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.