Godaddy appraisal - A scam?

[abstractdomainer]

I have been seeing a lot of threads in the appraisal section where people usually mention the appraisal that they get from Godaddy, which everyone in the industry knows, is misleading.
I think they introduced the appraisals so that people who search for domain names end up buying it thinking that there is a value to the domain (most of them at low $$$$ like $1,471 etc.)

This, I believe is extremely misleading and unjustified to people starting off. They end up purchasing literally useless domains.

What is your thought on this? Is Godaddy doing an unfair business or are people not active enough to do their research before they buy a domain name?

 

[johnn]

You have option to use it or not and they are not taking your money so how can it be a scam?

To me this is a nonsense thread unless you want to get attention from people because you are new.
Whatever the case the accusation is WRONG.

 

[koolishman]

You have option to use it or not and they are not taking your money so how can it be a scam?

To me this is a nonsense thread unless you want to get attention from people because you are new.
Whatever the case the accusation is WRONG.

Why is it wrong?

 

[Samer]

Why is it wrong?

because @johnn is a godaddy loyalist

godaddy appraisals are joke, intended inflate.
Disregard all appraisals under 2k.theyre trash.
The ones above 2k are rarer, maybe are value.
like all tools it’s how you use it

wanna know the biggest indication youre new?
when u try use GD appraisal to justify ask price

Samer

 

[Rhinnnn]

Scam is not the word to use here.

GoDaddy has a disclaimer regarding its appraisals:

"The Estimated Value is based on an algorithm utilizing data GoDaddy has available to it to help estimate predicted sale price of domains. However, we do not make any guarantee or other promises to any results that may be obtained from your purchase or sale of any domain, and this is not intended as a solicitation or offer to buy any domain. It is your responsibility to independently assess and determine the value of any domain you may purchase or sell. We shall not be liable for any losses you or anyone else suffers as a result of relying on the Estimated Value, which includes not being liable for any loss of profit, loss of bargain, loss of capital through over-payment or under-sale or for any indirect, special or consequential loss."

Of course, many inexperienced users register domains based on GoDaddy's evaluation, thinking they could sell them for a profit later. And that almost never happens. But, given the disclaimer above, GoDaddy is not at fault here.

 

[karmaco]

All current appraisal services are pretty lame. While I like that the tool is free and offers some comps and knowledge about high value words it is a detriment to the domainer as sooner or later someone says GoDaddy says its worth $1700 why are you asking $5000 for it, etc.

 

[Samer]

All current appraisal services are pretty lame. While I like that the tool is free and offers some comps and knowledge about high value words it is a detriment to the domainer as sooner or later someone says GoDaddy says its worth $1700 why are you asking $5000 for it, etc.

Exactly.
GD sales’ comp on bottom page more valuable

Only GD appraisal above 4k is bonafide “gold”.
in my eyes, usually people go for above 2K.

 

[Josytal]

Automatic Appraisal has little or nothing to do with market price.

 

[koolishman]

Automatic Appraisal has little or nothing to do with market price.

True.

The value is the price right buyer(end user) is willing to pay.

 

[Pay.My.id]

Never use a valuation tools seriously , there are many inaccurate domain valuation tools , but we don't need says that their service is scam , bad , and unfair. Value of domain determined by our buyers , its doesn't matter how valuation tools give their result.

 

[Josytal]

To me this is a nonsense thread unless you want to get attention from people because you are new.
Whatever the case the accusation is WRONG.

Beg to differ.
The question is not nonsense. In fact we should encourage such.
Newbies reading the thread can now learn that some of the popular domain tools they might take for granted is, mildly put, misleading. Automatic appraisal value should not be the rationale behind the price your pay for or the $amount you ask for a domain. IMO.

 

[lock]

I would hate to be a vulture but there are names that will rate with algorithms by bots that will not be first second third fourth choices for end users. You need to be in the running for the industry your chasing.

 

[pb]

GoDaddy putting a $1500 appraisal next to a worthless expiring/closeout domain is one thing.
GoDaddy putting a $1500 appraisal next to a domain you're selling for $5000 through afternic is another.
The first one is just misleading. The second one is downright harmful.

 

[BrandPlease]

This is the key to "value" you can get from automated appraisals in general - comps, also what that particular platform uses as comps

free and offers some comps and knowledge about high value words

- it can be interesting to see the category, language, etc. that is assigned vs. what you believe it should be. There is lots of interesting information - the $ amount being the least.

