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Dot Net Multiplier Myth Debunked

Michael Sumner • Aug 26, 2014 • 2 Comments
 

We’ve all heard of the dot net multiplier in the domain space. The commonly accepted rule of thumb is that a dot net is worth approximately 10% of its dot com counterpart. I thought it would be interesting to put this rule to the test because I’ve never seen any hard evidence to back it up. Going through data at NameBio for all publicly reported dot net sales, I was able to find 414 domains that also sold in dot com.

Outliers

Not unsurprisingly, I actually found that a lot of dot net domains sold for more than the dot com counterpart. To be more specific, in 60 out of the 414 strings where both the com and net sold, the dot net sold for the same or more. That’s not an insignificant number, it happens 14.5% of the time.

Without getting into it too much, I think this happens because the dot com is purchased and developed, and then in an effort to protect the brand the owner goes after the lesser extensions. Since the buyer now “needs” the domain more than someone would ordinarily need a dot net, the seller can hold out for more money.

I think we can all agree that in almost no cases would a dot net be worth more than a dot com, except in rare cases where the “net” is meaningful to the root like ASP.net for you programmers out there. Regardless, I think it is fair to throw out all sales where the dot net sold for the same or more.

Back to the Point

Now that I’ve explained my reasoning for how I scrubbed the data, I’ll get to the findings. Of the 354 remaining sales where we have a price on both extensions, the average multiplier to get to the dot net price from the dot com was 0.294. So based on every publicly reported sale, it would appear that a dot net is actually worth closer to 30% of its dot com counterpart on average. This number may fluctuate from year to year based on market conditions, for example dot nets are currently out of favor in the reseller market, but given that the data set goes all the way back to 2004 this should be a fair average.

That said, if you look at the frequency distribution for the multipliers it is clear that it is most common for the multiplier to be 0.1 or less, which would explain why that is what the collective wisdom of our industry points to.

net-multiplier-frequency-distribution

Full Disclosure

I don’t own a single .net domain at present, and I’ve never owned more than a few. I don’t particularly like dot net domains, except for short ones like LL and LLL. So I’m not trying to pump prices or influence markets, I’m just sharing an interesting observation.

The data with the outliers removed follows:

