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HugeDomains.com is Buying 50%+ of Expiring Domains at GoDaddy.com

Discussion in 'Domain Expiration and Domain Drop Catching' started by Arca, Dec 9, 2016.

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  1. brandsly

    brandsly Business Member Business Account

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    No, I don't think it's a viable business model to buy and sell at 10x your cost, because we all know that sell through rates are most likely to be lower than 10% for most portfolios.
    Some names I mark for 10x, some even for only 4x (like pronounceable 4 letter domains, where you have less investment risk, higher return in terms of amount, higher demand, and always have liquid value). But I also have a ton of names that I bought for $x-$xx, and sell / sold for mid $x,xxx. As long as you manage your portfolio/finance well, not blindly buy and sell, then you can still be a winner (i.e. your average cost per name across your portfolio divided by your average selling price (x100 for percentage) equal or less than your sell through rate).

    Not all domains are equal in terms of investment/holding risk, sell through rate, or even value to you personally. I'm an entrepreneur before I am a domain investor. For some names, I really want them because I think they are useful for some of my development projects in the backlog. "Insiderr" is great for a publication site -- tech insider, fashion insider, health insider, etc....the usage is endless. Additionally, not every one can afford "insider .com", and I think it's better than insiderly (kind of a mouthful), and I like it the best out of iinsider, innsider, inssider, insiider, insideer (all taken, most MANY years ago), so I think it's a great choice for someone looking to name their company "insider".
    I also really wanted this particular name because out of my portfolio of 3000+ names, I don't have a lot of names with "insider" in it, I thought it was a great addition. If someone comes to my site and search for it, now I have a great choice for them.

    I don't want to go off topic, I know this is suppose to be about Hugedomains and the auction price in general. I just wanted to answer your questions and hope these thoughts are helpful to some people
     
    Last edited: Jan 5, 2017
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  2. brandsly

    brandsly Business Member Business Account

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    Hmm, I don't remember what my proxy was, but probably not much higher.
     
  3. Arca

    Arca Active Member VIP

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    I’d say it’s within the realm of the discussion topic, as huge domains is just one of many entities and individuals driving the broader trend of price increases at GD (and other reseller venues too, where hd is not bidding). And the significant price increases in "reseller" prices, that appear to be following a trajectory that is out of touch with current aftermarket prices, was what I hoped to gain a better understanding of with this thread.

    Do you find that buying brandable names at todays reseller prices at venues like GD is a viable business model? Is end-user demand in the current aftermarket able to cover these acquisition costs (within a reasonable expected amount of time)?
     
  4. brandsly

    brandsly Business Member Business Account

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    Great questions @Arca , I think it is still possible to be a profitable domain investor today by buying brandable names at auction platforms like GD, NJ, SN etc...I'm quite late to the game, so I've never had it the easier way that most seasoned domainers had, I was never able to find/buy a ton of great valuable domains at GREAT prices, I wasn't there when "brandables" weren't that big of a thing that you could hand reg a ton of great word+suffix or 2 worders.
    I go through an insane amount of names everyday, I write my own scripts and algorithms to sort through names and try to spot hidden gems, use numerous metrics to find valuable names, watch a decent amount of names everyday, but pick up only a few at the end of the day because most go way overpriced. But I am still able to add a few hundred names a month to my portfolio. Some I get in bidding wars and win for mid-high $xxx, some I grab really fast at closeout, some I catch for reg fee with API, some I get by backordering, and some I win with 1 bid. I spend from $x to high $xx,xxx (3 L or popular names/dictionary words) per name, I'm definitely one of the more aggressive bidders I admit, but I do know when to stop, when a name is way overpriced. At the end of the day, my average cost per name across my portfolio is $xx without the 5 figure acquisitions, or $1xx include my 5 figure acquisitions. My average selling price is mid $x,xxx, the most valuable names are yet to be sold, my sell through rate is healthy (for last year at least anyway), so I'm still optimistic and loving this game.
    Yes it's getting way too competitive, some prices even make you angry, but as long as you hold a clear head, know when to stop bidding, work hard, work smart, build a strategy that works for you, there's an ocean of names out there, you can still get great profitable names.
     
