Domain valuation

[comsonly]

so (i think) i have a pretty good idea of what makes a domain valuable (age,volume,commerciality,traffic,etc.)
my problem is i have no way of specifically valuating a domain's worth in a number

i suppose you could look at parking monetization potential by guessing at uv's/mo from traffic estimations, and then guess at clicks, and rpc (perhaps derived from cpc)

but i have no idea how i would fit that into a formula, is there such a thing as a standard formula, or everyone has their own way of looking at it?

you can PM me please, or post here if you feel comfortable sharing

 

[johname]

There no standard formula. You can buy 10 year old names that nobody wants to give you a dollar for. You can buy names that have high traffic but its junk traffic and/or will burn off rapidly. If you guess the monetization you will get nailed with quality ranking, conversions, wrong regular guy cpc rate. Dont try to be estibot Goodluck


\/ On how much proven income it makes. People differ on how many years/months times income. Remember parking changes so alot of people dont like to assume it will stay the same each year

 

[comsonly]

right, supposing a more ideal scenario (traffic that's converting, etc.), how would you, personally, calculate worth?

 

[IntrepidPoster]

This is so interesting. It seems like domains are like the real estate of the Web. I never knew this.

 

[Kate]

You can use reported sales for comparable domains to get a rough idea of the market.
When dealing with end users the sweet spot is often in the low $,$$$ range. Now each domain is unique, so it boils down to the 'desirability' factor among other things

I have often sold real estate domains for example, so the sales pitch is easy - if I am ever asked to justify the asking price:

$800 (asking price) = 2 transactions (rental) or 1 sale, or 2 months worth of advertising in some magazine etc. Easy to recoup to investment.