People are getting fooled by GoDaddy appraisal

[Arpit131]

I have been watching a lot of posts referring to Godaddy appraisals.
They have a typical appraisal range of $1399 and above for very crappy names. A lot of these can be found in n number of facebook groups where people expect to sell domains for $4500 kind of range in reseller market!

A lot of newbies are falling in trap by seeing that an available name which has a 4-figure estimated value is available for registration fee.

This is where they tend to purchase 10 names and above for $10+ each. Then they wonder why they are not able to sell it.

Do you trust Godaddy appraisals even 1%?

I feel that it is misleading newbies and a lot of domainers into trap with the appraisal value.

Thoughts are appreciated!

 

[Ostrados]

@Bob Hawkes
That what I understood at first that it is an error margin of +-$1000 .. but I was on doubt that I understood it correctly after seeing the video where GD presenter seems proud that they achieved 60% within only $1000 error margin! I thought maybe he is talking about something else because nothing impressive of what he is talking about . So if GD appraisal was $50 and the domain was sold for $1050 then they did decent job within $1000 error margin? and the $2000 margin is even more laughable

 

[DomainRecap]

back then, when lowball offers were made, they were refused by sellers who wanted more that's why many names are held for 10+ years or more before being sold

Exactly my point. There have always been lowballers and there always will be - only their tactics change.

 

[Name Trader]

On the other side of the coin I offered to by a domain from the Namefind portfolio of Godaddy. The domain appraised, by their own AI tool at $5000. They would not accept that price. Their counter offer was mid 5 figure range......Go figure.

It's a negotiation. They have to start high before they will accept a lower amount

 

[Name Trader]

ps here is a picture of a Monkey.accountant from Yelp site to rate accountants. Just as I imagined one.

Ambidextrous

 

[Bob Hawkes]

@Bob Hawkes
That what I understood at first that it is an error margin of +-$1000 .. but I was on doubt that I understood it correctly after seeing the video where GD presenter seems proud that they achieved 60% within only $1000 error margin! I thought maybe he is talking about something else because nothing impressive of what he is talking about . So if GD appraisal was $50 and the domain was sold for $1050 then they did decent job within $1000 error margin? and the $2000 margin is even more laughable

Well I might not say laughable, but I totally agree it is not as impressive as at first seems. There is also the question whether the appraisal influenced the price that it later agreed with within $1000. i.e.are buyers more likely to close deals when the two agree (my guess is yes to some degree) or even are some sellers more likely to set sales prices not more than $1000 different from appraisal. Less sure about that.
Bob

 

[marcreative]

It's like any other tool that you can take parts of to use in your overall investment strategy. I like the sale history they list for comparable domains, as well as if the domain has sold before on GD, and I do think they hit the mark in overall terms of "X domain is worth more than Y domain" far more times than they're wrong.

Anyone who is looking at a $10 hand reg with a valuation of $1,583 USD and thinking they'll get that tomorrow doesn't understand appraisals - these are just estimates of what an item may sell for, but you may also have to wait years or even decades to sell it.

No one has a "magic formula" that tells you what all domains will sell for down to the single-dollar and no one ever will. Trends change, the economy changes, and the world is in constant flux.

I find it useful for my purposes as I ignore the raw dollar value and concentrate on the underlying data. For example, I found a 5-letter domain I liked (I have to like a domain to buy it), watched it, compared the comp sales, and then noticed it had previously sold for ~$2K+ and had been off the market for a while. I ended up getting it for $25 or so + reg and maybe 8-9 months later ended up selling it for $1500.

So to me, if you just use GoDaddy appraisals as just one more tool in your shed, and not base your decision on the raw and very specific $$$ amount, then it can pay off.

so so very agreed, only for datas.

 

[karmaco]

When you punch in a name to valuate if it’s for sale on GoDaddy it shows the price and the valuation both. Maybe the numbers are so close to what GoDaddy says is because people feel compelled to stick close to the price given by GD. It looks like you are overvaluing the domain if they say it’s worth $1500 and you list it for $8K.

In this regard the valuator can be a hindrance. I don’t sell at GD so it doesn’t affect me but heard a few stories about buyers mentioning the GoDaddy appraisal in a negotiation. What they don’t know is vast majority of GD sales are wholesale domainer to domainer prices.

