discuss GoDaddy Gives Big Bump To 4L .com Domain Values

[Silentptnr]

I noticed this morning that the automated valuations of 4L .com has gone up dramatically.

Not sure why but many of my 4L .com domain automated values have more than doubled!

 

[wwwweb]

Nothing unexpected here. Domainers are still overpaying, and hugedomains bot is still inflating the prices on expired auctions. Valuations are shown there. GD must have noticed decreased renewal rate, which is natural. So, GD+hugedomains decided to extract as much $$$ as possible from domainers...

Tony makes a good point, you see any name in auction, or in the sales marketplace with price of $1,888 with an appraised value of $2,450 you won't be that inclined, but if you see a valuation of $4,500 you will be more inclined to purchase. They may have adjusted their valuations, but what is it based on, are you guys getting 30% more for your domains now than 6 months ago?

Otherwise I think it is a genius move to get higher pricing in auction, and in marketplace listings. When you appraise something for higher, and buyers who are not very educated on valuations, lean on those numbers with a trust factor, it will lead to more people hitting the BIN button thinking they are buying value. I still think the tool is dangerous for big ticket domains in the $8K-25K range, which can lead to some real lowballing, or under valuations from end users.

 

[Bob Hawkes]

Being so integrated with what they regard as comparator sales, I think a few large sales in a category, or a few small ones, can drive GoValue up or down rather strongly, whereas Estibot seem much more unchanging.

GoValue moved values around even more in the early days, in beta, I think, perhaps due to changing the algorithm as well as new values. For example I would notice all the times valuations changing by a factor of 2 from week to week. Past months have seemed more stable, but still changing.

I noticed that .ca valuations also seemed to jump up within last month or two (admittedly I don't have enough old records to be sure - but it seems to me they are valued more highly now). I presume with so few sales listed it only takes a few big ones to change that.

Some other extensions and types of names seem slightly or significantly down.

Anyway, we should always view any automated appraisal as a second opinion, and first and foremost do our own detailed evaluation that takes into account the type of name, semantics, comparator sales, competitors, oral and visual strength, etc.

Thanks for alerting us to the change in 3L, 4L automated valuations, @Silentptnr

Bob

 

[tonyk2000]

Nothing unexpected here. Domainers are still overpaying, and hugedomains bot is still inflating the prices on expired auctions. Valuations are shown there. GD must have noticed decreased renewal rate, which is natural. So, GD+hugedomains decided to extract as much $$$ as possible from domainers...

 

[HotKey]

Hmm, likely just another a bug. Better report this to the GoDaddy Bugs thread;
https://www.namepros.com/threads/godaddy-bugs.1137384/

Otherwise, the only way to truly determine value is by combining biggie's success formula:

iq + $ + D*1 + M*1 + AP + (S*1 x E*1) / OT = POS © biggie.us

where
iq = intelligence
$ = capital
d1 = desire
m1 = motivation
ap = aptitude
s1 = skills
e1 = experience
ot = other tangibles
pos = possibility of success

and urljunky's pricing formula:

If I had a domain "picturepalace.com" and I was going to sell it. and i use the formula of key word search volume times 35% click through rate times cost per click times 10 months. so picture has lets say 5 million searches and palace has 1 million searches. palace cpc is .20 and picture is .35. (this is all hypothetically speaking.) and the exact phrase match is low, but it is brandable. so 35% of 6m is 2,100,000. lets average out cpc to .25. so 2,100,000 x .25 = $525,000. now would i multiply $525,000 x 10? or is it worth $525,000? or does that formula only apply to exact phrase domain names?

and that should help the real valuation.

 

[brandpainvestment]

This is the result for few of my names. All data are given in that image.

 

[biggie]

They may have adjusted their valuations, but what is it based on, are you guys getting 30% more for your domains now than 6 months ago?

good question

Otherwise I think it is a genius move to get higher pricing in auction, and in marketplace listings. When you appraise something for higher, and buyers who are not very educated on valuations, lean on those numbers with a trust factor, it will lead to more people hitting the BIN button thinking they are buying value

the move is genius, if it was manipulated by "them",
but it also reveals the psychological effect bot appraisals have
.
as what if they decide to lower values, after they sell off their 4 letter?

I still think the tool is dangerous for

sorry I cut your quote, but to me, it's dangerous because it has power to control pricing and sales

not looking forward to seeing a bot be the federal reserve of domain name values

control is coming....

imo...

 

[Silentptnr]

Leir (com)

Was $6491
Now $9323

 

[Mister Funsky]

I did a spot check of a few 4L, 5L, and 6L .com names.

4L had increases from 2x with the highest being 4x previous value.
5L had some increase from .5x up to 1.5x previous value.
6L had minimal increase if any.

Thanks for bringing this to our attention.

