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

 

[boziffous]

I don't think this was answered and I'm also interested what this is.
It looks like every time an auction start at $10 (instead of $12) this is the comment - check out the screenshoot.
And this shows up for domains for which I'm sure the starting bid is $12.

Anyone know what it is?

Show attachment 67569

I could be wrong about this, but isn't that when somebody has placed a backorder on the domain? Even though it's not pending delete, I believe GoDaddy backorders can be used for their expiring domain auctions as well.

https://www.godaddy.com/help/what-are-domain-backorders-597

 

[DomainVP]

Anyone know what it is?

I was under the impression that it's when a backorder is placed instead of an auction bid placed.

Some people are penny pinchers and will try to save a buck any way they can.

Just remember, those backorders have to be prepaid. If you spends hundreds and thousands it makes sense, but you might as well just place a bid if you are the typical auction buyer.

 

[UXela]

Now I get it
Interesting.

So ... I suppose if you have DDC a backorder is no longer $24.98 but something much better... and at the end of the day you pay less if you are the only bidder.

Cool!

 

[campout]

Yeah but if you backorder anything remotely worth owning, everyone from the four corners of the earth will be alerted to it by your early bid.

 

[Brandworthy]

I don't think this was answered and I'm also interested what this is.
It looks like every time an auction start at $10 (instead of $12) this is the comment - check out the screenshoot.
And this shows up for domains for which I'm sure the starting bid is $12.

Anyone know what it is?

That's a backorder, placed usually prior to the auction start.

 

[GoKaizen]

Yes, you can GD backorders for $16 - $17 with a coupon code.

When GD domain is in auction you place the BO on it. It will start at $10.

This can work for .US, .ME, and .INFO domains. Saves quite a bit of money. Quality .ORG and .COM domains are going to attract bids.

Disadvantage is that backorder is locked on that domain until it hits another account. Majority of the time you have a useless backorder you are shuffling around. You can't use them when a domain hits closeouts too, which is when it would be most useful.

I believe GoDaddy backorders can be used for their expiring domain auctions as well.

 

[boziffous]

Yes, you can GD backorders for $16 - $17 with a coupon code.

When GD domain is in auction you place the BO on it. It will start at $10.

This can work for .US, .ME, and .INFO domains. Saves quite a bit of money. Quality .ORG and .COM domains are going to attract bids.

Disadvantage is that backorder is locked on that domain until it hits another account. Majority of the time you have a useless backorder you are shuffling around. You can't use them when a domain hits closeouts too, which is when it would be most useful.

My understanding was that GoDaddy backorders only gave you credit for $10 when using it on expiring domain auctions. Wouldn't you be wasting money if your buying GD backorders for $16 and then only getting $10 credit when using on an expiring auction there? Or am I missing something?

 

[GoKaizen]

IF nobody else bids you get the domain for $16 - $17. The renewal fee is included.

http://dotweekly.com/godaddy-domain-backorder-explained/

My understanding was that GoDaddy backorders only gave you credit for $10 when using it on expiring domain auctions. Wouldn't you be wasting money if your buying GD backorders for $16 and then only getting $10 credit when using on an expiring auction there? Or am I missing something?

 

[boziffous]

IF nobody else bids you get the domain for $16 - $17. The renewal fee is included.

http://dotweekly.com/godaddy-domain-backorder-explained/

Okay, got ya. Thanks for the info.

 

[CryptoInvestor]

Exactly. I have analyzed this case. It's way better to let the domain enter "Closeout" status and then try to snatch it , knowing that you won't be successful 100% of the time (but this is true even when you make a bid - only difference, you pay a lot more on average !).

Smart guy I just recently started buying the Closeout deals and HOLY crap. There are some GOLDEN domains, some that I would’ve paid hundreds for

 

[UXela]

Some poor *** placed $10 bids (backorders) on *a lot* of really worthless domains at GD auctions yesterday and today. I really don't understand what he / she was thinking. Looks like the bids are placed only taking the GD estimated value into consideration. I've never seen so many worthless domains with bids
Wow...

If it's huge domains they must be making some good money with their previous tactics in order to afford such *intelligent* money waste.

 

[wwwweb]

Some poor *** placed $10 bids (backorders) on *a lot* of really worthless domains at GD auctions yesterday and today. I really don't understand what he / she was thinking. Looks like the bids are placed only taking the GD estimated value into consideration. I've never seen so many worthless domains with bids
Wow...

Could be a test, by one of these API bidders

 

[UXela]

Could be a (failed) test.
Could be some distraction.
Could be just plain stupidity.
After all - H2 and stupidity are abundant on this planet

 

[Cdomains]

Most newbies have no clue what makes a good name.

I see really terrible names being bid up and won - names an experienced domainer would never touch.

I think GD makes a fortune off newbie domainers who don't know any better.

 

[wwwweb]

Most newbies have no clue what makes a good name.

I see really terrible names being bid up and won - names an experienced domainer would never touch.

I think GD makes a fortune off newbie domainers who don't know any better.

