GoDaddy Monetizing their Domain Appraisal Tool

[DomainRecap]

I think we all know about the GD shareholders issuing various threats to management to "make more money... or else!" and I got another rude (but not unexpected) awakening this morning when I discovered that GD has now monetized their Domain Name Valuation and Appraisal Tool.

The current limit is only 3 appraisals per day, which is next to useless. Before, I think they would give out 20 free appraisals, then time out, which seemed fair. But 3? Yeesh.

I knew this would happen eventually (in the face of an investor revolt, GD is monetizing everything that isn't nailed down) but I thought we might be safe with a GD Domain Auction Membership and be allowed a small amount per day.

I saw a note at the bottom that gave me hope, but unfortunately only "Discount Domains Club Premium Members get 150 Appraisals per day" and nothing for Auction members or anyone else. Thanks GoDaddy!

For a lot of people this makes the GD Valuation Tool a useless metric and potentially a historical footnote.

 

[DomainRecap]

I've seen it before... Investors try to maximize short-term gains by demanding companies make changes or sell off "non-core assets." Then they abandon these companies as their own demands lead to decline and eventual bankruptcy.

Yep, as at a certain point all these knee-jerk companies run out of assets to sell, workers to fire and products to raise prices on, and suddenly realize that by following short-term investor demands (and being pumped-and-then-dumped by said investors), they've cooked their own corporate goose.

 

[Bob Hawkes]

While it is natural for services to increase prices, this does seem dramatic! I can only see services that will use the API (e.g. a marketplace or worth tool) or very big sellers who might use the results as filter on what names to consider. The API access probably indicates that is the market they see.

One can still get valuations only on names if you list them in Dan or on Afternic, without a limit beyond them being listed. There are of course various other appraisal systems as well.

The change that most concerns me, however, was that the limited "free" appraisals no longer provide comparator sales. In my opinion that was the most helpful part, since most Afternic sales are not part of NameBio.

If you already are a Domain Discount member, the 150 max/day listing as a Domain Academy Tool works well. You submit a list, and within seconds get back the results in spreadsheet form for the entire list. It has multiple columns estimating wholesale and retail prices, and probability of sale at various price points, but at least when I had an active membership, the validation of the probability estimates was not explained.

In terms of number of appraisals an investor might use, most savvy investors will consider many more names than they will ultimately try to acquire.

-Bob

 

[DomainRecap]

The change that most concerns me, however, was that the limited "free" appraisals no longer provide comparator sales. In my opinion that was the most helpful part, since most Afternic sales are not part of NameBio.

GoDaddy has made their Domain Valuation Tool not only exorbitantly expensive, but less useful as well.

 

[zotix]

Hi

i'd be asking...
why would anyone purchase their "premium parking service" or pay to join the ddc?

the juice certainly can't be worth the squeeze.

seems like gd keeps finding more ways to get $ from your wallet.

imo...

Believe it or not, at least the monthly costs I always had In; since there were around 200 Domains in my GD portfolio, domains, like "Cloudconsulting" (I don't remember the TLD) had quite good CPC and searches.
And even other Domains, but since im selling a lot right now, it would be advertising, thus I cant go into more detail.
Actually, It was not that bad. But it was nothing that SEDO Parking Service could achieve as well.
Thats why i cancelled (monthly Subscription)

 

[zotix]

I depended so much on their appraisal how darn they

May I ask why you disliked expressing my own experience?
And you are writing just one sentence without putting even a Dot at the end.

Best regards
zotix


Edit:

@DomainRecap

Wrong again, as there was always a limit and if you went past it, the Valuation tool would error out with a "You have used up all your valuation requests" (or similar). I think it was 25 or maybe 30 queries before it crapped out, and I was okay with that number. But 3?

This was their initial Plan of them.
But if you have a VPN, you could go to Inkognito and do it as often as you want, and you could also do it on your Mobile phone's 4 G network.
So i think, there was brutal traffic on this tool.
There might be a solid business case.
But as i said, you cant measure the emotional factor of GD-Portfolio Holders.
It's not like they are the only Registrar worldwide or have such a dominant power.

