Income to Price Tag calculation

[alockrem]

Is there a general calculation that tells you the value of your website? I know there are a lot of factors that can help or hurt the value of a site, but I'm just looking for an estimate.

Monthly Income * X = Price Tag

what is X?

Does a good domain name add Y percent to the price?

(Monthly Income * X) + ((Monthly Income * X) * Y) = Price Tag

How about search engine rankings? How about reciprical links?

Thanks for your help.

 

[fonzie_007]

A lot of it depends if the domain is a typo, generic, and if it is brandable/marketably. Typo domains tend to bring in 12-48 months of income in a sale. Generic domains differ slightly depending on their income, incoming links, and traffic. Some very brandable domains may get 15 years worth of revenue in a sale. Others may only get 6 months worth.

 

[alockrem]

12-48 months for a typo seems quite a bit high to me. I can see how a misspelling of microsoft, google, or yahoo could be worth quite a bit, but other than the major ones I would have expected a valid domain name to be worth more than a typo.

15 years also seems like a lot of revenue for 1 sale. Are you referring to 1 out of 1,000,000 sales or do you believe that 15 years is obtainable for an established site?

 

[fonzie_007]

For instance, if I have the typo myspacce.com, I could be receiving over 1,000 uniques per day. Additionally, I could be receiving $1 income each day through parking. This would be $30/month or about $360 per year. I would expect a domain like this to sell for for a minimum of mid to high xxx.

If you take a generic name like meatloaf.com. The domain may only get about 120 uniques per month and about $1 of revenue/month. Yearly revenue would be $12, but I would expect the domain to bring in at least mid xxx, which would be over 15 times it revenue.

Not sure if this helps. These are just random examples of course.

 

[WhiteWebServices]

This shows that a domain's value isn't only determined by its revenue; development potential is also a factor.

 

[fonzie_007]

This shows that a domain's value isn't only determined by its revenue; development potential is also a factor.

Yes, development potential, marketability, brandability, and traffic also factor in.

 

[namewaiter]

so many more things to consider...

market size
average sale
market saturation
site utilization
site underutilization
site build out
site seo
cross marketing
repeat customers
industry future
ease of use
translate to offline aswell

and many many more ... people who buy/sell on such a simple forumal are either under selling or bargain hunting

 

[fonzie_007]

people who buy/sell on such a simple forumal are either under selling or bargain hunting

I totally agree with this statement. You need to consider all variables when appraising the value of a domain. Some areas are speculative and subjective, some are concrete and objective. I think people do themselves a disservice when they only rely on the objective standards (rev, traffic, links, etc). Subjective measures such as the brandability and marketability of a domain should also be used.