If I may partake in this discussion, without it being interpreted as self-promotion in this forum -- as I believe I have the answer to the OP's question.
First of all, I think Bill has it just right:
NameClerk.com said:
Personally, I like it a lot. It's impossible for any system to be dead red but the logic and metrics behind it make a lot of sense to me.
I like using it to make buying decisions on borderline names. Good data always helps.
This is exactly the way I want EstiBot to serve the domaining community - as a tool to get a lot of relevant data at a glance.
The dollar valuation is provided as an added feature to help get a rough overall idea of the potential value of the name. It's often in the right ballpark, especially for dotcoms, but it is meant only as a pointer, think of it as a quick visual feedback summary of the commercial potential of the domain name.
If the valuation is very low, chances are that the metrics are unfavorable across the board, and often such domain names are hard to sell. If it's very high, then the domain name probably has some significant potential. If it's somewhat high, in the thousands or so, then consider this as a pointer that the domain name, at the very least, deserves a closer look.
The valuation is very much in Beta, although, as it is based in statistical analysis of a constantly updated previous sales database it does seem to reflect market prices reasonably well at least for many short dotcoms and pure keyword domains. I've come to trust it enough to just glance at the dollar valuation and see whether the domain is worth further research. But sure, it can make significant misvaluations; get a second opinion here on NamePros and do your own research. Also, use NameBio.com to look for similar sales in the past in order to get even more quality info.
My main point is; use it as a tool if you will, but don't make a purchase or sell decision based on the valuation, at least not before doing your own careful research and getting a second opinion here at NamePros or some other trustworthy site.
I decided to go public with this even though the valuation algorithm was still unfinished. I wanted to get the other functions available for free use, and at the same time I needed domainers to test and criticize the valuations so that I could make it better. This has worked very well, I have received a lot of good feedback, managed to make it better and I'm certain that I can still make it a lot better.
As for the OP's question about fluctuations in value, I know which domain you mean, as you emailed me about this issue, and I have not seen any significant fluctuation in value; it's always at about $3,000. Fluctuations are usually caused by differential capitalization and spelling, and in this case the domain was one of those domains that are very easy to misspell upon repeated searches. There are other possible reasons as well, and in order to save space here, I've provided a lengthy explanation in the thread that -RJ- mentioned above, just follow this link and check the latest post:
http://www.namepros.com/for-sale-ad...present-public-beta-automatic-appraisals.html
domainspade said:
Its giving NameBio.com a value of $7,500
Wonder if thats a custom tweak?..... Josh.. you giving my domains better value then they would have on the market?
Justin, where can I send the check? At $7500, Namebio.com is a steal.
I'll say it right here, without NameBio.com, making EstiBot would have been much more difficult and time consuming, as it has been my main source of past sales data. I'm very grateful.
Besides, your domain names are almost always good. I've added a DomainSpade bonus for any domain that has your whois info
Just in case....let it be known that no domains are treated individually by EstiBot, they all go through the "universal" algorithm and the results are always objective, if not always correct
That is not to say that domains are not categorized. For instance, LLL.com, NLN.com, geographical names, etc, are all treated differently due to differential inherent values between categories. The domain names all go through the main algo, and then a category value adjustment is made, as well as a multitude of other adjustments.
Thanks-
Josh
