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Old 07-02-2009, 09:37 AM   #23 (permalink)
wmloz
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Why are so many folks obsessed with traffic and revenue valuation metrics?

Two people can own the exact same name and one may know how to optimize and monetize the same name better than the other. One may be parked with a shit company, while another may have the personal assistance of an account manager to maximize the revenue, etc. One may know how to create backlinks, page rank, and seo, while the other may not. One may have found a way around arbitrage, but still participate clandestinely, while other may not. Stats can also be inflated using rogue techniques. Not to mention, that the ppc industry in general has taken a decline in recent years. I just don't think this is a good way to valuate a domain. It's as if the car I'm selling is more valuable that your exact same car because I drove it to cooler places and some high profile people sat in it.

While they are important to guys that buy/sell and park, an enduser usually doesn't care about this valuation model. They want a name because it suits their business, don't want their competitor to have it, have a solid plan for it, directs traffic to their main site, etc. They want to hear how THAT NAME is going to bolster their business, not how it's going to make chump change (which is what it is to big companies). I'll give an example. A company makes reactors for petrochem industry. One reactor costs $5M. If reactors(.)com can bring in ONE sale, it's worth xyz dollars to that company not only because of it's potential to bring in those sales, but it's ability to DENY their competitors that advantage.

I hope this makes sense. To most million dollar end users that are not in the domaining business, it has very little to do with ppc and revenue. Traffic can be important, but again, not the main consideration.
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