Value Estimation

[BayDomainer]

Hi

I have a question on possibly being able to value a domain. Someone said a method is the following:

Domain value equals daily number of visitors multiplied by top CPC bid, times 52 for annual earnings, multiplied by factor of 10 for value

I'm asking around if this is possible to use this method. Also, if someone is able to give another type of answer I am MORE than anxious to hear it.

 

[Traveler]

What ever formula that is, that is the first I have heard of it. If you have a parked domain name that gets a yearly revenue then yes you can ask for a multiple of the value of yearly earnings. If you have a developed domain name it gets a bit more complicated but in the end you would still ask at minimum for a multiple of the yearly revenue.

The equation in your post makes no sense what so ever.

"daily number of visitors multiplied by top CPC bid, times 52 for annual earnings, multiplied by factor of 10 for value"

With that equation you would take the number of visitors and multiply that by the top bid and then multiply it again 52 times and then multiply that number by a factor of 10. With that kind of math, it would not take to many visitors to equal all the money on the planet.

 

[BayDomainer]

Well thank you. I was just asking your thoughts. It wasn't something I came up with just something someone said to me and I wanted some opinions.

 

[Spade]

Moved this post to Domain Discussion.

 

[BayDomainer]

Anyone else have any ideas on this? Or did the last post sum it all up. I'm asking this question for a friend and since I have no idea on valuation I thought I would post to you FINE PEOPLE!