estibot?

[Stian]

I paid the exact amount for a domain name that was quoted by Estibot,
so in my case it is 100% accurate.

The domain was listed for sale on sedo, I sent a low offer, and recived a return offer of for much more. I then sent my final offer and recived a buyout offer. After I took the buyout, I ran the domain name though Estibot.

.. Or the seller ran the domain name through Estibot before he sent you the buyout offer?

 

[carlton]

You expect a tool to take this into account when it was the first "i" sale which sold for a significant price? That's asking a lot. Most domainers wouldn't have appraised this for even close to this amount previous to the sale.

I don't disagree. You're right about human appraisals because there is tremendous variance in even human assignment of value. And in a way, that's actually the more important point of this thread: a bot, and humans as well, have difficulty achieving a reliable system of domain value assignment. There are all of the obvious metrics that we use to estimate value (on which estibot relies completely), but then there are many variables, both subjective and complex (like apply to rare collectibles, works of art, or business assets), that can greatly affect the price of a single domain. Personally, I would never rely on any "automated" mechanism, and place little weight on a single human appraisal. This is especially true for higher qaulity, upper echelon domains the likes of hotels.xxx, business.xxx, etc.

Common appraisal metrics have more applicability for lower quality domains that have no intrinsic brand appeal. A common "trick" is when buyers attempt to assign low value to a generic domain based on traffic metrics. Traffic is one measure of possible value, but a poor measure in many situations. Take iReport.com. The brand appeal and other somewhat esoteric qualities far supercede type-in traffic. It takes a savvy, experienced individual to weigh the more subjective variables. Value is not a perfect science and depends in large part on market/buyer perception, need, suitability for a specific purpose (as in ireport), business niche, timing, etc.

Conversely, a poorer quality name that has amassed traffic through development, seo, and promotions is better suited to traffic stats analysis as a measure of value/price. The range of value/price can be much more easily confined to a narrow range when the name has no brandability or true generic power behind it. Thus, the appraisal industry.

 

[Jdaly]

Carlton, you just said what I was thinking. This, much like the real estate industry, is largely based on perceived value which estibot cannot put a price on. I sold a .org for
60k because I owned the singular and the buyer owned the plural.

I'll put it another way, does every real estate agent look at zillow.com before putting a price on a listing?

Long story short, the best way to determine a domain's value is from observing past sales and testing the market.

 

[HomerJ]

you have to question the stats as well. for example, use the ajax overture tool (which is an awesome feature), then go back and enter a domain that is the same as a keyword you just got the ovt for w/ the ajax tool, .. and it will tell you a different number for ovt. Also, I can look at what number it gives for wordtracker, and then go look up the term in actual wordtracker and it is often different. Lastly, it is seldom ever accurate as to google/msn results either.

that has always been my beef. i am not saying i never use the tool. but i double and triple check the numbers. in the end you take it all as aggregate data.

and yes, i have probably at one time posted estibot value in my sales thread. so stone me . i am a relative noob compared to many here. its true.

 

[Karim Nasser]

On a scale from 1 to 10 I would say about -1
It's a bot.

 
Are you saying that automation has failed us all those years?

 

[Dushan Savich]

If you do not know the value of the domain name without asking a bot, you should really refrain from investing too much in domains.

Not trying to be harsh on anybody just saying it as it is.

 

[Karim Nasser]

If you do not know the value of the domain name without asking a bot, you should really refrain from investing too much in domains.

Not trying to be harsh on anybody just saying it as it is.

That was very harsh

 

[katherine]

Harsh but straight to the point.

 

[Johnn]

Mess Me Bot?

 

[Karim Nasser]

So the issue here is bot vs. human appraisals? I would go for a well scripted bot that is reliable and consistent, one of the criteria of Estibot's appraisal price is past sales figures, another one is searches and CPC, I think Estibot it is a very good indicator, buyer don't like it obviously because Estibot prices are too high for them, but in fact reflect the actual market.

 

[jdwaverly]

I don't think anybody mentioned this so I will..

An Estibot appraisal is as important as people think it is. Let me explain.

The classic answer to the question : "What is a domain worth?"
"Whatever somebody is willing to pay for it!"

When that somebody is other domainers, there are a significant number who use Estibot as their primary valuation tool.

I LOVE IT when Estibot gives a low value for a domain, that I believe is valuable. Because I will probably win the auction.
This doesn't always hold but it happens enough that I find Estibot useful for this purpose.

It's also a factor for sales to other domainers who use Estibot as their ceiling for what they will pay.

So in these examples, Estibot becomes a self fulfilling prophecy for buying and selling between domainers. i.e. because a significant number use it
IT AFFECTS the actual sales price of domains.

In general, Estibot isn't a factor for end user sales since virtually none of them use it.

 

[Karim Nasser]

People forget that Estibot is an estimator, not a valuator, which is entirely different. Estimation can be determined based on past sales of that same domain, currently market trends, and similar domain sales, the same goes with car auctions, if Jeff bought a Ferrari 288 GTO for $1.1 million, and I know that 288s are no longer in production, I can bet that the next time it sells it will fetch $1.1 million or more.

Estibot is a great tool, especially looking at past sales of similar domains, I used to determine if what I am paying for is a good deal. As far as returning a low value I have yet to see that for generic keywords, it does return low values for brandable domains, which makes sense because brands become famous after being marketed.

 

[katherine]

When that somebody is other domainers, there are a significant number who use Estibot as their primary valuation tool.

Yes, the newbie domainers.

IT AFFECTS the actual sales price of domains.

I hope not. Actually, I don't think it has much influence at all.
Newbies who rely on this tool will be conned into thinking their crap domains are actually worth something. As for the semi-decent domains that they own, they will be often grossly overvalued.
End result: crap portfolio, or viable but overpriced domains => no sales.

In general, Estibot isn't a factor for end user sales since virtually none of them use it.

Because they know better than (newbie) domainers.... but isn't it what we want: sell to end users for a great mark-up ?

Appraising is more art than science, and the best way to learn is to watch the market and check reported sales.
That is not enough, you still need brains and good analytical skills because many sales are one of a kind, and can't be used as a meaningful baseline.

 

[jdwaverly]

In general, I tend to buy brandable domains, not Generics. As Karim mentioned, Estibot returns LOW estimates for these type of domains.
This HELPS me in auctions since any domainer, mostly the newbies as Katherine mentioned, who use Estibot, will drop out of the auction early as soon as bids exceed Estibot's number.
So, YES it affects the actual sales price of domains, mostly brandables, since there are less bidders left when I want to buy.
Don't tell me it isn't true because I've seen it happen like magic on Namejet and Godaddy.
As soon as the price hits Estibot's number, the bidders melt away like snow in the Spring.
Thank You Estibot

Oops. I've given too much away already...
Maybe I should delete my posts