HUGE DOMAINS SNIPING GODADDY CLOSEOUTS

BrandZen said:

Speaking of GD.. they are currently down. Just called tech support and they confirmed downtime. I wonder what happens to auctions. Do they continue to end as scheduled? If yes, people that already bid will get some great deals.

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Don’t worry Huge Domains has their bot bids firing just fine.

BrandZen said:

Speaking of GD.. they are currently down. Just called tech support and they confirmed downtime. I wonder what happens to auctions. Do they continue to end as scheduled? If yes, people that already bid will get some great deals.

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yes they seem down.

usually its rare they are down and for short time. maybe different now!!!

Looks like Huge Domains is using proxies just under 12% of appraised values.

So if something has a $6K godaddy appraisal they are placing proxy bids arising $700, and yes they are not just bidding on sub $200, they are playing higher amounts.

Anything good you are going to pay a Huge Domains tax on Godaddy as they are pretty much sitting with a ready in place proxy.

wwwweb said:

Looks like Huge Domains is using proxies just under 12% of appraised values.

So if something has a $6K godaddy appraisal they are placing proxy bids arising $700, and yes they are not just bidding on sub $200, they are playing higher amounts.

Anybting good you are going to pay a Huge Domains tax on Godaddy as they are pretty much sitting with a ready in place proxy.

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this sounds so wrong on so many levels.

alcy said:

this sounds so wrong on so many levels.

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It’s a double edged sword given they own over 5 million domains, they are buying an insurance policy to make sure they are not undercut on their $1800-$3500 range, you aren’t going to catch high appraisal names for a few hundred, you have to step up, this ensures that they are not being undercut in the final aftermarket sales, they need to keep a pricing advantage to keep the cash flow moving to pay the renewal, and fund new purchases as long as the economy keeps rolling.

To be honest after quoting end users $2-5k and hearing them balk like it’s a crazy amount, it’s unreal how some of these godaddy names keep selling for $2-10k on the daily, it’s not that easy to get your money back, especially if you have to pay a 20 percent commission. I almost think investors are more optimistic than most end users.

So are they deciding on what names to bid on themselves or is their proxy activated when a name is bid on by someone else?

What I mean is, could we bid on worthless names upto 12 percent of appraisal and their bot will bid and cost them money?

D Haynes said:

So are they deciding on what names to bid on themselves or is their proxy activated when a name is bid on by someone else?

What I mean is, could we bid on worthless names upto 12 percent of appraisal and their bot will bid and cost them money?

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In sure they have their database of what keywords sell, and godaddy appraisals, age etc... I will try to include a list of types of names they are buying a bit later. Given how many variables are given on each auction now, it wouldn’t be hard to weed out quality names.

They bid to £186 on a £1900 appraised name that I bid on. They lost the auction which is what you need to know their max proxy.

MyLiverpool.com

Doesn't seem like a name they would find attractive but they could be targeting geo names I guess. Names like this is what makes me think their bot just bids on names that already have bids.

D Haynes said:

They bid to £186 on a £1900 appraised name that I bid on. They lost the auction which is what you need to know their max proxy.

MyLiverpool.com

Doesn't seem like a name they would find attractive but they could be targeting geo names I guess. Names like this is what makes me think their bot just bids on names that already have bids.

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Not even being from the UK, seems like a great name for a 500k population, and lots of sports following.

A name they did win with a $420 bid was autosun.com which has an appraised value of $6,644, their max proxy was not exposed.


Another one is getapet.com with an appraised value of $4,xxx, and a winning bid of $633.

Seems they're not afraid to spend mid to high XXX on a name they would be lucky (in my opinion) to get 2.5 - 3K for. Not a very high profit margin on an individual name but I guess they're doing thousands a week.

D Haynes said:

Seems they're not afraid to spend mid to high XXX on a name they would be lucky (in my opinion) to get 2.5 - 3K for. Not a very high profit margin on an individual name but I guess they're doing thousands a week.

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or........ some big company that owns HD... is very rich.. makes overall tons of money on various ventures and projects.. and does not care if a few of its projects are losing them money.. or making very little money.. or just about breaking even..

D Haynes said:

Seems they're not afraid to spend mid to high XXX on a name they would be lucky (in my opinion) to get 2.5 - 3K for. Not a very high profit margin on an individual name but I guess they're doing thousands a week.

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It’s there scale, they aren’t a typical buyer that maybe tries to buy 1-20 names a week, they are probably buying hundreds, if not low thousands, and putting proxies on each one. No other buyer causes such discourse, I don’t know why domainers support their cause, when they are effectively outbidding you with profits derived from some of their operations.

Godaddy not stopping them from sniping closeouts adds insult to injury, or reward for bidding who knows.

wwwweb said:

It’s there scale, they aren’t a typical buyer that maybe tries to buy 1-20 names a week, they are probably buying hundreds, if not low thousands, and putting proxies on each one. No other buyer causes such discourse, I don’t know why domainers support their cause, when they are effectively outbidding you with profits derived from some of their operations.

