Here sample calculations to price CarInsuranceWorx.com.
Terms
Keyword:search term. what you type into search engines.
OVT:Monthly search on Yahoo. How many times people searched
for keyword per month on Yahoo. Yahoo stopped updating OVT
on January, 2007. However, you can still predict how much traffic
you can expect for given keyword.
Pages:Google results pages for give keyword.
Ads:How many ads on Google results pages for given keywords
CPC:Cost per Click. How much it cost per visit to your site from
1 to 3 ad position on Google.
Domain name:CarInsuranceWorx.com
Domain price:$6,669
Keyword:car insurance
OVT:3,004,788
Pages:74,500,000
Ads:93
CPC:$14.82
If you expect 1 visitor per day to your site…
You will have 30 visitors per month.
It will cost you $444.60/month if you use Google Adwords.
It will take 15 months to get your investment (domain purchase price) back.
After 15 months, you’ll continue to get your visitors month after month for free.
If you expect 5 visitor per day to your site…
You will have 150 visitors per month.
It will cost you $2,223/month if you use Google Adwords.
It will take 3 months to get your investment (domain purchase price) back.
After 3 months, you’ll continue to get your visitors month after month for free.
With keyword rich domain name, it doesn’t take much to get
5 visitors per day to your site.
With any advertisements including Google Ads or Yahoo Ads,
you pay for each visits whether those visitors buy products,
service or produce wanted action or not.
What happens if you paid for 150 visitors per month, you
sold 15 items (10% conversion is really good) and the profit
from each sold item is $100.
It cost you $2,223 and you made $1,500
That’s MINUS $723! Yikes!
It doesn’t take genius to figure out it’s sound business decision
to purchase keyword rich domain name and apply some SEO
(Search Engine Optimization) than keep paying for advertisement expenses.