GoDaddy Appraisal Influences Messaging at GoDaddy

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GoDaddy has the widest reach of all domain registrars, so many people list their domain names for sale via GoDaddy. Aftermarket domain names listed for sale show up in the GoDaddy purchase stream. A customer searching for a domain name to register will be shown the matching aftermarket sale listing if the domain name is listed via its marketplace.

It looks like GoDaddy is using its GoDaddy domain name appraisal tool to influence the sales pitch customers see when searching for a domain name. Depending on the buy it now price compared to the GoDaddy Appraisal, there will be a different graphic shown to prospective buyers to convince them to buy the domain name.

I will use two domain names in my inventory to illustrate how the pitch looks, depending on how the domain name is priced compared to the GoDaddy appraisal.

I have LegalResidents.com listed for sale at Afternic for $999. GoDaddy appraises this domain name at $1,492. Here’s how the listing looks when a customer searches GoDaddy for LegalResidents.com:

I have DealWell.com listed for sale at Afternic for $97,995. GpDaddy appraises this domain name at $2,319. Here’s how the listing looks when a customer searches GoDaddy for DealWell.com:

It looks like GoDaddy is referencing its appraised value on domain names listed for sale below the appraised valuation. In addition, it looks like the company mentions the average sale price of a keyword when the domain name is priced less than that. Showing an appraisal could be helpful on standard inventory to give buyers confidence that they are buying a domain name that has value – or would be paying less than GoDaddy says the domain name is worth. This has been present for at least several months, so GoDaddy must believe it is helpful.

I am not a fan of any automated appraisals because of the unique nature of individual domain names, but people who list their names via GoDaddy should know the appraised value of their domain name. Someone who lists a domain name for sale for $2,500 might want to alter their pricing slightly if the appraisal is $2,450 and they want to have the appraised value show up. At the very least, it is good to know how domain names are being presented for sale.

27 COMMENTS

  1. i’ve lowered some prices a bit to receive the added marketing, but to offset the lowered prices, where possible, i’ve also raised prices a bit to come closer to the appraised value. godaddy’s reach is great and related sales continue to come in, so i agree that adjusting prices may be a good idea.

    • I wouldn’t reprice a name from $25,000 to $3,000 because of an appraisal, but I would consider a reprice on a name that is close enough to the appraisal and it would only be a bit of profit lost.

    • yeah, that’s what i’ve done since their tool was released. eg, name previously priced at $2495 appraised for $2400, so price lowered to $2395 to get the added marketing. whereas, name previously priced for $2950 appraised for $3600, so price raised to $3495. 🙂

  2. I didn’t know this. Definitely a good strategy if your price is close to their estimate. As an aside, their estimate tool maxes out at $25K.

    • i think having a max makes some sense given the discrepancy in pricing at that level. however, i’d like to see their tool handle up to $50k since so many sales fall below that amount. not to mention godaddy’s own auction listings (and sedo’s) allow pricing up to $50k, so the appraisal tool really should as well.

  3. I think GoDaddy appraisals helps me get rid of my unwanted, lesser domains.
    For example, I just sold a “Crypto” .CLUB domain through Afternic for $299. I hand-reg’d it for 99 cents. GoDaddy appraisal value $482.

    • for months i’ve studied godaddy’s appraisals versus estibot, domainindex, etc. i think godaddy’s tool inflates the value of most crappy domains up to the $1k range. ie, domains appraised for less than $1k can often be pretty worthless as investments. whereas domains with real liquid value are normally appraised for over $1k, if not $2k. i personally wouldn’t purchase a domain as an investment based on an automated appraisal, but i’d certainly be skeptical of the domain if it was appraised for less than $1k at godaddy, estibot, etc. that said, clearly godaddy’s appraisal of lesser domains up to $1k will help sales of those otherwise hard to sell names.

    • Yes – I would imagine the appraisal helps marginal (or even submarginal) names. Perhaps it gives buyers confidence that they are spending money on something that has value, since determining how valuable a domain name is can be complicated.

    • I do not like GoDaddy appraisals, Estibot, Crapbots etc
      Why WOULD I price my domains based on an algorithm that was developed by programmers that have never sold a domain name in their life or know how to negotiate a deal? 🙂
      GoDaddy is looking for QUANTITY sales and to streamline their process! GOOD for them!
      I am looking to transact at a different level… 😉

      I would actually suggest Mike Manns – Accurateappraisals.com service. At least you get 3 experts valuating your domain, not a ROBOT or algorithm!

      Elliot- DealWell.com is a nice brandable priced right! 😉

  4. Elliot et al,
    I like GoDaddy appraisals because they give actual sales comparables. That is a great feature for a Buyer’s due diligence and confidence level.

    I’m a commercial real estate guy by day and comparables are one of the factors we look at.

    • The GD tool is only a click away.

      From the GD tool.
      Comparable domains sold for dealwell.com:
      chinawed.com $2,397
      peoplewelike.com $2,200
      stuffwelove.com $3,399

      Your price – $97,000
      GD estimate – $2,319

      Obvious question. How to explain this huge discrepancy to potential buyers?
      This causes one party to appear extremely lacking in knowledge of domain values. The comps are ludicrous. No thanks.

      • On the GoDaddy purchase page that shows when someone searches for DealWell.com (or any exact match name that is for sale), the appraisal does not show – nor does a link to the appraisal tool – if the price is higher than the appraised price.

        When someone references an appraisal on a name I own (which happens from time to time), I tell them appraisals are worthless and they can find another domain name if they value an appraisal so much.

  5. I think it’s a good thing the tool does not try to appraise domains higher, as the discrepancy between their evaluation and the seller’s price will only get wider.

    Thank goodness they do not show their value when the seller’s price is higher, this was the thing that caused us problems. Buyers would try to argue using that GD value as a reason they shouldn’t pay what you asked.

  6. Regardless, I think worthless appraisals still have the potential of affecting domain prices negatively, even outside the GD venue.

    It’s one thing to have rubbish appraisals distributed by a 3rd party. Quite another to have the same provided by a party that is also entrusted to help sale your domain names at fair price (and a healthy commission).

  7. Elliot – thanks for sharing this tip. I’ve started tweaking my prices as you suggested – if/when they are close enough.

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