1000s of my Domains Expired, often picked-up by Huge Domains

It's hard to believe Huge Domains pays the big renewal bills and manages to sell in such high volume when in my experience they are very firm on original quoted price. I learned that when I tried to buy a few lower value names in the past and HD would not accept less or make a counter-offer and never even bothered to later follow-up on my inquiry.

namemarket said:

It's hard to believe Huge Domains pays the big renewal bills and manages to sell in such high volume when in my experience they are very firm on original quoted price. I learned that when I tried to buy a few lower value names in the past and HD would not accept less or make a counter-offer and never even bothered to later follow-up on my inquiry.

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If you make an offer on a domain at HD, it's Standard Operating Procedure for them to quote you a price higher than their original asking price. Try it. And you will see

What ifff HugeDomains is secretly owned by Verisign itself....!!!!
(Why to sell domains for $8 when u can get $1500 - $3000)

Satyajit Adhikary said:

What ifff HugeDomains is secretly owned by Verisign itself....!!!!
(Why to sell domains for $8 when u can get $1500 - $3000)

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haha there is might a chance, at least same few peoples, or connected

E-Promote said:

Having said that, there are much juicier stocks to short in the coming crash

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How severe you anticipate the stock market crash is gonna be, more than 2008?

stub said:

If you make an offer on a domain at HD, it's Standard Operating Procedure for them to quote you a price higher than their original asking price. Try it. And you will see

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Most domain resellers are like that too. FOUR TIMES I have made the mistake of making a slightly lower offer than the BIN and offering to complete sale via Escrow. Soon as that was done, the BIN was removed and I was quoted 30% higher price. Guess what jumps to my mind !!?? "MF, SOAB, I am NEVER going to buy anything from this MF" !! Always buy at BIN when you can't afford to spoil the chance to own a domain, DON'T TALK TO THE SELLER beforehand.

Numbers game for them. If they sale 1-2% of names in the $1500 price range, they are in profit. I'm sure it must be profitable if they own that many domains and keep getting hundreds more each week.

No doubt they will be getting them cheaper than most

Sales are simply a function of quantity when it comes to HD. You must have been doing something right! @namemarket can I ask you did you have them all priced up under $2,000 BIN on Afternic Fast Transfer?

They would not do it if it wasn't profitable. It's shouldn't be that hard to figure out how their sell ratio has to turn out, in order to become profitable.

That's why I have swamp land for sale and no one else does.
I buy cheap, taxes are almost non-existent, and I let realty companies list and show the properties.

SIMPLE MATH :
if we could assume 2% sales from the total portfolio, then 2% from 100 compare to 2% from 1000 resulted in 18 sales difference. If we assume further minimum sales is 1K those 18 sales difference were equal to 18K, even you have to paid around 9K for renewal/registry of 1000 domains it would still another 10K USD profit.

Bigger portfolio size could be as same as higher sales percentage, it could be lead to 3% sales or even 5%, do your math and you could play the very same ways as hugedomains LOL

Fancy.domains said:

They would not do it if it wasn't profitable. It's shouldn't be that hard to figure out how their sell ratio has to turn out, in order to become profitable.

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That's not true. Many companies are unprofitable for years.

namemarket said:

Do they have exchange traded stocks?

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No, their parent company TurnCommerce is private.

Bob Hawkes said:

they would need to pay the $7.85 wholesale rate +ICANN fee so in other words need to sell about $32 million in domains each year to break even.

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How, you may ask? Probability. Sell-through rate. Average sales price. Outlier sales.

You can say that out of every 1,000 domains they buy, they only need to sell 4 of those domains in their $1-4k price range to break even.

Better yet, out of 10,000 domains, they only need to sell 1 domain for 5 figures.

Every 100,000 domains, they only need one 6 figure sale.

Their business is superbly profitable.

IMEZI said:

Bigger portfolio size could be as same as higher sales percentage, it could be lead to 3% sales or even 5%, do your math and you could play the very same ways as hugedomains LOL

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The material profit comes from the outlier buys and sales. The home runs.

The probability is too small for it to work as well with a small portfolio. You need a huge portfolio.

Thank you for your comments @Addison. I totally agree that it is possible that with a huge portfolio there are economies, not just in costs but also in achieving a higher throughput ratio because they get perceived as a go to place to obtain domain names. It is hard to really know how profitable they are since as a private company they do not need to share financials.

Elliot Silver did a post on their business model at this link:
https://domaininvesting.com/turn-commerce-business-model-is-smart/

One interesting thing is their website suggests 'only' 350,000 domain names, DomainIQ suggests they own about 963,000 (or did in September of this year), while Verisign estimates in their post that they own 4 million (I guess including some from other facets of the overall business, or some perhaps not currently for sale).

Elliot summarizes his view of their operation this way:

Bob

If its not sold Then the domain will be available for registration again. What I believe.

Mister Funsky said:

Economies of scale. Takes REALLY deep pockets to do that in the domain biz...mine are too shallow!

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Just want you to know this newcomer is benefitting from your insights and your humor.

Fancy.domains said:

They would not do it if it wasn't profitable. It's shouldn't be that hard to figure out how their sell ratio has to turn out, in order to become profitable.

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Smiles76 said:

That's not true. Many companies are unprofitable for years.

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GD took almost 2 decades to attain profitability if I'm not mistaken ?

Smiles76 said:

That's not true. Many companies are unprofitable for years.

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So you are saying that they are currently losing money from this, or what?

Fancy.domains said:

So you are saying that they are currently losing money from this, or what?

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I'm saying it's a long term game. They are trying to build up such a large portfolio of domain names that they effectively eliminate any real competition in the reseller market. Similar to how Amazon has focused on growth over profits for decades. Remember, the owners of HugeDomains own hundreds of registrars along with DropCatch. So, even if HugeDomains is unprofitable they have countless other revenue streams

Smiles76 said:

I'm saying it's a long term game. They are trying to build up such a large portfolio of domain names that they effectively eliminate any real competition in the reseller market. Similar to how Amazon has focused on growth over profits for decades. Remember, the owners of HugeDomains own hundreds of registrars along with DropCatch. So, even if HugeDomains is unprofitable they have countless other revenue streams

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Yes, but I wrote: "They would not do it if it wasn't profitable".

Long- or short term...