NameSilo

HUGE DOMAINS SNIPING GODADDY CLOSEOUTS

Located in Domain Marketplace Reviews, started by wwwweb, May 6, 2019

Replies:
697
Views:
52,563

  1. Samer

    Samer Top Contributor VIP Blue Account

    Posts:
    3,766
    Likes Received:
    5,054
    Why is not a profitable business for HD? That’s
    Conjecture. Looking at them this is what I see..

    Mutualistic relationship; 80M+ GD and 7M HD.
    Put perspective;HD more than double Uni DN!

    Looks highly complex profitable operation both
    HD’s growing, felt like at 6M, not too long ago.

    Samer
     
    Last edited: Apr 3, 2020
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. Ryan217

    Ryan217 Established Member

    Posts:
    865
    Likes Received:
    1,369
    HD is definitely making good money. They got about 7million names is it? If they can get a 1% sell though for example that's 70,000 sales a year if you assume an average sales price of $2,500 that's about $175million in sales. Now I doubt they have 1% sell though (I've seen some very crappy domains there) but even if you say its 0.5% thata still $85.5million.

    Just saying. And that's not taking into consideration their revenues from DropCatch or NameBright.
     
  3. Coindoji

    Coindoji Blockchain and Crypto domains Blue Account

    Posts:
    71
    Likes Received:
    36
    I would have thought you would stop any unprofitable business as fast as possible, and the fact that they are still into it and shifting gears up, speaks for itself - we just don't have all the pieces in this puzzle and of course it's profitable for them since all they do is expanding and increasing volumes/bids.
     
  4. uzver

    uzver Established Member PRO

    Posts:
    311
    Likes Received:
    1,287
    Well, we should be careful with "make them pay the $1xx for it". I successfully played with HD bot for almost two weeks, and it never disappointed me :xf.grin:

    But one small mistake costed me $145 + renewal.

    The domain I won was valued for $1,822 by GoDaddy, so I assumed HD bot will bid up to 9% of the valuation which is $163.98. I put a $150 proxy bid and accidentally won. HD bid was set at $142.
     
  5. uzver

    uzver Established Member PRO

    Posts:
    311
    Likes Received:
    1,287
    So I'd like to share my recent experience with Godaddy auctions where HD bot was a participant. I must say everything written in this thread works without fail most of the time.

    I just went thru my lost auctions at GoDaddy and compiled a simple stats.


    Period: 17 Mar 2020 - 31 Mar 2020

    littleserver.com - HD bot won
    I personally pushed it from $12 to $82 :xf.grin:

    charityassistance.com - HD bot won
    I personally pushed from $12 to $17 :xf.grin:

    villastar.com - HD bot won
    me and couple more bidders pushed it from $12 to $55, and then HD bot joined at $65 just to be pushed by someone great all the way to $266

    trustenterprise.com - HD bot won
    few bidders at the beginning, and then another great bidder pushed HD bot from $63 to $123

    bbelt.com - HD bot won
    I haven't started this one but I was amongst the first few bidders, then another nice bidder took over and pushed the HD bot from $50 to $100

    roserestaurant.com - HD bot won
    four legit bidders from $12 to $85, then HD bot joined at $95 and it was pushed by another great person to $163.

    yomart.com - HD bot LOST
    legit bidders from $12 to $150, then HD joins at $155 and pushes another bidder to $338. Sad.

    archbone.com - HD bot won
    I pushed the bot from $12 to $110 :xf.grin:

    emotivecreative.com - HD bot won
    I pushed the bot from $12 to $60 :xf.grin:

    roofanchor.com - HD bot won
    I was fighting with the bot from $12 to $110, then another bidder joined and made HD bot pay $155

    clouddirection.com - HD bot won
    I pushed the bot from $12 to $62 :xf.grin:

    bestforlife.com - HD bot LOST
    legit bidders from $12 to $185, then HD joins at $190 and pushes another bidder to $361

    pressconsulting.com - HD bot LOST
    legit bidders from $12 to $60, then HD joins at $65 and pushes another bidder to $130

    greendock.com - HD bot won
    legit bidders from $12 to $258, then HD joins at $268 and another great bidder to forces HD to pay $403 for this domain

    thinksupply.com - HD bot LOST
    legit bidders from $12 to $120, then HD joins at $137 with this only bid, then myself and another bidder continue to $182. I wonder why HD bot didn't participate longer.

