Here’s how to handle GoDaddy valuations in domain transactions.
GoDaddy’s domain appraisals are very controversial. Some people love them, some hate them. They’ve been both helpful and hurtful to my negotiations but I think you can turn them around to your advantage.
On the buy side, the GoDaddy appraisals helped me on a recent acquisition of two domains. In order to justify his price, the seller pointed to GoDaddy’s appraisals and asked a number in the same ballpark. The price was fair for how I intended to use the domains and I closed on the deal.
The sell side can be a bit trickier. When someone points you to a lower GoDaddy valuation, that’s when you need to explain the limits of an automated system.
Elliot Silver recently showed a great way to paint the picture for buyers. GoDaddy asks for higher prices on many of its domains than the GoValue. That says a lot.
There are other powerful ways to use automated appraisals, and I believe GoDaddy’s tool has been good for the industry. You just need to think about how to use it to your advantage.
John UK says
GoDaddy (TM) appraisal is a crock. $2,260 for a domain I got $19,000 for. And many more. NOPE no good except for buyerswho then think you are over quoting.
Richard Morris aka Bulloney says
Well to each his own, but Go Daddy’s appraisals have been a big help to me, especially on the buy side. I consider myself a “Domain Originator” and have actually changed the name of my company to DomainOrigination™ When searching names I’m looking to “originate”, I use the appraisal feature to help make a determination as to whether I want to buy it or not. With a few exceptions, most of the domains I originate appraise for between $1,000 and $1,500, and typically I would accept that in a heartbeat. I’ll also point out that most, if not all end users haven’t a clue who Estibot, Sedo, Uniregistry are. However, most end users know Go Daddy. I’m currently building out my business model for 1,500 domains that I’ve purchased in the last year around Go Daddy’s appraisals. Thanks for starting this topic Andrew:)
Mark Thorpe says
Sorry, but there is no advantage to using GoDaddy’s domain appraisal tool.
Not unless you plan on low-balling someone when you’re trying to buy their domain name.