Godaddy not stopping them from sniping closeouts adds insult to injury, or reward for bidding who knows.

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perhaps they receive discounts on purchases or fees? or renewals.. or other... for such great participations in auctions.. as well as having the effect of increasing bids for other people who may end up winning some of those names?

I can only imagine the mindblowing sums of mony they bring in to GD... directly through payments.. or indirectly by just participating in bidding.

alcy said:

perhaps they receive discounts on purchases or fees? or renewals.. or other... for such great participations in auctions.. as well as having the effect of increasing bids for other people who may end up winning some of those names?

I can only imagine the mindblowing sums of mony they bring in to GD... directly through payments.. or indirectly by just participating in bidding.

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That would be under a nda signed off by both parties, but it would not be a very good thing at all. Lots of companies give discounts based on spending, and in turn godaddy would actually be making more by having a API bot buyer putting in proxies in the majority of sought after auctions. I really hope that isn’t the case.


Imagine not having bidder 913932 in all these auctions, good for buyers, bad for the house, your right it is a mind blowing amount.

Perhaps paying the extra buck before it gets to closeout would solve some problems . . .

Want2learn said:

Perhaps paying the extra buck before it gets to closeout would solve some problems . . .

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No, that would simply invoke the Huge Domains API Bot to place a 10-12% of the appraised value proxy bid as the name would be on their hit list, the $1 would end up costing $xxx.

Either way Godaddy has created a system that favors a single party, and where they are able to game the platform with little resistance from the house who makes the rules.

Jv1999 said:

WTF. I WAS ABOUT TO WIN A DOMAIN FOR ONLY $12 DOLLAZ BUT HUGEDOMAINS "Bidder 913932" OUTBIND ME TO $266?!?!?!?!

There were only two bidders, me and him. And then, I won because.. fomo. but still, fk dat.

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That’s exactly how it works, either they would have beat you by sniping the closeout, or if you engage a last min $12 bid the bot will engage their proxy which is $xxx, and you just paid $300 for a domain only you, and a bot wanted. You just paid the Huge Domains tax, and I am so sorry, you had to over spend your hard earned money to battle a bot, who does this to hundreds of people, day in, and day out. Who do you think wins here?

wwwweb said:

That’s exactly how it works, either they would have beat you by sniping the closeout, or if you engage a last min $12 bid the bot will engage their proxy which is $xxx, and you just paid $300 for a domain only you, and a bot wanted. You just paid the Huge Domains tax, and I am so sorry, you had to over spend your hard earned money to battle a bot, who does this to hundreds of people, day in, and day out. Who do you think wins here?

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wait but what if no one battles the bot to death and HD has to pay $200 - $250? I mean, they lose too, then.

I think, on teh bright side, it means winning the domain is worth it because it means it's good because HD was willing to pay $266 for it.

UNLESS they just never pay whenever they win it for over $12.

wwwulff said:

Congratulations to HD with their latest auction purchase xwgdyq.com - Maybe they are considering a rebranding

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Not sure how the first 3 letters are pronounced, but the last 3 should be pronounced as "dick", right? )

Jv1999 said:

They don't always go to 288!

Look eat the history for equinestables.com

They only bid this up to 104..

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They like the $4 ending, which kind of makes me think a lot of the time they are trying to just bid up auctions.

Just decided to check closeouts literally did not find a single name I was interested in, only garbage left over, this is a massive change on even a year ago when I was involved in closeouts quite a bit, don't bother anymore. The only domain that makes sense is insane-prices.com lol which is actually in closeouts right now, just about sums it up.

I have not bid on a single auction at godaddy for a very long time and don't see that changing the market is ridiculously over inflated and is in dire need of a correction on the auction side. I recently sold some names at NJ and was thrilled with results, domainers are paying up much more than end users most of the time, I could prove this easily. If this was my main business I would be very worried indeed.

Total SCAM!

joro001 said:

Just decided to check closeouts literally did not find a single name I was interested in, only garbage left over, this is a massive change on even a year ago when I was involved in closeouts quite a bit, don't bother anymore. The only domain that makes sense is insane-prices.com lol which is actually in closeouts right now, just about sums it up.

I have not bid on a single auction at godaddy for a very long time and don't see that changing the market is ridiculously over inflated and is in dire need of a correction on the auction side. I recently sold some names at NJ and was thrilled with results, domainers are paying up much more than end users most of the time, I could prove this easily. If this was my main business I would be very worried indeed.

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I hear you, and you are right, but if people want to pay these prices, by all means let them, they only increase the value of your portfolio base by doing so. Maybe that is why huge domains with 6 million domains strong, has an added interest in making sure speculators are paying at least an $xxx value for all domains, and getting no freebies, as they have a lot to gain by making sure the secondary market by domainer inquiries have high asking prices.

These similar names were going off for $5-$100 years ago, are still sitting in portfolios, so all these people paying hundreds to thousands for them, are in for a rude awakening.