closed Formula for workingo ut domain valuation? melbournecheapcars.com

[Magnatolia]

Hi all,

Just signed up to Protrada free trial. They give the formula (based on Google AdWords data) of Local Monthly Traffic x 12 (months) x Average CPC x Click Through Rate of 20%.

So I looked up the domain I just purchased 'www.melbournecheapcars.com'. Data is as follows for the keyword/phrase 'melbourne cheap cars':

Global Monthly Traffic - 22,200
Local Monthly Traffic - 18,100
Approx CPC - 3.83

So my calculation is 18,100 x 12 x 3.83 x 10% (I erred on a lower CTR) which worked out to be $83,000. Now I know I'm never going to get that much especially on my first domain purchase. But is this how everyone else works out their valuations? If so then I can start adding this into my tools for determining a domains potential.

As this is the formula used by Protrada and a few people here have suggested this particular tool I'm assuming it's a pretty standard formula?


Thanks!

 

[katherine]

There is no universal domain valuation model.
That's why automated appraisals all fail.

Best guide is gut feeling, experience, research of the market and comparable sales.
Appraisals are pretty much useless, as a buyer YOU set the budget. YOU decide what's the domain is worth to you.

 

[ianccc]

i would actually count the # of advertisers on google - do a search for "melbourne cheap cars" and have a look at who is paying,
- how large are their companies
- do they have multiple outlets within Melbourne
- how many competing companies are there
- the CPC os okay, not great
- if the domains says CHEAP CARS this means the companies will be CHEAP WITH EXPENDITURES so don't expect much

I would figure if you can get anything over $1000 it is good

~ian

 

[Biggie]

Hi all,

Just signed up to Protrada free trial. They give the formula (based on Google AdWords data) of Local Monthly Traffic x 12 (months) x Average CPC x Click Through Rate of 20%.

So I looked up the domain I just purchased 'melbournecheapcars.com'. Data is as follows for the keyword/phrase 'melbourne cheap cars':

Global Monthly Traffic - 22,200
Local Monthly Traffic - 18,100
Approx CPC - 3.83

So my calculation is 18,100 x 12 x 3.83 x 10% (I erred on a lower CTR) which worked out to be $83,000. Now I know I'm never going to get that much especially on my first domain purchase. But is this how everyone else works out their valuations? If so then I can start adding this into my tools for determining a domains potential.

As this is the formula used by Protrada and a few people here have suggested this particular tool I'm assuming it's a pretty standard formula?


Thanks!

Hi

>Thread moved to Appraisal section<


The fault with using tools that are suggested by a few people is, these tools don't teach you anything about domaining.

they only present you with numbers and flawed formulas to derive values unassociated with any "actual" traffic data.

the last multiplier of that formula (x click thru rate of 20%), can only be true if that domain reaches that average.


for a domain that you just registered, the value for above is 0, until you get conversions.

additionally any assumption that local monthly traffic, even if that volume were a true value....will remain consistent for 12 months...is another flaw in the formula.

you would have to track each month to verify the initial premise of the formula and adjust accordingly.

therefore IF, any of it were true, when you valuate your domain according to a formula, then the value of your domain would be subject to the fluctuations of that formula.

lastly the order of your keywords is not in best sequence, therefore the gmt / lmt numbers for the terms were calculated incorrectly.


value of domain = reg fee > $69

imo...

 

[Magnatolia]

Thanks guys, I've put it up as a premium listing for $1000, originally was going for $1500 but decided to stick with $1000. Emailed the company I have my eye on. Basically pointed out that the monthly search results were 4000 more for melbourne cheap cars than melbournes cheapest cars. Also the fact that dot coms are better than other domains. Now to wait and see if they bite