Domain Value Formula

Michael Saylor explains how to calculate the theoretical value of English word domains by considering the global investment in learning those words.

Domain Value Calculation Formula

• Number of English speakers: ~2 billion people
• Average years spent learning English: 4 years
• Total person-years invested: 8 billion years
• Hourly rate: $20/hour
• Total theoretical value: $160 billion for understanding common English words/brands

Why Premium Domains Are Valuable

• Universal understanding

  • No need to teach people how to spell it
  • Instantly memorable and typeable
  • Eliminates search confusion
  • Burns into people's memory automatically

• Marketing efficiency

  • No need for extensive advertising to teach spelling
  • Instant brand recognition
  • Reduces customer acquisition costs
  • Eliminates need to sort through search results

Domain Investment Philosophy

• View domains as "scarce real estate in cyberspace"
• Treat premium domains like valuable art (comparing to Picassos)
• Focus on fundamental English language words
• Hold for long-term value appreciation
• Look for domains that could support billion-dollar businesses

Real Example: Voice.com Sale

• Initial offers started low
• Gradually increased to $12 million
• Saylor set minimum at $30 million
• Eventually sold for $30 million
• Strategy: Only sell if buyer values it more than you do

The framework shows how Saylor values domains based on their inherent connection to language learning investment and universal understanding, rather than just traditional domain valuation methods.