"We all know..."
No, "we" don't all know
"that the muzzleloader industry players are paying the search engines .40cents-.70cents per click thru,"
That may be...
"that the conversion rate of a search engine click thru's actually buying muzzleloader products and information is the question that must be asked when trying to determine the value of a website."
OK...
"that the conversion rate of direct navigation / URl type-in's are so much higher than search engine click-thru's that one cannot really compare their values."
I won't argue that...
"we base our domain values on search engine click-thru pay rates, knowing that our actual unique impressions have much higher rates of conversion simply because the customer is searching specifically for the website/industry domain."
I assume you mean "unique direct navigation users" instead of "unique impressions"
"And then (not only do we base our domain value on search engine click-thru pa rates) we cut reduce calculated total price (5-yrs) in half. Industry leaders are paying .50cents per search engine click thru, they surely value direct navigation / URL type-in's at higher value."
I believe the revenue is cut in half because the domain owner just gets half of the PPC revenue number.
"All of our domain sales are based on PPC rates that the major search engines (google & yahoo/overture) charge for specific search terms, as we know direct navigation / URL type-in customers have a much higher rate of conversion compared to typical PPC conversion through search engines."
The question is not conversion rate- unless you get paid for it. PPC rate is PPC rate. That is what you get paid for. That is what the value of the domain is based on.
"And of course, the inherent value of a key word industry domain is also a significant aspect of determining specific domain name value."
I won't argue that...
"As with all of our domain sales, we base our pricing on PPC rates, not existing revenue."
A strange way to price a domain name.
"Our most recent domain sale was our Fishingpole.com domain, which sold a few weeks ago for over $58,000. Fishingpole.com statistics reflect approximately 950 unique impressions each month. Muzzleloader.com unique impressions are nearly 6000 a month."
Is that 72,000 unique direct navigation users a year? You stated: "The muzzleloader.com website was developed 3-4 years as an industry directory" so I assume you have yearly numbers...
"The industry PPC-rate that is being paid to Yahoo and google for the search term "muzzleloader" is approximately .40-.70cents. Multiply the industries PPC-rate by the annual unique impressions, which are the annual value."
...and the annual "impressions" are...????
"As, we all know direct navigation / URL type-in traffic has a much higher conversion rate than search engine click thru's. So, with our basing the value Muzzleloader.com on the search engine PPC search term rates, we are actually calculating at a lower value than URL type-in / direct navigation based value."
Again, if you don't get paid for conversion rate it really dosen't matter...
"All of our domain names were purchased/registered back in the late 1990's through the minimal annual registration fee, which allows us to actually offer our domain names at 50-60% of their end buyer value, so that resellers are able to work with a viable reseller margin."
It seems you are trying for full "end buyer value" ... and then some.
"We always ask those interested in our domains to do the math to understand the true value of our domains or any domain names for that matter."
PPC rate pricing is not the true value of a domain name. Revenue is...
"So, with the PPC- search engine click-thru rate is .40-70cents each, base the value of Muzzleloader.com on .50cents per unique impression, in other words multiple .50cents times the annual unique impression rate, that is the annual value, we offer our domains for 5yrs of the annual value, but we do cut that value number in half, simply because of the reason stated above, we acquired all of our domains through the registration process back in the 1990's."
Checking the Wayback Machine it looks like the domain has had content since at least 2002. Alexa gives it a current rank of 2,745.078 - too small for data. URLTrends shows a seasonal variability to uniques - also, it shows what seems to be a user erosion over the last year and a half...