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Domain valuation

revenue / income / visitors

         

nativenewyorker

5:42 pm on Jan 10, 2005 (gmt 0)

10+ Year Member



Putting aside things like name length, hyphens, tlds, what valuations would you use to value a domain?

X times yearly revenue
Y times yearly income
Z times yearly visitors times industry specific multiple

Receptional

5:48 pm on Jan 10, 2005 (gmt 0)



Y times yearly income

Accountants understand that one. Use that one. But check the seller isn't sending the traffic through a cloak - else you'll get the domain without the income!

Webwork

10:17 pm on Jan 10, 2005 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



For type-in traffic domains:

Unless you are able to validate the traffic, i.e., not false loading and no unusual spikes . .

Unless the traffic is certifiably long term . . i.e., a technology with staying power or elemental stuff of life . .

Unless the ROI for the traffic will remain stable for the long term . .

and that's just for openers

then your guess is as good as mine ;-P

UltSearch sold his 100,000 domain goodie basket for what appears to be 8Xs revenue.

Some have argued for 1Xs revenue (buyers) and others argue for more.

Frankly, I'd do as detailed analysis as might be done before spending >$25,000/domain

Oh, the variables. We've discussed them back here before. Do a site search. MonikerMan and I did a little back and forth. He's pretty good with the numbers.

Also, you might check the 2 big domain forums: DNF and DS. Look 'em up. Those are their generally recognized call handles - to use some old vernacular.