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

[Arca]

I've been wondering about the competition in auctions for expiring domains over at GoDaddy.com, because somebody is paying hundreds for seemingly every domain that gets a few bidders.

I’ve also noticed a clear pattern, with the last bidder (or one of the last bidders) entering the auction winning most of the time, which made me think that there is one large corporate buyer piggybacking of whatever domains other people find and bid on. Turns out that is the case: HugeDomains.com is buying most domains over at GoDaddy.com expired auctions. I looked up the WHOIS of the past 150 auctions I have lost at GoDaddy.com, and 84 of those are now owned by HugeDomains.com and listed for sale on HugeDomains.com.

While 50%+ may not be representative of overall domains bought at GoDaddy, they do seem to buy far more domains than anyone else. The 66 names not bought by HugeDomains.com were bought by a number of different individuals and companies (BuyDomains.com bought 6 of those 66, for example), so 50%+ were taken by HugeDomains, while "the rest" of the auction wins were by a number of different individual domainers and companies.

This might not be news to some, but I've never seen anyone mention that HugeDomains is this active over at GD expired auctions, so I thought it might be interesting for some people to know who is outbidding everyone in the lower range over at GoDaddy. I've read people mentioning that HugeDomains buy names in close-out status over at GoDaddy, but never that they buy most of the domains in auctions too.

HugeDomains absolutely dominates all auctions below $5XX, and they only picked up a single name above $5XX (cakemart.com) in my sample of 150 names, so $5XX seems to be a self-imposed limit for them. If I only checked domains sold below $5XX, the percentage bought by them would be even higher. I've been the second highest bidder in lots of auctions that HugeDomains.com won, and in my experience they will keep bidding until you give up or until the price passes $5XX. By outbidding most bidders in the lower end, and acquiring more than half of the domains other people also have interest, it leaves a far smaller pool of names for the rest of the domainers to compete for, so I guess that's part of the reason why the reseller prices for names keep increasing so much for names in this range.

The only way to buy cheap domains at GoDaddy auctions now seems to be to let domains expire with 0 bids, so that they go to close-out status, and then try to snipe them as soon as that happens. However, some domainers seem to think it's smart to bid $12 on any decent name when there is 1-15 minutes left, hoping that nobody else is going to place a bid, so fewer and fewer decent names are let to expire with 0 bids. However, that strategy never seems to work (I've tried it myself lots of names, and it did not work even one time), because there are always other people watching and waiting for the name to go to close-out, and they jump in and bid if you make a $12 bid, and most of those names are eventually won by HugeDomains.com. What experiences do other people have at GD recently? Anyone else have any good strategies for buying expiring domains @ GoDaddy.com these days?

Some examples of expired domains bought at GoDaddy.com auctions by HugeDomains:
Domain: skillsharing.com
Purchase price (at GoDaddy): $540
Asking price (at HugeDomains): $2995

Domain: ledmaster.com
Purchase price (at GoDaddy): $537
BIN price (at HugeDomains): $2195

Domain: cyberstrategies.com
Purchase price (at GoDaddy): $262
Asking price (at HugeDomains): $2895

Domain: crablab.com
Purchase price (at GoDaddy): $320
Asking price (at HugeDomains): $1895

Domain: dailyportal.com
Purchase price (at GoDaddy): $560
Asking price (at HugeDomains): $2895

Domain: fivesecondrule.com
Purchase price (at GoDaddy): $42
Asking price (at HugeDomains): $2695

Domain: deltacloud.com
Purchase price (at GoDaddy): $365
BIN price (at HugeDomains): $1795

Domain: itace.com
Purchase price (at GoDaddy): $499
BIN price (at HugeDomains): $2595

Domain: sunnykitchen.com
Purchase price (at GoDaddy): $200
BIN price (at HugeDomains): $2595

Domain: baristaschool.com
Purchase price (at GoDaddy): $449
BIN price (at HugeDomains): $2895

Domain: cakemart.com
Purchase price (at GoDaddy): $695
BIN price (at HugeDomains): $3495

Domain: visuala.com
Purchase price (at GoDaddy): $315
BIN price (at HugeDomains): $2795

Domain: massanalytics.com
Purchase price (at GoDaddy): $130
BIN price (at HugeDomains): $2095

Domain: edusport.com
Purchase price (at GoDaddy): $535
BIN price (at HugeDomains): $2995

Domain: acneguru.com
Purchase price (at GoDaddy): $52
Asking price (at HugeDomains): $2495

Domain: stylefolio.com
Purchase price (at GoDaddy): $195
Asking price (at HugeDomains): $1995

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Related: HUGE DOMAINS SNIPING GODADDY CLOSEOUTS

 

[urlurl]

i agree with you, and it would be so hard to drop a name you paid $xxx - $x,xxx for...

 

[wwwweb]

i agree with you, and it would be so hard to drop a name you paid $xxx - $x,xxx for...

There are big rumors of easy money in this business, people come running, buying up as much inventory as they can at auctions, then they park, and think big offers are coming next week. A year, or two go by, no real offers, they run somewhere else.

 

[urlurl]

not quick enough for me. i saw k o o k e r .com go for over $700 wtf!

 

[joro001]

I was just thinking of updating this thread after today and good to see others seeing the same.
I literally can not buy a domain at godaddy auctions right now, i'm being outbid every single time and I won't overpay so godaddy is basically out the equation for me as things are.

Just one example of many I was outbid on is forexcompanies.com. All I will say is I know the forex market well and coupled with the fact that I have owned and sold some of the best keyword + companies domains at Namejet, e.g. realestatecompanies.com, loancompanies.com etc. and with massive promotion they did $1.7-2.1k.

