Valuing Domains By Revenue

[craigb08]

Hi guys,
What are the best ways to tell a domains value by it's parking/ad revenue?
For example on some sites it will show a domains worth by how much revenue is forecast for that name. Over what time period is this and is there any specific formula for relating revenue to overall worth.
Regards.

 

[craigb08]

Thanks for the help

 

[matrigaldo]

Usually the value is 12/18x average monthly revenues, and i think it would be the most reasonable way to value a revenue domain.

However IMHO there are some other variables to consider:
- extension
- quality (if generic or LLLL or keyword or brandable or pronounceable/memorable etc..)
- how much time it has been parked until now
- type of traffic (type-in, referred, search engines etc..)
- development potential (also for adsense minisites i.e.)

Just my 2 cents.

 

[craigb08]

Thank you Most helpful. Do you happen to know how Godaddy value them then? Is that based over a year's worth of revenue?