Do dwindling PPC reveunes devalue domain names?

[PeterMan]

If you appraise a name based on PPC income are domain names now worth less than they were 1 year ago due to dwindling PPC values?

For example, I have a decent travel related name that gets daily clicks (usually 1-3). Right now I am averaging about $0.04 per click regardless of what I try to do to optimize. Lets say someone offered me 3 years revenue based on these numbers (about $40 - $50)... I would not even consider selling. BUT, is that really all my name is now worth?

Obviously for premium, generic one word names this is not as relevent, but for ok one word or decent two word domains that are typically valued by PPC what do you all think, shuld we wait it out before trying to sell? I am guessing that there is really no choice...

 

[GoPC]

If you are of the mind that domain value only lies in multiples of revenue... then YES.

PPC rates go up and down daily and buyers want to buy low and sellers want to sell high.

The way I see it, if traffic converts, it's valuable... no matter what today's PPC bids are.

GoPC

 

[dvestors]

What's this dwindling PPC you speak of? You must be parking with Sedo. :greenuhoh:

 

[Tom K.]

I think that unique visits should be of greater importance than PPC revenue.

It also depends who you're selling to. End user or domainer. Both see domains from very distinct angles. Thus price varies dramatically.

 

[Theo]

Consider this...a domain with 100% type-in traffic, steady number of visits, steady number of clicks (therefore steady conversion ratio) - and yet, the PPC goes from half a buck down to half a dime. In that sense, the domain is devaluated but in true reselling potential it's not. However, as a current money maker it's not as appealing to a buyer who's looking to invest in it for parking purposes. That's why parking companies such as Sedo can be held accountable for domain devaluation. We already have buyers here whose sellers are being accused of fraud, because when they sold the domain based on its revenue potential, Sedo's PPC was high and then it dropped substantially.

 

[PeterMan]

I guess I am looking at this from the perspective of developing an asset to reach it full earning potential. But with the current PPC market this is not happening. What I mean by this is that I have a few names that I have been focussing on the most, trying to optimize them to build traffic, therefore build the number of clicks, and therefore increase revenue. What I have been finding is that the more the traffic and clicks increase, the less I get paid per click. :faint:

I have also pretty much abandoned adsense because the clicks were few and far between and the revenue was very small. I parked a name that had been a developed site for a while and got 0 clicks on adsense, and now I get 2-5 clicks per day on the parked page. But once again, $0.04 is about average per click, and I am talking mostly North American and UK traffic...%+|