If you’re a startup founder, chances are you’ve fallen in love with a name, only to find the domain is already taken.
It’s frustrating. I get it. I’ve been there too.
But before you start calling the owner a cybersquatter, take a moment to reconsider. Because what you’re likely dealing with isn’t squatting. It’s domain investing. And whether you realize it or not, it’s probably the reason you’ll end up with a better name.
Let me explain.
What Domain Investing Actually Is (And Isn’t)
Let’s draw a clean line.
Cybersquatting is when someone registers a domain that matches an existing brand or trademark and holds it hostage for a payout. It’s shady, unethical, and yes, illegal.
But that’s not what most domain investors do. They’re not targeting brand names like Apple or Nike. They’re buying clean, unclaimed words: phrases and combinations that could one day become something. Like real estate investors buying land in emerging neighborhoods, domain investors are betting on language. They’re trying to be early.
There’s a big difference between stealing and speculating.
Think of It Like Digital Real Estate
Imagine a city that doesn’t exist yet. A few years before anyone moves in, someone starts buying land. Not because they know who’s coming, but because they believe the area has potential.
When people finally arrive, that land is ready. Not free, but available. Accessible.
That’s exactly what domain investors do. They spot promising words and hold them, sometimes for years, until the right founder comes along.
Our Story: Why We Bought Atom.com
When we were rebranding, the name Atom immediately stood out. It was short, clean, and full of energy. More than anything, it aligned with our vision of where everything starts. The atom is the foundational unit of matter, and in many ways, we see startups the same way: small, but full of potential.
But Atom.com wasn’t obviously available. The domain had originally been owned by Paramount. After their digital project shut down, it eventually passed to a domain investor.
That one detail changed everything. Had it still been held by a large corporation, it likely would’ve been buried for good. But because it was in the hands of someone who saw its future potential, we had a chance.
We paid a meaningful amount. And it turned out to be one of the best strategic decisions we’ve made. The domain didn’t just give us a name. It gave us clarity, trust, and a brand that fully reflected who we were becoming.
Recovery.com and the Power of Mission-Driven Naming
Another great example is RehabPath, a company focused on mental health and addiction recovery. They acquired Recovery.com through Atom.com, and it wasn’t a cheap name either.
But for a company helping people through life-altering decisions, a name like Recovery.com wasn’t a luxury, it was core to the mission.
It builds instant trust. It’s unforgettable. And it positions them as a leader in a space that’s deeply personal and often overwhelming.
In behavioral health, clarity isn’t just helpful. It can literally change lives. And without a domain investor holding and maintaining that name, it likely never would’ve made its way into the hands of a company like RehabPath.
A Name Is More Than a URL
Your domain is the front door to your business. It shows up in every email, every pitch deck, every ad, and every investor memo. It’s the one part of your brand that can’t easily be changed later.
Strong domains don’t just look good. They work hard for you. Research shows that .com names are still considered significantly more trustworthy by consumers, and shorter, more pronounceable names increase brand recall and conversion.
So while a great domain might seem expensive, it’s often far cheaper than years of brand confusion, lost traffic, or the cost of rebranding.
Domain Investing Adds Liquidity to Naming
One of the least talked about benefits of domain investing is liquidity. Without it, naming would be a zero-sum game. If someone got to a great name first, it would be gone forever, either parked, buried, or simply unused.
But because domain investors exist, names circulate. They resurface. They can be found, negotiated, and bought.
That’s a good thing for founders.
Just like stock markets make it possible to trade company ownership, domain marketplaces make it possible to trade identity. You don’t have to settle for a third-tier name just because the first-tier one was taken 10 years ago.
The Reality of Domain Market Dynamics
Here’s something most people don’t realize.
At Atom.com, based on our own data, only about 2–4% of domains sell each year. And that’s in a curated marketplace. The average sell-through rate across the broader industry is often even lower.
That means investors are holding, renewing, and maintaining 97% of their domains without return. Year after year. They do it not for quick flips, but because they believe in long-term value.
It’s not about gaming the system. It’s about patience, conviction, and playing the long game.
Founders, Here’s the Perspective Shift
It’s easy to get frustrated when your dream name is taken.
But maybe, just maybe, the person who registered it saw what you’re seeing now. They believed in that name. They kept it alive. They made it possible for you to own it today.
That’s not squatting. That’s vision.
It’s what allowed us to own Atom.com.
It’s what allowed RehabPath to own Recovery.com.
And it’s what gives thousands of founders the chance to start strong, with a name that matches their ambition.
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