Well I guess that is how they can go out, and buy awesome portfolios, as it’s all gravy.

I agree; so these people realize that it’s not just about buying a domain, and it instantly sells, you have to answer stupid misguided emails, have to take lowballed abuse for years before you can even get an offer, then you still have to close them, and usually around that time they are on vacation, or travelling given nobody has figured out how to use a smart phone in 2018.

So many newbies enter with big dreams, and often leave with a cart full of renewals.

 

[DomainGist]

have to take lowballed abuse for years before you can even get an offer, then you still have to close them,

Not if you list all of your domains as BIN only and just set the price you want. If anybody wants your domain they know what they have to pay. Works better if you 'price to sell', and you may leave money on the table, but I'd rather price reasonably and not have to reject the $100 offers every week. Either you can afford my domain or you can't, everybody's life becomes easier.

 

[Arca]

Could be a (failed) test.
Could be some distraction.
Could be just plain stupidity.
After all - H2 and stupidity are abundant on this planet

Noticed that as well as I was going through the list today.

Some company has placed a $10 bid on every single .com domain that GoDaddy's appraisal tool has valuated at or above $1500, regardless of how inaccurate such appraisal is for many of these names (most are worthless).

The ubiquitous $10 bids go all the way down to $1499. There's no unusual bidding activity for the names appraised by GoDaddy below $1500.

 

[wwwweb]

Noticed that as well as I was going through the list today.

Some company has placed a $10 bid on every single .com domain that GoDaddy's appraisal tool has valuated at or above $1500, regardless of how inaccurate such appraisal is for many of these names (most are worthless).

The ubiquitous $10 bids go all the way down to $1499. There's no unusual bidding activity for the names appraised by GoDaddy below $1500.

Didn't this happen before, and godaddy retracted those bids? All those will have to close, and ownership should reveal who they are either by whois, or nameservers.

 

[main]

Wouldn't it be nice if we could actually see GoDaddy bidding handles.

 

[Arca]

Didn't this happen before, and godaddy retracted those bids?

Something similar happened before as some bidder made an "error" with their API bids, and GoDaddy did let the offending party off the hook, but that was prior to most of those auctions closing. As we all know, regular bidders are NOT allowed to do this - once you bid it's binding and either you pay or your Auctions account is terminated. But GD (and their subsidiary Afternic) let their big spenders/big portfolio holders play by an entirely different set of rules, where these entities can do things that would get normal users promptly suspended, and they can do so repeatedly without any repercussions.

This most recent bidder has already won a lot of names at GD and is winning new ones as we speak. So the former bidder primarily had bids cancelled, the latter bidder would need to get wins cancelled to get out of this. I would be shocked if GoDaddy actually cancelled numerous auction wins, even if this bidder made a "mistake" in placing these bids. On the other hand, it might be a deliberate play by a party like Huge Domains. They've already got 3 million names, and even if they place $10 bids on every domain appraised above $1500 at GD in pre-release these buys would only be a drop in their vast portfolio ocean over the course of a year (and the quality is no worse than what they gobble up on the drop).

The GoDaddy auctions system is moving towards chiefly serving the interests of such parties (not that DropCatch or NameJet is any better in this aspect). The GoDaddy Auctions system has become extremely skewed in favor of a few big spenders, where GoDaddy has long since lost sight of concepts such as a level playing field. They argue that they are just accommodating the "needs" of certain bidders, but it is apparent that their system tweaks at this point have nothing to do with "needs". For example, Huge Domains et al. in the API bidding club receive real time updates whenever anyone places a bid, and then place automated bids in response. Such information has nothing to do with their "need" on the platform. No entity has a need to know about every single bid placed by regular users, but it's certainly useful for them to get this info in order to bid on the same domains. Some bidders do have a need to bid on a great number of domains, warranting their use of GoDaddy's API to do so, but all these other features that have been built into this API, which allows such entities to piggyback off all other bidders simply has nothing to do with a "need" (just greed on the part of GoDaddy). But like this article reveals (check out the comment section as well), GoDaddy is even planning on letting domains on the watchlist be public, and if this "feature" is implemented, I wouldn't be surprised if simply placing a domain on your watchlish would alert the API bidders; GoDaddy seem intent on moving further and further in this direction, where any action you on their platform make will eventually alert the API bidders, and trigger automated API bids in response.

 

[urlurl]

smells like a 'Huge Domain' mistake by a big buyer, lol

 

[urlurl]

i don't see bids on some of the names $1500+ im watching, is there a select type of names that are targeted?

 

[wwwweb]

Wouldn't it be nice if we could actually see GoDaddy bidding handles.

That is technology that does not exist yet in 2018

 

[UXela]

I am (and always have been) actively against GoDaddy's practices for not assuring a levelled playing field although they are technically, legally an auctioneer.

....BUT

Yesterday and today I really got some great domains for some great prices.
Everybody was mesmerised by those stupid auction with minimum (and below) bids that they did not see the actual valuable domains.

 

[campout]

Whoever this bidder is, they need to realize that their actions are completely counter-productive to actually winning these domains, especially at a good price.