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poll As a buyer on a scale of 0 to 10 how important is the value assigned by an automated appraisal

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As a buyer on a scale of 0 to 10 how important is the value assigned by an automated appraisal

  • 1st

    0

    77 
    votes
    48.4%
  • 2nd

    3

    17 
    votes
    10.7%
  • 3rd

    5

    14 
    votes
    8.8%
  • 4th

    4

    12 
    votes
    7.5%
  • 5th

    1

    11 
    votes
    6.9%
  • 6th

    6

    votes
    4.4%
  • 7th (tie)

    2

    votes
    3.8%
  • 7th (tie)

    7

    votes
    3.8%
  • 7th (tie)

    10

    votes
    3.8%
  • 8th

    8

    votes
    1.3%
  • 9th

    9

    vote
    0.6%

equity78

Top Member
TheDomains Staff
TLDInvestors.com
Impact
28,340
Estibot and GoDaddy are the two dominant forces in the automated appraisal space, there are some other players in the game as well. No matter which service is providing the value, how much weight do you give to these services when making a purchase?
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
I said 10 cos I'm thinking as an end user buyer rather than as as a domain investor.

Most of the planet has heard of Godaddy so we can use that as a validation tool and an end user who is seriously looking for a domain name has already checked what they may have to pay on GD before they even contact us as the seller.

Knowledge is power and it works for both sides of the equation.

Funny thing with domainers is that if they're buying they write off auto appraisals but if they're selling they always quote the values. Gofigurethatoutnow. com
 
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I said 10 cos I'm thinking as an end user buyer rather than as as a domain investor.

Most of the planet has heard of Godaddy so we can use that as a validation tool and an end user who is seriously looking for a domain name has already checked what they may have to pay on GD before they even contact us as the seller.

Knowledge is power and it works for both sides of the equation.

“Funny thing with domainers is that if they're buying they write off auto appraisals but if they're selling they always quote the values. Gofigurethatoutnow. com”

End-users think for themselves;

i would imagine theyre self-made and have their own set of strict standards of valuation, but hey, whatever floats your boat.
 
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Gofigurethatoutnow. com

Want it, I'll sell it to you for the low low price of just $300...that's right act now and save $6! What a steal...
Capture.PNG
 
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I said 10 cos I'm thinking as an end user buyer rather than as as a domain investor.

Most of the planet has heard of Godaddy so we can use that as a validation tool and an end user who is seriously looking for a domain name has already checked what they may have to pay on GD before they even contact us as the seller.

Knowledge is power and it works for both sides of the equation.

seems like an assumption of or about end-users knowledge,
along with extended assumption that because GoDaddy is well known, that their notoriety gives validation to their appraisal tool.

is everything gd does, validated automatically, stamped kosher, above question..because of their notoriety?
if not, then the appraisal tool isn't either.

and that, would be another side of the equation

imo...
 
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If you can only find a religious bot believer that will buy all bot names for bot worth.
 
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I said 10 cos I'm thinking as an end user buyer rather than as as a domain investor.

Most of the planet has heard of Godaddy so we can use that as a validation tool and an end user who is seriously looking for a domain name has already checked what they may have to pay on GD before they even contact us as the seller.

Knowledge is power and it works for both sides of the equation.

Funny thing with domainers is that if they're buying they write off auto appraisals but if they're selling they always quote the values. Gofigurethatoutnow. com

The end user does not know that those figures GD quotes are predominately wholesale domainer to domainer aftermarket sales. GD doesn’t dictate what we price our names at nor does Estibot no does NameBio. We decide that. You are in a bad position not a position of power if you let some arbitrary tool tell you how to price your names.90 percent of domainers think the valuators are pure crap anyways.
 
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1
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Very true
I will form a cult be the long bearded one then adjust my bot pricing lol.
Use a bot to gather information the points used to determine value. Final number is a number not real money.
 
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1
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>>>> 0 <<<<
Zero

As it should be.
 
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I would not give it much weight, but I would give it a little bit of weight. Even in my few contacts with end users I have encountered people (non-domainers) who had consulted GoValue and therefore I think even if I I did not consider it relevant, it becomes relevant to some degree because potential buyers will have consulted it. So if I felt two domains were equal in quality on all my metrics, but one has GoValue of $3000 and one $800, that matters to me.

Also, while we can talk about how great our brains are, GoValue has this huge database of Afternic, GoDaddy and other sales data, and despite what we think about the number, I think it does do a very good job in finding comparator sales. So it is not that dumb.