Domain
Price .NET
Price .COM
Multiplier
nexwire.net100015000.667
items.net1247500000.025
pokerist.net4099110000.373
compre.net170020500.829
givesmart.net2500400000.063
alliant.net29991250000.024
musics.net560760000.007
bfc.net1369184000.074
irw.net87553000.165
pharmacopoeia.net300060880.493
blueboxes.net190028000.679
selecttv.net160050000.320
inforama.net150040000.375
cookinglessons.net1000160000.063
express.net500020000000.003
megavitamin.net188860000.315
ulive.net7000750000.093
hybridmobile.net135738880.349
iart.net8500166940.509
dangerous.net5175151880.341
infiltrate.net110015000.733
gae.net784400000.020
joypad.net160541100.391
dji.net85003000000.028
brokentrust.net120013950.860
socialcommunication.net158823000.690
wky.net51044000.116
farmsafety.net125030400.411
yii.net82070000.117
complementos.net3388180000.188
sexkontakt.net4687623760.075
jail.net20021111000.018
tweakdesign.net137715880.867
huntingseason.net378845000.842
postalcodes.net3188425000.075
tbhc.net200050000.400
superheroines.net118839590.300
fcma.net398885000.469
cashcom.net138823000.603
oversite.net1495190000.079
filed.net1500250000.060
zillion.net1100148000.074
gettogethers.net159025500.624
betterpractice.net138820880.665
styles.net5000600000.083
mobilepress.net1000150000.067
dirt.net14101000000.014
chromagen.net1488140500.106
mydrums.net100025000.400
smartinsurance.net1000263460.038
constructioncompany.net110042000.262
trilux.net104430900.338
livemedia.net2000125000.160
safeoffice.net177580000.222
structuralengineering.net130040000.325
maidservice.net3900495000.079
loandepot.net2400150000.160
artup.net198845000.442
teranet.net100050000.200
bizkit.net1988100000.199
newsboard.net1788220000.081
productpro.net108823000.473
dealdrive.net3000130000.231
videoblogger.net338880000.424
supr.net1500100000.150
flynet.net300048000.625
proximal.net200060000.333
wibo.net1221107950.113
compress.net75060000.125
ekko.net1000200000.050
smartdrugs.net60040000.150
paydaycashloans.net50941500.123
ffx.net142045000.316
bilingual.net870150000.058
sanfranciscorentals.net52925000.212
cateringservice.net710270000.026
electricguitars.net2300427000.054
bazingo.net1000100000.100
waterpurifiers.net605156550.039
voipproviders.net252057000.442
proshop.net47501000000.048
fastdigital.net120065000.185
hotelmap.net129955000.236
holidaytours.net120070020.171
hawaiianislands.net2300100000.230
nationalmannschaft.net75011560.649
ydin.net50022000.227
mairies.net199030000.663
pokerleaders.net100020000.500
idol.net39501548000.026
pvc.net5000960000.052
goodwill.net800559780.014
trekking.net600074040.810
depositosbancarios.net205071050.289
bizangels.net77718000.432
phpsoftware.net60020000.300
daytraders.net1700842150.020
thek.net104675000.139
sellout.net500101990.049
vergleichen.net9755286000.341
row.net2100300000.070
spoons.net1250200000.063
ballerinas.net135099990.135
calculs.net138214080.982
ispt.net180035000.514
braintainment.net8338340.999
spectacular.net1800205000.088
bicycleparts.net90099990.090
prednisone.net5000350000.143
singersongwriter.net118895000.125
homelearning.net50070010.071
xseries.net90050000.180
internetmarketer.net988100000.099
logistica.net7200152500.472
vantagebank.net1000150000.067
amistad.net17001000000.017
algerien.net450056000.804
justintime.net2500500000.050
wantful.net200060000.333
mylifeid.net90027000.333
alottery.net500100000.050
baccara.net90037500.240
movingquotes.net11000138000.797
ofertas.net7101762140.093
cruisetours.net150085000.176
zozo.net400089000.449
moneytime.net102070050.146
scienceshop.net60017750.338
bra.net74001650000.045
vender.net6500330000.197
leadmarket.net88815000.592
refinancerates.net1000125000.080
whowrote.net50040000.125
livingpresence.net5169660.534
freecontent.net1450110000.132
chinese.net1800008100010.222
autokredite.net75018510.405
webpreneur.net111612840.869
telephone.net842220000000.004
bingomagic.net51710000.517
colossal.net2570120000.214
omnem.net60020000.300
micropayment.net1700150000.113
zorbing.net1300200000.065
parigi.net250070000.357
offersoftheday.net100025000.400
meetingroom.net194595000.205
actingclasses.net1500411000.036
genealogico.net58510100.579
domene.net100017680.566
resultats.net1313150000.088
autoinsurancecomparison.net675085000.794
gags.net1500450000.033
apo.net2500270000.093
trustlink.net300030990.968
genomesciences.net50027000.185
juegosdecocina.net3000900000.033
brooches.net1000160000.063
artesa.net112050000.224
cart.net9900499990.198
remotehelp.net80016000.500
bookmarks.net240003000000.080
tourz.net170049000.347
identite.net135536500.371
webattorney.net1500125000.120
sofas.net184502315000.080
wiseup.net500200000.025
mobiledownload.net90535000.259
powergaming.net60013800.435
xworks.net110011150.987
preker.net130015000.867
ellipticalmachines.net899348000.026
skiresorts.net9008500000.001
tuto.net3333155100.215
executiveconsulting.net162020000.810
sportsventures.net68821000.328
pratique.net1300283100.046
entera.net500058000.862
taken.net300065000.462
nizza.net80010040.797
loterij.net600116450.052
shareprices.net1000160000.063
pferdefutter.net1520129000.118
vehicletracking.net1200140000.086
iled.net1000100000.100
koz.net69996000.073
maturedating.net500071000.704
jean.net2000500000.040
immobilienfinanzierung.net288037000.778
cadshop.net90219600.460
bedlinens.net114924110.477
globalracing.net78820000.394
recommender.net800130500.061
medicalsoftware.net2900175000.166
laserworld.net209230000.697
taxq.net71125000.284
join.net4050400000.101
cloudgames.net250030000.833
ground.net530564000.009
barns.net30001750000.017
ego.net5200750000.069
luckyclub.net50029090.172
