Multiple Extensions: a GoDaddy Appraisal Observation

When researching domain names to buy, one indicator of value I look at is the number of other extensions that are or have been registered. My thinking is that if others have registered the .net, .org, .info, and other extensions with that same keyword, there are likely some immediate suiters for the .com domain name I am evaluating.

When looking at GoDaddy Auctions, the GoDaddy Appraisal is shown on each landing page. While I don’t give that value more credence than I should, it is undoubtedly one signal I look at when trying to find valuable domain names up for auction.

One observation I have made is that the GoDaddy Appraisal seems to be higher when there is more than one extension registered. Here’s a completely hypothetical example of the differences I think I noticed based on this observation:

• ElliotsExample123.com registered, no other extensions registered – GoDaddy Appraisal: $1,234
• ElliotsExample123.com registered, .net and .org registered – GoDaddy Appraisal: $2,345

When looking at Whois records for auction domain names, one thing I noticed is that the .net, .org, and possibly other extensions are or were registered by the same entity. Obviously, this changes the dynamics a bit because instead of potentially having the registrants of other extensions as sales leads, the other extensions are registered to the same entity that let the .com domain name expire. It might appear that there is interest in a particular keyword because of the other registrations, but in fact, it was the same entity that registered them all.

Because of this observation, I try to do Whois searches on other extensions before bidding on auctions. Sometimes a domain name has a higher value due to intrinsic reasons, and the Whois and Google searching will identify why the domain name has value beyond what I see. Other times, it appears to me that the appraised value could be inflated due to the other extensions being registered, even though they are registered to the same entity. When bidding on an auction, this data is important to me.

I don’t think this is necessarily a flaw, especially since GDPR makes it more difficult to identify the registrant of each domain name. There is also no science or data backing up that this even happens. My guess is that the number of extensions registered is one small part of the hefty appraisal algorithm. This is one of a number of reasons why I take the appraised values with a grain of salt. It is also a reason why I use the appraisal as a signal to investigate further.