 

[BrandCollectors.com]

Only GD appraisal above 4k is bonafide “gold”.
.

gold?

look godaddy Value for
usa.estate

Estimated Value: $4,377

nobody wants it for 125

 

[Samer]

gold?

look godaddy Value for
usa.estate

Estimated Value: $4,377

nobody wants it for 125

what is “.estate”?

Sorry i meant for .com

 

[BrandCollectors.com]

what is “.estate”?

Sorry i meant for .com

. estate is for realtors, a short version of "real estate ".

btw I have a. com with estibot value 5,900, govalue says 1,807
which is more accurate? the name is THE-CARS.COM

a similar name the-race.com recently sold for 5k on godaddy

 

[pinkdragon]

I find it useful for comparable sales, and not for appraisals.

 

[BrandPlease]

@BrandCollectors.com - be careful, neither is "really accurate". What you want to do is look at the traffic -Exact Match traffic, put it up for parking for a period of time. With real traffic, you can prove real CPC(etc.). That is the approach that will get a business's attention.

You will get a better idea of sales comps (think home/condo real estate agent type property comps) for each source and using those to better determine your names value. Make sense?

5K visitors a month for a niche market, that can be translated to real world ads cost, - you have a value pitch to open. Good Luck

 

[namemarket]

.....What you want to do is look at the traffic -Exact Match traffic, put it up for parking for a period of time. With real traffic, you can prove real CPC(etc.). That is the approach that will get a business's attention......

I don't think so! In all my years of domaining I only had one end-user buyer or inquiry who ever asked anything at all about traffic or stats. It's extremely rare they care about it for reasons I won't cover at this time.

 

[gilescoley]

The appraisals are ridiculous, but its up to you to research a domain value and learn the industry before believing a registrar, who just happens to benefit if you believe their inflated appraisal. A little common sense is needed here. They aren't forcing anyone to do anything, the domainer is to blame here.

If you're buying a car and one caryard prices a car at 55k and the one down the road sells it for 60k, and you buy the 60k car, are they scamming you? Is this a dodgy sales tactic? Nope, its everyone trying to get top dollar for their product.

 

[BrandPlease]

@namemarket Agree with you when it comes to passive or end user driven purchases. I also certainly recognize you have been at this far longer than I - so I read you comments and pay attention to what you are saying.

I am referring to outbound sales (maybe you were too, but I missed it), as this gives you a professional, industry expert appearance - + you can wrap hard #s that matter to finance executives in the decision making process. This is my experience. biut I also focus on a particular market - healthcare and health finance, so I may be be catering to that segment.

 

[namemarket]

@namemarket .....I am referring to outbound sales (maybe you were too, but I missed it),....

Actually I am he one who missed that you were referring to outbound sales because I was only referring to passive inbound sales. I agree outbound sales can be helped with good stats.

 

[IMA]

Online Free Appraisals = "previous sales" data only...

So 99% No Use...IMO..

On Today's Internet...

You Have To Be Looking at These For Proper Valuation Of a .Com:

1.FB Size Of Interest, Shares OF Hashtags#, Pages, Groups, Related To Topic
2. YouTube Views, Channels Related To Topic
3. Amazon Ranking Of Products Related to Topic
5. Reddit.com Subreddits Related To Topic
6. Google.com Search Vol + CPC/PPC* drama
7. Hot Online Trend NOW question? (IGrammerzzzzz pimping the prddtss in topic?)
8. Blogs # of in the topic


This is on TOP of "previous sales"...

 

[abstractdomainer]

Scam is not the word to use here.

Of course, many inexperienced users register domains based on GoDaddy's evaluation, thinking they could sell them for a profit later. And that almost never happens. But, given the disclaimer above, GoDaddy is not at fault here.

In that case, you would label it as a business tactic? Because it influences people into buying useless domain names.

All current appraisal services are pretty lame. While I like that the tool is free and offers some comps and knowledge about high value words it is a detriment to the domainer as sooner or later someone says GoDaddy says its worth $1700 why are you asking $5000 for it, etc.

A lot of people asking for appraisals list down the Godaddy appraisal as a benchmark. Godaddy, as someone who has a big market share, is a platform that people trust. With everything. Whether appraisal, hosting, whatever.
That makes the appraisal a concern, and a question that I posed.

Never use a valuation tools seriously , there are many inaccurate domain valuation tools , but we don't need says that their service is scam , bad , and unfair. Value of domain determined by our buyers , its doesn't matter how valuation tools give their result.

They are usually use as a reference when quoting a price to end users. As in, this is what Estibot or Godaddy says, the value is. I think this should be the price.