Anyone who has been in this business for just a solid year, knows that artificially generated valuations are crap 99% of the time.
I had an interesting conversation about a week ago where someone asked me about the GoDaddy valuations. I said they are mostly for entertainment purposes but I do think they do harm to new domain investors and non domainers.
If GoDaddy believes in their valuations, they do have namefind and if they think these names are so valuable, after they clear closeouts they should be doing a lot of handregging.
There is one name that really exemplifies how flawed their system is, @TLDN pointed out a domain to me on Twitter, along with alerting GoDaddy. It was @TLDN and @WTFDomains that got GoDaddy’s attention to take down the public auction of RapeKids.com. Now the auction today is an expired auction, so I guess, GoDaddy has to let it run it’s course. NO one in their right mind is buying the following name.
Now I know what I am going to hear from some, “Oh Raymond you need to understand, they have so many names, and the algorithm did this and the backend did this, and quality control was out to lunch.” Save it, I don’t care, learn to add a filter that blocks adding valuations to certain keywords. Cause no way in this world am I letting it look like my company assigns a $1,651 to the above name.
And if the reply is we know their valuations are worthless, then what is the point? Get rid of them, otherwise it seems like masturbation without the payoff.
That’s just my opinion, I could be wrong.