    Last edited: Jan 5, 2017
  5. joro001

    joro001 Business Member Business Account VIP

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    Here we are again with some more sales from yesterday in the $1k plus range:

    colored.com 5,801 USD 2017-01-05 NameJet
    oceanvacation.com 4,488 USD 2017-01-05 BuyDomains
    magicsauce.com 3,550 USD 2017-01-05 GoDaddy
    localsavings.com 3,383 USD 2017-01-05 GoDaddy
    nutritionsolutions.com 3,158 USD 2017-01-05 GoDaddy
    tuhao.tv 3,150 USD 2017-01-05 DropCatch
    triplecbrewing.com 2,800 USD 2017-01-05 GoDaddy
    cargocontrol.com 2,600 USD 2017-01-05 GoDaddy
    thetransformation.com 2,524 USD 2017-01-05 GoDaddy
    competitiveintelligence.com 2,512 USD 2017-01-05 NameJet
    advise.net 2,500 USD 2017-01-05 Flippa
    itsadog.com 2,444 USD 2017-01-05 BuyDomains
    capitalmerchant.com 2,250 USD 2017-01-05 BuyDomains
    ktunnel.com 2,128 USD 2017-01-05 GoDaddy
    olworld.com 1,875 USD 2017-01-05 GoDaddy
    cehennem.com 1,750 USD 2017-01-05 NameJet
    serverbid.com 1,675 USD 2017-01-05 BuyDomains
    mycosts.com 1,650 USD 2017-01-05 BuyDomains
    telefonieren.com 1,579 USD 2017-01-05 Sedo
    ktunnel.net 1,525 USD 2017-01-05 GoDaddy
    datastars.com 1,501 USD 2017-01-05 GoDaddy
    billoffare.com 1,500 USD 2017-01-05 BuyDomains
    sweatworking.com 1,500 USD 2017-01-05 BuyDomains
    tigerstudy.com 1,500 USD 2017-01-05 BuyDomains
    strained.com 1,488 USD 2017-01-05 NameJet
    businessvaluationgroup.com 1,341 USD 2017-01-05 BuyDomains
    coolactive.com 1,288 USD 2017-01-05 BuyDomains
    papillonphotography.com 1,228 USD 2017-01-05 BuyDomains
    effectify.com 1,126 USD 2017-01-05 GoDaddy
    advisorsgroup.com 1,121 USD 2017-01-05 NameJet
    autoair.com 1,115 USD 2017-01-05 NameJet
    allegro-music.com 1,100 USD 2017-01-05 NameJet
    chagong.com 1,020 USD 2017-01-05 DropCatch
    data4u.com 1,005 USD 2017-01-05 GoDaddy

    Two things are becoming increasingly apparent:

    1. If you don't look to see which domains sold at buydomains often to end users I bet you will guess wrong most of the time and likewise with domains that often were bought by domainers, meaning that domains are going broadly the same to end users as they are going to domainers (sometimes domainers are paying well in advance of end user prices as well).

    2. As mentioned before many average to poor names going for crazy prices. Even names I kind of like are just stupidly high e.g. colored.com going for almost $6k, magicsauce.com for $3.5k, nutritionsolutions.com, over $3k, ktunnel.com over $2k etc. etc. are way too high for domainers to buy, carry and pay renewals on to make ROI. Even if you disagree and see value in some of my picks look at the list above and i'm sure 90% of the names are too high whoever looks at them. Sorry I don't see how you are going to make money at these price points or even get close.

    Conversely, I really like oceanvacation.com which went for less than $5k at buy domains and probably went to an end user. Wonder what that name would have done at godaddy expiring auctions, probably similar.

    Thank goodness this isn't a priority for me at the moment or else I would be really worried competing with this. Frankly I couldn't and wouldn't.
     
    Last edited: Jan 6, 2017
  6. wwwweb

    wwwweb Top Member VIP

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    Omg somebody is going to either take a loss, or be sitting on this stuff for a while, because I have similar keyword type names in my portfolio, and I know what the end users offer.

    I can scan this list, and I know instantly what has potential, and at what price.

    Nutirtionsolutions magic sauce are decent names but finding buyers willing to pay over $3k will take a long time.

    Ocean vacation another good name, it took 15 years to yield $4.500 from a sales company, speculators are throwing $3-4K randomly at names they think they can flip to some small mom and pop. Just not that easy.

    Advisors Group at $1100 has some
    potential, but the GTLDs provide so many low priced options.

    I am happy to have taken the last week off from such exchanges, let them keep burning, and warehousing.
     
    Last edited: Jan 6, 2017
  7. Kazi

    Kazi Established Member

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    what is godaddy "auctionMerge"?
    some of my won auction he/she placed bid three times extend the listing for extra 15 min!
     
  8. disaac81

    disaac81 Active Member VIP

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    I saw magicsauce too and really liked the name. But think I initially got it mixed up with secretsauce in my mind...yea must be getting old.

    Magicsauce will be a hard sell to get the money back. If it was secretsauce hoewever, that money might have been well invested.
     
  9. Gray Wolf

    Gray Wolf Account Auto-Closed

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    Looks like colored.com was a good deal for the buyer, EstiBot value showing $88,000.00. But again how estibot value this domain so high !
     
