What’s that expired domain name worth? GoDaddy has a good idea…and is about to let domain name investors know.
GoDaddy (NASDAQ: GDDY) is rolling out its new valuation system to a much wider audience: bidders on expired domain auctions at GoDaddy Auctions.
The company started using the valuation tool internally and in auction highlight emails to customers late last year. Starting within the next day, the valuations will be displayed next to all expiring domains. This is the first “public” use of the new system.
GoDaddy already shows valuations next to some of the expired domain inventory, but this is based on an outdated and poor valuation methodology.
GoDaddy’s new valuation system creates a wholesale valuation, predicted sales price and predicted list price. The auction data will include sales price valuation, which is essentially GoDaddy’s prediction of how much the domain name will sell for to an end user.
Domain names with valuations under $1,000 will be denoted as merely < $1,000. Valuations over $25,000 will be denoted as > $25,000.
The valuations are based on reams of actual sales data and machine learning. Bidders should keep in mind that these are anticipated end user sales prices, so they need to leave some margin for reselling the domain.
It will be interesting to see how the domain community responds to the added data. While it can be helpful, some people who use algorithmic methods to identify domain names might be frustrated when others identify hidden gems with the new GoDaddy data.