There are numerous automated tools that attempt to place a value on domain names. They use various sets of data, artificial intelligence, and machine learning to estimate what a domain name could be worth. Some sales platforms and marketplaces show appraisals on a purchasing or bidding page, which implies authority. Domain name appraisals are often treated as validation tools by domain registrants and dismissed as irrelevant by buyers.
Some of the most popular and widely used/cited domain name appraisal tools include the following:
- GoDaddy GoValue
- DomainValue.com powered by Agent.ai
- Estibot
- Atom.com appraisal tool
For many domain investors, appraisals seem to be more about ego, and they tend to be more of a vanity metric. Investors want to see a high number that aligns with their belief that the domain name is valuable. It doesn’t matter as much how that number was calculated or whether it reflects market reality. A six or seven-figure appraisal feels good, particularly on a domain name that was acquired for much less.
An appraisal, particularly from a third party without a vested interest in renewals or sales, may serve to justify buying and/or holding the domain name while setting a high asking price. I don’t think many investors care as much about the methodology behind how an appraisal was calculated – they just want to see figures that support their belief that they own high value assets.
Buyers, on the other hand, seem to rarely put much stock in appraisals unless the appraisal aligns with their acquisition budget. Oftentimes, they see appraisals as inflated, self-serving, or based on irrelevant comparable sales. If the appraised value exceeds their budget, it is seen as meaningless. “If the domain name was worth so much, why hasn’t it sold,” is a common refrain from buyers. If the appraisal happens to be below their budget or below the asking price, many will use the appraisal as a negotiating tool.
A major issue with appraisals is that domain name values are fluid and ever changing. The domain name aftermarket is dynamic, and each domain name is unique. A domain name could be be the foundation of a billion-dollar global brand, or it could be a nice asset for a small local business. The value of the domain name depends on its quality, as well as who owns it and how it is used or will be used.
At a TRAFFIC conference many years ago, I recall meeting someone who wanted to create an MLS-like platform for domain names to apply estimated values for every domain name. I thought there was no way this could be possible – and judging by the fact that there still is no MLS-like platform for domain names, it looks like this was right. There’s no way to predetermine a fixed value for domain names with great accuracy. Appraisals can offer a starting point or a very rough range, but they are far from perfect.
The true value of a domain name is what a buyer is willing to pay and what a seller is willing to accept. That number can swing widely depending on timing, use case, leverage, business conditions, market conditions, and probably as many factors as an appraisal considers under the hood.
Domain name appraisals are best viewed as a reference, and they should not be taken seriously – even if the number sounds great.
Domain appraisals are like opinions…. everybody has one and it is mostly BS…and up to you what believeable
Oh yeah… the Earth is flat like the chapati bread
Go python Challenge.!!!
Thanks for sharing your insights, Elliot. I think you’ve captured the core tension around domain appraisals very accurately.
Automated appraisal tools can be helpful as a starting point, especially for newer investors who are still getting a feel for the market.
However, I agree that they often serve more as ego-boosters or marketing tools than realistic assessments of value.
A high appraisal number may feel validating, but without context—like comparable sales, end-user demand, and brandability—it’s often meaningless.
From a buyer’s perspective, I’ve seen how quickly appraisals are dismissed unless they’re useful for negotiating a lower price. And rightly so. If an algorithm says a name is worth $50K but there’s no buyer willing to pay even $5K, what does that number really mean?
The analogy to real estate MLS systems is interesting but flawed for this space. Real estate has zoning, square footage, location, and other somewhat standardized variables. Domain names are far more abstract—value can change overnight based on trends, tech shifts, or just the right buyer entering the market.
At the end of the day, the only real value is what a buyer will pay and a seller will accept. Appraisals can guide expectations, but they’re far from definitive.
Thanks again for the thoughtful post—great reminder that while data is useful, context and timing still rule the day in domaining.
I wrote a LinkedIn post about this subject weeks ago: https://www.linkedin.com/posts/fredmercaldo_digitalassets-domainnames-aivaluation-activity-7338191379166109696-Xb59?utm_source=share&utm_medium=member_desktop&rcm=ACoAAACtYikBNNrfZ05-8nsP0iBmpztOC8pkbZQ
First of all, all third party appraisals, whether computer or human generated, rely on statistics….the very statistics that AI compiles for us quickly. If you don’t wish to read the post, here is a part of it that I believe is quite true:
Rest assured: any serious buyer considering a 7 or 8-figure domain acquisition is now using some form of AI to validate their investment. And frankly, that’s a very welcomed advancement for our industry.
