In a comprehensive new report, the Digital Citizens Alliance is calling on regulators and industry leaders to confront a growing crisis in digital secondary markets—one that includes everything from ticket scalping to real estate flipping to domain name speculation. The report finds that a small number of domain investors, known as “domainers,” have turned the internet’s address system into a high-stakes speculative marketplace, leaving small businesses and nonprofits scrambling for access.
Domain Names as Digital Real Estate: Profits for a Few, Problems for the Rest
Before Wall Street-backed firms began snapping up houses for vacation rentals and long-term investments, tech-savvy domainers were already cornering another kind of property: internet domains.
These digital speculators don’t build websites or launch brands. Their strategy is simple: register thousands of domains at low cost and wait for someone to come knocking. The report compares them to real estate flippers—but without the renovation or community investment.
According to estimates from within the industry, just 5,000 to 10,000 individuals control between 15 million and 25 million domain names. Nearly all of them are .COMs. That means up to 15% of the most valuable domain real estate is in the hands of a small, self-interested group.
And it’s not just anonymous brokers. GoDaddy, the world’s largest domain registrar, revealed in its 2024 annual report that it owns more than 1 million domain names. That places it among the top domain holders in the world—despite also being the primary gateway for small businesses to register their first domain.
Bulk Buys and Wild Profits
The scale of this digital hoarding is stunning. In a single day in 2012, domain investor Mike Mann purchased 14,962 domain names. “I’m just really greedy,” he told CNET. “I want to own the world.”
And the profits aren’t marginal. According to NameBio, 1.5 million domains originally purchased for roughly $23 million have been resold for $2.7 billion. That’s a 120x return. While not every transaction involves a domainer, many of the most profitable ones do. One example: domain investor Rick Schwartz, known as the “Domain King,” sold bestodds.com for $1 million. In a single week in 2023, he claimed $12 million in domain sales.
When Greed Gets in the Way
Sometimes, the behavior of domainers crosses into legally questionable territory. In one recent case, a buyer agreed to purchase PayRewards.com for $38,000. After learning the buyer was Pay.com.au, seller Dean Adams backed out and demanded $380,000 instead. A Denver judge issued a restraining order to stop him from selling the domain elsewhere while the case proceeds.
The day Pope Francis died in April 2025, someone rushed to register PopeLeoXIV.com—on the off chance his successor would adopt that name. That domain is now parked, listed for sale at a private broker’s email address. Another domain, PopeJohnPaulIII.com, is listed at $1 million. These tactics—opportunistic and disconnected from any real online use—contribute to rising prices and limited availability.
The Parking Problem: Locked-Up Names, Unused Assets
Millions of domains now sit “parked,” meaning they’re undeveloped and inactive. These domains don’t host websites. They simply exist with a for-sale sign. The scarcity they create is artificial but has real consequences: small business owners, startups, and nonprofits searching for meaningful domains find themselves blocked by paywalls.
And it’s not just about money. Parked domains often go unmonitored, leaving them vulnerable to cybercriminals. Hackers can hijack these dormant assets to run malware campaigns, redirect traffic to malicious destinations, or steal personal data. With no active business or security system in place, the risk is high—and growing.
Americans Are Fed Up
The public isn’t buying the argument that domain speculation provides a service. According to the report, 63% of Americans who have purchased a domain believe that mass domain investors make it harder to launch a website or online project. That includes entrepreneurs, nonprofits, artists, and other grassroots efforts.
This perception of unfairness has roots in the early days of the internet, when opportunists would register names like NicoleKidman.com or Madonna.com in hopes of cashing out. ICANN eventually cracked down on those tactics, but domainers evolved. They no longer chase celebrities—they chase trends, technology names, and anything that might someday become valuable.
Industry Veterans Speak Out
Even within the domainer community, there’s tension. Some want more transparency in sales reporting. Rick Schwartz has said, “Not reporting domain sales is a disgrace.” Others disagree. Drew Rosener, a well-known domain investor, dismissed the idea of public price benchmarks, saying, “Comps are for the weak and uninformed.”
Rosener has also acknowledged the industry’s image problem: “Nobody likes us. It’s just a fact. I think we’ve probably dug our own hole.”
Calls for Oversight and Reform
Digital Citizens Alliance is calling on ICANN to formally investigate whether domain speculation harms market access and contributes to inflated prices. The group argues that domain names are infrastructure—not commodities—and should not be locked up indefinitely by those with no intent to use them.
Tom Galvin, the organization’s executive director, says this goes beyond profit: “Digital secondary markets aren’t going anywhere, and can provide a useful service, but not when they are manipulated to the detriment of Americans who ultimately sense the system is rigged against them.”
Brian Cohen, a fellow at Digital Citizens, added: “Trust in these digital secondary markets—and not just in event tickets—is critical.”
The Path Forward
Digital Citizens plans to continue its research into domain speculation and will engage with experts in cybersecurity, internet governance, and digital commerce to recommend next steps. Whether that includes price transparency, caps on domain ownership, or new ICANN rules remains to be seen.
What’s clear is that the current system favors volume holders over small players. And until meaningful reform is introduced, the dream of building a business on the web—starting with the right name—may remain out of reach for many.