 

[Samer]

ogwe (com)
Was $1503
Now $2969

iknj (com)
Was $626
Now $2073

Found Excel downloaded, still with GD
Used figure under "Estimated value"

Date: 11/29/2019

 

[Samer]

what about 5L coms?

I have Two 5L.com in Excel 11/29/2019
Downloaded off GD, so had past Govalues.

Gtore (com)
Was $1099
Now $1309

zulty (.com)
Was $1481
Now $1,747

4L.com doubled, even 4x value.

5L.com only got ~$300 added.

 

[tonyk2000]

How will the new assigned values extract more from domainers? Do you think the new assigned values are too high?

Higher "appraisal" --> higher sales prices. Preferably, paid by domainers (not hugedomains, they are not actively looking to win)

 

[EmpireNames.com]

I have seen it

Smokefree jumped to 24000 from 16000
Chained jumped to 23000 from 14000
Aqualife jumped to 24000 from 13000

I saw many names appraisal jumped

 

[D Haynes]

From what I've seen, the real world value of 4L is dropping daily. People are struggling to liquidate them for over 100 bucks (random letters). The Sedo auction that just finished didn't have even 99 dollar bids on a lot of names with under a day to go.
4L that are pronouncable or are words in themselves have always had a higher value anyway.
GD bumping up prices could be a reaction to people staying at home more atm and maybe looking into starting online businesses or it could just be good old fashion market manipulation.

Either way, who gives a s**t what GD think?

 

[Silentptnr]

It seems all short domains! 3L, 4L, etc.

Examples:
xus.org was $2437, now $4468
prge.com was $1540, now $4070
xafl.com was $1430, now $4263

and so on...

Not sure if it's a glitch or what, but definitely domain values according to GoDaddy have gone way up!

 

[BrandCollectors.com]

what about 5L coms?

 

[biggie]

Do you think the new assigned values are too high?

lol

that's funny

cuz, basically you asking him, if an appraisal bots value, is accurate or not?

time for a blunt...

imo...

 

[Joshh71390]

Hmm who knows, maybe they are trying to scale up thier pricing in the future and are starting with the "value" of names first to justify the increase. Or it could be based on overall market data who knows. Only time will tell what the reasoning is.

 

[Bob Hawkes]

Is my logic right in the following?

• 3L / 4L disproportionately (to entire market) sell to Asia, either to end users or domain investors?
• If there was a jump, does that mean that, at least on GD/Afternic, that part of market has become noticeably more active and higher value recently?
• Is there independent evidence of new strength, in short lettered .com at least, in Asia in recent months?
• A test on this might be to look at mixed mode (letter-number memorable short combinations) and number domain names to see if they also are up in value, since I am pretty sure they disproportionately sell in Asia, as to .cc domain names, I think. Only possible if someone has old records.

The above is just a hypothesis, so don't interpret that it is fact please .

In summer 2018 I did a study of 30 5N .com GoValue estimates that I checked within minutes of the sales all on one day getting listed on NameBio, so hopefully prior to any adjustment due to sale. I did this to check how accurate GoValue was, and actually developed a formula for relating sales value to predicted value. In theory, this might be helpful to compare now for changes, but these particular sales are now in database so probably one can't use the exact predictions. Anyway, I thought I would share it.

Bob

 

[EmpireNames.com]

that’s not a jump

that’s getting upgraded several times

I meant same as you are saying just wrote jump instead of upgraded

 

[NameBuyer.com]

I do agree with GD on this buff, because previously 4Ls were appraised at wholesale values, thats because most historical 4L sales were between resellers and thus this influenced automated appraisal heavily. In the past I had many 4Ls appraised between $100 to $200 by GD, that price range is what we pay here in NP to buy 4Ls not what end user could pay!

Agreed, any significant increase is a win for the industry. End Users see these estimates when searching for domains via GoDaddy during their buying process.

The situation shouldn't exist where we are selling domains for 3-10+ times the GoDaddy estimates, but many are. This only drives prices down by giving consumers inaccurate information.

 

[Silentptnr]

When you last checked ?

Well, I check all the time.

My last full update of values was in January 2020.

 

[Samer]

Long overdue, if true.

Conspiracy; i think GD purposely under-valued "liquid", inflated the rest.

Now fix appraise 90% .com $1K+ add dates to sales "comps"

 

[brandpainvestment]

It seems all short domains! 3L, 4L, etc.

Examples:
xus.org was $2437, now $4468
prge.com was $1540, now $4070
xafl.com was $1430, now $4263

and so on...

Not sure if it's a glitch or what, but definitely domain values according to GoDaddy have gone way up!

Totally agree.

Sending the updated valuation asap here.

 

[Mister Funsky]

sorry...namepros has been goofy for me for about a day...duplicate post from above.

ADD: I wonder if data from uni and/input from uni employees had some influence on the change?