  10. wwwweb

    wwwweb Top Member VIP

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    Estibot is probably leaning off the sale of color to colarapp which went nowhwere, and was a heavily funded company, the company was eventually acquired by apple, mainly for their handpicked staff

    Estibot should not factor in godaddy bids when you are in the 4 figure range, there are plenty of unregistered names that will give you similar results,

    colored is a past tense domain, the action has already taken place, you need to know all these things when it comes to plurals, ed, ing, s endings, dictates many things.
     
  11. brandsly

    brandsly Business Member Business Account

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    I was bidding on this name as well, not because of the Estibot value or what not, "color" is a great word, "colored" is the past tense, but can also be an adjective, like "colored world", "colored lens", "colored contacts" etc... Additionally, color.com itself will probably never be available again! It was originally sold for $350K to a mobile social network that was supposed to become the Facebook on mobile type of thing. It failed miserably right after launch even with tens of millions of dollars in Angel investments. They bought colour.com as well. The domains were then sold again to a cancer related startup (probably 6-7 figures). I think this domains is a $40k-$50k name to an end user. A few past tense dictionary words (good ones of course) got sold in low-mid 5 figure range, with a couple of high 5 fig exceptions. I think Estibot goes a lot by search volume, the word is searched a lot as part of a phrase, but not exact match. I stopped bidding because:

    • Not enough sales data for similar category domain in mid five figure range for me to justify the price /take the risk. Even if it gets sold for mid five figures, it's still not enough, don't think this type of name will have over 10% sell through rate.
    • Realized it has racial implication (major reason) - negative impact for a startup using this name
     
    Last edited: Jan 6, 2017
  12. wwwweb

    wwwweb Top Member VIP

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    Once again I hope this is a end user type buyer and not a domainer.

    I know the color app well, since I own the .com, and had a conversation with the guy who started color after he acquired it thru Godaddy. I was getting thousands of his uniques, but he had already spent his budget and was good with color.com, which is an amazing domain, and I couldn't agree more with him. They were funded $41M when they started.

    The app had a cool concept, just had issues never went viral, he was burning money quick, and to save face he got apple to buy him out for cheap.

    His last startup was acquired for like $850M, so he had a great track record, but at the end of the day it was just an app, and never turned into a real company.

    Whoever is paying $6K, saynora, unless some online coloring book is coming online soon, good luck.

    Same thing with travel.agency it was listed on flippa, and sold for $10K, now that guy is back on namepros trying to sell it because he needs money.


    Unless you have a direct match, or generic keyword end users are very few, and far between, the ones yielding $5K plus offers.

    This is great news, as all your guys portfolio domains keep valuating higher:

    But a few days at Godaddy, and your cc will be maxed out. So let them keep spending as no way they can sell them faster than they are chasing them higher.
     
    Last edited: Jan 6, 2017
  13. dordomai

    dordomai Active Member VIP

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    i think it is possible that single word domains that are somewhat brandable (colored.com) could become more valuable over the long term. There aren't so many single word domains and in the future it might be harder and harder to acquire one. So i don't think the price is that bad compared to some others on the list.

    the racial meaning is a problem though.
     
  14. wwwweb

    wwwweb Top Member VIP

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    How many names like this do you own in your portfolio? How many $6K buys can you afford to purchase, and let sit for 5+ years?

    This person has had it since the 90's, they finally are letting it go thru namejet, it never found an end user home.

    That says alot.

    This is why big brokerages need to keep moving money, to sustain their core holdings. This is why car dealerships that are in prime locations need to keep churning inventory, it is to sustain their core assets at the expense of lessor assets, so they can wait out the right asset payday.
     
    Last edited: Jan 6, 2017
  15. dordomai

    dordomai Active Member VIP

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    I am not saying that this name at that price is a good investment but I think single word domains could become more valuable, at least there is only a limited number of them vs. combination of words.

    Even if you don't sell it, you got a chance to sell it to another speculator in the future simply because it is a single word brandable domain.

    if you look at how much crap is being sold for high prices at auctions, this one is at least rare.

    Like retarded.com which is perhaps not an ideal brand, it can at least resell.
     
    Last edited: Jan 6, 2017
  16. Bros

    Bros Active Member VIP

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    Colored.com is a great domain for the adult coloring book industry (see colorit.com)! I think it was a great deal if the plan is to develop it out, obviously bit more challenging if the plan is to flip it.
     
