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GoDaddy already shows valuations next to some of the expired domain inventory, but this is based on an outdated and poor valuation methodology.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.
JZ says
bad idea in my opinion. people will be upset when they can’t sell domains for these valuations.
Andrew Allemann says
We’ll see. I think it will increase bidding on a lot of domains, so I understand why GoDaddy is doing it.
JZ says
yeah, as far as their bottom line goes its great. not so great for the buyers. personally i won’t be paying any attention to these valuations but many will think godaddy can do the work for them so they don’t have to which will lead to overbidding and buying poor names based on auto valuations.
John says
I think that kind of thing is one of the most harmful things for sellers ever. Not only have I already experienced that first hand in negotiation, but I also just delisted at an auction site (not GD) after encountering it (though I certainly didn’t want to).
Also, I was just mentioning how I was just ruminating on that very topic re auctions…http://www.domaininvesting.com/godaddy-reintroduces-valuation-appraisal-tool/?replytocom=841692
Joseph Peterson says
Nobody should ever buy a domain expecting to sell it for the price given by an appraisal robot.
But there are other ways to use bulk auto-appraisal data.
John says
Literally just now this happened to appear as I was perusing Google News. How long before this happens for domains:
Homeowner sues Zillow, says ‘Zestimate’ is nonsense
http://www.miamiherald.com/news/business/real-estate-news/article149337129.html
John says
Follow the money…
“The Zestimate feature is the cornerstone of Zillow’s business model since it pulls in millions of home shoppers, allowing the company to sell advertising space to realty agents. Zillow makes big money with the help of its Zestimates”
John says
The words of Rick Schwartz from November 2012 bear repeating now:
“These services do DAMAGE to domineers. they don’t help them.”
And here is the whole quote:
“Mike,
As I have stated for years….ALL domain appraisals are worthless. Period.
They are based on bullshit which in my opinion makes them for AMUSEMENT ONLY and should be labeled as such.
I am trying really hard not to use the word SCAM. But it always seems to be the first word that comes to mind whenever I hear somebody say “Domain Appraisal”. The others include “Rookies”, and “Desperate”. I won’t even answer an email that MENTIONS an appraisal. The minute ANYONE touts an appraisal, in the garbage it goes. These services do DAMAGE to domineers. they don’t help them. These are based on NONSENSE with info fed into them by folks with limited knowledge of what makes domain names valuable to begin with.” (Rick Schwartz, TheDomains.com, November 2, 2012 at 10:57 am)
bloggersideasblog says
This will be massive change in domain industry and I think domainers will not appreciate it much.