Odd GoDaddy auction activity, might be tied to new appraisal valuations

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So GoDaddy revamped their appraisal tool and now when someone is bidding at GoDaddy auctions they see where GoDaddy is valuing the name.

Elliot Silver wrote a couple articles on the topic. On Twitter and as a sidenote in the Daily Sales Recap on TLDinvestors.com I expressed my doubts about this.

@DInvesting @godaddyauctions I think it hurts GoDaddy more than helps if worthless names have $1,000 + values attached. Just my opinion.

— TLD Investors (@TLDInvestors) May 12, 2017

So now tonight I am reading a thread on Namepros where a member points out seemingly worthless names getting a bid, early into the auction process.

It turns out these names all have appraised values over $1,000.

Fanninmn.com valued at $1,458? This name certainly does not have that kind of value. Now in the past there were some high valuations on seemingly worthless names, the one difference was GoDaddy was showing traffic of say 10,000 +. This listing shows traffic of 2!

DONGWWW.com valued at $1,535

CMKMG.com valued at $1,374

Darubazz.com valued at $1,074

MBUCD.com valued at $1,121

Of course this is just a random sample, I just think it makes GoDaddy look like they don’t understand valuations.

If an industry outsider is first introduced to domaining by reviewing GoDaddy auctions and seeing these valuations, it’s the wrong first impression.

About Raymond Hackney

Raymond is a writer, domain trader and consultant based in Pennsylvania. Raymond is the founder of 3Character.com and TLDInvestors.com.

Comments

  3. Imran says

    Darubazz.com is a hindi language word. It is valued correctly by GoDaddy account at $1074.
    The same could by applicable with other names. The names could have regional meaning. They maybe some kind of abbreviations.
    As per the author GoDaddy does not understand valuations. This is a wrong statement. I advise you to reconsider your own valuation methods

    • Jon Schultz says

      That’s a great article with many great comments.

      While some of the metrics which Estibot and other automated appraisal tools show are good to know, it takes an intelligent human mind to understand the potential value of a domain in advertising.

  5. Quebecer says

    GoDaddy has no clue on valuation, think they got the same prices for MWD domains that Berkens did or would ?

  6. Mike says

    I think it will be counterproductive and wont achieve any increased revenue for GoDaddy just more disgruntled buyers who find they have bought a “lemon” on basis of a valuation .

  8. Eric Lyon says

    It looks like they are trying to follow Mike Mann’s evaluation strategy (Price everything high, to inject the industry with a value standard and eliminate the nickel & dime sales). Which appears to be backfiring on Go Daddy at the moment. Automation was the wrong approach.

    • John says

      No, the problem is always the opposite in my experience. That’s why I’m so against it.

  9. Just sayin says

    Seems a little self serving for a company to tell you something is worth $1,000 while offering it to you for sale. Especially junk names. Makes you wonder if there is a potential liability issue there with offering such faulty “valuations” to consumers?…

  11. AverageDomains says

    That dude ^ who thinks Godaddy knows how to appraise lmao! Hahahah! Godaddy should make their employees submit what they think a domain is worth, and take the average. Will be interesting to see what Mike Mann’s future appraisal system will be like, most likely more accurate than anything out there.

  13. John says

    Follow the money…

    “The Zestimate feature is the cornerstone of Zillow’s business model since it pulls in millions of home shoppers, allowing the company to sell advertising space to realty agents. Zillow makes big money with the help of its Zestimates”

  14. John says

    Rick’s words from November 2012 bear repeating now:

    “These services do DAMAGE to domineers. they don’t help them.”

    And here is the whole quote:

    “Mike,
    As I have stated for years….ALL domain appraisals are worthless. Period.
    They are based on bullshit which in my opinion makes them for AMUSEMENT ONLY and should be labeled as such.
    I am trying really hard not to use the word SCAM. But it always seems to be the first word that comes to mind whenever I hear somebody say “Domain Appraisal”. The others include “Rookies”, and “Desperate”. I won’t even answer an email that MENTIONS an appraisal. The minute ANYONE touts an appraisal, in the garbage it goes. These services do DAMAGE to domineers. they don’t help them. These are based on NONSENSE with info fed into them by folks with limited knowledge of what makes domain names valuable to begin with.” (Rick Schwartz, TheDomains.com, November 2, 2012 at 10:57 am)