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Originally Posted by KMR Stitch
Can we get back on the topic "pretty please"
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I don't think there is a neat & tidy formula to answer your question. Lots of factors to consider, with each domain being unique. For example, there is less risk with a generic typo as compared to a TM/squatting issue.
As a buyer of a typo domain, I would assess value based on how easily I could monetize the traffic. I would prefer to see revenue stats from the current owner, in addition to vanilla traffic stats. If the current owner wasn't making money off the name, I would have to determine why. Unless the owner wasn't too bright or experienced, this would be a big red flag. The best case scenario is the owner IS making money off the domain, he just needs to liquidate it to finance another project - or pay his rent.
As a seller of a typo domain, I would have the best idea of the value of the name because I would know firsthand the traffic and earnings. Based on the traffic niche (adult, casino, mp3's, etc.) you could assign a multiple to go with the revenue you are currently earning off the domain, and discount it for risk if needed, assuming it was not generic in nature.
A lot of typo domains are sold in private or on forums where the name isn't publicly displayed. People are sensitive to not letting the domain get indexed by search bots, nor do they want to draw any attention to their ownership of such a name. This would not apply to a domain like blonddes.com, but rather to a high revenue earning misspelling of a major brand. This would impact value not only because of the risk factor in owning the name, but also because you have a smaller marketplace.
Like any other domain, the value of a typo is ultimately what you can sell it for... but this will be heavily influenced by its earnings potential and the risk factor in owning the name.
All IMHO.
