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Studies & Opinions

Statistical Analysis Confirms Upward Trend in Domain Name Prices

Alex Tajirian
January 21, 2004


Using statistical techniques to analyze our database of domain-name prices, we were able to find a significant positive trend in prices from auction sales over the past 14 months. This confirms the general feeling among the domain-name community that prices are on the rise, especially with the recent sale of for $1.3 million.

This is the first scientific study of domain-name price trends. The study complements our cross-sectional analysis of domain names.

Using stepwise-linear-regression techniques and a dummy variable for time, we found a significant trend factor while controlling for other factors that influence domain-name prices. The overall regression was significant; it explained 83% of the variations in prices.

The database used was comprised of .com domain names sold between November 2002 and December 2003. The prices represent domain names sold on major auctions, as well as those sold privately through our escrow service.