discuss Is it worth my time to go after domains appraised over $1,500 on GoDaddy?

[Outsomniac]

I know that some of you don't believe in the appraisal tools, and I know that some of you do.

I'm in the middle- not completely sure how to feel about them.

Am I wasting my time honing in on names that are appraised at or above $1,500 through the GoDaddy appraisal tool?

It doesn't really feel right to me to leave any names on the table if the appraisal is high.

What do you all think?

 

[gilescoley]

Yes, you are wasting your time with appraisal tools. Stay away from automated appraisal tools, the only ones who benefit are the registrars.

 

[biggie]

what did domainers do, before there were any appraisal sites?

they sold domains based on prices they conceived themselves or by consulting with peers who could give some insight.

nowadays, bot and algo's, have replaced thinking, and many have become the "end-users" of these tools.

the more you rely on them, increases the control they will have on pricing.

imo...

 

[branding]

GoDaddy values a domain at $223 for a deal I recently brokered at nearly 100K. Just saying...

 

[NYJimbo]

workfist.com

Estimated Value: $1,535

Do you really think this is worth registering ? Because it's available. Appraisal tools have an algorithm and if you figure it out, you can register hundreds of worthless $1500+ domains.

 

[ivey]

Nah, you have to develop your own eye for whats good.

You are the best appraisal...not Godaddy. Your brain is. You got this.

 

[bmugford]

You can basically find endless unregistered domains that are appraised in that range.
I am sure about 99%+ of them are likely worthless. Good luck finding the ones worthwhile.

Appraisals might be a good way to sort through long lists, but the actual number is basically meaningless.

Brad

 

[Bob Hawkes]

Domain assets (except for a small percentage of very liquid ones) are very difficult for people or robots to appraise with much precision.

I think the best way to view both appraisals (of the human kind) here or elsewhere, and automated machine ones such as Estibot, GoValue and NameWorth, is as a second opinion. By that, I mean first decide how worthwhile a domain name is based on criteria such as the value it would have to an end user, the potential pool of end users, past similar sales, the aesthetics of the name, etc. Do that before you ask for or get an appraisal - i.e. first make up your own mind after analytical work.

Then, after you have in your mind decided the relative worth of say 5 names you are considering, and perhaps a range of values for each, why not consult the automated tools to see if they confirm your opinion? They will along the way add information you might not have had (GoValue almost always does a good job with comparators and have sales not in NameBio, for example; while you can get the search/advertiser information in Estibot elsewhere, it is presented in a nice format, especially with the temporal graphs). If your opinion, and the opinion of others on NPs in appraisal thread or the automated worth estimates are very different, try to decide why. A second opinion is usually worth knowing, even if you don't think it is very accurate.

GoValue tends to appraise a huge number of coms in the $900 to $1900 range, so it may not be very discriminating.

Finally, even from the tiny sample of end users I have interacted with, at least in North America those who are seriously considering spending mid $$$ or more on a domain have probably stumbled on GoValue because GoDaddy is so big. So your potential buyers will know GV even if you disagree with it. I think that is why some well known names are angry with GoValue. I have sometimes picked up names even if I think the GV is way too low, but it is a negative to me, as it means potential buyers may well consult GD and think the domain should go cheap in those cases.

Bob

 

[Bob Hawkes]

All these appraisal tools should legally be enforced to have a giant disclaimer regarding accuracy.

They do actually have pretty strong statements already if you read the fine print. I do believe at registration/drop catch/auction there should be a disclaimer like financial products have. Most domains do not sell. There is no guarantee a domain will sell for a profit. Past results do not guarantee future performance. Etc.

GD would point out that about 90% of time sales price is within $2000 of GV valuation, and about 60% of time within $1000 (Paul N presented this in keynote at NamesCon Global 2019). I don't doubt that is right, but it is not as impressive as first seems. Most domains that sell are less than $1000. Most appraisals are about $1000.

What I think would be more realistic would be for them to give a range that reflects an uncertainty. That is, instead of $515 say $0 to $1000 and instead of $2100 say $1000 to $3000. Instead of $340 say less than $500,

Bob

 

[Bob Hawkes]

Some time ago I did a little analysis on how well GoValue did estimating prices for a set of 5N (com) domain names (arguably one of the easier to predict prices for). I did it within hours of the sales reported on NameBio, so supposedly the prices did not affect the predictions. GoValue didn't do a bad job on average, slightly over valuing them, and was a bit better than random in predicting which were more valuable (but didn't do very well at all). You can read the full details here.

