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

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

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  1. joro001

    joro001 Business Account Business Account VIP

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    That is a good point, I have noticed the same myself when my godaddy rep emails me prices skyrocket.
     
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  2. Arca

    Arca Active Member VIP

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    Yes, HD is just one of many entities pursuing this strategy. Domains are selling for equally crazy prices in the auctions they are not participating in at NameJet/SnapNames and Dropcatch. Lot's of other domainers and companies paying just as much and much more than HD (in other words, HD can't be given too much credit for driving up prices). The most significant impact of HD's activities is how they quantitatively purchase names, by jumping in and bid up all of the average names that would have closed for much lower prices otherwise, making names closing somewhat under the radar/at a reasonable price more of a rarity.

    And on the drop, dropcatch.com means you have to pay up $59 if you want a name, because if you don't order it at $59 there, they'll most likely grab it for their "partner" HugeDomains. And getting it outright for $59 is getting somewhat of a luxury even. Because these days there are other bidders for nearly any name, so the majority of stuff available through pending delete end up in public auctions. The HugeDomains/DropCatch/NameBright triad is pretty much killing the possibility of getting anything cheap on the drop.

    However, in NameJet and DropCatch auctions, prices are not really any different from GoDaddy auction prices, despite HDs absence in those auctions. But aside from a small number of deep-pocketed beginners, it's all experienced domainers paying up end user prices. Considering that they already have years of experience and (usually) thousands of names under management, it's not a given that they won't continue to snap up names for close to end-user pricing, so this trend appears set to continue.
     
  3. wwwweb

    wwwweb Active Member VIP

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    I encourage people to keep paying up, I know the struggle, I am getting $100, $150 offers for 10-20 year old 2 keyword .com solid domains, all day long. Respond back with low - mid 4 figure counters, they run away for the most part.

    It is a struggle, and time consuming, a dollar today, is worth more than a dollar 3 years down the road. You really have to work to get that money back. I almost think people will have no choice but to jump to gtld's at these prices. We see what buydomains is churning at, then we see what domainers are paying. It is unbalanced. If you have a mix of newbiers with dnjournal reports thinking just because candy.com sold for $3M, they can get $3K for yummycandy.com or something, it just doesn't happen.

    This is a huge issue with domaining, from time to time, fairytale sales get advertised, all the sudden the whole keyword gets valuated on that one off sale, for the most part it will only ever be a one off sale.

    It takes a lot of discipline to take a step back from the aftermarket, but now might be a good time. I monitor when I get outbid on good names, and see if those names sold thru, majority are still sitting in the accounts that outbid me, and probably will for a while.
     
  4. joro001

    joro001 Business Account Business Account VIP

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    Completely agree. I'm taking a step back for a while as well, will monitor names if I think they are worth it otherwise perfectly happy to see how this plays out.

    Most times I see the same, the domains are unsold for an age afterwards but not so long ago I saw landsolutions com at godaddy and badly wanted it. It went to around $7k I think which was huge and didn't get it. I see now that it shows within a couple of weeks SEDO transfer service in whois so looks like it sold fast to someone else. Ah well c'est la vie.
     
  5. Arca

    Arca Active Member VIP

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    Yes, and that’s why these price increases don’t make sense. However, since the people paying up supposedly know the struggle already (they’ve been doing this for years already), and they still keep paying up, then I don’t see why they would suddenly stop. If you have been domaining for years and you own thousands of names, and you already have a model that works for you, then you won’t suddenly discover that what you are doing doesn’t work, and stop spending so much on names. So buying names for these kinds of prices apparently is working for some domainers, because there are enough domainers and companies doing it to drive prices towards end-user pricing across all marketplaces.

    One company that appears to be more aware of the “struggle” of selling names is BuyDomains. Here are some numbers compiled from NameBio.com two months ago (numbers have slightly increased since then):

    BuyDomains.com sales according to namebio:

    4,925 sales in total.

    4,349 sales under $3000.
    576 sales over $3000.
    233 sales over $4000.

    3,784 sales in the $1000-$2500 range.
    1,113 sales in the $2500-3500 range.

