There was some debate on twitter this weekend about GoDaddy domain appraisals. This debate will never end but I have some suggestions for GoDaddy to improve its tool.
1. Change the language for domains greater than $25,000
Automated appraisals break down when domains are very valuable. GoDaddy displays the message “more than $25,000” for domains that are worth more than $25,000. People seem to focus on the $25,000 number anyway and complain about the value being “only $25,000”.
GoDaddy should consider changing this language to say something like “HIGH Value: this domain is a high value domain, and our systems aren’t currently able to appraise…” or something like that.
2. Change the threshold for high value domains
Based on what I’ve seen, domains that value for more than $10k might well fall into the $25k plus category. So it probably makes sense to apply this HIGH label to domains valued at over $10k or so.
3. Remove new TLD valuations
GoDaddy seems to have improved valuations of new TLDs but there’s still not enough data to back up the values. I’d remove any TLD for which there aren’t enough comps. Valuations shouldn’t be based on a percentage of value of another TLD.
4. Add a time-factor
A legitimate criticism is that you can plug valuable keywords into the appraisal system and get valuations over $1,000 even if the domain isn’t registered. I just entered MortgageCorn.com and the valuation tool says it’s worth $1,377. MortgageSeltzer.com appraises for slightly less.
One way to prevent this from happening is by adding a time factor into valuations of domains registered for less than one year. So domains registered less than one month appraise at registration fee, and then values slowly creep up over time.
I know it’s just a hack, but it will solve the problem.