  17. dotbay

    dotbay NameSquad.com VIP

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    So who placed an early bid on Mirrorly!?:hurting:
     
  18. Nat47

    Nat47 Established Member

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    I freaking hate that site
     
  19. brandsly

    brandsly Business Member Business Account

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    I agree, one word .coms are high in demand among startups as brandables, and hold liquid value in general. Most good one word .coms have 5 figures liquid value / auction prices, 6-7 figure end user prices. you can't buy anything that great with mid-high 4 figures even, you can only pick up some words that are past tense (-ed), present tense (-ing), 3rd person present (-s), have negative connotation etc.... These variants of the original root words have liquid value of anywhere from low 3 figures (or even less) to 4 figures depending on the quality of the words.
     
    Last edited: Jan 6, 2017
  20. brandsly

    brandsly Business Member Business Account

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    And how much do you think a word like this should go for in auctions then if $6000 is end user price? $600? $1000? If you have past tense or any tense of good words like this and and want to sell for 3 figs or low 4 figs, let me know, I can take all the ones I like! I don't even remember how many times I bid on this type of words in the past year, and got outbid /gave up at mid 4 figure range. I've also been looking for good dictionary one word .coms for mid 5 figures and yet to come across many in the past year, because nobody want to let them go and many great single word .coms are already developed.
     
    Last edited: Jan 6, 2017
  21. dordomai

    dordomai Active Member VIP

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    sadly this seems to be the destiny of many one word domains even great ones.

    even good domains are horribly illiquid. I wonder why?

    Maybe a sign that the domain market is still in the earlier stages or maybe that domains will never be popular as an asset class?
     
    Last edited: Jan 6, 2017
  22. wwwweb

    wwwweb Top Member VIP

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    Colored.com $2-3K seems like a solid price for a domainer acquisition. Maybe $3.5-3.8K if you really want to push it, but over $5K is really rich, unless you have a master plan. Estibot maybe twists it a bit, and same with those big color sales which were by a richly funded new startup, that was on a pure acceleration and burn voyage. From an investor pov they are going to check those results, and it will skew them for sure, unless you know the back story.

    I have a ton of these in my portfolio, it is just nonsense $1-$1000 type offers, odd time $5-10K offer comes in, but half the time the words come out of their mouth, but no money comes out of their bank account, or they talk first, worry about how to pay for it second.

    I will give you an ED example of one of these Strived.com

    strive
    strīv/
    verb
    verb: strive; 3rd person present: strives; past tense: strove; past tense: strived; gerund or present participle: striving; past participle: striven
    make great efforts to achieve or obtain something.
    "national movements were striving for independence"
    struggle or fight vigorously.
    "scholars must strive against bias"
    synonyms: try (hard), attempt, endeavor, aim, venture, make an effort, exert oneself, do one's best, do all one can, do one's utmost, labor, work; More


    If you like it, PM me, maybe we can work out a fair price.
     
  23. brandsly

    brandsly Business Member Business Account

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    I'm sorry but I don't like "strived" nearly as good as "colored". Feel free to PM me any time if you have any great brandable 1 word .coms for wholesale price. I'm gonna let this thread go back on topic.
     
    Last edited: Jan 6, 2017
  24. wwwweb

    wwwweb Top Member VIP

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    Of course you don't, because you already know the closing price of colored.com, and the guy who won it, bids big money at namejet, he is always in the thick of 5 figure bids. The little guy was not going to steal this one on the cheap, and cheap. It got acquired by someone who has a serious bank roll, probably someone who has made some big sales, and has money to spend. He is not your average namepros user, he might be a user, but not your avg domainer.

    No 1 domain is similar, color, colored, coloured etc... that is the thing, domainers will never pay another domainer a fair price, but in expired auction they will bid to lose, or overpay everyday of the week.

    I don't think you would have bid $3K on colored.com regardless, you can't build a portfolio in modern days paying up for names like that, you will be broke in a week.
     
  25. brandsly

    brandsly Business Member Business Account

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    I didn't like "colored" more because I knew the closing price. I was the second highest bidder. My max bid was $5600 ($5,701 proxy). I only stopped after realizing the whole racial connotation problem. I can totally see a startup being called "colored" if it's not that.

    And don't underestimate the amount of serious domain investors out there that have relatively high budget.
    I don't want to come across as bragging here, but I made an exit on my last startup, came into domain investment with a mid-six figure budget, I've won domains for mid-high 5 figures, invested more than a quarter million dollars in less than half a year, I bid aggressively on almost all the domains I like, but I still get outbid all the time at auctions, and there are a number of domain investors that consistently spend 5 figures a month on domain investment. I recognize them by their alias all the time and bid against them every day.

    I don't buy 4-5 figure names every day, but I actively seek out for good ones as long term investment in my portfolio in addition to my other brandable names.
     
    Last edited: Jan 6, 2017

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