NameWorth domain appraisals: based on old data?

NameWorth’s backup data is incorrect, suggesting its valuations are based on faulty data.

This is part of Domain Name Wire’s review of automated domain appraisal tools. See all reviews: Estibot, GoDaddy, Atom, Appraise.net, GoExpired, Dynadot, NameWorth, Saw, Appraise.software, Humbleworth.

NameWorth is an appraisal system designed for domain investors, offering paid packages for bulk valuations. Otherwise, you’re limited to just a few appraisals a day.

For each domain, it shows a “NameWorth Demand Rating”, a list of similar active websites, related registered domains, and a list of other extensions the domain is registered in.

Unfortunately, the data on other extensions is incorrect, which makes us wonder if any of the data is valid.

Let’s take a look.

Two word brandables

We evaluated two domain names in this category: MakeMatter.com, which sold for $15,000, and PressBridge.com, which sold for $5,000.

Both of these domains are in the sweet spot for two dictionary word brandables of $3,000-$15,000. Yes, some sellers hold out for higher amounts, and their data will show these domains sell for much more. But looking at overall sale data, it’s reasonable for an appraisal system to return anything in this price range for this type of domain.

NameWorth appraised MakeMatter.com for $17,500 and PressBridge.com for $14,500. These are more or less within range.

Nameworth easily passed our unregistered domain test, appraising CloudToaster.com for under $500.

One word, high value .com

Nameworth appraised the seven-figure domain Dragonfly.com at $2.5 million.

Mike can’t say how much he sold the domain for, but Andrew believes it was seven figures based on the broker’s statement.

We also tried Midnight.com, which sold for $1.15 million this year, and it said it was worth $3 million.

High-end domains are hard to value. On the upside, NameWorth didn’t suggest these domains were worth in the low six figures, unlike some other tools.

Popular ccTLDs

NameWorth only values .com domains. While some might view this as a drawback, we appreciate it when systems understand their limitations.

Exact Match descriptive

NameWorth gave WaterFilters.com the third-highest valuation at $250k.

The seller is asking $3.5 million, but we don’t know what it will ultimately sell for. Exact-match domains like this have lost some of their luster, even though this is a humongous market for ecommerce sales.

Three and four letter domains

Three and four letter domains are some of the most liquid domains on the market.

We tested a pronounceable CVCV .com domain, dujo.com, that is listed on Afternic for $36,000.

Our goal was to see if the algorithms caught that this was not just a random set of letters. Pronounceable, brandable four letter domains are generally worth more than unpronounceable random letters.

NameWorth values it at $150,000. Although it’s not unheard of for a short, brandable name like this to sell for six figures, this valuation was far higher than that of the other tools we tested. It’s also much more than the domain is listed for.

We also tested a four letter, non-pronounceable. Logan Flatt sold MOTG.com for $14,888. Nameworth says it’s worth $54,500.

For a three letter domain, we tested VJN.com. It’s listed for sale on Afternic for $39,000. V and J aren’t great letters, so this is likely on the lower end of three letter .com values.

NameWorth thinks it’s worth $250,000.

We believe that NameWorth overvalues three and four letter domain names.

New TLDs

Again, Nameworth doesn’t evaluate non-.com domains. Given the results from some other appraisal tools for new TLDs, this is probably a good thing.

Final analysis

NameWorth might be useful for stack-ranking a portfolio or hunting for expired domains.

However, we are very concerned about the data it provides on the number of registered matching TLDs. It might have been correct at one time, but not anymore. If valuations are based on these, then the valuations are incorrect.

Nameworth also doesn’t provide any comps.