domain Valuing domains based on Traffic

[Expired Domain Sleuther]

I've read about valuing domains, but there doesn't seem to be a focus on valuing the domain based on the value of the traffic to the acquiror.

For example, if I have 1000 visitors per day to my casino site, and they are all people interested in playing casino games, then just because my one page "How-to" site doesn't generate any revenue doesn't mean that a casino company wouldn't pay big dollars for the traffic.

If a casino is willing to pay $5 per click on a google ad, knows that you have the same quality traffic as google would send you, wouldn't it be reasonable to ask for some multiple (say 3 years) of traffic that you will be sending them at say some fraction of the $5, say $2?

EG: $2 x (1000 clicks) x (365 days) x (some multiplier for the number of years you are sending this traffic). = $770k x 2-3 years

Big number.....Just wondering how valid this model would be. My point is....I would think a casino would pay based on what the TRAFFIC is worth to them.....rather than how much the site is making.

 

[ThisDot]

If your traffic is generating good valid leads for the enduser then it should be worth a mid range ppc price X the number of vistors X 1-3 yrs for searchengine traffic OR 5-25 years for pure typein traffic. IMO.

Don't you have any ads on the site?