IT.COM

advice Buying and selling of estibot valuations

NameSilo
Watch

SSM

Established Member
Impact
79
Hey all,

I've been looking recently at getting into domain flipping though normally cant find the right domains for sale. Normally there is no margin for profit going off estibot valuations.

I've just tracked down a one word .com domain (original owner) and have agreed a potential price.

The domain is over 20yrs old, one word, gets 49.5k exact searches per month and according to estibot has a value that is x5 higher than what I can purchase it for.

Is it unrealistic of me to think I could flip this for x3 my buying price which would be half of the estibot valuation.

Essentially my question is, when you guys purchase, do you ever use estibot valuations as a guide for how to price your domains?
 
1
•••
The views expressed on this page by users and staff are their own, not those of NamePros.
In my opinion, appraisal bots are based on human's ideas or personal appraisal, if the software are coded accordingly.

I am not personally against it, nor for it, just like a person's appraisal.
 
Last edited:
1
•••
I realize that domaining is just like what The Domain King said. To do domaining, we have to maintain other job or source of income. I have been many time hand regged domains with 1-5$ discount and sell it for $$$ to $$$$. But it is after keeping them 1 years or more.

The problem of a lot of domainers are in low liquidity. It is not suitable to maintain the domains for 2 years or more. Rick said that investing in domain names has to prepare paying renewal cost for years, and able to make decisions to liquidate domains we can't hold for long time.

So I think online valuator might be good for helping to filter good domains. But even a very good domains are not guaranteed to sell for whoping price under a year. Most are needing many years hold before they are sold.

Keeping domains patiently for years is the most difficult thing to do for small investors.
 
Last edited:
3
•••
Imagine thinking that bot estimations are accurate, if a bot said you are worth $5000, are you worth $5000?!
 
2
•••
The ones that don't like estibot will religiously look at same data on other sites to determine the cpc value. Eg seo performance.

It's not a matter of liking or disliking. It's a matter of accuracy in order to attain a good ROI by fixing your best possible price. I think many use a specific valuator, whether that be Estibot or any other, because they have never actually gone through the process of working out domain name values and comparing their results with what any variety of automated valuators are telling them.

Those of us who have tend to be extremely skeptical of them and will only use them, especially the free ones, for first step rough filtering. Even the best of the paid ones, IMO, cannot take account of current trends or other quick changing variables so have limited use.

GD has tons of first hand data at its fingertips. Even their valuator is hardly of use and then only for assuaging wholesale, not end user, prices. Still, a lot better and more consistent than Estibot. IMO it takes practice and human judgement.
 
3
•••
There will never be accuracy and a name with zero cpc will still sell for 10k. A bot has no wallet but they do base off real stats. eg how many searches a month and what the keyword price is. If all the information should still be ignored then don't be worrying about hrefs either.
 
3
•••
I don't use the service as run stat sites of my own but not going to discredit real information. It doesn't play a role in what i register.
 
Last edited:
3
•••
How long is your piece of string as worth between reg fee and above the number you quote if a desirable keyword.

Not really sure what you mean.

How long is a piece of string?

@lock is quoting a set phrase meaning that any estimate would simply be a guess of size, length or value.

Most robot valuations are based on keyword values, past sales history, and other factors.

A domain name can have a much higher value to a targeted end-user. Your research and knowledge of an industry and potential end-users is a more important factor than valuation tools cannot provide.

Good luck :)
 
6
•••
So how would you put a value on a one word dictionary domain? I dont want to reveal the domain yet but its good, and I wouldn't have used estibot if it was a low value one, i.e. $,$$$ but only because its a high end $$,$$$

Look at similar names?
Look at past sales of similar words?
Has the name been sold before? Namebio.com?
Was it ever devoped or used by an end-user?

Does the seller own loads of other names? Does he own other single word .com names? If yes, the chances are he knows the value of the domain and its worth what he's selling it for, or maybe even less? Yoy have based your value n Estibot and this is heree its dangerous and you could seriously overpay for an average 2 word domain. There are loads of single word dictionary .COM names that have no commercial value and I (an other domainers) wouldn't pay $5 for them. Just bear that in mind.

