Traffic domain valuations

[mbuna]

Just a quick question on valuating domains with natural traffic.

Typically I've read 20-24 months parking revenue on a type in domain.

With PPC revenues steadily declining is this still valid? My concer is buying a type in domain at 24 months of today's revenue and then having the revenue dry up slowly over the next year as the PPC prices drop.

 

[Spade]

- Moved -

Appraisal thread is designed for specific domain names. This is more appropriate for general discussion.

Justin

 

[mbuna]

Thanks Justin. I thought about putting it here but then thought appraisals was more appropriate. Guess not!

 

[snoop]

Typically I've read 20-24 months parking revenue on a type in domain.

This would apply to trademark typo domains, names with short term traffic, or names that aren't really getting traffic from type ins (link pop etc).

As far as generic, natural type in names go I think even buying under 15-20 years revenue won't be easy for anything of reasonable quality.

 

[GiddyUp]

This would apply to trademark typo domains, names with short term traffic, or names that aren't really getting traffic from type ins (link pop etc).

As far as generic, natural type in names go I think even buying under 15-20 years revenue won't be easy for anything of reasonable quality.

I completely agree with the above!

However, I don't believe ppc payouts are decreasing, but rather increasing. All I've been seeing is increases, and of course you can't just go by me, but that's what I've got. Also, the paid search advertising is getting more competitive but it is also growing; I think that there will be some fluctuations (due to smart pricing and trying to avoid fraudulent clicks) but overall, I think it will increase; oh...and so will traffic!

 

[mbuna]

15-20 years??????

Talk about speculation!

 

[keithperera]

Just a quick question on valuating domains with natural traffic.

Typically I've read 20-24 months parking revenue on a type in domain.

With PPC revenues steadily declining is this still valid? My concer is buying a type in domain at 24 months of today's revenue and then having the revenue dry up slowly over the next year as the PPC prices drop.

I too am concerned over such issues. If PPC prices would to drop, the CPA will rise ? so perhaps in 2 years time... everybody will move to CPA ?