opinion David Castello calls on GoDaddy to Revamp Appraisal System

[Bob Hawkes]

In a commentary just posted on his blog, David Castello, who has handled millions in domain name sales and site developments, has just published a call for GoDaddy to totally revamp their appraisal system.

He argues that the current GoDaddy appraisal system is holding back potential sales of high value names.

I’ve long been aware of the GoDaddy Estimated Value, otherwise known as GoValue, that routinely appraises six-and seven-figure domains for less than 25K. Each appraisal features five sales comps, none higher than 25K. We know these comps to be inaccurate because we know for a fact that many of these names sold for well into six-figures.

But the problem extends to all levels of name. The real problem is that GoDaddy is such a well-known and trusted entity that what it publishes about a name has a great impact.

That’s branding power and trust on an extraordinary level. GoDaddy is a $17 billion company and #1 in the world. Whatever GoDaddy tells the Public about domain names, they’ll believe.

While many would like them to simply remove the appraisal system, David instead calls for improving it, replacing the current sales-based approach, that seems to have deficiencies, and adopt a well-designed AI approach. If that was done, David believes it could be a golden time for domain names. As he writes:

Because of GoDaddy’s overwhelming power and influence, the Public will soon become educated and excited about the true value of domain names, thus attracting millions of new buyers, sales and investors.

Read the full article at:
https://www.castellobrothers.com/godaddys-appraisal-system-will-open-the-floodgates/

Let's all discuss the commentary and proposal.

-Bob

 

[Future Sensors]

Tagging @Domain Academy.

 

[URL Stream]

With our small sales on GoDaddy/Afternic, we’d get a few price inquiries, send our price, get a counter-offer and close the deal. Quick and easy. But with our six-figure names, I sensed something odd. We’d get a price inquiry, send the price and then the buyer would vanish. Not even a counter-offer. Gone.

I assumed it was because they were high-ticket domains, but after the 50th price request without even a counter-offer, my instincts told me something was wrong.

I’ve long been aware of the GoDaddy Estimated Value...

Conjecture.

Still, point well made.

 

[katerleonid]

An AI-only approach will probably not work. If the appraisal shows a value higher than $25,000, it may give new domain investors false hope. They might consider incorporating past sales and NameBio data as well.

 

[VadimK]

I don't think they will, and I don't think they care. The most important thing for GD (in this matter) is that newbies keep registering shit like jshagagdisdocj.com, which they (GD) would obviously estimate somewhere around $850. AI model would show a big fat zero, which does them no favors whatsoever - this way they can't cheat and sell you crap.

 

[Castello Brothers]

In a commentary just posted on his blog, David Castello, who has handled millions in domain name sales and site developments, has just published a call for GoDaddy to totally revamp their appraisal system.

He argues that the current GoDaddy appraisal system is holding back potential sales of high value names.


But the problem extends to all levels of name. The real problem is that GoDaddy is such a well-known and trusted entity that what it publishes about a name has a great impact.



While many would like them to simply remove the appraisal system, David instead calls for improving it, replacing the current sales-based approach, that seems to have deficiencies, and adopt a well-designed AI approach. If that was done, David believes it could be a golden time for domain names. As he writes:



Read the full article at:
https://www.castellobrothers.com/godaddys-appraisal-system-will-open-the-floodgates/

Let's all discuss the commentary and proposal.

-Bob

Thank you, Bob!

 

[silentg]

Let James try and see what happens.

An AI-only approach will probably not work. If the appraisal shows a value higher than $25,000, it may give new domain investors false hope. They might consider incorporating past sales and NameBio data as well.

Some paid appraisal sites use recently sold domains to promote their services, and many new investors end up believing their valuations.

 

[Castello Brothers]

Conjecture.

Still, point well

An AI-only approach will probably not work. If the appraisal shows a value higher than $25,000, it may give new domain investors false hope. They might consider incorporating past sales and NameBio data as well.

AI already works for Atom and Saw. Their appraisals are at least in the ballpark, and I would have no problem starting a negotiation with them. No GoDaddy appraisal is higher than 25K, which is looneyland.

 

[Simon SE]

All great until he states Atom and Saw appraisal tools are "excellent"

 

[Haroon Basha]

Thank you very much.
No sensible person will appraise his domain name at Godaddy.com. If you want to test, you collect 20 random .ai names' sales during November 2025, check them with GoValue and the actual Sales price, you will understand how grave the mistakes in valuation by Godaddy.com.