 

[Jason76]

It seems like most stuff on GoDaddy Auctions sell for around $100 (based on NameBio data).

 

[Bob Hawkes]

It seems like most stuff on GoDaddy Auctions sell for around $100 (based on NameBio data).

Actually in the nonpublic NameBio under $100 there are more sales than above $100 in .com by a fair factor. For example in last month in .com GoDaddy 6135 sales above $100 and 32,300 below $100.
Bob

 

[Name Trader]

Actually in the nonpublic NameBio under $100 there are more sales than above $100 in .com by a fair factor. For example in last month in .com GoDaddy 6135 sales above $100 and 32,300 below $100.
Bob

Which prompts the question. Is this domaining business, and the valuation business which supports it, just a complete sham? Should we be doing something more worthwhile with our time and money? Like what?

 

[ThatNameGuy]

Which prompts the question. Is this domaining business, and the valuation business which supports it, just a complete sham? Should we be doing something more worthwhile with our time and money? Like what?

It's a sham ok Stu, but there's money to be made in this industry if you don't fall prey to the hoarder and scalper mentality. This industry is a big joke starting with many of the registries and registrars. I thought it pretty cool to find a registry right in my hometown Dominion.Domains...they're the ones who re-released the .homes nTLD about four months ago.They're also the ones who I gave/gifted the domain DominionDomains.com to just because I thought they should own it, but the thanks I got was zilch Then when I casually mentioned I liked a domain HomeSweet.homes they had for sale last year for $190, upon the re-release I didn't see it for sale at GD so I inquired why? Well, they held it back and when I inquired again they told me in an email (which I have in safe keeping) that it's now $64,000....Holy Crap!!! Then to add insult to injury when they realized how outraged I was, they offered to give it to me. I'm guessing they were more than a little surprised that I refused it, but I wasn't about to stoop that low.

There's more to this story, but I'm hoping they'll sue me so I can get the news media involved, and that's when the real fun begins It reminds me a lot of the false allegations made about me as a result of mistaken identity here on NP a little over a year ago. This industry as a whole is rotten to the core, but despite that, I love it

 

[Bob Hawkes]

Well the data seems to suggest that there are a number of domainer to domainer transactions for each domsiner to end user transaction. Those are generally lowish $$ so the economics can still work out. I think most of us like to search for names so not surprising lots transactions. I don't see the estimation tools have much influence on this. I think the real challenge is to get end users to buy from the aftermarket. If we could achieve that many more sales, better throughput, higher ratio end user sales. The under $100 numbers were an eye opener though.
Bob

 

[Name Trader]

[B]@Bob Hawkes[/B] - I don't know where NameBio get all there data from. I hadn't realized that it included GoDaddy sales. Where do they get that data from? I'm not sure that GoDaddy would be providing all that valuable info freely. But those stats do tend to support @Arpit131's original post in this thread. To me. It looks like a lot of churning at the bottom end. You can easily lose your shirt there. And it needs a lot of luck (and skill) to get out of that quagmire. IMHO. Agree about your thought that those under $100 sales were an eye opener.

 

[ThatNameGuy]

I have been watching a lot of posts referring to Godaddy appraisals.
They have a typical appraisal range of $1399 and above for very crappy names. A lot of these can be found in n number of facebook groups where people expect to sell domains for $4500 kind of range in reseller market!

A lot of newbies are falling in trap by seeing that an available name which has a 4-figure estimated value is available for registration fee.

This is where they tend to purchase 10 names and above for $10+ each. Then they wonder why they are not able to sell it.

Do you trust Godaddy appraisals even 1%?

I feel that it is misleading newbies and a lot of domainers into trap with the appraisal value.

Thoughts are appreciated!

Arpit131...i'm sure I'm not one of your favorites, but about 2/3 of my domains are registered at GD for a number of reasons, of which their appraisal and keyword valuations are important to me. Let me give you an example of the only domain I registered today via GD. It was/is CatchGourmet(.)com...first let me say, I live in the largest resort city on the Atlantic Ocean, Virginia Beach, Va. Second, I've caught Tuna, Sailfish, Shark and Dolphin offshore. Third, there are probably no fewer than a hundred seafood restaurants within 50 miles of my home, and there are thousands throughout the US, Canada and around the world. Before I get into GD appraisals just two more things, there is already a restaurant in my home town named Catch 31 and they own the domain Catch31.com if you care to check it out. They're owned by Hilton, and I know their restaurant, that's on the Ocean Front, grosses over three million dollars a year. btw, the "31" I believe is the number of the closest ocean buoy. Finally, I own a business called Domain Gourmet and "Gourmet" also happens to be a keyword.