    When your business is based on selling names in the sub $2500 range, your business model is no longer feasible in this market, in terms of acquisitions. And the percentage of names I see bought by BuyDomains.com is continuously decreasing. They are hardly able to buy anything anymore. They either have to change their business model (significant price increases), or they will end up entirely priced out of the market with the way prices are going through the roof. And anyone who follows the sales reports on namebio can see that some of the names that sold at BuyDomains in the past five years, and are now let to expire by the buyers, sometimes end up selling for prices close to what they previously sold for at BuyDomains, but to domainers this time around, rather than end-users.
     
  6. Asfas1000

    Asfas1000 Business Account Business Account VIP

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    It's kinda weird, with all the prices going up, you'd expect end user prices to go up too.

    But the opposite seems to be the case really.
     
  7. wwwweb

    wwwweb Active Member VIP

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    End users actually have more choice than ever, with GTLD's, some choose to go that route, others choose to pay up.

    Anytime you bid on a decent domain, chances are it's going to be a race, and your going to have to bid to win it. Not to long ago, you would get away without having a fight on every single domain, but these days every domain is a tug of war to get it closed.
     
    Last edited: Dec 29, 2016
  8. Asfas1000

    Asfas1000 Business Account Business Account VIP

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    JMO...those end users who choose a ngtld wouldn't ever buy from you. They choose it because it's low cost. If it wasn't there, they would probably hand reg a hyphenated .com, but not pay up for your decent .com.
     
  9. stub

    stub Top Member VIP

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    I'm still picking up domains on the drop and at GoDaddy for approx twice regfee. As a whole, not as good as good as those being mentioned here, but certainly saleable at $2k, from looking at these prices :) Of course some of them are as crap as what we see here. Others are at least as good as we see here. Some are even better than the crap we see here. IMHO :)

    There is a niche for everything. My niche is going to be selling reasonable quality domains to those people who will be refusing to pay the prices these domains need to be sold at :)

    I don't think I will be getting out of the market. I would say I'm maintaining or even increasing my inventory :)
     
  10. hookbox

    hookbox Active Member VIP

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    In the past, skipping an auction or two or three to go have lunch or not working on the weekends was no big deal because there were still plenty of names to be had but not anymore. It really is becoming a 7 day a week grind to get good names. I know that I need to be more diligent these days and put in more effort to make up for the added competition. We also tend to forget that there is tons of inventory from private individuals that could be had for much less money then chasing these crazy auctions.
     
  11. ben pedri

    ben pedri Active Member VIP

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    This is so not true, I see so many great domains at godaddy go off the board without a buyer at $5 ,only to see people backordering them at namejet for 69 bucks , godaddy and other registras have tens of thousands of domains expiring daily through some sort of closeout daily ,I will say this you get the best closeouts at 11 bucks but i have picked up a few gems at $5 some of those gems were never renewed ,and the cycle continues ,I must stress BE BE BE BE BE very selective only limit yourself to one domain a day ,at the end of the day your keen eye should earn you a quick 400 buck return potential if you make a few calls not bad for a total of 15-20 buck investment { sift that dirt }
     
  12. Fuadiansyah

    Fuadiansyah Established Member

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    I've done a little watch of some quite good domains from GoDaddy expired auctions. After waiting for a week for the whois to updates. This is the result:
    [​IMG]

    We all know HugeDomains, but I don't know TLDPros. Who are they?
    Is there any connection between TLDPros with Namejet?
    I see on their website that all of their domain being auctioned at Namejet.
    So, their business is buy low ($12+Renewal) at GoDaddy expired auction and then sold them on Auction at Namejet for minimal $69? Could anyone enlighten me?
    Thanks...
     
  13. wwwweb

    wwwweb Active Member VIP

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    Tldpros is a group of domainers based out of India I believe, they bought a 5N portfolio in Dec 2015 from godaddy for like $1M, marchex's

    I see they been attempting to sell at namejet also. Issue with namejet if they have a ton of reserves that are just going unsold by the masses.

    Huge domains has infrastructure, they have a huge portfolio, their own register, their own dropcatch, their own registry connections, you can't beat them.

    Tldpros is more recent, I think they have a all or nothing strategy right now. Thing about Huge Domains is they have their own dropcatch, and what gets backordered sells for top dollar for their gain.

