Rick Schwartz Threatens a daily tweet against Estibot and Go\Daddy - What do you think?

[Robbie]

Rick Schwartz aka the Domain King, tweeted the below out on Wednesday and then retweeted this on Thursday with the threat he might retweet daily...

#Domainers that give these FAKE estimate tools any credibility are IDIOTS!! Don't support this CRAP! These folks
@estibotcom
@Godaddy
are your ENEMY!! These companies are costing you your LIVELIHOODS!! DEMAND THEIR REMOVAL!! Don't be fools any longer! #Domains #DomainNames

So what do you think? Are Estibot and GoDaddy GoValue appraisals a threat to the domain name industry?

As Rick would put it "letting them steal dollars out your pocket" with many end-user quoting these prices as the values of the domain name.

Rick goes on to show in a later tweet the Estibot appraisal of GoBet.com of $7,100 USD, however as we know Rick sold GoBet.com for $850,000 USD.

What do you think?

 

[iAdam]

Who cares about estibot & GD appraisals. They probably lure domainers and lurkers. Plenty of people/end-users are willing to pay the right price for the right domain ( they can afford it.)

 

[equity78]

Rick's perspective is always that of a millionaire. He can afford to wait years to get offers on his premium domains. The buyers come to him. When you own premium .coms, you don't need to use these appraisal tools. You ask for the price you want.

He doesn't understand the situation that most domainers are in.

For most domainers who own low to mid value domains, these tools can be helpful. I mean use it to your advantage if it helps bring up the price. If it doesn't help you, don't even mention it. I personally check godaddy appraisal tool for the comparable sales. I don't use it as a basis for how I price my domains.

Good point most domainers could not turn down $50,000 for GoBet.com. Rick can. I mean better names have sold for much less by domain owners who understand domain names.

The other part is most people don't want to spend a lot on a domain name and don't know what Estibot or automated appraisals are.

I had an acquaintance I used to live near, he is successful, highly educated, ask me about a certain LLL.com, I told him what the min asking price would be and he told me to tell the seller to perform fellatio on him. hahahaha. The asking price is probably in one of his petty cash accounts. He just believes that no domain name is worth over a certain price. I spent an hour telling him he was delusional, please only share these views with me because you will sound stupid.

His reply was not in his circles domain hoarders were parasites that the government just hasn't gotten around to exterminating yet.

I said you know it would be wise to just lose my phone number and thankfully this took place over text.

The issue of comps in domaining is not like Real Estate.

I mean I want to buy a CVCV.com I want it to be the same two repeating letters. Like LaLa.com or Gaga.com.

A seller will quote me DuDu.com as the comp for $1million, I like the comp of LoLo.com at $37,000 or better yet when it went $16,000 lower three years later.

I am pretty sure neither side is going to care about comps after this conversation plays out, so now we have eliminated comps from the conversation.

So now it comes down to what most transactions come down to:

Who needs what more?

The buyer needs the name or the seller needs the cash.

 

[TCK]

The issue of comps in domaining is not like Real Estate.

Exactly. With RE it is fairly easy to develop an automated appraisal system. Location, num of bedrooms, bathrooms, etc.

There is no real way of automating appraisal of domains. There are way too many variables. Even human appraisals are not necessarily accurate. Appraisals of bad domains is easy. Accurate appraisal of good domains is near impossible. AI appraisals will always be too low. You cannot program into AI the industry the domain will be used in. AI gets confused with brandables and other domains. Etc.

The best scenario is that the domainer develops naming skills, which is an art more than science, and is able to hold on to the right domains long term until the right buyer.

 

[frank-germany]

Are Estibot and GoDaddy GoValue appraisals a threat to the domain name industry?

what else?

 

[equity78]

The best scenario is that the domainer develops naming skills, which is an art more than science, and is able to hold on to the right domains long term until the right buyer

Exactly most ignore it's an art.