Now, on to GD appraisal info for CatchGourmet, GD appraises it for $1,427. Then they go on to provide the following sales information for domains using the keyword "catch";

thinkgourmet.com
Sold for $1,021
popgourmet.com
Sold for $1,000
lazygourmet.com
Sold for $1,500
ezgourmet.com
Sold for $1,450
tablegourmet.com
Sold for 1,795
catchfashion.com
Sold for $2,499
catchnature.com
Sold for $1,888

Then GD values the keyword "catch" for $1,868

Arpit131....i already knew CatchGourmet might be better than the "crappy" domains my critics here on NP accuse me of hand registering, but I just consider the source I own several more domains with the keyword "catch", and you're chances are far greater making a sale referring to GD's appraisals than not referring to them.

CatchGourmet™ most likely won't sell itself via Afternic, Uniregestry, Sedo etc. I can confidently say none of the potential "end users" have ever heard of these clowns brokers.

Finally, I hope some of what I had to say might help a "newbie". There's good, bad and ugly in most things in our life, but I choose to work with the good side of GD appraisals.

 

[Bob Hawkes]

I think all GoDaddy auction data at any price level is included. Whether NameBio get it freely I never thought about. When NameBio started subscriptions they said there was a lot of data in the sub $100 and there certainly is.

I am still trying to get my head around what it means but this is my thinking. Let's say an end user sales ratio is 2% per year, so order 50 years. But most domainers tire after a few years of no sales with a name and try something new. If they kept a domain on average 5 years and then dropped it and tried something else there would be about 10 to 1 ratio a bit more than we see. I might have this wrong as just doing it in my head.

All the churn is good for GoDaddy, Dynadot Auctions, etc. Also a lot of Park.io but those are mainly just under $100 (I think their minimum is higH).

Bob

 

[ResoluteDomains]

Not sure if anyone has noticed but their valuation service has been throwing an error since Thursday (for me at least). This is the 4th day now.

Error is:

 

[Bob Hawkes]

Not sure if anyone has noticed but their valuation service has been throwing an error since Thursday (for me at least). This is the 4th day now.

Error is:

Show attachment 119907

Strange. It still works for me (although mine is through the Canadian GoDaddy interface).

 

[ResoluteDomains]

Strange. It still works for me (although mine is through the Canadian GoDaddy interface).

I just got it to work again. What I did was cleared my cache and cookies and it came back with a result.

 

[TCK]

All the auto evaluation tools don't provide true value but some, like GoDaddy's, do offer historic averages that can be useful. The problem is when end-user/buyers take them at face value (and don't read the fine print). Here is an article on the balanced view of auto evaluation in your appraisal of domains. Auto eval will never replace human judgement.

 

[Name Trader]

All the auto evaluation tools don't provide true value but some, like GoDaddy's, do offer historic averages that can be useful. The problem is when end-user/buyers take them at face value (and don't read the fine print). Here is an article on the balanced view of auto evaluation in your appraisal of domains. Auto eval will never replace human judgement.

Agreed. Anyone buying domains based on auto evaluations, probably should not be buying those domains

Nice referenced article. If a tad dated. Still, it got all the basics right.

 

[cogger]

Im renewing equityDOTmoney, I almost did not. Rolling the dice with this one. However GD's historical data shows equityDOTeu selling for $7,605. So tell me GD where is your proof of sales? Or are we sheeple just suppose to take your word.

 

[sevamaster]

I trust Godaddy appraisals partially.
If I like domain name, I see this tool. If the price is above $1500, I can buy or register it.

 

[Bob Hawkes]

Im renewing equityDOTmoney, I almost did not. Rolling the dice with this one. However GD's historical data shows equityDOTeu selling for $7,605. So tell me GD where is your proof of sales? Or are we sheeple just suppose to take your word.

That particular one is in NameBio so verified. Here is link:
https://namebio.com/equity.eu