    You really can't compare the two.

    That is insane that these two parties got 60 percent of your tracked inventory.
     
    Last edited: Dec 30, 2016
  14. Fuadiansyah

    Fuadiansyah Established Member

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    So, HugeDomains based in US, TLDPros from India, is there more from China? :bored:
    Yeah, it's pretty insane, right. Now I feel like just a little liliput getting crushed by a bunch of giants. This industry is getting insane everyday....
     
  15. wwwweb

    wwwweb Active Member VIP

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    There are many Chinese based domainers on Godaddy also, BioBanking.com was bought last week for $4,2xx by a Chinese based domainer with domainbuyer777 as his email. It is global for sure. Used to be more North America, and European, but China, and India are both developing countries with explosive growth.
     
  16. urlurl

    urlurl Established Member

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    Godaddy must be loving this extra bump in their auctions, :xf.grin:
     
  17. garptrader

    garptrader Active Member VIP

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    Perhaps it is time for investors to start making more serious Domains Wanted Threads (i.e. willing to pay a fair price to acquire a good domain rather than expecting a one-word .COM for $50).
     
  18. 168

    168 Established Member

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    Exactly.
    There are now 3 huge markets in need of replenishing inventory. This is probably the best time to sell average .com inventory to the bulk buyers unless one is willing to accept tighter margins on new buys and lower ave. sales pricing set by bulk buyers motivated by volume.
    I do believe Huge Domains will get bought out when the anticipated volume isn't there and holding costs eat into their margins 2-3 years from now.
    Happy Hunting
     
  19. disaac81

    disaac81 Active Member VIP

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    Interesting point here. I wondered what you meant about the $2,500 price point. Are you saying selling under this is not feasible for the acquisitions in the example, or in general, even $30-50 domains?
     
  20. Arca

    Arca Active Member VIP

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    BuyDomains mainly sell names below $3000, with the majority below $2500.

    Perhaps their average sales price is $2000? (based on their sales showing up in NameBio in the daily reports these days, it’s probably a bit below that).

    Then if BuyDomains go to NameJet and GD now, and buy 100 decent names at an average of $350 each, that will set them back $35000. They will have to sell 17-18 of these names for $2000 each just to break even. Assuming a sell-through of 3%, it’s going to take them 6 years to break even, or close to 12 years with a 1.5% sell-through. At current price levels, and with the way prices seem set to continue increasing, this doesn’t look like a viable model going into the future. The fact that they are not able to win almost anything at GD these days (in my sample of 150 names, they were only able to buy 6 of them), and I can't even recall last time I saw "saggydimes" winning an auction at NJ and SN, might indicate that they realize that current reseller acquisition prices do not work with their current sales model.

    What's your take?
     
  21. disaac81

    disaac81 Active Member VIP

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    Thanks for the explanation. It was just something I was thinking about last night, and I guess what I was really after were the %sale rate that would yield a profit given the buying pattern.

    From my perspective, I agree that buying names for $350 upwards seems to break the business model of not just HD, BD etc, but domainers in general (unless we are talking about 4L possibly).

    I always thought the model was to get good names at under $100 if possible and sell on. I am obviously not talking about names that are in their own league, like SmartFinance or FastLoans etc. I hope that made sense...
     
  22. Arca

    Arca Active Member VIP

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    It looks like there is no way to getting away from the Reberry brothers (owners of NameBright.com, HugeDomains.com and DropCatch.com) in the domain reseller market.

    I’ve been wondering who the bidder “tahitirum” at SnapNames is. Just discovered that “tahitirum” is Jeff Reberry, one of the Reberry brothers that own NameBright.com, HugeDomains.com and DropCatch.com.
     
  23. Arca

    Arca Active Member VIP

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    There are a lot of of South Korean domainers buying up a ton of English keyword names too (probably more than Chinese and Indians, at this stage).
     
  24. stub

    stub Top Member VIP

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    saggydimes just beat me in an SN auction a couple of days ago. I thought, "now there's a name from the past".
     
  25. Fuadiansyah

    Fuadiansyah Established Member

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    Perhaps it's more like shakydimes for now...
     

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