\http://www.affiliatematch.com/free_reports/sell_domains.htm
[i]"your domain name is valued at $10 to $30 per hit per day. If 1,000 people land on your front page each day, your domain could be worth $10,000 to $30,000."[/i]
That is rather funny. I have 12 domains doing that traffic and much more! ;) Using their logic, they are worth $400k-$700k! Any takers? lol
Where do these people come up with these figures?
I'm seeing complete sites (not just the domain name) offered (but going begging) at 3 to 5 times revenue, which is in line with valuation models used to sell small businesses. I believe these are unattractive to potential investors because these sites for sale are often dependent upon affiliate and/or banner income which can dry up overnight.
I believe the movement to PFP adds a new facet to the valuation model. If a site draws and sustains traffic on a keyword, and that keyword is bid at $1 on GoTo, it seems reasonable to value each "search term visitor" to the site at $1. However, I haven't seen this line of reasoning surface anywhere.
What about PROFIT?
What about Proprietary Technology? - That's where the value is.
imho
Hey! Good idea. Note to self....
Actually, savvy site buyers would look for a range of bids and likely be wary of "one trick ponies." That sort of valuation hanky-panky happens in b&m biz sales, restating everything from the building appraisal to cost of inventory... no reason we should expect anything different on the web.
In a related vein, I acquired a site this year, it's only real assets were a one word dotcom domain, existing traffic, and rock-solid listings in Yahoo.
>What about Proprietary Technology? - That's where the value is.
>
Yes, and I think that's why content, affiliate, and banner-driven sites are still begging. There's little to lock up their revenue stream and guarantee it will continue.
In the world of nuclear engineering, we refer to that as "anal extraction." We like to keep things nice and technical sounding.
