Introducing Flippa’s Crowd-Sourced Domain Appraisal Tool http://t.co/502RZh7TNq
— Flippa (@Flippa) April 7, 2014
In a blog post yesterday afternoon, domain and website auction platform Flippa announced the launch of a new domain appraisal tool that uses crowdsourcing to get its domain name valuations. Flippa users are encouraged to provide their appraisals of submitted domain names, and there are incentives for participation including listing upgrades and account credits. The idea is that the valuation can be seen as more accurate when a large group of people provide their opinions.
Although I like the concept and think people may be able to get an idea about whether or not their domain name is worth something, I think it’s tough to get reliable appraisals from people who may not have domain valuation or sales expertise.
One issue is the incentive that is given to participants. Obviously, Flippa needs to reward people for the time they spend giving appraisals, or the concept probably wouldn’t work. On the other hand, if participants are racing through appraisals without looking at metrics, comparables, or other information that would go into an appraisal, I don’t know how it can be all that accurate. Sure, a “gut feel” is what experts use to give a very broad valuation, but I don’t know how many experts will be participating.
All of that said, I still like the concept. When used in conjunction with other free domain appraisals, the owner of a domain name can get an idea about whether his domain name is worth a premium. For example, if the crowdsourced Flippa appraisal says it’s worth $200 and Estibot says it’s worth $0, the owner should probably not expect to make much from a sale and may even opt to drop the domain name in the future.
Personally, I would rather run a name by someone like Adam Strong or Andrew Rosener rather than seeing what 50 random people think about a domain name, but the tool could be a good way to gauge whether it would be worthwhile to list a domain name for sale on Flippa.