    kristaupher.com - HD bot won
    HD bot joins at $27, and wins the domain in a bidding war with another bidder at $137

    whatworksnow.com - HD bot won
    my bid $12, and HD won at $17

    brainstrength.com - HD bot won
    quite a few bidders participated up to $285, and HD bot won with a single bid of $290

    studioday.com - HD bot won
    legit bidders from $12 to $228, then HD joins at $233 and another great bidder to forces HD to pay $303 for this domain

    ourhealthylife.com - HD bot won
    legit bidders from $12 to $51, and then I pushed HD bot to win it at $200 :xf.grin:

    art-i.com - HD bot won
    legit bidders from $12 to $32, then HD joins at $37 and another great bidder to forces HD to pay $77 for this domain

    presentationlab.com - HD bot won
    legit bidders from $12 to $63, then HD joins and outbids another bidder's proxy bid of $222 to win the domain at $227

    kidearth.com - HD bot won
    legit bidders from $12 to $24, then HD joins at $29 and pushes another bidder to win at $167

    exceptionalleadership.com - HD bot won
    few bidders, including HD bot brings the auction to $120 mark, and then another great guy forces HD to pay $215 for the domain

    gentley.com - HD bot LOST
    legit bidders from $12 to $245, then HD joins at $250 and continues a bidding war with a single bidder till $356 (at this point HD exits), then the third bidder joins and wins the domain at $366 mark.

    Remarks:
    - by legit bidders, I mean anyone, but 913932 and 913933.
    - all above auctions had no bids 15 minutes prior to auction end

    There was no auction that started by me or someone else, where HD bot wouldn't join.
     
    Last edited: Apr 3, 2020
  6. pb

    pb Established Member ★★★★★★★★★★

    Posts:
    397
    Likes Received:
    831
    inb4 HD files a lawsuit aganist namepros members for acting as a cartel to push prices on domain auctions. :xf.rolleyes:
     
  7. DomainBanana

    DomainBanana Established Member

    Posts:
    249
    Likes Received:
    368
    I looked at 109 HD domain purchases and list prices.

    Total expenses for these 109 domains were $18,565.

    Total list price: $471,955.

    With these purchases, breaking even over the first year would require an STR of 3.93%.

    How can this be profitable?
     
    Last edited: Apr 3, 2020
  8. uzver

    uzver Established Member PRO

    Posts:
    311
    Likes Received:
    1,287
    Why not?

    Exactly 12 months ago I started a test: buying & selling cheap .org and .net.
    Roughly first 150 domains were picked without much research, i.e. filtered using age, etc.

    Test portfolio size: 276 domains (of which 42 were purchased this year, and the list also includes sold ones).
    Total acquisition cost $5,707.

    Results to date:
    Sold 19 domains (STR 6,9%)
    Net Revenue: $11,301
    Profit: $5,594 ($11,301 - $5,707)

    For what it worths, I found it very time-consuming, so I slowed down this year (as you can see from my acquisitions). But I'm sure it can be scaled easily with all the resources HD has, IMO.
     
    Last edited: Apr 3, 2020
  9. DomainBanana

    DomainBanana Established Member

    Posts:
    249
    Likes Received:
    368
    Congrats, but HD doesn't do meticulous research and they don't have anything close to 6.9% STR. They would be lucky to get 1/10th of that.

    Note: I adjusted my original calculations -- they would only need 3.93% STR to break even in the first year.
     
    Last edited: Apr 3, 2020
  10. uzver

    uzver Established Member PRO

    Posts:
    311
    Likes Received:
    1,287
    We do it for them. That's more than enough.

    That's just an assumption. How can you know?
     
  11. DomainBanana

    DomainBanana Established Member

    Posts:
    249
    Likes Received:
    368
    I know the average quality of domains they pick up.
     
  12. uzver

    uzver Established Member PRO

    Posts:
    311
    Likes Received:
    1,287
    And let's not forget that next year the renewal for these domains will be less than 1K, while they can keep selling them which contributes to the STR for this slice of their domains.
     
