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December 28th, 2007 by 
Jay Westerdal
I wanted to give a brief overview of how to figure out the PPC value of a domain. A lot of people are confused about the PPC value of their domains. How do you breakdown the value of a domain when you don’t have access to the Parking stats. It is quite simple, take the keywords of the domain and run them through Yahoo or Google’s PPC estimation tools.
I will use the example of TransferMoneyOnline.com
, this domain is coming up in the Jan 3rd auction. We take this domain and we get the three keywords, “Transfer Money Online”. We run these keywords through Google like this:
transfer money online = broad match
[transfer money online] = exact match
“transfer money online” = phrase match
I choose $50.00 as my Max PPC cost to figure out the maximum numbers of clicks I would get if I bid on these terms. Then Google shows me the results:
I know that the exact phrase match is worth $2.58 – $3.22 per click. Google estimates that 1 or 2 people a day will click on my ad each day if I bid like this. If 1 or 2 people click that means that 50 or 100 other people are searching on those keywords but will not click on the ad. So I know there is traffic on this search term of around 100 people a day. However when you look at the loose match I see that 8-10 people would click. So there is perhaps another 500 people out there each day that are using more or less keywords. Now for the direct navigation component, how many of these people are typing in .com after their search. Perhaps 10 to 30 people a day because it is generally around 2-8% of the search engine traffic.
If the domain is taken off PPC parking and is built out, it would go from 10 to 30 people a day to 100 to 200 people a day in organic traffic. With adsense and good content the site can now start generating more revenue then just plain parking. At $2 a click that is good money. Giving people a brief tutorial on each way that people can transfer money online would be a good site. Thirty to fifty pages of content would start earning revenue and would cover the reserve on the domain of $3,400.
By dominating the organic results for its own term. Transfer Money Online.com will be able to make a sizable dent in turning a profit. The future of parking is being able to customize and built out websites with good content. I predict the cutting edge parking companies will expand this ability in 2008 and building content on parked domains will be easier.
I am tempted to buy this domain at auction if no one else bids on it so that I can complete part 2 of this tutorial. Taking a good keyword rich domain and turning it into an SEO wonder with good content.
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Posted in DomainTools Auction, Google |
8 Comments »
December 28th, 2007 at 8:31 pm
I would be willing to ‘loan’ one of my domains for a tutorial, let me know.
UPDATE BY JAY: Me too! Sign me up for free development.
(Honestly I would only tutorial a website that I owned)
December 29th, 2007 at 1:02 am
Hello Jay,
I am wondering how can you estimate the potential traffic the terms receives when Google is not given the ad CTR (click thru ratio)!!!
My experience shows when you are the top bidder the CTR is generally above 10% and not around 1% like you say.
This involves that the keywords are potentially getting 10 times less traffic you pretend. It’s a HUGE difference!
UPDATE BY JAY: 10% is huge. I think Google would be at $2000 a share if that was the case. The far right column that has ads on Google is not that clicked on. However, if you get above the organic results then you may have a 10% shot.
December 29th, 2007 at 3:16 am
Jay,
This is WAY off, how do you think Google makes their money?
Do you honestly think they charge advertisers $2 per click and pay publishers that $2?.
Cut that in half or worse.
An example, Mesothelioma on adwords charges $60 or so per click. With Mesothelioma ads on Adsense you would be lucky to get $2-$4 per click.
Have you used Adsense before?
UPDATE BY JAY: The bid price was OVER $2. We understand Google takes a slice but there is more pie when the keywords are rich. Yes, I use Adsense. Check out the top bar on DomainTools. It is hard not to notice.
December 29th, 2007 at 6:40 am
Where do I send people to sign up to be a bidder?
UPDATE BY JAY: It will be hard to miss. On Monday it will be everywhere on DomainTools.
December 29th, 2007 at 11:53 am
Jay,
The point I am trying to make is that keyword tool is practically useless for what you want to use it for.
All it’s going to do in the end is get your hopes up high, and give you pretty little numbers that you may aspire to, but will never get.
December 30th, 2007 at 6:18 am
Jay,
Keep in mind those PPC rates on the Adwords tool are for the search network; content bids are broken out seperately, graded based on quality score and are harder to estimate.
Brad