If it was a name where the search and advertiser stats were important, I think that is where Estibot does best. Again, it would help me break a near tie between two names.

So what number does that all mean? Maybe a 3.

I think that you should FIRST do all of your own analysis and make a decision re value, and then as a second opinion check the bots. And with machine learning they should be able to get much better than they currently are. Several things I do every day bots do way better than my brain. Oh maybe that is just MY brain. Hmmm :xf.eek:

Bob
 
4
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Automated appraisals are so outdated.
 
0
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0, and when people approach me with names for sale and they cite some inflated bot value, it detracts from the amount I'm willing to pay, it's a strike against them because I just assume they're trying to bamboozle me. It hurts the credibility of the seller, in my eyes, to cite ridiculous automated valuations.

Also, it signals to me that they have very unrealistic expectations, so there are times I won't even bother making an offer on a name I otherwise may have been interested in. Now that I think of it, this happens fairly often. There was an okay 4L listed here the other day, but the seller made a huge deal out of pretending it was a real word, talking about how they think it's worth 5 figures etc, so they kind of shot themselves in the foot in terms of getting an offer from me. Which is fine, if they genuinely only wanted xx,xxx for it then it saves us all some time - but if they were just trying to pump the name up, it had the opposite effect.

There have been plenty of names I've been interested in but if someone's telling me they think their 3 week old handreg is worth $2000 according to this or that, it's hard to even get to the table.

So, I guess I actually assign negative value, less than 0.

Just my 0.02, tho.

Edit: I hope the results here are eye-opening from a seller's point of view, nobody cares about these tools except the registrars who sell a bunch of janky domains to newbies who think they can turn $8 into $2000 because some robot told them so.
"nobody cares about these tools":xf.rolleyes:??? Sure they do....area code 480? that leads to GD right:xf.smile:, and they have the best overall appraisal tool except when it comes to domains worth over 25K. That's where Nameworth kicks in:xf.wink: Sounds to me like you're a wholesaler buying from other domainers so it's really hard to relate:xf.frown:
 
0
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Sometimes I look at them, mostly on auction domains but I don't really care as long as the domain is good.
 
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Sometimes I look at them, mostly on auction domains but I don't really care as long as the domain is good.

Well said.

Nothing can beat the " human eye" in a subjective valuation.
 
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A good domain might have an appraisal of 1-2k but can easily go for 5-6 figures to the right buyer. If you're making "quick flips" to the uneducated "maybe an end-user" who might use it for a future project than sure it can help but it should have little value to long term investors.
 
0
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5
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Automated appraisals prey on those who haven't yet developed the confidence or experience (or courage) to valuate and market their own names.

No automated tool is going to sell a domain for you. Everyone needs to put in the leg work to understand what types of domains will sell, for how much, and why.
 
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too bad your poll forgot to add -100
which is the most accurate figure.

lets keep it nice and simple truth folks.. that domain apparisals are useless for all.. buyers sellers ... and aliens.
 
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automated appraisals only serve the company that provides them
thats why they fight for them
and "improve" them constantly


so the random numbers become twice as random over time

be aware:
some registrars ( even the one you love most )
use those random "values" to make you register more domains
 
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Good afternoon.

And many experienced domain investors only think they are a good tool when they are trying to sell a domain.

This must be the only business where there is no benchmark or recognized standard for pricing our products.

In lieu of anything better or an industry wide standard we shall just have to accept that there is some merit to them.

The top ten per cent of domain names are probably like the top ten per cent of million dollar painting in so much that they are frequently traded amongst the top ten per cent of domain investors.

The other 90% have to believe in something and I' m sure that if you or I fully understood the science behind them we would maybe change our opinions and begin to see them as a positive tool rather than as a waste of time and effort.

Only the future knows the final story so either come up with something better or accept and use what we already have.

If your business model is to only sell to other domain investors, then that is one set of logistics, but if your plan is to sell in the real world then you have to put in more time and effort and embracing a tool that end users have probably used themselves will only make the process more efficient and ultimately more profitable.

If we were selling a second hand car we would quote the price of a new one at the main dealership. You know it is a guide price and so too does your potential end user. There are many factors which affect the final price and the skill is knowing what tools you can use to justify your prices.

At the moment, I just feel that many domain investors just wake up one day and use the price they saw in s dream as there is no logical connection to reality. People will never pay the prices that you are asking and I'd say you need to knock a zero off the end. Which end is up to you.

