Valuing a quality domain name that generates income

[JDN]

How do you evaluate the value of a domain name that has a website on it, has a high amount of exact match searches, gets significant traffic per day, is ranked on the first page of Google but generates income?

Let's put numbers on the situation to make it clearer;

- Let's say the domain name makes $1,000 / month.
- It received over 1,250 unique visitors / day.
- It has 100,000 exact match searches
- It has 75,000,000 Google results
- It is ranked on the first page of Google

With these numbers, would the domain name be sold as a multiple of the revenue or does the quality of the domain name still play a factor?

 

[Gee]

The domain market is full of liabilities and prejudices that are sometimes misleading :smilewinkgrin:

 

[Biggie]

With these numbers, would the domain name be sold as a multiple of the revenue or does the quality of the domain name still play a factor?

Hi


the most important factor above all others is... "who" owns the domain!

the second factor is, do they have to sell the name for one reason or another or... they don't.

taking your $1K/month earnings into consideration, it would be more likely that they don't have to sell, rather than they do.
though "how long" the domain has been producing revenue at that pace, should be assessed as well


as in, you need to know, is it peaking or declining and ability to predict to some degree, it's consistency in the future, as the buyer calculates their potential roi.


the third factor would be quality of domain, whether it be generic, brandable, new tech, former website, etc., along with any potential c&d, reverse udrp attempts or wipo issues down the line.

and I think you'd also have to consider whether that domain has development potential for commercial product sales, etc.



finally, I'd have to know the actual domain name.



imo....

 

[asfas]

So it's not just a domain , it's a website with content / app / subscribers etc ie. a business.

 

[JDN]

Precisely.
When a website makes money, people tend to sell it or offer a multiple of the revenue.. But what happens when the domain name itself has value already?

 

[Biggie]

Precisely.
When a website makes money, people tend to sell it or offer a multiple of the revenue.. But what happens when the domain name itself has value already?

well, since a "website" being attached to the domain wasn't mentioned in original post, then the earnings may reflect a combination of the two.


as a "parked" domain on it's own, can have "high amount of exact match searches, get significant traffic per day, and be ranked on the first page of Google" for it's keywords as well.


also, again it depends on "the person" owns the website, who would sell it for a multiple...without considering value of the domain, by itself.


then from that, another point to consider is whether the website has same value without the domain or could it be as productive, using another domain name?


as in, which has more value separately?



imo...

 

[asfas]

A simple approach might be :

- What's the domain worth without anything on it ?
- What's the business worth if they were sitting on a so-so domain? (Say 36 months of revenue, also depends if it is expected to grow or decline)
- Add the two, and since the two components match well together, the combined value should be more than the sum

 

[JDN]

Sorry for not making it clear from the beginning Biggie.

So the website is owned by a domainer who 'doesn't need to sell it' but wants to evaluate the worth of the website and domain combo because of interest received.

Thanks for the input from all.