  13. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

    Posts:
    10,976
    Likes Received:
    10,959
    $65M for renewals, and overheads, + credit card/paypal processing charges, plus this is a big plus cost to acquire all current, and past names, and less any other platform commissions.
     
    Last edited: Apr 3, 2020
  14. uzver

    uzver Established Member PRO

    Posts:
    311
    Likes Received:
    1,287
    I can't speak for HD, but I believe the domains I quoted above CAN be sold for $1,000+ each.
     
  15. DomainRecap

    DomainRecap Top Contributor VIP

    Posts:
    3,374
    Likes Received:
    3,035
    It depends on whether HD gets any cut of the back-end action.
     
  16. DomainVP

    DomainVP Domain Expert VIP

    Posts:
    3,460
    Likes Received:
    12,601
    They do.

    What looks like nonsense buying to us is a fine tuned algorithm of buying.

    Years ago I was hired by a registrar to crack their formula of purchasing from the drop. Which I did at the time. In short; they cast a net targeting specific keywords, dates, lengths, and other metrics. It's messy because there are a lot of domains that will never sell but in that net they catch enough to make a profit every day.

    I disagree with this approach, because for the most part the successful snipers are just other domainers and not HD. When you place a bid with minutes remaining yes you can/will cost HD money but you are just nuking the domain for other investors because it will just got to HD anyway.

    HD is not hard to beat at the snipe, in fact their bot is incredibly slow when it come to closeout sniping.

    You've heard from reps before that it's not a "magic bullet" - and they are 100% correct. The API is kind of slow... BUT it is a part of a process that allows people to snipe the best closeout auctions consistently, with as much a 80% success rate.
     
  17. uzver

    uzver Established Member PRO

    Posts:
    311
    Likes Received:
    1,287
    But you need an API access to compete with others in closeouts, it’s mission impossible to snipe anything using web interface. At least with an API you can put it on autopilot...
     
  18. lotk

    lotk Top Contributor VIP Blue Account ★★★★★★★★★★

    Posts:
    1,094
    Likes Received:
    540
  19. DomainBanana

    DomainBanana Established Member

    Posts:
    249
    Likes Received:
    368
    Yes, but this is different than meticulous research and they do pick up a great deal of junk that won't sell.

    I'm not so sure. If they do profit, I think their margins are very, very small.

    In other words, their huge inventory compensates for their tiny STR.
     
    Last edited: Apr 3, 2020
  20. NameShiba

    NameShiba Top Contributor VIP Gold Account Blue Account

    Posts:
    911
    Likes Received:
    1,620
    Bidder 913932

    Crushed me again today on GoDaddy.

    *oof *huge domains*
     
  21. DomainVP

    DomainVP Domain Expert VIP

    Posts:
    3,460
    Likes Received:
    12,601
    What was the domain?
     
  22. NameShiba

    NameShiba Top Contributor VIP Gold Account Blue Account

    Posts:
    911
    Likes Received:
    1,620
    ManagerPerformance.com
    ExcitingCareer.com
    PCAgents.com
    GreatScans.com
    DuelLink.com

    Will have more close but no cigar auctions tomorrow :P
     
    Last edited: Apr 7, 2020
  23. namesway

    namesway Established Member

    Posts:
    39
    Likes Received:
    37
    .
     
    Last edited: Apr 11, 2020
  24. wwwweb

    wwwweb Top Contributor VIP ★★★★★★★★★★

    Posts:
    10,976
    Likes Received:
    10,959
    If the bot has it in it's que at $12, you can surely bet it's going to go at it for $11.

    So if you are trying to get the closeouts, you can see the visitors when you hit refresh, if the refresh hits are jumping 4-5 times per refresh you know a bot is going to beat you to it.

    All users deserve an equal chance at closeouts.
     
  25. namesway

    namesway Established Member

    Posts:
    39
    Likes Received:
    37
    .
     
    Last edited: Apr 11, 2020

Want to reply or ask your own question?

It only takes a minute to sign up – and it's free!
Topics / Tags:
NameWorth
  1. NamePros uses cookies and similar technologies. By using this site, you are agreeing to our privacy policy, terms, and use of cookies.
    Dismiss Notice
Loading...