How to value a domain based on traffic?

[Moses]

How to value a domain, that for the last 5 year's has had the same old content and receives about 5000 visitors a month(mainly direct hits).

It is a 10 year old .com name. quit catchy 2 phrase word.

Any suggestions on what is it worth?

sry I cant put the name here at the moment, but would like to know your opinion on how much value do these direct hits add?

 

[Norris416]

Great question. I wish I could answer it for you.

Someone please share their insight on this one!!!

Moses, when you're comfortable sharing the domain and you have an idea of what its worth, I'd love it if you could PM me to share. I'm still new at this.

Thanks!

 

[localexperts]

Traffic (alone) doesn't always add value to a domain. It depends on how targeted the traffic you get and the ability to monetize that traffic. You can buy 5,000 visits for $25 on ROS basis.

But 5,000 uniques on a financial planning site is worth alot of money. $.50 to $2.00 per unique visitor depending on the content. That is what you would pay Google to purchase 5,000 clicks from them for related keywords.

Then it becomes how many months traffic to include in the value. Similiar to P/E ratios for stock this can go everywhere from 1 (for a seller who is desperate to sell and a conservative buyer) to multiiple months or years.

The limitation is that the buyer can always purchase traffic on the open market, so that plays a factor.

At the end of the day, the value of domain includes many factors....traffic being an important factor, but not the only factor in determining value

IMHO

 

[freepost]

interesting

 

[lincolndsp]

here are my thoughts for one of the possible cases. The domain is
wwwkeyword1keyword2.com. The CPC in G. Adwords is $1 for the phrase "keyword1 keyword2". The domain gets 100 type-in visitors per month. So the value of the traffic for an end-user is $1200=12*100*$1 per year.
For a domainer who wishes to park it, the main factor for the price is the revenue from ads clicks.

 

[johnar]

Yeah, I open another discussion thread on a similar topic yesterday, and like lincolndsp said, you need to take into consideration both the leacy traffic going to your site (type-in, referred, search), and the potential value of each visit (CPC of the keywords seem to be a good proxy)

So yes, you can multiply them and get an estimated value, but I was hoping to find a visual model to represent these 2 dimensions (plus the brand appeal value) as some kind of chart...

Somebody suggested this chart:
Aftermarket Domains Valuation Factors - Dan Warner for DNJournal.com
But not sure....