From my perspective, domain name appraisals are in high demand. I also believe GoDaddy is a relatively trusted company when it comes to the general public. Even if someone has not worked with GoDaddy before or knows very little about the publicly traded company, they likely know that GoDaddy is the largest domain name company in the world and there is a level of trust that comes with that recognition.
GoDaddy launched its domain appraisal tool last year called GoValue. The tool uses machine learning to give an automated domain name appraisal. It has a vast database of domain name sales, and anyone can use the tool to get an appraisal for their domain name at no cost.
Despite the fact that this new appraisal tool is a relatively recent entrant into the market, GoDaddy is already ranking quite well in Google. In fact, the tool ranks #1 for me in the following related searches:
- domain appraisal
- domain name appraisal
- what is my domain name worth
- domain value
- domain name value
I am sure the tool ranks very highly for longer-tail searches like “free domain name appraisal” or “free domain appraisals” as well. This is almost certainly bringing a considerable amount of traffic to GoDaddy’s website from people seeking an opinion on the valuation of their domain name.
This means GoDaddy is playing an even bigger role in domain name sales than before. Buyers looking to acquire domain names may seek an appraisal to see if the list or asking price of a domain name is in line with its value. Sellers may also seek an appraisal to see if they should sell a domain name for the amount offered by a prospective buyer. Having this second opinion option may or may not be good depending on what the tool thinks a particular domain name is worth.
In my opinion, domain name pricing is more of an art than a science. Yes, I rely on what I see in the market to buy and sell domain names, but I also use my intuition when it comes to values. The GoValue tool can give a good idea about whether a domain name has value or not, but I don’t think any automated domain appraisal tool can offer accurate appraisals, especially for higher value domain names.
Whether you like it or not, GoDaddy’s appraisal tool may play an outsized role on the entire domain name aftermarket, and domain investors should probably get an idea of what the tool is saying for their domain names.