The fact you looked at Estibot makes me think you havent got a full understanding of the true value of domains and this leads me to think the domain is not as valuable as you think it is. I hope Im wrong for your sake.

Feel free to PM the name if you need any advice, and NO I wont buy it from under your nose, I dont buy good, single word .com names, they are out of my price range most of the time. :xf.smile:

Good luck
 
3
•••
.
 
Last edited:
0
•••
exact monthly searches and cost per click are just the basic parameters to valuate a domain name. An advanced appraisal can be done by experts only but they too can go wrong sometimes.
 
1
•••
An advanced appraisal can be done by experts only

- which implies an exact valuation can be made. I haven't come across any acknowledged "experts" who would make any such claim. They are more inclined to suggest a range, i.e. they would say it's probably - note the indefinite "probably" - worth between x and y.

Valuate - is that an American term? Not one I've come across before. Evaluate, value, valuation, evaluation yes. I've recently seen "valuator", a new noun used to indicate automated value estimation software.
 
3
•••
@Mike Goodman you're right. I did not say Exact! Yes, the range can be suggested.
 
1
•••
As mentioned above, one very common mistake new domain investors make is to try value domains using automated valuators. They all use a one-size-fits-all system, applied equally to all domains being valuated. They apply the same algorithm/s to a brandable with no searches, as they do to a domain with tons of searches. According to those algorithms the brandable may show up with an almost worthless valuation... and the keyword domain with searches may show up with a huge valuation.

Now for the reality: that brandable domain may be very, very valuable, even if it has little or no searches or other metrics going for it; and that keyword domain may be almost worthless, because it may be a term that gets tons of searches and have other good metrics going for it... but is simply not the kind of domain any end user would purchase, use, pay a high $ for.

Forget the automated appraisals, they are wildly inaccurate. Also note: there are many, many systems offering domain appraisals these days (automated), and they all create their own algorithms! So one auto-appraiser may give a $200 value to your domain, another might give $2500, and another might give $15K. And they are changing their systems all the time, so next month each valuator might give you a much different appraisal.

Also, don't pay for any human appraisal. There's simply no point - you'll pay for one person's opinion, or maybe a small 'panel' of two or three people, who say they are experienced. And they might be, but they are also giving you an appraisal based on what works for them.

If you already own a domain, best to simply put it up for appraisal here. You have a wide field of domainers to listen to, from newbies with no sales, to sellers who dabble, to sellers who do well enough to make this their sole income source (that's my own category, btw), to some sellers who are wealthy and sell mainly premium domains. And it's all for free :)

The most important part: it is way, way too early for you to be investing in expensive domains. If you don't even know a rough value of a domain and have to think about auto-appraisals, or paid human appraisals... you're going to lose a lot of money. I have seen a lot, a LOT, of people start domaining with a big chunk of money - thousands $, even tens of thousands $ or more... and totally blow that money on bad domain decisions. Just because you pay a lot for a domain, and the auto- and human appraisers say it is worth a lot, does not mean you will ever sell that domain for a lot. Or that you will sell it EVER. Or that you will sell it even for what you paid for it.

You need more time. You need to really study domains, before you throw away a lot of cash into them. Here's what I say to newbies who have a lot of money to invest in domains:

It doesn't matter if you're rich and you can afford big money to purchase domains; it is unwise for ANY wealthy person to throw money away on investments you don't yet have a clear understanding of. First, educate yourself, get a very clear understanding of how domains are valued, what kinds of sell-through rate there are depending on the kinds of domains you buy/sell, what kind of ROI you can realistically hope for (not 'get', but 'hope for', because there's no sure thing in domaining, except that you can lose a lot of money if you domain unwisely). To sum it all up:

'Experiment small', rather than experimenting with big bucks. Right now you are dabbling and experimenting; don't make huge mistakes. Take small steps, learn from the many small mistakes you make (and you will make them, even with small domain purchases). When you've got a lot of learning and mistakes under your belt... you'll be glad you saved all your cash, so you can then make much wiser investments with your larger expenditures... LATER.

Hope that helps :)
That's by far one of the best domaining advices I have received ! Thank you so much !
 
4
•••
  • The sidebar remains visible by scrolling at a speed relative to the page’s height.
Back