated Look at Domain Names With Hyphens.
• Not as many .INFO names are being sold as some years ago, but the extension still makes the top 20 list. There are numerous NamePros discussions on the extension, including the Official .INFO Showcase.
• While .IO is the country code for the Indian Ocean region, it has long been a generic extension often used for tech startups. The extension was covered in the NamePros Blog: Type of .IO Names That Sell.
• Last Name is for any domain name composed only of a surname.
• While .ME is the country code for Montenegro, it is also used globally, especially in applications with a personal service connotation. At the time of the 15th anniversary for the extension I wrote an article for the NamePros Blog: .ME Domain Extension Celebrates 15 Years.
• National CC means a country code that is used exclusively, or mainly, for that country, like Germany .de or Canada .ca.
• Not nearly as popular as .com, but .NET remains an extension with significant sales volume. The NamePros Blog has covered the extension a few times, including Nine Things About .NET Domain Names.
• The .NETWORK extension had some traction in my analysis published last week covering the most recent 6 months. Do you invest in .network doimain names?
• Numeric domain names contain only numbers to the left of the dot, like ‘8888888.com’ or ‘247.xyz’. If the domain name has a mix of letters and numbers, use the alphanumeric box, not this one.
• One of the most registered new extensions is .ONLINE, although many of the best names are registry premium.
• .ORG is used, and sold, more each year, and not just for nonprofits. A few years ago the NamePros Blog had the article Who Is Buying .ORG Domain Names?.
• Other CC box can be satisfied by a sale in any other country code that does not have its own box in the matrix.
• The Other box can be used for the sale of any sort of domain name at all.
• Did your favourite new extension not get its own square? Use a sale in any other new gTLD extension for the Other New square.
• Phrases are common expressions such as ‘AsSeenOnTV.com’ or ‘BestOfTheWeb.com’. If your phrase just has two words, and is split by the dot, use the Across Dot box instead of this one.
• Place means any place name, large or small. It could be a city, town, state, country, region, etc. Examples would be Atlanta or California or Latvia. Note that there is a separate GEO category for combinations of place names and services or products.
• The .PRO extension is covered in the NamePros .PRO showcase and discussion.
• Product is to be used for a domain name that describes a commercially important product like ‘AirConditioner.com’. Use the Service box in the matrix if it is a service, rather than a product.
• People remember catchy names better, and Rhyming is one way to achieve this in multiword names.
• Service means a name that describes some service, like ‘roofing’ or ‘PianoTuners’. The service can be a very specialized or broad service. Note that there is a separate box for products, as opposed to services.
• .SO is the Somalia country code, but use by Notion.so, and some other early tech adopters, has given the extension traction. The NamePros thread for .SO is here.
• The .TV extension, technically the country code for Tuvalu, has been popular for television related use. I wrote about it in the NamePros Blog in 2022: The .TV Domain Extension: Sales, History, Pricing, Use.
• While .VC is the country code of Saint Vincent and the Grenadines, the extension could mean many things. The extension is mainly used for venture capital. The NamePros .VC Discussion and Showcase is here.
• Nouns are highly desired by brands, but verbs probably hold second place. Have you sold a single-word Verb .com domain name?
• The domain names outside ICANN or national country regulation, on blockchains, the so-called decentralized domain names, often go by Web3. Have you ever sold one to an end user? While web3 can also refer to conventional domain names used in decentralized applications like crypto, NFTs, etc., here we mean domain names outside the ICANN system.
• By far the most sold new domain extension is .XYZ. It has been covered, positively and negatively, in countless NamePros discussions, and in a few NamePros Blog articles including A Look At What Sells in XYZ.

The Few Specializations Middle Approach

There is a middle ground between specializing in just one or two types of names, or widely diversifying. Rather, you choose to invest in a handful of types of names.

In this approach, it probably makes sense to start with just one or two, maybe 2 word .com and .org names, and then as you become expert and efficient in those sectors, broaden out, adding one new type of domain name or sector at a time.

This is the approach I have gradually evolved to personally, concentrating mainly on about 8-10 types of names, although dabbling in many others.

If you decide to adopt this approach, a domain name prospectus may help guide your acquisitions. I wrote about this in the NamePros Blog some years ago: What Domain Names to Acquire: Can A Prospectus Help?.

A future article will look at diversification by sector/niche in more depth, and also consider diversification in how we price and list our names.

Please share your thoughts on diversification, or not, and, if you wish, share how diversified your personal Domain Matrix is.




Sincere thanks to the many NamePros members over the years that were early adopters in different extensions and niches, and who participated in the various showcases and discussions. Thanks to NameBio for the data used to generate the diversification pie chart.