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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. Arca

    Arca Active Member VIP

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    Although prices for GD pre-release expiring names are increasing a lot, thanks in part to HugeDomains' auction participation, the competition for NameJet pre-release and dropcaught names is just as fierce (and HugeDomains is not a bidder in those auctions). While HD win a lot of GD auctions in the sub $600 range, they also get outbid a lot of the time, and lots of names sell for high $XXX into $XXXX, and a lot of those names would not have fetched those kinds of prices just a while back.

    It's become really hard to buy names for reasonable prices at NameJet as well, even when compared with just a few months ago. Auction competition for dropcaught names has increased noticeably too. HD is just one of many players who are pursuing this kind of strategy, so prices are increasing significantly across all reseller venues, regardless of HD's participation. Hopefully this trend will reverse at some point, because if price increases continue at this rate, a lot of people are going to be priced out of the pre-release/pen del game after some time.
     
    The views expressed on this page by users and staff are their own, not those of NamePros.
  2. stub

    stub Top Member VIP ★★★★★★★★★★

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    I hear you @Arca. I've never been a true visionary. But I see a lot of bad domains being sold at the various venues at what were almost retail prices a year ago. I don't see the retailer buyer has changed their buying strategies that much. Perhaps all these buyers in the markets think they are going to change the strategies of the retail buyers by cornering the market. And get them to pay a lot more for their domains. But there are several types of retail buyer. Some must have their single dictionary word dot com. Whatever the price. But that's the top tier of buyer. They pay whatever it takes. But those buyers wanting 2 word dot coms have almost an infinite number of choices. If 1 domain is too expensive. They look around for something less expensive. Branding is becoming increasingly more important. IMHO.
     
  3. wwwweb

    wwwweb Top Member VIP

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    Well cause, and effect. When someone loses out at godaddy, they may be willing to spend more at namejet, and vice versa. Many domainers use different venues, and if they are losing on one, emotion may make them bid more on the next auction, or venue.

    We all know the end users, and there $10-$500 offers, these names are selling for high $xxx to low $xxxx, end users are far, and few between, and it takes time to go back, and forth, and for them to get their budgets straight, and when you figure all that out, you still got to get them to submit actual payment.

    So you are going to have people who overpayed for domains, trying to get X times return at a higher valuation leading to a lower sell thru rate. Or you are going to get some very high priced aftermarket buys sitting idle in accounts collecting dust.

    A good portfolio is maybe churning out 2-2.5% right now, bad ones .05-1%, as costs have to be passed on, you are going to get more renewal pressures, and maybe this will push people to gtld's as .com ask prices have to be more, as more was paid.

    The end users do not understand, when you pay $2K for a good 2 keyword .com, and they think they are handing you the world with a $1K offer.

    This is a good time to take a step back, and let the market aftermarket correct. To many people think we are upon a gold rush, only thing is the picks, and shovels are costing more then the amount of gold they can mine in the ground.
     
  4. Bros

    Bros Active Member VIP

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    Good observations above. Something I've also noticed in the last couple months is that there seems to be lot less decent to good quality domain names expiring (hitting the pre-release status at Namejet). And obviously if there less quality names expiring it will intensify the competition for those, that do expire, and eventually on all auction platforms.
     
    Last edited: Dec 21, 2016
  5. wwwweb

    wwwweb Top Member VIP

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    Alot of the stuff I followed at namejet had reserves this week, most people didn't even bother bidding, as the reserves are more end user priced.
     
  6. joro001

    joro001 Business Member Business Account VIP

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    Great post completely agree. I would say lately i'm finding over 90% of the names I really want to buy on godaddy are going above my comfort zone and the few I am getting i'm having to pay up for and not even crazy about the names and they're often going up to or close to my max proxy. As godaddy auctions are right now forget it IMO, i'm taking a step back and changing strategy on my buys, as things are today the likelihood of even being close to making ROI at these kind of prices are close to 0.