Best regards,
zotix

 

[BestLinks.win]

The change that most concerns me, however, was that the limited "free" appraisals no longer provide comparator sales. In my opinion that was the most helpful part, since most Afternic sales are not part of NameBio.

I agree. Sometimes it provided the only way to find out about a previous sale of a certain domain. People are less likely to pay for the service if they don't see this benefit when testing it out.

 

[Samer]

NoDaddy (!)

 

[wh0isthis]

no need to use any service offered by godaddy.

 

[zotix]

Well that's a bit harsh, even though their pricing strategy is totally wrong from my point of view. I can understand that they have a big block on recurring costs and keeping the power in market, also coasts a bit of money.
Need to go into deeper analysis, but starting with offshore agents in Jamaika is literally the first signal that cost reduction < Service Quality, not that everyone in those countries are bad. But those are signs that show clearly, expenses are a prio 1 topic. While others are selling domains for peanuts, they rather sell, just to their membership:

You pay 220€ (in my particular case) for „up to 60% Discount“ on Domains, which is listed as 10€ for .com regs , but renewals and outbound.

0€ advantage so far compared to other registrars.

- Domain Academy: don’t know what that is
- Premium cashparking 80% - as I said, you can get it for standalone 10€ I think. 10€ per month / which makes 120€ per year
- Auctions Membership: 5-6€ per year as far as I remember

- Domain broker service - with 75% discount. I would like to see their conversation rate.

- 150 free appraisal - nothing to say.

---

This means: if you buy the highest package and pay 220€ upfront you get a direct advantage of the half.
Don’t know if academy is worth 120€

Additionally you have the keyfact in mind, that you get 60% discount on domains. Yes, according to their pricing list.

---

There are so many strategies to create a good turnaround strategy - this one is only shareholder based.
Well, most of the company’s fail someday.. once’s, twice etc.

---

can’t understand this approach.
At least a friendly person from GD in this chat, reading experiences and opinions, of people godaddy is earning from. Does not apply to people who search for the best domain registrar to create their e-commerce shop and that’s it.
For those purposes godaddy is a good pick.
But even Hostinger is cheaper.

Don’t know

Best
Z

 

[Ashash]

I've seen it before... Investors try to maximize short-term gains by demanding companies make changes or sell off "non-core assets." Then they abandon these companies as their own demands lead to decline and eventual bankruptcy.

Ebay is a good case in point, shuffled off all the mom and pop sellers by constantly increasing their listing and success fees in their determination to emulate Amazon. What they didn't seem to realise is that the "online garage sale" was the differentiating factor of their site and the appeal to buyers. I was a huge ebay user in the early days, all sorts of weird and wonderful treasures were to be found. But investors wanted more more bang for their buck, ebay changed all the rules and upped the fees and now they are now just another chinese marketplace, but not able to keep up with the big boys.

 

[Mister Funsky]

Ebay is a good case in point, shuffled off all the mom and pop sellers by constantly increasing their listing and success fees in their determination to emulate Amazon. What they didn't seem to realise is that the "online garage sale" was the differentiating factor of their site and the appeal to buyers. I was a huge ebay user in the early days, all sorts of weird and wonderful treasures were to be found. But investors wanted more more bang for their buck, ebay changed all the rules and upped the fees and now they are now just another chinese marketplace, but not able to keep up with the big boy

Well said.

I got onboard with ebay from the early days...ah, the good old days. I was so wide open, I had two accounts due my differing products.

Yep, when a company starts down the road of 'appease', it can end up disastrously. Usually it takes a changing of the guard to repair things and that might be happening soon at daddy.

 

[zotix]

Dear @James Iles ,
dear @LaszloSchenk ,

I think I found a little bug on DAN. There is a little thing you must adjust since GoDaddy no longer provides free appraisals.
On DAN, getting the automated Appraisal for any Domain without Verification is still possible.
Just FYI

Kind regards,
zotix