React. Adapt. Overcome

Regards,

Reddstagg
 
0
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In lieu of anything better or an industry wide standard we shall just have to accept that there is some merit to them.
A product doesn't have merit simply because it exists. Sometimes products serve no other purpose but to entertain us, and make money for their creators.

There's a vast difference between taking advantage of an industry gap, and filling that gap successfully.

Only the future knows the final story so either come up with something better or accept and use what we already have.
The "something better" that you speak of is experience. If profitable domainers followed the guidance of appraisal tools, many of them would make a lot less money on their sales, and would own far more invaluable names.
 
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A product doesn't have merit simply because it exists. Sometimes products serve no other purpose but to entertain us, and make money for their creators.

There's a vast difference between taking advantage of an industry gap, and filling that gap successfully.


The "something better" that you speak of is experience. If profitable domainers followed the guidance of appraisal tools, many of them would make a lot less money on their sales, and would own far more invaluable names.


I'm a Newbie. Hands up I admit it.

However, on checking the portfolio of an experienced domainer yesterday I could see that they had their domains listed on a third party selling platform. I checked a couple for research purposes and could see that they were being sold for just under $3,000. However, upon checking GD (my preferred appraisal tool) I could see that neither were valued above $1,200.

Now, as an industry of experienced domain investors are we (I mean you,) saying that the appraisal tool is 'not very good' because it has under or over valued said sample domains?

In my honest limited opinion I think that most domains are over valued by their owners.

This is fine if you are only selling to other domain investors but I'd imagine it would be quite scary if you were the end user who has already checked GD.

Unfortunately, the experience gained that you mention was more often than not say within the last 10 to 20 years when .com was king and had few challengers.

Now, the world is literally your dot.lobster and you can use whatever extension you like. In some cases the tide has turned and .coms are selling for less than not.coms.

Experience gained from outside of this industry can be just as beneficial to a domain investor whether as a Vip or as a Newbie.

Regards,

Reddstagg
 
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I'm a Newbie. Hands up I admit it.

However, on checking the portfolio of an experienced domainer yesterday I could see that they had their domains listed on a third party selling platform. I checked a couple for research purposes and could see that they were being sold for just under $3,000. However, upon checking GD (my preferred appraisal tool) I could see that neither were valued above $1,200.

Now, as an industry of experienced domain investors are we (I mean you,) saying that the appraisal tool is 'not very good' because it has under or over valued said sample domains?

In my honest limited opinion I think that most domains are over valued by their owners.
I tend to agree that many domains are severely over-valued by their owners. I believe that's often a newer domainer mistake, and if studying domain appraisals is what curbs that tendency in some investors, then I can certainly see that as a positive.

I just don't think appraisal tools are necessary when all the information you need is at your fingertips. Appraisal tools seem to serve as a crutch for those who are unwilling to learn the hard way.

You say third party platforms often value names higher than GD, and that it could scare away end users. But these platforms have sold thousands of names this way, based on their own experience and understanding of where the sweet spot is for brandable names. In the face of that kind of industry experience, how well do you think an end user's argument will hold up if they try to use, "But GD's robot says it's worth XXX."?
 
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I tend to agree that many domains are severely over-valued by their owners. I believe that's often a newer domainer mistake, and if studying domain appraisals is what curbs that tendency in some investors, then I can certainly see that as a positive.

I just don't think appraisal tools are necessary when all the information you need is at your fingertips. Appraisal tools seem to serve as a crutch for those who are unwilling to learn the hard way.

You say third party platforms often value names higher than GD, and that it could scare away end users. But these platforms have sold thousands of names this way, based on their own experience and understanding of where the sweet spot is for brandable names. In the face of that kind of industry experience, how well do you think an end user's argument will hold up if they try to use, "But GD's robot says it's worth XXX."?


Once again, thanks for your response. You say that third party platforms have sold thousands of such like domains.

The Newbie in me compares that to tens of millions of similar transactions at GD and I know what I put more faith into.

I think we shall have to agree to disagree for now and only the future knows the end story.

Have a good day.

Regards,

Reddstagg
 
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Thankfully - there seems to be a better understanding of these bots than I thought here at NPs
52 votes for ZERO Value, (at this timestamp)
My confidence in the membership is restored - shame though that all the advocates of the Appraisal services are the most vocal in the threads
 
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