I also did a similar analysis for a bunch of (mainly) single word.co sales. Here the differences were greater, but it actually did better (but by no means perfect) in predicting which words would sell for more. You can read the full details of that analysis here.

Of course both studies are based on too few sales to really be significant. As noted earlier, Afternic/GoDaddy do track the overall accuracy of their predictions. I suspect that feedback is why GoValue estimates change so substantially from month to month.

Bob

ps One advantage of using GoValue is that you occasionally learn interesting things. For example last night I discovered when it came up as a comparator a 5 figure APP aftermarket sale that is not in NameBio. If it was, it would be at least the second highest sale value. I wrote about it on NameTalent just now. I wasn't even searching an .app domain name when the comparator came up..

 

[Bob Hawkes]

do you ever get a chance to go outside and smell the fresh air?

It is very good advice @biggie and yes I do indeed. Just last week went tenting in a truly wonderful location, no internet, no cell service, no domain analysis. And I am fortunate to live where it is easy to walk in truly beautiful settings right in our urban area.

But we should all keep in mind the advice that you indirectly offer. Get outside, find balance in your life. Thank you for the reminder, and have a wonderful day.

Bob

 

[gilescoley]

Yeah, that does seem to be a pretty popular stance. I guess I should change how I operate and figure out better ways to supply good names to buyers that are actively looking.

Check out namebio.com everyday and also sign up with the DNJournal sales newsletter so you get an idea of what makes a name valuable. Read this forum for months before going pout and buying names, that will save you money in the long run. Focus on a niche you are familiar with buy a couple of names and then try and sell them, dont fall for the hand reg frenzy and end up with 50 names you cant sell. Once you get a sale, reinvest that money into more names.

Emailing existing owners of good names to try and find bargains, or watch expiring lists, dont go and hand-register available names, they are available for a reason.

Good luck

 

[ivey]

GoDaddy values a domain at $223 for a deal I recently brokered at nearly 100K. Just saying...

I think that's what some big name domainer..maybe mike mann was complaining about i think. That he's losing sales because Godaddy shows some kind of estimated price or related sales next to names. Sometimes way way lower than what he sells for or what the name is valued. And as you know... powerful trends can skyrocket a average names value like bitcoin, and libra and vr etc.. and a tool won't know how to calculate that correctly.

 

[gilescoley]

Why would the registrar benefit? It is a free tool... I would understand benefits if it was a paid tool.

They benefit hugely because new domainers see the Godaddy appraisals and then go and register the domain, and where do you think they will register the name? You only have to look at the thousands of worthless names being regged after seeing an automated appraisal, especially Estibot. Registrars must love the these automated tools.

 

[wwwweb]

Why would the registrar benefit? It is a free tool... I would understand benefits if it was a paid tool.

As well this tool appraises worthless names in auctions newbies bid up for house auctions that then end up overpaying for only to find out there are no other interested users other than the friendly bidding bot run by huge names who is happy to run you up, and turn an $11 name into a $200 name, all profit for the house.

People are actually falling for this, and in about 3 years these names will be dropping again. It’s really sad to see how many people have no idea what they are doing.

 

[DomainRecap]

I think basing your decision (to register or not) just on appraisal value ALONE is wrong.

Exactly, and it's just one tool in your arsenal - personally, I totally disregard the specific dollar value of the appraisal and instead concentrate on its relative positioning against others.

For example, if you take 10 random domains valued at $1500 and 10 random domains valued at $5000, I can guarantee that the majority from the $5K group will be preferable and more marketable than the majority from the $1.5K group.

It's really just a sorting tool prior to the "eye test" and other factors. The dollar amount doesn't matter in the least.

 

[imadoer]

Why would the registrar benefit? It is a free tool... I would understand benefits if it was a paid tool.

The reason behind this tool was to keep people from selling their domains to domainers for reasonable prices. Godaddy wants to sell everything. Screw the little guy.

 

[BarryDavis]

I bought 0dn dot com for $395 years ago. It's appraised on go daddy for around $2100. I bought the name to generate leads for real estate agents and lenders. 0 dn is short for zero down. At one point the site generated 400 to 1000 leads a day and I was offered $7 per lead.

I own adsandclassifieds dot com. I paid around $800 for the name.The name is appraised at only $1540 on go daddy. This site has well over 200 thousand advertisers. The name autoclassifieds dot com sold for $110,000 in 2008 it has no traffic and no site. Estibot values the name at $117,000 and go daddy values the name at $12,666. The range in value is dramatic. What's it really worth?

