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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. urlurl

    urlurl Active Member VIP

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    keep in mind coloured.com is the other way its spelled - you almost need both names.

    Re Google:

    color and colour are different spellings of the same word. Color is the preferred spelling in American English, and colour is preferred in all other main varieties of English. Though color occasionally appears outside the U.S., it is still considered a misspelling.

    I stay away from words with alternate spelling (unless i can get both)
     
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  2. Nat Hunt

    Nat Hunt Business Member Business Account VIP

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    No legitimate company would ever brand on Colored in the US, because it has a negative racial connotation.
     
  3. urlurl

    urlurl Active Member VIP

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    you are so right... and the funny thing is, it is the american spelling, LMFAO

    I'm so glad these buyers are blowing their wads on single names. takes money out of their hands = less names they can buy in the future.

    I'm just waiting for these names to hit the forum, sellers trying to turn a profit... and then they find out they over paid :xf.eek::upsetbaby::facepalm::yuck::dead::hungover::vomit:
     
  4. wwwweb

    wwwweb Top Member VIP

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    It is not even turn a profit, they think these names are like money in the bank.

    When, and if they need money for something real world based they will turn to these domains, come here like the guy with Travel.Agency did and listen to the crickets chirp.

    Then they will realize how real this business is. They will post ads for broker wanted, etc.. nobody will respond, then they will do an appraisal thread, they will get you paid what for this, and maybe reality will soon sink in.
     
  5. wwwweb

    wwwweb Top Member VIP

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    Well I guess we know whose paying at the auctions, I guess you have enough sales, or cash from outside to support the weighting of carrying close to a 3K domain portfolio.

    Brandable sales are funny, they go quiet, then they seem to all come at once, but if you want to bid $5K+ on this stuff at namejet, I guess most large holders are smart to start selling off portions of their aged dormant portfolios.
     
  6. dordomai

    dordomai Active Member VIP

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    the people in this thread ;)
     
  7. joro001

    joro001 Business Member Business Account VIP

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    It is obvious from people like brandsly posting that people with gigantic budgets are changing the aftermarket for now in addition to the huge domains of the world. Will the market correct in due course and slow down, I guess time will tell. I am bearish on the market for most of the names and prices we are now seeing, I don't think many people realise just how low sales % are and what sort of prices end users are paying on the whole.

    I do agree that solid one word .coms do have real potential to end users but a lot of these other names are simply going to lose buyers money holding these, no question whatsoever about that in my mind.

    End users don't care enough about domains to pay up above these price levels (5 figures based on a lot of the buying prices to have a chance on ROI) especially in a world of new gtld's where you can get a good brand name which spans the right and left of the dot well.

    Before people jump down my throat I am an end user and pay up for great domains for serious Company projects but I can assure you these aftermarket prices are 90+% ludicrous.
     
    Last edited: Jan 7, 2017
  8. wwwweb

    wwwweb Top Member VIP

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    There is one thing people fail to realize, domain sales reports tell very little. The people who have the majority of the information are people who own large diversified portfolios.

    So when the 4L.com so called Chips hit $2,500 letters like NFBQ.com were liquid cash, all these people were saying omg don't sell, it is going to $5K, but these portfolio owners who had held them for 10 years knew that they got no traffic, they got no offers, and they had no end user leads, and I got 50 of these things lying around, now is the time. Stay quiet, put them out there, and let them fight over them, so be it.

    Then you have all these people that walk in the door telling you what's worth what, because their uncle knows an elephant who is holding strong, and buying more.

    If you ask any domainer what the most important thing about domaining is, it's not getting all the best domains, it's not 3L.com, it is capital management. Making sure you have enough money to pay your renewals, restock inventory, purchase more bulk inventory, and then try to make a profit in the face of it.

    So sure you can blow your wad in a single day at godaddy, namejet, etc... takes all but a few clicks, but once you have the $5k+ domains sitting there, do you think the doorbell starts ringing with big companies, startups, end users trying to get at you. By no means, you will get startups emailing you saying we are bootstrapping, we have a $100, budget, you come back with 5 figures, they call you crazy, you ignore. This will go on, and on for years. This was ok, prior to GTLD's as there was no other choice. Soon there will be over $1000 choices, which may not affect the best of breed, and specific inventory, but it will affect lower, and mid level inventory.

