Wanted: Domain Appraisal 18,000 uv a month type in - valuation

[domainseller200]

I am in receipt of a £5,000 offer for one of my names, and I am now looking for a rough valuation based on the following metrics.

The domain is a one page custom landing page which consists of nothing more than the domain name and a Google custom search box.

It receives approx. 15,000-18,000 direct typein traffic a month to the domain name itself, and of those 15,000-18,000, approx 5,500 of those visitors use the search box, and approx 1,250 click one of the ads from the search results (approx 22.81% CTR) avg. cpc is £0.13 and it has earned just over £800 in the past 5 months.

The traffic is all UK traffic and is searching for a variety of different services including loans, vehicles, tax refunds, pensions, student finance, travel etc amongst other things.

The traffic will never drop off due to the nature of the name, and the traffic could used for something far better than I am currently using it for, and it would also earn FAR more if the traffic was monetised better (which is why I suspect the person is making the offers)

Any opinions would be greatly appreciated.

 

[RobM]

You have been offered a 2 year 7 month multiple of your revenue which seems like a fairish offer to me. You say the domain *could* be used for something far better and would earn more if monetised better - are you going to do this yourself? I suspect you would have already if you could. If not you have to assume that it's revenue as it stands is all it's ever going to generate for you. Without knowing the domain it's hard to say whether the offer is good but I usually expect 3-5 years revenue for a generic type in where traffic won't fall and 1-3 years for other types. Everyone is different.

 

[ian]

It sounds like you may not be looking to develop the domain, in which case is £160 per month as much as you are likely to get? If so, are you happy to just leave it running as such indefinitely, or would an offer of 3 years revenue (£5760) tempt you. That is what I'd be targeting, you have to consider that if you plan to just sit on it, the revenue may (and most likely) drop.

 

[domainseller200]

Hi Rob, thanks for the reply.

I have not tried anything else with this domain at all, because I only became aware of the full traffic and the potential when I noticed my adsense revenue had increased, and I began looking further into it. I don't spend much time online these days so I just put up a simple one page site earlier this year to capture the traffic (and possible revenue) with the aim of revisting it when I had more time (and if it was worthwhile)

Your valuation is in the same ball park as my own for the name (3-5 years) as the £5k offer was a counter offer to my £10k asking price (which I am now debating about even selling due to working out the potential of this name) as I am now considering just redirecting the name to a gambling affiliate link because even at 1 in 1000 converting, that's 15-18 new players a month of residual income so 180-216 new players a year for nothing.

Even at £10k, to receive 220k uv a year to your site is only 4.5p a visitor in year 1 which is pretty cheap traffic and is somewhat comparable to someone advertising on the Google display network, except you get the same 220k uv next year and so on for free.

Thanks for your input and view point, as it has given me food for thought.

 

[markb]

If you pm the domain, I'll have a look and give you my opinion.

 

[RobM]

If 5k was a counter to your 10k then I suspect the buyer is not really expecting you to accept that. It seems like you both have wiggle room and I wouldn't be surprised if you could close the deal at 7-8. Again without knowing the domain it's hard to say but if you can get 6 years current revenue multiple that sounds good. Especially in an industry where technology is increasing rapidly and income becomes less reliable to predict. To give you an idea I have had some interest purchasing the whole of the domainview system and looking at 3-5 years revenue there so anything more for 'background' revenue is a bonus nowadays in my opinion. Anyway good luck and let us know if it all goes through I wouldn't get too hung up on cost per visitor as traffic quality varies massively - think how much realistically the domain is worth *to you* and would be in the future.

 

[gimpydog]

Take what you can get for it now. I've had a few of these domains over the years, which I thought would be a pension & they nearly always go bad. If Google doesn't shaft you, likely the site the visitors are looking for will change it's URL.

As the old saying goes..." a hand in your bird is worth two on her bush"

 

[iamrofe]

Unless you could do with the money for other investments i'd keep it.