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Domain valuation based on Monthly SEO Traffic Value

Labeled as .com in Domain Buying and Selling Discussion, started by Doble Korona, Mar 8, 2020

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2
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374

  1. Doble Korona

    Doble Korona New Member

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    Dear fellow domainers,

    One of the biggest challenges that I am facing as a newbie is to valuate a premium domain with no sales record or traffic history. I have come across a feature from SEO Analysis Tools (SEMrush, Ahref, etc...) which may be of use for domain valuations by analysing “Monthly Traffic Value”.

    In the following scenario, Organic Traffic Cost is an estimate of how much the site's organic traffic would have cost if they had instead tried to purchase the same amount of traffic via PPC ads. So, what I’ve done is to add “organic traffic cost” and “paid traffic cost” to come up with a “Monthly Traffic Value”.


    Website Organic Traffic Cost Paid Traffic Cost Monthly Traffic Value(1)

    widgetsA.com $100,000.00 $4,000.00 $104,000.00
    widgetsB.com $50,000.00 $2,000.00 $52,000.00
    widgetsC.com $25,000.00 $1,000.00 $26,000.00
    widgetsD.com $12,500.00 $500.00 $13,000.00
    widgetsE.com $6,250.00 $250.00 $6,500.00

    Total Monthly Traffic Value(2) $201,500.00
    Average Monthly Traffic Value(3)
    $40,300.00

    1) “Monthly Traffic Value” is the sum of monthly “Organic Traffic cost” + monthly “Paid Traffic Cost.
    2) "Total Monthly Traffic Value” is the sum of traffic value from the top x 5 competitors of the market
    3) This is the average of traffic value “Average Monthly Traffic Value”.

    I have tried website calculators but they don’t seem to grasp the true commercial value of a domain name. I have come up with a domain valuation that represents a 20% share or 1/5th of the total monthly traffic value from the Top 5 competitors. In this particular example, the premium domain would be worth 20% x $40,300.00 = $8,060.00

    Basically, I’m envisaging at the possiblity of valuating a premium domain based on “Total Monthly Traffic Value” and/or “Average Monthly Traffic Value”. Maybe there other variables that have to be taken into account. I would be grateful if we could come across any feedback regarding this form of valuation.
     
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  2. Pay.My.id

    Pay.My.id Established Member

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    Majority of buyers ignore about value of domain based some valuation tools , they use self parameter to calculate some name. If they decide to buy a domain and have proper budgets , they would go to buy and never think again.
     
  3. biggie

    biggie Top Contributor VIP ★★★★★★★★★★

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    Hi OP

    to me, you're just wasting mental energy.
    if a domain is really premium, then it should speak for itself

    imo…..
     

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