    Sure I could be called Colored Labs, and want to own Colored, but I would rather pay $500- $1000 for ColoredLabs.com, or Colored.io, Colored.co, etc.. than pay someone $25K for Colored.com, unless I am viable which takes a long time. If I am really boostrapping I could go with Colored.Link, Colored.Top Colored.Whatever some of which cost all of 50 cents. It takes a really special buyer, and a lot of back, and forth to get such deals done.

    I can assure you some of the bigger players in the industry get generic domain lists sent to them all the time with great domains on them worth 5-6 figures, there is a reason they will only offer pennies on the dollar to people in distress sale situations. You can't afford to tie up all your money in a few domains.

    Sure you get lucky, as there are many lucky sales that happen where people get out of market type money for certain domains, it happens from time to time, not always, but it does occur.

    For every sale on those lists, I can compare against my own portfolio, and see what similar domains I own, and the traffic, and end user inquiries. That is why I know, it is not sustainable, the names I paid $12-500 for, are selling domain for $1-$5K, and most are still sitting unsold, as it takes time to churn inventory, at a decent price.

    Godaddy has bought lots of portfolios with many of the keyword domains costing sub $500, they are competing right next to you, within the same platforms selling these great domains for simply a margin %, they have better names, better prices, and better marketing, how do you compete. Do you go to their platform and keep bidding against each other, giving them more money to go buy more domains, and compete even stronger against you? I don't have the answer to that, but the business has changed, as the people who sold the picks, and shovels, now want to mine the gold, and you are simply their employee if you are paying those kind of prices at their exchanges.
     
  9. brandsly

    brandsly Business Member Business Account

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    I can assure you that if I didn't know what this business really is like or how to have a sustainable business, I would have won a lot more names everyday. I totally gave up on a ton of names I liked everyday because the prices went crazy, and I think mostly because of people that don't have a clue what they are doing, and I know when to stop, although I do get carried away at times (I think most people do). But I was a businessman before I was a domainer, I started my first business out of my college dorm at 17, I made my first million at 21. I understand what a business takes to succeed.

    If you read back my posts a few posts back (before this whole "colored" discussion), I highly advocated managing your finance well and know your sell through rate. Yes, I own a few 5 figure names, and honestly, they are almost like "collectibles" for me, I love the names, I might name one of my companies by those names one day, or I might even pass them down to my next generation (if I have any that is lol), or maybe I'll take them out and auction off when the market is right, no dreaming here, and all of these acquisitions I've had offers/inquiries coming in on weekly basis months after winning the names, some saw my buying price on namebio, and offered a few thousands more asking me to flip, but I turned down.
    But the majority of my portfolio I have acquired by various channels, there are names that cost $x, names that cost $x,xxx, but my average cost per name have always stayed in $xx-$1xx across my portfolio.

    I started with mostly handreg, when I had enough of those, my first low 4 figure sale came in. Then I started to acquire better aged domains from auctions, when I won enough of those, my first high 4 figure sale came in, and covered all of the names I won in that price range, then I started buying pronounceable 3-4 figure 4L .coms, then my first 5 figure sale came in when I had less than 20 of those. Finally I started to pay high 3 fig - low 4 figs for brandables, and my first 5 figure sale for normal brandable names came in. I kept on buying each month, and I kept on selling each month, and the end user sales each month are what keep me staying in this game, but not one day do I take my sales for granted, and not one day do I just blindly bid on any name out of satisfactory of winning.
     
    Last edited: Jan 7, 2017
  10. joro001

    joro001 Business Member Business Account VIP

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    I mentioned you as an example not to question your particular business model. Having said that people like you of course are seriously increasing competition and prices no doubt about that. This is a great time to be a seller not so great as a buyer I guess is one way of looking at it IMO.
     
  11. slimjim270

    slimjim270 Established Member

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    Is HugeDomains only buying "multi-bidder" names or are they also buying up private collections?

    Rephrased: Has anyone on this thread sold a bulk portfolio to HugeDomains directly?

    I am trying to understand if HD is on an all-out KW based purchasing binge or simply a "multi-bidder" strategy as the OP @Arca has identified and provided terrific examples of.

    -Jim
     
  12. TDM

    TDM Established Member

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    good question @slimjim270

    I also wonder if they buy at regular venues too or only drop catching?