mobler.net74127660.268
onlinecollegedegrees.net12800228000.561
end.net30001000000.030
candyapple.net180080000.225
meinegesundheit.net70020910.335
unistructure.net150050000.300
anniversaire.net330080050.412
plattenspieler.net100020000.500
financialaidzone.net50015000.333
privy.net8900120000.742
fixedincome.net15001012500.015
sybilla.net141630000.472
capture.net10000532000.188
newproductions.net50027500.182
historicalcollectibles.net5008500.588
treehousekids.net110070000.157
upzz.net3000150000.200
bewegungsmelder.net68815000.459
salarycalculator.net1800300000.060
parken.net104915500.677
aux.net1700300000.057
wceo.net93217500.533
footballnetwork.net58810110.582
financialmarketing.net100050780.197
automotiveparts.net5188500000.104
howtogetridofacne.net70027000.259
kidnap.net105192000.114
bizmasters.net55010000.550
vektor.net175075000.233
schulferien.net74117300.428
globalsense.net150050000.300
smartsight.net59132000.185
sportingequipment.net945110000.086
businessdegreeonline.net60015000.400
osport.net2654420000.063
moneyonline.net2000128000.156
temps.net176501176500.150
find.net2500012000000.021
mauihawaii.net55036010.153
best.net368403315610.111
expertsolutions.net218837500.583
cgm.net120003650000.033
directbroker.net100020000.500
psychicreading.net656567490.012
jinn.net75035990.208
traveljournal.net3488250000.140
rockleypark.net3753850007.508
torrents.net350001128200.310
racdefense.net65010500.619
xerone.net150060000.250
radiusonline.net7008000.875
property.net225007500000.030
drivingtest.net80055560.144
wines.net1300029000000.004
webenabled.net88831000.286
waschen.net51231010.165
holygrail.net510125000.041
fileserver.net2300110000.209
videoconverter.net1605250000.064
ezw.net778161900.048
fortlee.net1955100000.196
french.net169001500000.113
chatshow.net5005100.980
bookhotels.net950705000.013
myshow.net620500000.012
softwareengineers.net70050000.140
clicksmart.net80065050.123
manilla.net530100000.053
mdb.net2001150000.133
businessplanet.net700225000.031
kleding.net2514185270.136
https.net2500500000.050
https.net2500500000.050
homeownersinsurance.net45725700000.008
character.net1600235000.068
saintmoritz.net179528500.630
jazzmusic.net3947355000.111
alimony.net3600750000.048
invest.net4500010150000.044
went.net800250000.032
omnipeace.net5007000.714
pig.net110001250000.088
qhi.net775135000.057
keywordadvertising.net58535500.165
jfu.net101091000.111
dreampro.net78815000.525
vipmusic.net50045000.111
landscapecontractors.net70020560.340
pcgame.net1000247030.040
gamesell.net5708070.706
zoomobi.net100015000.667
viajes.net837943000000.279
worldbet.net61151000.120
koop.net1000212880.047
qsw.net155061000.254
onlinelife.net80020000.400
weddinginsurance.net888500000.018
zzr.net80049000.163
orn.net1450140020.104
leeme.net620214000.029
albaro.net143220000.716
mm.net1650012000000.014
afw.net8981250000.007
richtextbox.net66025550.258
dekor.net7000120000.583
ubik.net268880000.336
cead.net265030000.883
gtsgroup.net100030550.327
boxdirect.net85014000.607
freediscount.net1888100000.189
mymag.net1688488880.035
crazyfeet.net204134000.600
skycast.net1700300000.057
internationalproperties.net150030000.500
handjob.net5500900000.061
eventmanager.net116150000.232
enterprisemobile.net1688340000.050
castle.net7402600000.123
hxq.net75615000.504
syndio.net166616670.999
webdoc.net2500195000.128
fcda.net120026100.460
landen.net120015000.800
hobbylink.net10000179000.559
voipo.net950100000.095
creditcards.net11850027500000.043
continent.net3700303010.122
cd.net200002777500.072
yourlinks.net85011000.773
securedate.net220033330.660
bodique.net100050000.200
geodesic.net99526600.374
idonate.net100090000.111
bingo.net5650011000000.051
xiao.net2050675660.030
opentrade.net3271127500.257
transfers.net3021160000.189
penticton.net6099758230.080
darts.net6700545070.123
taxicabs.net3600350000.103
homeimprovement.net87331666500.052
prepaidphone.net2518150000.168
promotion.net102551700000.060
krumble.net50050000.100
pokernightlive.net150055550.270
qrd.net94050000.188
tyl.net798115000.069
aside.net318839880.799
teenfit.net5006500.769
aileron.net2450210000.117
oncapital.net200060000.333
treadmill.net1000812500.012
 

2 Responses to Dot Net Multiplier Myth Debunked

  1. This is a very interesting, and useful post. This is the way to get to a truth.

    I do not own, have never owned, or intend to own a dot net myself.

    Having said all that, I have 3 takes based on your post.

    Firstly, it seems to me that a certain threshold (the magnitude or intensity that must be exceeded for a certain reaction, phenomenon, result, or condition to occur or be manifested), in this case, the quality of the word left of the dot, the dot net becomes significantly less; the dot com becomes unparalleled, matchless, peerless, unmatched, without parallel, beyond comparison.

    Secondly, the fact that many dot com domain names sold, but not sold in the dot net is a very crucial data. The superiority of the dot com extension is not only manifest in such stat, but the result you seek, the differential, as well.

    Finally, the year of these sales could be important; I didn’t see that on this page, perhaps it’s my browser. I believe that sales made many years ago may not be as relevant. There’s a new phenomenon in the horizon that could be impacting the dot net differently from the dot com.

    Thanks for an interesting post. I have much more to add to this, but I’ll stop here for now.

  2. owen frager says:

    Great stuff. Definitely a bookmarking MUST!

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