    Just some sales from yesterday not just on godaddy but a few other venues:

    biobanking.com 4,222 USD 2016-12-21 GoDaddy
    tireland.com 2,605 USD 2016-12-21 GoDaddy
    thetechblock.com 2,570 USD 2016-12-21 GoDaddy
    myfridge.com 2,475 USD 2016-12-21 GoDaddy
    helpme.org 2,200 USD 2016-12-21 DropCatch
    vacawear.com 2,000 USD 2016-12-21 Flippa
    platinumsolutions.com 1,611 USD 2016-12-21 NameJet
    upgrademedia.com 1,600 USD 2016-12-21 BuyDomains
    tuinen.com 1,220 USD 2016-12-21 NameJet
    badadvice.com 910 USD 2016-12-21 GoDaddy
    openmeet.com 860 USD 2016-12-21 GoDaddy
    holoplan.com 833 USD 2016-12-21 Sedo
    paradisemedia.com 785 USD 2016-12-21 GoDaddy
    endlesstraffic.com 660 USD 2016-12-21 Flippa

    Just a quick check tells me these names are too high overall. Tireland is a really nice brand and perhaps is worth the $2.6k outlay hoping for a 5 figure sale someday but most of the others forget it. I put in upgrademedia from buydomains as I think that's a really solid brand for $1.6k and TBH till I saw it sold on buydomains I was almost expecting to see Godaddy and could easily see it doing that or more there. Paradisemedia for example which I don't rate as highly did $785 on godaddy yesterday. Biobanking at close to $5k, thetechblock at $2.5k - too high, myfridge at $2.5k - for goodness sake and so on.

    Certainly time for a real rethink of strategy across the board!
     
  7. stub

    stub Top Member VIP ★★★★★★★★★★

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    @joro001 - I liked PlatinumSolutions.com @ $1.6k. Wreaks of a solid business brand. IMHO. The rest, I probably would not even have bid on. It's above my comfort zone. But I think the buyer got at least a reasonable chance to make some money with it.
     
    Last edited: Dec 22, 2016
  8. joro001

    joro001 Business Member Business Account VIP

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    It's a nice name true, I would have gone up to $1k max for it had I seen it I would have thought, but in any event it says it all that we are in agreement that 90%+ of the high value sales going through various venues at the moment are ridiculously high and not even likely to see end users paying those sort of prices if they ever get inquiries, forget about ROI.

    Time for a real rethink.
     
  9. wwwweb

    wwwweb Top Member VIP

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    Tireland.com has trademark issues, and the owner renewed it, so you would have tied up $2.6k into 2017.

    The .com and . net are the only extensions taken, and all by the same company.

    They would sue, before they buy.

    Biobanking is at a risky upfront cash point for a flip at $4.2k, even if you get an offer most will be at $2-3k, it will cost $5K to break even with commissions involved. If that one special buyer does not show up, then what.

    As most other extensions are university, and non profit research types, along with domainers sitting idle.

    The upside is really tough with that list, as you know end users, it is a struggle past $2.5K, and many of those names are touching, and exceeding it.

    PlatinumSolutions is catchy for sure, you have a GTLD in play, and we know that $2500 mark is not much meat on the bone, get more than that will take some time. You never know though sometimes you get lucky, but $1600 to find this out, ouch. These kinds of names were $400-800, there is not much margin for the risk left in it.

    Even if you had a $1k offer you could break even, and be out if you wanted some liquidity.

    Maybe it's Huge Domains pushing prices higher, as it would give them an advantage in their $1500-3000 sweet spot. Maybe they are getting a volume rebate, no clue, but as we all know it is about cash flow management, and not putting your eggs in one basket, as well as mitigating risk.

    The list above reflects a day in domaining, and you needed $7K to get the top two highest price names sold, one had tm risk, and was renewed by the owner, messing up cash flow for a long time with the holidays. The other needs $5k just for break even, if sold thru a venue. How many names can you get with $5K, as opposed to one that has some potential. Not to many years ago that was a 3L.com.

    It is over speculators, and hypsters who are pushing this up. Maybe some inside market makers also. We all see what the Chinese did in a few months, and prices are at 50 percent of their highs. The 5L chips are dropping fast, with no buyers. The 4L chips peaked at $2500, now trade at around $1250.
     
    Last edited: Dec 22, 2016
  10. joro001

    joro001 Business Member Business Account VIP

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    Didn't even think to check the trieland TM issue which I should have (assuming someone paying $2.6k would have researched all that already), okay, so now I wouldn't have bought any domain I posted above at those prices. We all seem to agree about platinumsolutions being a good name but i'm with you it's too much money spent.

    Crazy prices for domains that simply aren't worth it when you factor in quality of domains, end user appeal, renewal costs and sales %, something has to change here or else you can wave goodbye to the lower/average/even good end of the market to make ROI in domaining.
     
    Last edited: Dec 22, 2016
  11. wwwweb

    wwwweb Top Member VIP

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    You are absolutely right, good to see some domainers still are using rationale in the marketplace.

    I have seen some Chinese, and Indian registrations on some domains, so it's safe to say new entrants are taking stab in the dark, getting school in auction bid ups, and coming to namepros and getting estibot appraisals, and running with all of this.

    Surely end users will have to start moving into reg fee GTLDs as they tend to balk at any mid 4 figure price point. With interest rates headed higher, and a end to cheap money, this maybe a bad sign for some of these buyers.
     
  12. pokainc

    pokainc BRANDABLE DOMAINS NamePros Supporter VIP ★★★★★★★★★★

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    I didn't even find these names that good, except for a couple, but had made a list, some just to see if they're going to be registered...
    today's drops
    vrbarn.com
    Techniview.com
    FireXe.com
    tecnyc.com
    seattlebeds.com
    inygma.com
    gearactive.com
    AudioSub.com
    CozyEnergy.com
    FluffyElf.com
    organiso.com
    Transrock.com
    Cellara.com

    ALL of them were caught by dropcatch... I'm sure HugeDomains will be the owner of many or all of these when the whois changes.. it's become almost impossible to catch anything good without paying up for it..
     
    Last edited: Dec 22, 2016
  13. Drunker

    Drunker Established Member

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    LOL

    This is the Domainers' Conundrum:

    - expired domains will invariably fetch higher prices (at auction) than if you held it waiting for an end user
    (where it might never have received an inquiry or wouldn't in the next 10+ yrs)
     
  14. wwwweb

    wwwweb Top Member VIP

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    I totally agree, and we have seen this first hand.

    You can have an expired domain go thru the expire process and fetch $3000 in auction, place it in a 7 day public auction, and you won't even get $2,000.

    Just the way it works.
     
  15. urlurl

    urlurl Active Member VIP

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    i think who ever bought those to resell of flip waaaaay over paid. those are almost end-users prices,
     
  16. urlurl

    urlurl Active Member VIP

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    The big advantage we have over the super domain co's is out flexibility.

    The big guys need to replenish their portfolios with large injections of new names - like whales, they open their mouths and swallow it all and whole

    us smaller guys have the advantage to pick and choose at leisure - like small sharks, we can pick what we eat.
     
  17. stub

    stub Top Member VIP ★★★★★★★★★★

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    Not exactly the best analogy. We can pick up what we eat after the whales have had their fill, and left the slops for everyone else ;)
     
  18. pokainc

    pokainc BRANDABLE DOMAINS NamePros Supporter VIP ★★★★★★★★★★

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    UPDATE: the names I posted a couple of posts above are ALL forwarding to HugeDomains as anticipated (except for cellara so far)...

    we should make a coalition and put funds together and bid on these names and just bring the prices higher so they don't continue to get tons of names a day for so cheap.. in case we win some, we'll collectively pay for it..
     
    Last edited: Dec 23, 2016
  19. wwwweb

    wwwweb Top Member VIP

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    HugeNames is a beast right now, they dominate.

    Many people make them a fortune everyday at dropcatch, giving them more money to get more registry connections.

    It is a numbers game, and they are dominating right now, most domainers are feeding their main competition. It is a perfect marketplace for them, and a slow bleed for the small domainer as they can't get inventory, and if they do, they will have to pay up for it.
     
  20. stub

    stub Top Member VIP ★★★★★★★★★★

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    I wouldn't want to play that game. It could work out very expensive.
     
  21. Matrix1976

    Matrix1976 Business Member Business Account ★★★★★★★★★★

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    Personally, this is the main reason why i very rarely use their services for BO's compared with other auction sites. The fact that anyone can bid is another good reason...competing against end users...i think not.
     
  22. wwwweb

    wwwweb Top Member VIP

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    BioBanking.com went to a chinese buyer who has domainbuyer777 in his email, so bidder 2, taxed him up over $4K for an aftermarket buy, plus ING endings are not always good, many do not like them.
     
    Last edited: Dec 29, 2016
  23. joro001

    joro001 Business Member Business Account VIP

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    Yep I saw it on domainshane and it was in the $xxx range when he posted and sure enough it went up a lot from there. Silly price for an average domain. Whilst we're at it here's some more sales yesterday:

    huskyhealth.com 12,900 USD 2016-12-28 NameJet
    bestdrones.com 6,600 USD 2016-12-28 GoDaddy
    search.io 5,500 USD 2016-12-28 Flippa
    dailytoast.com 5,000 USD 2016-12-28 BuyDomains
    naturalsource.com 3,633 USD 2016-12-28 DropCatch
    recart.com 3,500 USD 2016-12-28 BuyDomains
    altel.com 3,003 USD 2016-12-28 NameJet
    gene-watch.org 2,700 USD 2016-12-28 NameJet
    nautiluslabs.com 2,500 USD 2016-12-28 BuyDomains
    wisewithmoney.com 2,488 USD 2016-12-28 BuyDomains
    dailydeals.org 2,100 USD 2016-12-28 Flippa
    saexplorers.org 2,010 USD 2016-12-28 NameJet
    galaxylighting.com 1,925 USD 2016-12-28 GoDaddy
    jeeptech.com 1,525 USD 2016-12-28 GoDaddy
    professionalpm.com 1,500 USD 2016-12-28 BuyDomains
    adchampion.com 1,500 USD 2016-12-28 BuyDomains
    innovativere.com 1,375 USD 2016-12-28 BuyDomains
    cuiquan.com 1,354 USD 2016-12-28 DropCatch
    analyze.org 1,259 USD 2016-12-28 DropCatch
    farmdelivery.com 1,250 USD 2016-12-28 BuyDomains
    marketwagon.com 1,250 USD 2016-12-28 BuyDomains
    goodok.com 1,220 USD 2016-12-28 DropCatch
    aboutlighting.com 1,144 USD 2016-12-28 BuyDomains
    linuxglobal.com 1,036 USD 2016-12-28 BuyDomains
    funnest.com 969 USD 2016-12-28 Flippa
    sacma.com 940 USD 2016-12-28 NameJet
    timeforwine.com 855 USD 2016-12-28 GoDaddy
    apparelcorps.com 850 USD 2016-12-28 Flippa
    boncap.com 849 USD 2016-12-28 NameJet
    wowrealty.com 753 USD 2016-12-28 GoDaddy
    cloudreviews.net 750 USD 2016-12-28 Flippa
    storymine.com 695 USD 2016-12-28 GoDaddy

    I don't think this is just about the OP and Huge domains although it is true and a good point. Aftermarket names and average ones at that are going for stupid prices and even the better names are way too high.

    Bestdrones.com for example, a nice name that I tracked for a while, but for $6.6k lol, way too high. Look at the list above, either junk names selling for big money or decent/good names also going huge. 4 figurers for trash is commonplace now.

    Some of the names if you didn't look to see buydomains sold them you wouldn't know which names are end user sales IMO. Bottom line, auction prices are broadly going for what end user prices are going for which is ludicrous.
     
    Last edited: Dec 29, 2016
  24. wwwweb

    wwwweb Top Member VIP

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    Nixe report funny how the buydomains which are most likely end user are on the bottom, telling you domainers are paying more than end users, which never ends well.
     
  25. disaac81

    disaac81 Active Member VIP

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    To me it seems that some / most of the names that go way high is due to the newsletter \ auction listing recommendations from the vip contact at GD.

    Once these lists get emailed I notice names suddenly go really high, even when no interest before.

    Maybe some people rely on these lists rather than using their own judgement and time for finding names.
     

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