    (cause I guess that they could get many of these names below $79 or below ~500 if bought from domainer/marketplaces)
     
  13. garptrader

    garptrader Active Member VIP

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    I have argued for some time that most end users place trivial value on the branding power of domain names. I have seen a company which was spending six figures monthly on legal expenses, six figures monthly on IT costs, had private jets for executive travel, and yet was registering newbie-quality handregs for some of its projects. Yet after years in this industry, I believe the mindset that a domain name is just not that important is very common. There is considerable upside potential but I have no idea what it will take to cause a tipping point in that mindset.

    HD focuses on .COM domains. While most domainers would view their portfolio as largely newbie quality. HD does have perhaps the largest domain portfolio in the industry. Portfolio turn tends to be very low in the domain industry (probably in the 1% range). What IF they are seeing an uptick in their sales ratio or average sales price. How would they respond? They would be more aggressive in their acquisitions.
     
  14. wwwweb

    wwwweb Top Member VIP

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    Huge domains has one of the largest portfolios in the world, their other company has the most registry connections for drip catching.

    They don't need to buy anyone's portfolio they have the technology to catch their own great portfolio for reg fee minus their infastructure.

    They made a killing with all the short and chips that were being backorderd, and bid up thru their platforms. I am sure they had a record 2015, and a great start to 2016.

    I am sure they have a few gems put away, when they have the ability to dropcatch a 3L.com, and get 2x,xxx for it that is pure gold.

    These guys simply don't want to be a service to domainers, they want to be the whole package.

    This is sort of a fork in the road, how long can you afford to support your competition?

    The crumbs are getting smaller, and the risk of getting stuck to high are getting higher.

    It's hard to walk away, just one more bid, maybe another, oh no I won, I paid to much, now what?
     
  15. 168

    168 Active Member VIP

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    I suspect when they reach inventory maintenance levels they will slow down a bit but when it comes to .coms it won't be long before
    small and mid size portfolios become an interest for all of the Registrars needing inventory.
    Also, if their inventory doesn't turn satisfactorily you can count on lower ave sales pricing. Like them, in this market I would hesitate to pay more than 500 with few exceptions.
    One way to circumvent dropping is to contact the owner during grace.
    Happy Hunting !
     
  16. Fuadiansyah

    Fuadiansyah Established Member

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    A little update about my watch on GoDaddy expired auction of mediocre to quite good quality domain which still doesn't get bid at last 2 hours or bought as soon as the domain entered Closeout.

    [​IMG]

    Found new players which are Betternames.com and Buybestdomains.com...
     
  17. slimjim270

    slimjim270 Established Member

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    Another couple questions that came to mind today...

    Is HugeDomains only bidding on "multi-bid" GD Expiring names? Or are they also bidding on "multi-bid" regular GD auctions?

    Also, is HugeDomains also sifting off domains that have "multi-dropcatch" request from their Drop Catch site? Does anyone have examples of this happening where a pool of domainers submitted in parallel for a drop catch and later were surprised to found HugeDomains as the new owner?

    I guess what I am trying to digest... are they chasing the "multi-bid" situations (with "implied demand" by tracking domainer bidding dynamics) or are they chasing "expiring" domains that are outside their registrar control (NameBright) that they can't last minute scoop for themselves during a drop?

    It seems a simple way for them to gain (quality) domain control is to offer $1 transfers to their NameBright site for large portfolio holders... and track funeral listings! :xf.rolleyes:

    As domains age... so do the domainers... and each year domains are dropping as domainers drop of natural causes. Rarely are the passwords for privately owned registrar accounts known to relatives of these domainers... as many domainers don't exactly tell their spouse about how much they have spent on domains and the size of their "collection". So the "aftermarket" for those in the "afterlife" is going to be a steady business over the next 20+ years.

    It appears HugeDomains has a nice "collection" system for their personal inventory acquisition.

    -Jim
     
    Last edited: Jan 8, 2017
  18. dordomai

    dordomai Active Member VIP

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    I don't know what is happening but to me it seemed that they prefer to go after domains that would be worth less than $59 to them and leave it up to domainers to pay premium prices for all others.


    https://dropcatch.wordpress.com/201...y-discount-club-backorders-starting-at-15-00/

    So I interpret this this way:

    If Hugedomains wants a domain and you pay $59 for it they will be happy to sell it to you if they catch it.
    If you pay them less than $59 they will give it to you only if Hugedomains doesn't want it.
     
