GoDaddy adds valuation to expired domain auction

Yet another wrinkle has been added to expired domain auctions in the last week or so.

If you’re new to domain investing, then you want to read this article closely. It could truly change the outcome of your GoDaddy expired domain auctions experience.

If you’re like me, I spend a good chunk of time within the GoDaddy expired domain auction platform.

From preparing daily auction lists to researching and investing for customers to doing my own investing, I quite often notice changes like the latest one.

Af first, I thought I might be seeing and experiencing an auction glitch of some sort when I first encountered this wrinkle.

Before saying anything or too much, I decided to wait a week to see how things shake out. And sure enough, I wasn’t seeing things.

If you’re still in the dark on what I’m speaking about, then head over to the GoDaddy auction platform for expired domains and check out the recently populated validation column (see below).

GoDaddy Expired Auctions Valuation

Per Domain Name Wire, It’s a new addition to the public expired domain auctions although this featured was internally rolled out late last year.

To be clear, the valuation column always existed but the data displayed was outdated and poorly contrived.

But since GoDaddy now has access to vital Afternic, Estibot, and human experts information, GoDaddy was able to create a new valuation model that accounts for both wholesale and retail prices.

Expired Domain Auction Valuation

Using root-mean-square error, expired auctions are given estimated values above $1,000. Upon first glance, I wasn’t certain how GoDaddy arrived at such *exact* values.

Another thing to note is valuation for expired domains falling below $1,000 value. If the valuation is $1,000 or below, then the column simply reads leas than $1,000.

This new evaluation sounds good and looks good on paper, but is it really?

I’ve looked through the expired auctions list from A to Z, and there are quite a few valuations that leave me scratching my head wondering how.

There are names in the expired auctions list with valuations that simply don’t make sense. Like the one I’ve highlighted below:

Estimated Domain Auction Valuations

For now, I’ve chose to ignore the valuations when putting together my daily GoDaddy auction lists.

I will say that having the valuation column can HELP when using the search and advanced search features to find expired domains.

However, I don’t believe it should be used as the GOSPEL TRUTH in proclaiming the exact value of the domain. Nor do I encourage anyone to use such data as a FINAL decision making point for bidding and purchasing.

I think the valuation information could be used as a starting, but not only, point when considering purchasing or bidding on expired domains.

There also be an interesting opportunity on the horizon for quick-flip buy-it-now closeout domains rightly using valuation information.

Buy-It-Now Closeout Domain Auction Valuation

No matter what, PLEASE DO YOUR HOMEWORK and don’t take the valuations as the truth. Doing so could very well lose their shirt, car, and home thinking that the valuations are exact appraisals instead of what they truly are: a best guess estimate of perceived value.

There’s been much talk over the last few days about odd bidding behavior for domains that would not have seen the light of day without a valuation. I’m personally chalking this behavior up as newbie or ill-advised domain spending.

Only time will tell…

Written by Alvin Brown
He's an experienced and passionate serial entrepreneur, founder and publisher of Kickstart Commerce. Alvin possesses a great love for startups dominating their market using profitable digital strategies for greater commerce.