$2,600




How the domain price is determined:

Some domain sellers just pluck a number out of the air. Below is the correct formula to determine a domain selling price.

Formula:
1. Take the keywords associated with this domain; look up Google and Yahoo/Bing Global traffic for one month.

2. Take this figure and multiply it by the average cost per click (CPC) for those keywords.

3. Multiply this number by 80%. This equals the "value" of the domain for one month, if you were to purchase this specific volume of traffic.

4. Multiply the monthly total by 12, for a one year price evaluation. Then multiply the monthly total by 24 for a two year price evaluation, and then by 36 for a three year price evaluation. Typically, domains are held longer than 3 years. (The Cost Per Click will increase over three years as well.)

5. The value of the domain is what it would cost to purchase and produce the same number of clicks as the domain currently produces over a 3 year period.

6. Now add-in the intrinsic value, brand value and likeability of the domain. That is how the price is determined.

While this may not be an exact figure, it provides a basis of domain name value.

Example 1

 Domain Name

Keywords

Global Traffic

Average CPC

 

 ValueAutoInsurance.org

auto insurance

110,000

$25.96

 

 1 Month Value

12 Month Value

24 Month Value

36 Month Value

 Actual Price

 $ 2,284,480

$ 27,413,760

$ 54,827,520

$ 82,241,280

 $ 440,000


Example 2

 Domain Name

Keywords

Global Traffic

Average CPC

 

 GasDeals.com

gas deals

73

$0.81

 

 1 Month Value

12 Month Value

24 Month Value

36 Month Value

 Actual Price

 $ 47

$ 568

$ 1,135

$ 1,703

 $ 1,650

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