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

[DaveX]

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!

 

[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.

 

[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.

 

[Samer]

Tony makes a good point, you see any name in auction, or in the sales marketplace with an appraised value 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?

My data is from 6 months ago (Nov 29, 2019),
but literally feels like change made overnight. @Silentptnr feel followed govalues religiously. wouldnt notice for years if didnt point it out

Samer

 

[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

 

[brandpainvestment]

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

 

[Samer]

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

Thank you for the added sample

The more data the better.

This was done so swift and suddenly,

 

[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

 

[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...

 

[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

 

[Samer]

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

that’s not a jump

that’s like getting upgraded several times

Well done, now we know true EMD can double

 

[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

 

[MA000]

Uaav .com => still the same estimated value @ $4,026

 

[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?

 

[brandpainvestment]

Uaav .com => still the same estimated value @ $4,026

When you checked last ?

 

[MA000]

When you checked last ?

i checked one week ago and i checked today.

 

[brandpainvestment]

i checked one week ago and i checked today.

That is very little time frame.

If you checked atleast three months approx ago, you can see the difference now.

 

[brandpainvestment]

Thank you for the added sample

The more data the better.

This was done so swift and suddenly,

Welcome.

 

[PhongSGC]

Not com, all increased for my current list & wish list

 

[King]

Like if their valuations were useful anyways

 

[Ostrados]

I noticed this change 2 months ago were all my 4Ls doubled & tripled in value.

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!