Forexcompanies.com has a fraction of the search volume of the 2 names above and I got outbid to $810 before giving up. The buyer probably saw that it sold years ago for $3k so thought it's a great buy but I'm sorry to say lightening probably won't strike twice and it's not a good buy IMO. I only bid to $800 as I wanted it as a redirect for a project. It's not the worlds worst buy but is just indicative of an overheated aftermarket. I've been outbid on so many names lately i'm literally fatigued with godaddy. Domainers keep paying up big at godaddy for now, good luck!

 

[iAchilles]

Has anyone kept tabs on HD's acquisitions? It would interest to see what ranges they're pricing these mid-high $xxx names at.

 

[wwwweb]

Godaddy is filled with many newbies trying to outbid veterans in trying to build a portfolio. The veterans, are putting a few extra bids on their heads. I can tell as I have been studying godaddy auctions pretty closely, and there is someone, or some people who have a lot of time on their hands to sit there, and baby each bid down to the timer, and then reset it, or try to cause bidder fatigue.

Shipsy.com which has one decent end user sold for $1,726

PeakPay.com is another one I saw close at $1,008.

Another example of a last minute bid where kispy.com was looking to fall to closeout, in the last minute someone threw in a bid, and the domain quickly bidded up to $117.

Capital outlay along with holding costs, this is becoming a very expensive marketplace, which has no guarantees whatsoever.

I haven't watched HD, but I have seen them go close to $2K to purchase domains in the past.

I would say let the newbies have their fun, spend their cash, credit card balances can only carry them so far, before they figure out it's not an easy buy/flip business as they think.

 

[urlurl]

peak pay - overpaid in IMO

i was watching k i s p y too, but didn't even bother - looks more of a typo of krispy IMO

what about z a z o r - $12 name to me, sold for $710!!!!!!!

how about s a v e f i s h - for $787!!!!!!


can't wait until they try to sell them here,

 

[Arca]

what about z a z o r - $12 name to me, sold for $710!!!!!!!

Z a v o r sold for $348 at dropcatch last month. Now Z a z o r for $710 at GoDaddy. I handregged Z a c o r for $8.79 in 2015…

 

[urlurl]

maybe there is a hidden meaning were missing (Chinese market maybe)

 

[wwwweb]

Z a v o r sold for $348 at dropcatch last month. Now Z a z o r for $710 at GoDaddy. I handregged Z a c o r for $8.79 in 2015…

How many offers had you had on Z a c o r .com ? That is the brandable gamblers, thinking they are going to get $1700-2500 less 30% to brandbucket if it ever sells, the risk outweighs the payoff.

 

[thedotsol]

maybe there is a hidden meaning were missing (Chinese market maybe)

Zazor is a technical term and means GAP on Serbian / Croatian language, so that could be the reason for such price.

 

[wwwweb]

Here are some more closed ones, I like tonjo.com as we all would, but it ran up fast, and who knows what it would have cost to win it.

mikolo.com $201
ponystore.com $395
tonjo.com $502
weeapp.com $364

 

[urlurl]

tonjo is just a surfer name

pony store is the only one i would have bid on (stopping at $50) unfortunately not a lot of demand for ponies

 

[Arca]

How many offers had you had on Z a c o r . com ? That is the brandable gamblers, thinking they are going to get $1700-2500 less 30% to brandbucket if it ever sells, the risk outweighs the payoff.

No offers. Purely made up 5Ls like this don't exactly fly off the shelf, and the prices these types of 5Ls fetch at reseller auctions today seems to be out of touch with the aftermarket reality.

 

[wwwweb]

tonjo is just a surfer name

pony store is the only one i would have bid on (stopping at $50) unfortunately not a lot of demand for ponies

I don't get it either, I am actually making money by not buying. As silly as that sounds.

 

[urlurl]

The positive side is these buyers are keeping the supply low for end users/investors. That will in turn increase the value of short brandables (my biggest niche)

 

[wwwweb]

The positive side is these buyers are keeping the supply low for end users/investors. That will in turn increase the value of short brandables (my biggest niche)

Yes, and they have to quote end users higher, leading to some end users looking for other choices.

 

[urlurl]

bang on!

 

[Asfas1000]

Let's not pretend this is a good thing, it is not.

Godaddy is the only party who captures value from these domains, in fact they capture way more value than these domains have.

 

[urlurl]

yes, that is 100% true.

But look at it like this:

Lets say there were 1,000,000 pure brandable type names available and there was no demand and no market. The brandable name you have would be worth less than reg fee's (endusers would have an endless supply and alternatives to choose from)

or

Alternatively you could buy up the million brandable names and create your own demand.

or

You have a fraction 100-1,000 names and other domainers have the other 999,000 names, creating demand and a market.(that's where we are today)

(note: the amount pure brandables is an example)

Also keep in mind, Brandables are a relatively new thing, I saw the demand increase when google changed their algorithm to content over the name for searches.

 

[Asfas1000]

I see what you are saying, but there is an over abundance of brandables, not a finite number.

 

[urlurl]

there are, but its very slim pickins for the good ones

 

[urlurl]

do u think e v e n t l a b .com went to an enduser or reseller, steep price over $3k!!!!

 

[cdboard]

zacor. hmmm. nice two syllable name.

would be good for a prescription drug name, like those advertised on tv here in the USA.

 

[Asfas1000]

I have some aged nice-sounding 5L with end user inquiries, but end users are not willing to pay more than a few hundred.