In my opinion both of my names are undervalued. And that is fine by me. It helped me get a better price. I find it difficult to appraise most domains. The reason is I like only 1 out of every 1000 names. Even though I know each name has a value I really do not know how they would be put to good use.

Homeless dot com was for sale on go daddy. Estibot values it at $197,000 and go daddy valued the name at over $25,000. I believe it is valuable but I have no idea how I would put it to good use. I offered $12,000 and the counter was something like $200,000. I would've paid more but nothing close to $200,000 so I lost interest. Later go daddy posted it sold for $25,000.

I bought fwb dot net for $800 and was offer $2,500 shortly there after. Go Daddy values the name at $3242. I registered the name superapp dot co for less than $9 and was offered $5,000 for the name two months later by an ex twitter VP. Go Daddy values the name at $874. I never sold fwb dot net or superapp dot co I still own both names.

Bottom line I value appraisals or any other tool I can get my hands on to evaluate or do my research. But I rely on my own instincts, skills and hunches.

I had a chance to exchange emails with Rick Schwartz "The Domain King". He didn't agree with my line of reason. I don't blame him he's doing much better with his own approach. The difference between the two of us is he deals in gems. I have to look for diamonds in the rough. Maybe some day I will sell adsandclassifieds for millions and I will be able to write him and say I told you so. And I truly believe Rick is the kind of person to say congratulation. I have a lot of respect for Rick and his huge success.

 

[Outsomniac]

Check out namebio.com everyday and also sign up with the DNJournal sales newsletter so you get an idea of what makes a name valuable. Read this forum for months before going pout and buying names, that will save you money in the long run. Focus on a niche you are familiar with buy a couple of names and then try and sell them, dont fall for the hand reg frenzy and end up with 50 names you cant sell. Once you get a sale, reinvest that money into more names.

Emailing existing owners of good names to try and find bargains, or watch expiring lists, dont go and hand-register available names, they are available for a reason.

Good luck

For sure- thanks! I do enjoy looking through NameBio, some of the names I think "Really someone would pay that much for that?" But most I think, "Yeah, that makes sens."

Thankfully I've disciplined myself enough to not just throw my money and any and all names that I come by that I personally think sound cool or will definitely sell. So far I've been focusing on registering 1 or 2, then not registering anymore until I can sell those for at least a little bit of profit. And you're absolutely right- these names are available for a reason. If someone truly wanted it, it would have been taken a long time ago. I will definitely spend more of my time focusing on checking up on names that are expiring or going for a bargain.

Thanks again for the feedback!

 

[iAchilles]

GoDaddy values a domain at $223 for a deal I recently brokered at nearly 100K. Just saying...

Share that data with GD and the valuation jumps to 100k, it's irresponsible. All these appraisal tools should legally be enforced to have a giant disclaimer regarding accuracy.

 

[branding]

Share that data with GD and the valuation jumps to 100k, it's irresponsible. All these appraisal tools should legally be enforced to have a giant disclaimer regarding accuracy.

I guess you're right. That's the issue with private sales. I like data being available but at the same time I hardly ever report a sale. I use a opt-in model to disclose sales and most clients don't opt-in.

I like it this way as usually it's not in a buyers best interest to have it publicly available. It's unfortunate for the aftermarket, but I value their privacy above everything else.

It's hard to get good insight in private sales. Ultra premium names won't go unnoticed but there's a lot of trade going on that remains undocumented.

 

[lock]

doapoo.com $1.100 https://au.godaddy.com/domain-value...checkAvail=1&tmskey=&domainToCheck=doapoo.com
do-a-poo.com $140 https://au.godaddy.com/domain-value...eckAvail=1&tmskey=&domainToCheck=do-a-poo.com
See every name makes you rich lol

 

[frank-germany]

the main problem with the appraisal tools is not that you register worthless domains
but that you underestimate a valuable domain and sell it by far to cheap

the next main problem is that you don't train your brain
and / or neglect what your intellect tells you
and instead trust those tools

that will never work

 

[Outsomniac]

Nah, you have to develop your own eye for whats good.

You are the best appraisal...not Godaddy. Your brain is. You got this.

Thanks for the words of wisdom and encouragement.

 

[lock]

I wouldn't use a valuation tool to decide for me. If you appraise a name and they validate your speculation then you may see it as a contributing factor. I would ignore a bots valuation on its own as everything I type in says it has value anyway.

 

[biggie]

I did a little analysis

I also did similar analysis

I wrote about it

seems like you spend lot of time reading past sales and analyzing robot results.

do you ever get a chance to go outside and smell the fresh air?


imo....