How to value a domain based upon traffic data?

[dailypress]

hello,

I recently made a purchase and was wondering how much a domain with over 7,000 unique visitors/day is worth?

The domain is being transferred so I cant verify the traffic but the owner listed the traffic as over 7K/day and over the phone mentioned over 20K/day for the past few months. Alexa shows 2 spikes of an estimate of over 100,000 visitors/day (i compared the graph with a friends site with known traffic)

The website had only 1 page but received many backlinks due to the very hot and controversial subject.

Google shows 182,000 Results for: Exmaple.com

Alexa Ranking shows:
Rank: 24,000
Rank in Specific country: 300
Reputation: Links: 800
Average Load Time for Site:
Very Slow (3.135 Seconds), 85% of sites are faster

The site ranks #2 after Wikipedia for a popular keyword:

Google AdWords:Keyword Tool
Global Monthly Searches
165,000
Local Monthly Searches
90,500

Estimated Average CPC
according to Google AdWords: $1.30

Domain Info: 16 letters, 3 words, 2 main keyword

1) Any rough estimates of how much this name is worth?
2) Should I setup a similar page and keep the content? Or should I 301 redirect to one of my existing sites on the same topic?

tnx,
DP

[incrediBILL]

Traffic is worthless if it doesn't convert.

Does the owner give any ideas of how much the site earns?

[dailypress]

yes, I just received an email with his exact traffic stats and earnings. he mentioned he earned much more through Google Adsense, but i am a bit worried that he may have been banned by Google Adsense since no ads from Google appeared for the past 9 months.

his other earnings varied from $15/day - $50/day and also had several spikes of $200-$300/day.

[topr8]

i can tell you the exact value:

something is worth what someone else will pay for it ... therefore as you mention in another thread that you paid a couple of thousand dollars, then that's what it is worth!

[dailypress]

Yes. [webmasterworld.com...]

That was how much it was worth to me. But if I were to sell the domain with his traffic stats, I would have asked for more hence why I asked the question.

I wanted to get a rough estimate of what people pay or have paid for sites with such traffic and stats.

My payment and transaction is still pending and I think it will take 1-2 days before the name is completely transferred. He had listed the domain for $4500. I offered and paid $3500 and I think im happy about it. ;) - dont know yet if I got a good deal or not.

[onlineleben]

I think im happy about it

using his lowest earnings per day, you should be break even after 8 month (if it is all organic traffic).
Since you already offer similar content on other sites, you could capture these visitors (email signups etc) to consume even more content (and products/adclicks) from you.

Pricing (IMHO) of a domain always depends on the potential someone sees in developing it

[dailypress]

One main problem is the DOS attack he mentioned again yesterday. A group is trying to shut down his website. He manages his own server but mentioned that there are hosting companies that prevent DOS attacks and Server shut downs.

[dailypress]

using his lowest earnings per day, you should be break even after 8 month

I'm making over $20/day and hoping to make much more. The advertising companies said it will take about a week for their algorithm to pick up the website's content and serve related ads. Ill have to be patient until then!

Also, the traffic is much more than what he had listed!

I think I finally got a good deal! :)

[topr8]

congratulations!

i always think there's only one way to get on in business - put your money where your mouth is! you win some and you lose some ... glad this one is a winner!

[onlineleben]

First of all congrats that the site is earning what it is supposed to.

The advertising companies said it will take about a week for their algorithm to pick up the website's content and serve related ads.

Would be interesting to see an update in about a month to evaluate if the 'related ads' turned out to be more profitable.
Good luck with the site