Leapfish is not full of shit!! PROOF!!
 

The reason some on this board think that leapfish domain appraisals are crap is because they don't consider other methods to determine a domains worth.

For example:

Consider a domain with a relevant product name that gets 20 type-ins a day.
Consider that companies are paying $1 a click on google ads.
Consider that a company has a product that should have at least a 10 year
life span.

The ten year ad campaign at $1 a click plus 3% annual inflation breaks
down like this:

20 hits a day times 365 days = 7300 times $1 = $7300 per year

Now adjust the yearly cost for inflation for 10 years:

1 = $7300
2 -> 3% = $7519
3 -> 3% = $7744.57
4 -> 3% = $7976.9
5 -> 3% = $8216.21
6 -> 3% = $8462.7
7 -> 3% = $8716.58
8 -> 3% = $8978.07
9 -> 3% = $9247.42
10-> 3% = $9524.84

= $83646.29

So the company will pay google $83,646.29 over this time to get 20 clicks
a day for 10 years.

So can your relevant domain provide 20 type-ins a day for 10 years?
Then it's worth $83646.29

That's not how much you can sell it for!!
A company may pay half of that and they figure they've saved 40k on ads!

Plus at the end of the 10 years the company can sell the domain to recoup advertising cost.

I've got several domains that will be 10 years old next year, too bad I didn't think about a ten year plan when I started!!!

Now for the "ney-sayers":
You're right, who's going to pay $1 a click for porn traffic with all this free porn is out there and only earning $25-$40 per sale.

Solution: "Think outside the porn".

I sell Sexy La Dies.com

LA Dies.com is probably more relevant, so I'll pass. :1orglaugh

Leapfish says one of my TGP's is worth $24,500.00

Two other such assessors say it's only worth $3k-$8k.


Obvious conclusion: Leapfish RULES!! :D

Estibot.com is better IMHO

potential buying companies in adult dont base the value on a ten year revenue structure....

I have many people that come to me wanting to sell sites based on their "potential." Unfortunately, potential has very little value in most cases.

Yeah, because their shit will be on a torrent site in 3 weeks. :1orglaugh

My point is that leapfish is not trying to get it right for the porn industry, in fact they couldn't give a shit about it. The days when porn made all the money are over. Nobody's going to pay $1 billion for pornotube.

Here's challenge:

list 10 porn sites that if sold in a lot could get $1 billion.

It still remains that if our domains were sold for leapfish prices, we'd all be millionaires :1orglaugh

Yeah, but that's the point you missed. Leapfish doesn't give you a price, it gives you the "worth". A decent price might be 10 times less than the worth.

So CNN.com is worth $3.7 BILLION?

CNN.com : Indexed Data
DMOZ: 223,839 listings
Y! Directory: 2,865 listings
Visitors by Country:
United States 64.2% Canada 5.6%
United Kingdom 2.3% Philippines 1.1%
Australia 1% India 1%

Visitors by City: 1) New York, NY, US 6.9%
2) Los Angeles, CA, US 6%
3) San Francisco, CA, US 4.6%

Alexa Trend/Rank: #69 3 ranks over the last three months.
Compete Rank: #35 with 19,534,727 U.S. visitors per month
Quantcast Rank: #25
Wikipedia: Listed on 13,702 pages


** 19,534,727 hits per month times $1 a click for 10 years plus inflation comes out to be over 3 billion dollars.

What the site would sell for would be totally differrent.

If CNN sold it's network then it would make sense for them to ask for
$300 million for the website.

PS: I only counted US visitors per month!!!

Very true and that also goes for some mainstream.

What a site would sell for is the only thing that matters.

And that would be 1/12 of what leapfish says it's worth.

I got a few domains that leapfish says are worth 168k. If only.

Combined Domain Name Appraisal Value Score: 3658

Estimated Domain Name Value:

$3,299,516.00

--

right

does he win anything?

I already said that a decent price could be ten times less the worth.

Think about it; if you pay what the site is worth then where's your chance to earn a profit??

You're not selling a house, you're selling a money producing venue.
If you sell it at the price equal to all the money it can produce for the maximum 10 year registration then how is the buyer going to profit?

Think about it this way:

A pizza palor is for sale for $250k plus a ten year lease.
You pay 250k, and you pay it because you know that you will earn
more than $2.5 million before the lease is up.
Later that night at a party somebody ask you what do you think your
pizza parlor deal is "worth" and you say $2.5 million.

If terrorist blow the place up over the weekend do you think
"I lost 250k" or do you think "Fuck, there goes my $2.5 mil"?

How many hits per day on that site?
Did you do the $1 a click math over 10 years.

Why ten years? Because that's the maximum time allowed to register(lease) the name at one time. In other words, what's the full income potential before my lease runs out?