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NamesCon recently tweeted a link to an article on Forbes by Michael Gargiulo (he is the CEO off VPN.com, so has been through the buying a great domain name!). Anyway, he suggests the following formula for estimating the value of an exact match com domain name. Article link:
https://www.forbes.com/sites/forbes...o-price-these-high-value-assets/#5463ab627437
e.g. if Google indicates that currently the exact name has 3 million searches, and if you thought it would take 4 years to get to number 1 in search with that name, the domain name is worth about $750,000. The global monthly searches is, of course, easily obtained (he suggests a 12 month average).
He provides a link for the range of search and for different areas for both search and display situations, which are themselves interesting reading, and generally are above his $1 figure. For example in legal the range is $0.72 for display and $6.75 for search, whereas for an exact match word in education the range is $0.47 to $2.40. Link below:
https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks
He does not provide much detail on how he estimates years to get to number one, but says it usually falls in the 3 to 6 year range (depending on how much competition).
I am not sure if I totally agree with his approach, which seems to be assuming that once you get to top of Google the value is equal to what you would pay for clicks if every searcher clicked on your name. Nevertheless, using some combination of searches, how competitive to get to top, and what it would have cost you to do CPC in that area, seems logical.
Welcome what you think, and links to alternative ways to evaluate the worth of a domain to an end user.
(ps he says this formula is for .com and suggests 1/10 or less for ngTLD exact match)
Related:
https://www.forbes.com/sites/forbes...o-price-these-high-value-assets/#5463ab627437
Present Domain Value = Number Of Global Monthly Average Searches x $1 Cost Per Click (CPC) / Number Of Years Required To Be No. 1 In Search Engines From Today
e.g. if Google indicates that currently the exact name has 3 million searches, and if you thought it would take 4 years to get to number 1 in search with that name, the domain name is worth about $750,000. The global monthly searches is, of course, easily obtained (he suggests a 12 month average).
He provides a link for the range of search and for different areas for both search and display situations, which are themselves interesting reading, and generally are above his $1 figure. For example in legal the range is $0.72 for display and $6.75 for search, whereas for an exact match word in education the range is $0.47 to $2.40. Link below:
https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks
He does not provide much detail on how he estimates years to get to number one, but says it usually falls in the 3 to 6 year range (depending on how much competition).
I am not sure if I totally agree with his approach, which seems to be assuming that once you get to top of Google the value is equal to what you would pay for clicks if every searcher clicked on your name. Nevertheless, using some combination of searches, how competitive to get to top, and what it would have cost you to do CPC in that area, seems logical.
Welcome what you think, and links to alternative ways to evaluate the worth of a domain to an end user.
(ps he says this formula is for .com and suggests 1/10 or less for ngTLD exact match)
Related: