lesurf

What does everyone think about the value of a domain name is relation to the PPC revenue earned from it?

If I had names that earn £100 per month in PPC then I would assume that each of these domains is worth at least £1,200 (12 months @ £100) as the potential buyer could see his investment paid back in 1 year simply by sitting on his arse.

I know it's all down to personal circumstance but if an offer for less than this was received then the owner would be a fool to accept it, assuming the money is just a bonus for the owner and not his livelihood.

I'd be interested to hear of any formulas people use either in practice or in theory to value domains like this.

retired member 1

Depends a lot of the traffic source...and really it's down to each individual domain.

Type in traffic has to be the highest value, doesn't rely on search engine rankings and backlinks.

But then the different variables come into play....for instance, some domains have seasonal traffic...say you owned winterolympics.com, that would only get traffic when the event was on, or say it's the name of a movie..that domain would probably get type in traffic for years to come, but it would gradually faid in and out.

I see the usual "benchmark" for type in traffic now at anywhere between 2-3 years revenue...although in some cases it is high and some it is lower (for various reasons).

Link popularity traffic has a much lower value as the traffic isn't naturally occuring.

Also you have to consider possible TM infringments etc, etc...the list is endless

NameDriver

As the right honourable gentleman pointed out, this depends on a lot of factors.

We've heard some sellers looking to sell at TWENTY years revenue! For trademark names, the revenue multiplier tends to come down as the risk to the buyer is much higher in the long run than on a generic name.
Why are people buying the nemes? Are they going to just park it and make their money back "sitting on their arse" or are they going to develop it and get their investment back in 6 months?

The UK market is particularly strange as the inherent value of the names rarely matches the traffic that the name warrants. You have website.co.uk, you'd want millions for it and could get millions for it if itwas a .com name. However, the traffic on website.co.uk and the PPC earnings would generally be so low compared to the .com equivalent that, to get the price you wanted, based on traffic alone, often works out to be anything up to 20, 30 years' actual revenue...

See my other post about Pints and Parking, as the value of your names and what to base it on is actually one of the topics that will be discussed at tomorrow's meeting. Just look at the sales of .co.uk names over the last six months, things are certainly on the up...

And I've just ordered the finger buffet food....

Ed

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Email: Craig@namedrive.com

Edwin

Most of my sales have been at anywhere between 20 and 100+ years revenue because they are based on the genericness and niche dominance of the domain, not on revenue, and are being bought by companies planning to DEVELOP on the names.

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