Zarkoza
Established Member
- Impact
- 160
I had asked Estibot support about why Estibot had Appraised my Domain FabVoila.com and 94 of my other domains at $0 while I had gotten an an $400 evaluation from Afternic.com for FabVoila.com. I asked this question even though I already knew the answer and because I was just curious about what they would say. Here's their response for anyone that might find this informatin useful going forward using Estibot. Thanks.
"1) You have to keep in mind that regardless of whether it is a human or automated appraisal, domain names are largely illiquid and thinly traded assets. There are at best a couple of billion dollars in sales in domains, where most asset markets (commodities, stocks, real estate, etc) can do that in less than 15 minutes. As such, all appraisals are a take on fair end user value in a certain time frame. In case of Afternic, how long do they think the domain name will be on the market and what will your renewal fee costs will be in the meantime? (even if negligible, if the domain sits for 10 years, you have to factor that in for a domain name that won't sell for thousands of dollars).
2) Consider registration data. FabVoila as a single keyword only has 1 registration (.com) across all gTLDs and nTLDs (and UK ccTLD). That's not evidence of strong demand. Is it possible that you could sell the domain for $400? Sure, it's possible someone may come across and feel it's worth it. But that's a guess that's based on luck more than anything else.
3) Finally, EstiBot valuations are not meant to be gospel. They are a fair value estimate of what an end user is likely to pay for a particular domain. As I mentioned before, domains are illiquid and thinly traded assets where luck may outweigh any data. However, in totality and with larger sample size, certain metrics are likely to result in greater value and sales than others. This is why we provide all of these other data points, and not just an appraisal. Any given sale can beat the mold, but in large sample sizes the statistically oriented methodologies tend to prevail."
"1) You have to keep in mind that regardless of whether it is a human or automated appraisal, domain names are largely illiquid and thinly traded assets. There are at best a couple of billion dollars in sales in domains, where most asset markets (commodities, stocks, real estate, etc) can do that in less than 15 minutes. As such, all appraisals are a take on fair end user value in a certain time frame. In case of Afternic, how long do they think the domain name will be on the market and what will your renewal fee costs will be in the meantime? (even if negligible, if the domain sits for 10 years, you have to factor that in for a domain name that won't sell for thousands of dollars).
2) Consider registration data. FabVoila as a single keyword only has 1 registration (.com) across all gTLDs and nTLDs (and UK ccTLD). That's not evidence of strong demand. Is it possible that you could sell the domain for $400? Sure, it's possible someone may come across and feel it's worth it. But that's a guess that's based on luck more than anything else.
3) Finally, EstiBot valuations are not meant to be gospel. They are a fair value estimate of what an end user is likely to pay for a particular domain. As I mentioned before, domains are illiquid and thinly traded assets where luck may outweigh any data. However, in totality and with larger sample size, certain metrics are likely to result in greater value and sales than others. This is why we provide all of these other data points, and not just an appraisal. Any given sale can beat the mold, but in large sample sizes the statistically oriented methodologies tend to prevail."
