DomainMart (www.domainmart.com), a provider of domain name appraisal services, announced on April 7 the launch of the industry’s first domain name valuation methodology based on parking revenue. The new valuation service is based on the Net Present Value (NPV) methodology, whereby the expected cash flows are estimated by assuming that the domain name is parked to generate traffic revenue. The analysis considers various CF growth scenarios.
The traffic income business model focuses on domain names that generate clicks. This is achieved by placing advertiser links on a Web page. Every time a visitor clicks on any of the links the advertiser pays the link manager a fee, i.e., pay-per-click (PPC).
Alex Tajirian, President and CEO of DomainMart, said that the availability of reliable public information on keyword searches and revenue from PPC advertising have made valuation based on traffic income a compelling domain name valuation methodology, and that the main strength of the approach is that it can be applied to any domain name irrespective of whether it is parked or not.
