Wanted: Domain Appraisal homecinemasystems.co.uk

[waverley]

I've had a couple of people express an interest in this domain, and am considering a sale.

What would you consider a far price?

Chris

 

[Admin]

TelephoneSystem.co.uk sold for £1,150 by Sedo Auction in May 2009. I don't know of anything else comparable to your domain.

Home cinema is obviously a good product area these days so if you had a well ranked affiliate site it could earn well.

I'd say high £xxx to low £x,xxx depending upon traffic.

Admin
http://www.domainprices.co.uk/domain_sales/catalog.php?mode=viewdomain&id=4789

 

[dotNetFreak]

The exacts look pretty healthy, typically 40-50k a month, although since October it's been climbing a bit dramatically - December is showing 246,000 and November the same.

Possibly due to when you type "home cinema" into Google, the first auto suggestion is "home cinema systems"...

 

[waverley]

Many thanks for your advice -- the valuation is around what I would have thought myself.

I think the domain has good commercial potential, so I'm in two minds as to whether to sell it or try to develop it myself (unfortunately it's not really a field I know much about...).

Cheers,
Chris

 

[waverley]

You may be interested to know that I've just received an offer for the domain.

 

[orchardapple]

i'd be taking that offer then

 

[Blake]

i'd be taking that offer then

Agree, seems like a very fair offer.

 

[newguy]

Great news on the offer. Are you going to accept or develop the site? Decisions, decisions.

 

[accelerator]

Nice domain, offer sounds fair to me.

Rgds

 

[waverley]

Thanks for the comments. Just to let you know that the domain has been sold.

 

[orchardapple]

congrats, nice sale price

 

[JimmyDomain]

Pardon my ignorance, but even though the EPC isn't phenomenal, at roughly a quarter of a million monthly exacts, wouldn't this domain be worth several orders of magnitude more than what it was sold for? Like low XX,XXX at least?

Or am I missing something here? Is that 246,000 search figure an anomaly or what?

 

[newguy]

Pardon my ignorance, but even though the EPC isn't phenomenal, at roughly a quarter of a million monthly exacts, wouldn't this domain be worth several orders of magnitude more than what it was sold for? Like low XX,XXX at least?

Or am I missing something here? Is that 246,000 search figure an anomaly or what?

It's perhaps due to the average CPC.

 

[retired_member13]

I'd say the 246,000 figure is something of an anomaly, the figures over the last 12 months have been:

[home cinema systems]
Dec 246000
Nov 246000
Oct 165000
Sep 40500
Aug 49500
Jul 40500
Jun 40500
May 40500
Apr 40500
Mar 40500
Feb 49500
Jan 74000
Rolling 12 month average 90500

It could be explained by the Winter / Xmas effect, but the Oct-Dec increase is very disproportional to all the other phrases in the sector, and many of them peak in January (for the sales) rather than building Oct-Dec then dropping.

My guess is that the true rolling average is of the order of 50,000, which is still pretty good, but would fit the price better. It's also a subject that people do a lot of research on, so I'd expect the actual number of people doing those searches to be a lot less than 50k, remembering that every page of SERPs viewed counts as one exact.

 

[JimmyDomain]

Sure an avg cpc of £0.81 is definitely not spectacular, but doesn't that volume more than make up for it?

For example, consider the methodology of multiplying the exact monthly search volume by the avg cpc to get a rough idea of the domain's earning potential if it was properly developed.

MountainBike.co.uk, which had 90k exacts last month and has an epc of £0.39 was sold for 5k a few weeks ago.

Seriously, I am not having a go, but I can't understand why so many experienced members valued this domain name so low. I'm honestly curious as to the thinking behind it, because it makes me wonder whether I have been grossly over-valuing domains.

 

[JimmyDomain]

Thanks for the reply, Ty. How do you get data for the last 12 months?

 

[retired_member13]

For example, consider the methodology of multiplying the exact monthly search volume by the avg cpc to get a rough idea of the domain's earning potential if it was properly developed.

MountainBike.co.uk, which had 90k exacts last month and has an epc of £0.39 was sold for 5k a few weeks ago.

A properly developed out / aged product domain wouldn't make money on CPC, it would sell the product, in this case home cinema systems - as an affiliate you'd make between 3 and 15% of the sales price, drop shipping would make more and carrying inventory would make more again.

Also, remember that the CPC is what advertisers pay Google, not what site owners get.

FYI. [Mountain bike] averages 200,000 exacts over the course of the year, as people are more into biking in the summer.

 

[JimmyDomain]

Sure, I agree with you that a fully developed site would sell the product, I'm just saying that the average EPC is a good way of determining approximately how lucrative a niche/product can be, since generally speaking the more advertisers are willing to pay on adsense, the higher the profit margins per unit sold.

And yeah, I know the actual earnings per ad unit clicked are only a fraction of what site owners actually get.

Interesting about those seasonal traffic numbers though. Where are you getting this data? I'm on the Google keywords tool and the 'search volume trends' collumn only shows a bar graph and no specific number figures?

 

[retired_member13]

I'm just saying that the average EPC is a good way of determining approximately how lucrative a niche/product can be, since generally speaking the more advertisers are willing to pay on adsense, the higher the profit margins per unit sold.

I disagree with the above, as it's far too much of a generalisation.

[Sports Cars] CPC £0.97
[Cabin Beds] CPC £0.93
[Gold watches] CPC £0.86
[New Build Home] CPC £1.03

[Ball point pens] CPC £1.50
[Masking tape dispenser] CPC £2.57
[Bacons] CPC £1.73

Data comes from the New Keyword Tool btw.

 

[JimmyDomain]

I think the logic is still sound.

'Gold watches', for example, is very vague, and converting a clicker to a buyer on a general term like that would be extremely difficult.

Masking tape dispenser, on the other hand, is very focused. There isn't much doubt what the user is looking for, and I'd bet that a very high proportion of clickers for this keyword would go on to buy.

Thanks btw, didn't know the new search tool could do this.