Originally Posted by GeorgeK
There's a wide error-bar, to guesstimate the true type-in traffic. If we knew that precisely, we can make a better estimate.
But, my number for the domain by itself (i.e. if it didn't have all the incoming links, which could disappear now that they've shifted to PPC, and without the content and email database) would be between $7 million and $10 million. I'd say less than 1/3rd of their traffic is from type-ins at present, so I'm using a bigger multiplier as part of my calculations.
I have gambling domains that combine for more Overture in total than gambling.com, and that would be my estimate for my own set, sold to a retail buyer.
To a big extent, I think the buyer paid a fairly low multiplier if you look at current income ($3 million/yr). But, if you are of the opinion that only a fraction of that value was due to type-ins (as I am), and attach a higher mulitplier to the underlying type-in value (as that is by definition less risky), and then attach a lower multiplier to the "links" value, and then add in a value to the e-mail database and website content, it might seem more like a fair deal.
As domainers, what's most interesting is the multiplier to the true underlying type-ins, I would think. With Marchex's UltSearch purchase, we know that number. With this deal, we can only guess, but I would say it was more like 15 or 20x, which is excellent. I know when I'm selling domains, I'm not excited by 7 times. I rarely sell domains, but when I do, the multipliers are a LOT higher (except in a couple of rare instances when I wanted to fund a bigger transaction).
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