    Last edited: Jan 8, 2017
  19. 168

    168 Active Member VIP

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    "While this is invitation-only" WHOTTT? posted summer 2015
    Please note that Discount Club backorders will always be trumped by $59 backorders. Discount Club backorders will also be trumped by corporate partners who are also interested in domain names. In other words, Standard-rate, $59, backorders will have the highest priority within DropCatch.com and will beat out all other classes of backorder; if no standard-rate backorders exist, but a backorder exists from one of our corporate partners (such as HugeDomains), the corporate partner will be the winner of the domain;

    I see this as "Partner" priority big spender access sneak peak. so, how is anyone supposed to know whether or not the VIP/Corporate interest isn't a "result" of back order interest ?
    This clearly implies the possibility of a "standing" back order for corp partners @59 (for domains with less than 59 bid which effectively trumps all potential "discount club" submissions.
    This "discount" is a doosie dope screen from my view.
    What experienced domainer would bid less than 59 knowing there would be this Corp gotcha? (if no standard-rate back orders exist) they left out ....Lame.
     
    Last edited: Jan 8, 2017
  20. 168

    168 Active Member VIP

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    Discount Club Now Available to All
    Posted on July 8, 2016 by namebright

    "Discount Club back orders are awarded only when NO Regular back orders or bulk partner back orders exist".

    - I wonder how often "regular back orders" and "bulk partner back orders"
    "don't exist" for any reasonable domain with say 10 characters or less?

    Happy Hunting
     
  21. slimjim270

    slimjim270 Established Member

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    Better yet... given the language... HugeDomains could simply post a "standard-rate" backorder on the DropCatch System for any domain they identify as having multiple bids via their tracking system and automatically take the name.

    Then simply wash the 59 "payment" via a corporate monthly spiff from NameBright to their corporate partner HugeDomains on a monthly basis posted as a corporate "discount" for their premium "customer" (HD).

    DropCatch is nothing more than a data collection tool for them to measure "user interest" and then, via an automated system, snipe the name for their own portfolio.

    HD has established an amazing metrics-based "collection" model.

    Nice!! :wideyed:

    -Jim
     
  22. TDM

    TDM Established Member

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    reminds me of (reverse) front running in stock markets

    :pompous:
     
  23. davidc1

    davidc1 Established Member ★★★★★★★★★★

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    Sure :(
     
  24. Michael M

    Michael M Established Member ★★★★★★★★★★

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    I'm glad people are finally starting to open their eyes (slowly) to DropCatch & HugeDomains. Though I do believe it is most likely too late to lessen their growth and dominance.

    You need to understand they are *using* you to feed them valuable metrics, and then they are cherry picking the gems for themselves. This is why I will not place a backorder on DropCatch. I don't want to feed their wallet or metrics. Both will ultimately be supplying your main competition with much needed assets and superior data/analytics.

    The money can be used to buy more registrars (which they do constantly) which increases their reach and ability to catch more and more drops - therefore locking you into their platform if you want a drop. The data is used to decide what names HugeDomains will add to their portfolio by using domainer demand as one metric. So they will either gain data or money from you when you use their services, which will continue to be used to stack the deck against you moving forward.

    Also they are getting the added advantage of raising reseller prices and draining the hobby domainer's bank account so they can no longer compete with HugeDomains in the future. They have the money in hand to weather a temporary (or even extended) rise in acquisition cost, while most domainers can only sustain a high acquisition cost for a very limited time.

    Once the beast has grown to a certain point there will be no competing with them. This will only leave crumbs for us other domainers to fight against among ourselves - which will continue to lower in quantity and quality. This has already started, but finding the gems missed in the drop list will more and more be a thing of the past as time goes on.

    If your assets have been drained by inflated auction costs - and you can not acquire any drops that will produce a decent return - That will most likely push you out of this market with a bad taste in your mouth. Now there is less competition for the big boys - which DC/HD is poising themselves to stand in the top of this group.
     
  25. urlurl

    urlurl Active Member VIP

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    M e d o .com is already at $30k with 6 more days left, its a very nice name - lets see who wins it!
     

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