I am having most of my premium brokered and owned names AI appraised. The majority, I am very pleased with. NewYork .com which can be acquired presently in the e$15M range, came back appraised between $25M and $50M, which makes sense as Boston .com generates $400M annually, and Vegas .com sold for $240M. The appraisal was quite complete, nd brought in many market sectors in NY that validated their reasoning.
I also have a couple $1M names that came back at $175K. But again, I cannot imagine a Buyer of a 7 or 8 figure domain name not taking 10 seconds to ask ChatGPT their opinion on the price.
Fred
Did you have AI write this blog post, at least substantially? I think maybe you did. I’d even be willing to bet a dollar that you did, win or lose. But no matter either way.
There is no such thing as “comparable sales.” That is pure lazy fallacy and facile dogma among some, for some even conscious dishonest fallacy.
“Comparable sales” applies in the world of physical real estate, but the real estate analogy has its limits and does not extend to domain names in that specific regard to any meaningful extent. And folks be honest about precisely what I said. “BikeLanes.com” may (or not) reasonably be considered “comparable” to “BikeLane.com,” for instance, but that is not anything within a million miles of “meaningful extent” for the concept.
When it comes to AI, I have only tried OceanfrontDomains.com a small number of times. I have found it to be surprisingly and refreshingly “honest” and strong. Not because I like what it says, but because that is the honest conviction of my mind and heart so far. God is witness.
I could have easily made billions of dollars from Bitcoin, but it wasn’t meant to be. I can tell you unequivocally that even if I had, and even if I was still holding billions of dollars worth now, I would still tell you without hesitation that Bitcoin is worthless trash, a trap and a scam.
Do you get the point I’m making with that? It has to do with mental, spiritual and intellectual honesty, in the presence of God who sees and knows all and sustains your very existence.
I would also bet a dollar that one of the things going on now is that some, many or most people at the top of the food chain are so stingy, selfish and mean spirited that they don’t want to let others benefit from decent AI finally being both “honest” and “sane” about many domain names that the less fortunate now hold. The “rising tide lifts all boats” sentiment is nothing but a lie for them, unless it’s one of their boats. You get the idea.
I could say more, but automated “appraisal” has largely been virtually criminal, not to mention pathetic. You all remember crypto.com at $48,000 just to name one example, right? I’ve made this point before. I would gladly see regulation which disallowed its involuntary and harmful and destructive presence in various locations when one is seeking to list a domain for sale. We don’t need services telling the world our truly realistically high 4, 5, 6, 7 and even 8 figure domains are only worth 2, 3, and low 4 figures, or that ludicrously and blatantly far worse domains are even worth more than ours.
John, not sure if you are referring to me….and if yes, are you referring to my blog post here, or the LinkedIn post? But I will answer both as if you are referring to me. Both posts were written 100% by me…and if you read them closely, you would see many are personal comments pertaining specifically to how I use the tools and why I like this AI appraisal methods.
Many of my other LinkedIn posts? I would state that, in addition to properly prompting AI, 70% of what I post is AI assisted.
Here is why. They provide volumes of data and reasoning. And it makes sense to me. I believe GoDaddy’s automated valuations are horrific, and many of the others are also lacking greatly.
When you look at the “comp” names that NameWorth uses as examples, they make no sense. ChatGPT is the first tool that has impressed me and again, I don’t always agree….but it makes more sense to me than any other service, and I’ve subscribed to and used them all. Being both an investor and broker, I better be acquainted with what ChatGPT will be generating when I’m selling or marketing a name.
That was just about Elliot’s blog post here. When I read it my honest impression was that it may have been at least substantially AI generated even if not 100% or even if human-edited a bit by him. Or maybe super close to 100% for all I know. But as I indicated there, doesn’t matter either way, at least not much quantitatively, just wanted to say that. Qualitatively, however, I would say the most important element of that possibility is the truly lamentable and objectionable mention of “comparable sales” as if the concept and forced application of that aspect of the real estate analogy to domain names is simply a proven, given fact and “spiritual law” the way some people think and act as if various contentious other topics in this world are proven beyond question when they most certainly are not and anything but.
And now I have to go burn this IP so soon again for a new one after replying now but sometimes you have to. I never keep the same IP after replying in these blogs and also always get a new one before doing so. Carry on. 🙂