The Value of Automated Appraisals

98+% of domain names are meh. They may not all be junk, but they aren’t gems either. My domain portfolio is full of meh-ish domain names, and I bet yours is, too. There’s nothing wrong with meh domain names. They sell every day on every platform and at every domain registrar. Businesses and people use meh domain names when it matches a brand name or when they can’t afford to buy a gem domain name.

Automated appraisals like the GoDaddy appraisal tool or Estibot take a lot of heat from domain investors – and rightfully so in many cases. I get aggravated when a prospective buyer approaches me about one of my gem domain names and says, “well GoDaddy appraises the domain name at $x,” and $x is thousands of dollars lower than the purchase price in a public auction, let alone the price I would consider accepting. Even GoDaddy prices many of its gems well above their appraised value.

Automated appraisals can be annoying and frustrating deal killers.

10 of the Top Domain Names

Yesterday, I reported on the sale of Home.com to Fairway Independent Mortgage Corporation. The domain name sale price was not shared by any of the parties, but I would be very surprised if it was not an 8 figure deal. In my opinion, Home.com is one of the top domain names possible, and Fairway has the potential to turn it into an iconic brand name.

Andrew Rosener tweeted about the sale and mentioned that he think it is one of the top three domain names. Someone replied to Andrew to ask what other domain names he thinks are in the top 3 (he said X.com and did not name the other name).

I thought I would give it a go and share what I think are 10 of the top possible domain names there are based solely on intrinsic value. Some of these domain names are actively used and developed, but I think they are top domain names without any of the additional goodwill and/or traffic. These are not listed in any particular order – just as I am thinking of them off the top of my head:

Home.com Sold by Anything.com – Acquired by Fairway

One of the most valuable domain names has changed hands. Home.com has been sold by Anything.com. I noticed the domain name transferred from Tucows to GoDaddy this afternoon. Although the domain name is now registered under GoDaddy’s Domains by Proxy Whois privacy proxy service, the landing page shows that Fairway Independent Mortgage Corporation will be launching a website on Home.com in the Spring.

Scott Wagner on Howard Lindzon’s Podcast

Former GoDaddy CEO Scott Wagner was the guest on Howard Lindzon’s Panic with Friends podcast. In addition to being an author, Howard is an angel investor, fund manager, and co-founder of StockTwits. His insights are always worth considering, and I enjoy listening to people like him talking about domain names. Scott served as CEO of GoDaddy prior to Ahman Bhutani. He left the company in 2019 due to undisclosed health reasons.

The podcast, embedded below, is not solely focused on domain names. According to Howard’s description of the episode, “In this episode, Scott and I talk about his career path, the domain industry, the state of the markets, content syndication, ecommerce, digital real estate, SPACs, Scottsdale National, branding and more.”

I have not had time to listen to the podcast yet, but I will when I have some free time.

Namecheap Launches Visual.com Website Builder

During the NamesCon conference today, Namecheap announced that it launched its website builder, Visual, which can be found on the brand match Visual.com. The news was shared by a Namecheap’ representative, and since the news wasn’t announced via press release or through the Namecheap Twitter account, I am going to assume this was a soft launch:

(Tweet Deleted)

Clarivate: “Security the Biggest Challenge in Domain Management”

Clarivate, one of the leading brand protection and corporate domain name management companies, published its 2021 domain trends report. Domain investors are likely most familiar with Clarivate’s MarkMonitor brand. According to a press release published by the company, 1,100 decision makers in the IT, legal, and marketing fields contributed to the report by responding to the company’s survey.

According to the report, the company’s research “reveals that domain security is the biggest challenge in domain management.” Perhaps more interestingly, the company shared that “organizations are grasping the commercial potential and strategic value of new gTLDs.”

Clarivate’s domain trends report is free to download on its website, but it requires people to complete an information form before being granted access to download the report. While this report is geared towards a corporate audience, I would imagine domain investors could benefit from reading it since corporate domain name decisions and strategies often impact investors and domain names in general.

The press release with higher level observations is below: