Pricing a Parked Domain Name? Why not selling?

[DomainMart]

“Consider that a parked page like [xyz.com], for example, captures 15,000 monthly targeted visitors. Purchasing this volume of traffic through a pay-per-click search engine would cost nearly $10,000 per month (based on the current top Yahoo bid price of $0.66 for the term "[xyz]"). Yet we have the domain name currently listed for sale at domain marketplace [zzz.com] with an asking price of $350,000—an investment that would pay for itself in under three years—even faster if current trends of rising traffic and click prices continue.”

The above is a quotation regarding a domain name (generic four-character), but I have disguised the domain name and the listing site.

Why isn’t this domain selling?

 

[spietreser]

The right buyer hasn't come along yet. The right buyer being one that can do the math AND has the financial space to invest.

Many PPC advertisers put a limit to their advertising, depending on their budget. So not all advertisers are paying $10k...

 

[DomainMart]

The right buyer hasn't come along yet. The right buyer being one that can do the math AND has the financial space to invest.

Many PPC advertisers put a limit to their advertising, depending on their budget. So not all advertisers are paying $10k...

Are you saying that the math in the quote is right?

 

[Duckinla]

When someone buys your domain, they are buying traffic that has come to your site for whatever reason. When they buy advertising clicks, they are buying traffic that has come to your site, clicked through on a subject and then clicked on the advertisement. 3 steps rather than 1 step (which may have been accidental). There is some correllation between the two, but definitely not a direct comparison.

You didn't mention what your click-through-rate is. The number that click through is probably a better measure of the qualified traffic they will get. Also, you used the top keyword payout. These prices are only for the first xxxx clicks, they slide down from there. Hope this helps you understand and price your domain appropriately. I think we would all love to sell our domains based on the model you are currently using, I just don't think there will be any buyers.

 

[DomainMart]

You didn't mention what your click-through-rate is. The number that click through is probably a better measure of the qualified traffic they will get. Also, you used the top keyword payout. These prices are only for the first xxxx clicks, they slide down from there. Hope this helps you understand and price your domain appropriately.

I found the statement on a website and that's all the information provided by the person promoting the domain name.

I agree that your suggested measures are better than those provided by the quote.

I think we would all love to sell our domains based on the model you are currently using, I just don't think there will be any buyers.

By "you" are you referring to the model used in the quote?

 

[Duckinla]

Yes, I thought you were referring to your own domain as the subject. The true value of this domain to an end user, based on traffic alone, is probably only 10%-25% of what the seller is asking. Probably $50,000 would be more realistic. If it has a good generic non-typo name, of course it would be higher.