GoDaddy Estimated Values - Are they useful

[Jonathan MacDermid]

Hi All,

Does anyone know if the Godaddy estimated values for websites are in any way accurate?

For example, could you use a % of the Godaddy Estimated Value to promote selling the domains.

Thanks in advance.

 

[Domain Executive]

Estimation tools give you an order of magnitude such as $XXX, $X.XXX (low/high), $XX.XXX (low/mid/high). They may value the very same names differently and they are generally not good at valuing brandables.

There are always exceptions but, if GoDaddy values a domain less than $1K, which includes dictionary words without typos etc, there is a high probability that the domain is not valuable. If GoDaddy values btw $1K-$1.6K, there is a high probability that the domain is moderate. If GoDaddy values btw $1.7-$3K, there is a high probability that the domain is becoming valuable as valuation approaches $3K. If GoDaddy values higher than $3K, there is a high probability that the domain is valuable. GoDaddy doesn't give valuations beyond $25K but it says more than $25K. I assume people playing with names valuing $3K+ already knows how to value their domains themselves.

Using GoDaddy & Estibot together with similar sales from NameBio & DNPrices may give you better results overall. You can simply take their average by leaving the outliers out if any.

For the ones new to the industry, I recommend using these tools especially to train themselves in order to make better valuations on their own. Valuation highly depends on what's in buyer's mind for that domain after all. Valuation tools are also helpful for sellers negotiating with buyers who don't know the industry. Hope this helps.

 

[Mister Funsky]

Using GoDaddy & Estibot together with similar sales from NameBio & DNPrices may give you better results overall.

This is what I do and then I add a dose of my own past experience and some gut feelings and then I price the domain.

 

[Airship]

Hi All,

Does anyone know if the Godaddy estimated values for websites are in any way accurate?

For example, could you use a % of the Godaddy Estimated Value to promote selling the domains.

Thanks in advance.

GoDaddy just want you to buy their domains. It’s not accurate at all.

Domains are only worth what someone will pay for it.

 

[BrandCougar]

During the Namescon Youtube video, Paul Nicks mentions that they have acquired several large portfolios.

He also mentions that GD clusters their inventory into 13 different tiers (clusters) for management purposes an also when pricing a portfolio for acquisition.

My question is... does anyone have an insight to what their "Sweet Spot" items are being priced for acquisition purposes?

"Sweet Spot" items being the $1k to $5k valued names. As Paul mentioned, 55-58% of their aftermarket sales occur in this price band. Reference: 12:28 timestamp into the video.

I am curious what multiple they are paying during acquisition for the "sweet spot" price point items. (ie- what sort of "wholesale" pricing is being offered for domains priced in the "Sweet Spot")

Having a sense of "wholesale" pricing would help put context to their GoValue tool from a reseller (domainer) perspective.

Any insight?