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.
Mark Thorpe says
How to improve GoDaddy appraisals? Stop using an automated appraisal tool, period.
The only good thing about the GoDaddy appraisal tool, is GoDaddy’s recent domain sales data. But even that data doesn’t help much, as GoDaddy prices their domains based on volume selling, which hurts domain investors (GoDaddy is not sorry).
The only way to acheive a true domain appraisal, is a MANUAL domain appraisal.
Stop drinking the automated domain appraisal kool-aid everyone!
joesaba2014 says
The appraisal of Godaddy domains is very low if I have a domain (com) 5 letters parkingcrew.net for 5 years where I have income every month as Godaddy can value the domain $ 1,500 when the reality is of six high figures.
The domainer that using this system is to pay much less for the premium domains for sale myself realize that I have a appraisal of our own, let’s see how the speaker Mr. Paul de Godaddy in Namescon Las Vegas 2019 maximum $ 2,500 me for sale $ 5,995 against offer $ 2,500 and if this Domain in Godaddy to give $ 1,500 against offer is $ 1,500 or I sell or you 48 hours later you go to Flippa Private Auction Start $ 25,000 and there are 12 months left to expire.
I myself test keywords at the beginning or end of the domain as an example xxxxxKing (.com) value by King important if it is (.com) equal if it is (cam) down 75% when the difference in extension is only one letter y if it is the same domain with a cctld or .org 50% less
This appraisal system should stop working is not viable for the vast majority of this domain market.
168 says
Time value- changing trends don’t support this. So what if it was reg. Yesterday or twenty years ago.
Current example – Bitcoin.
Godaffy – conflict of interest period.
Closeouts list ” value” yet selling for 5$.?
I’ve seen “values” by Godaffy supported by listed sales price.
Name bio – demonstrates decrease in “values” over time.
Mixing wholesale, retail, speculative, historical sales is absurd.
High value used to be 10 characters or less now it’s 15 or less.
I’ve decided to value domains by industry use. The average of ROI.
The larger the range of use – the higher value.
Supported by real numbers vs hype by gurus or mixed historical sales
Automated appraisals could benefit by factoring in ROI
Looking into how Corps list this asset on there balance sheets tells a different story.
Cheers
steve says
I believe the solution would be humans (crowdsourcing domain experts) + ai
Per domains with valuations over 25 K. “Our estimator’s maximum valuation is 25 K. This domain could have a valuation from over 25 K to over 8 figures 10,000,000)