 

[Future Sensors]

https://twitter.com/x/status/1960772485567406379

@bmugford

 

[Future Sensors]

No sensible person will appraise his domain name at Godaddy.com.

Buyers will automatically be confronted with these low "appraisal" values during their GoDaddy customer journey.

Sellers and registrants, too. There's no escape.

In the meantime GoDaddy is promoting sh*t TLDs like .sucks and .foo in the reg path.

 

[fka1080405]

With our small sales on GoDaddy/Afternic, we’d get a few price inquiries, send our price, get a counter-offer and close the deal. Quick and easy. But with our six-figure names, I sensed something odd. We’d get a price inquiry, send the price and then the buyer would vanish. Not even a counter-offer. Gone. I assumed it was because they were high-ticket domains, but after the 50th price request without even a counter-offer, my instincts told me something was wrong.

By capping domain name appraisals at $25,000, GoDaddy has been telling them for years that no name is worth more than $25,000. Because of this, the Public believes that domain names have limited value and any name for sale for more than $25,000 must be overpriced.

I'm all for juicing the GoValue number but I disagree with much of this article.

The internet economy has grown, but with that growth came maturity. End users are much more sophisticated nowadays, domain names are no longer seen as an essential part of a digital presence, and there are many other ways a company can spend money to grow online. A lot of companies would much rather spend $1m on influencer marketing than $1m on a domain. Domains are, in many respects, a relic of the past. We're in an age where every cent of spend online can be attributed and analyzed, the vague understanding that a premium domain name is valuable doesn't cut it any more.

Almost all price inquiries submitted for domain names via landing pages are from people without the budget to buy the domain, whether they're actually interested in the domain name or not. People submit forms out of curiosity, confusion or just for a little treat to escape the monotony of their day. There is a lot of work done by various platforms (including from NamePros on NamePros lander) in filtering out junk enquiries.

Afternic remains a source of high value sales, many of them over $25,000. Spaceship has grown rapidly in marketshare despite showing no information about a domain's purported value, and has facilitated many high value sales.

GoDaddy's GoValue is most obviously wrong because it is limited to $25k (and we know that domains can sell for more) but Atom's appraisal tool producing higher values does not necessarily make it more accurate. How do we even measure accuracy? I bought a domain a few weeks ago for ~$2,500 (as an end user) that Atom and Saw appraise at ~$50k. I sold a domain this year for ~$50k that Saw.com appraises at $6k.

I think there is a lot of interesting discussion to have around domain name values and progress to be made (I just launched yea.net as my take on it ("Domain name appraisals are worthless") so I have bias) but I don't believe that increasing GoDaddy's GoValue would have any meaningful impact on prices, certainly not for high value domains.

 

[Future Sensors]

https://www.namepros.com/threads/afternic-official-thread.1295231/page-275#post-9402336

 

[Future Sensors]

https://www.namepros.com/threads/afternic-official-thread.1295231/page-328#post-9509200

 

[URL Stream]

https://www.godaddy.com/domain-value-appraisal/appraisal/?domainToCheck=car.com

 

[URL Stream]

With our small sales on GoDaddy/Afternic, we’d get a few price inquiries, send our price, get a counter-offer and close the deal. Quick and easy. But with our six-figure names, I sensed something odd. We’d get a price inquiry, send the price and then the buyer would vanish. Not even a counter-offer. Gone.

I assumed it was because they were high-ticket domains, but after the 50th price request without even a counter-offer, my instincts told me something was wrong.

I’ve long been aware of the GoDaddy Estimated Value...

Conjecture.

Still, point well made.

AI already works for Atom and Saw. Their appraisals are at least in the ballpark, and I would have no problem starting a negotiation with them. No GoDaddy appraisal is higher than 25K, which is looneyland.

I may have been misunderstood.

I only meant that attributing the lack of response on the six-figure domains — unlike your below $10K names — to the attached GoDaddy appraisal is conjecture on your part.

Otherwise, as I said, your point regarding the actual appraisal tool and integration is well taken.

Special thanks for joining the conversation.

 

[nlitenme]

Thanks Bob and David.

Hopefully something useful and beneficial comes from this.

 

[Future Sensors]

Hopefully something useful and beneficial comes from this.

Don't hold your breath.

 

[Jannes]

Anyone with half a brain understood and could foresee the consequences within 10 minutes after seeing GoValue in action for the first time. It’s obviously someone’s ego project, and apparently that someone needs to hear criticism from certain small circles before anything changes.

I’ve worked in many industries but never before in one that is so fundamentally f*cked up on so many levels.