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]

It gets worse. Hopefully the winning bidder for globa doesn't see this post or else he will be somewhat annoyed IMO.

I hope they do see the afternic listing. Maybe then they will learn not to overpay on average names.

 

[wwwweb]

I don't know how long the name was listed for sale, but there were obviously no takers at $421, and eventually the owner gave up on it and let it expire. Going to be hard to turn a profit on this buy, seeing as the new owner paid 15x more than than the "end-user" price it was listed with. I'm surprised it even went into the four figure range though, let along mid four figures.

Lot's of afternic listings are outdated, could be before the last end user bought it. Most of the domains I own, are in someone else's account at afternic, the platform needs some advancements in this sense.

the whois of the previous owner is actually showing a law firm for globa.com

I am just scanning today, looks like the hot button domain is TheJuiceBox.com which is at $1,200 with 90 mins to go, most of the action happens in the last 5 mins, so we will see what a juice box is worth today.

Maybe I am conversing with all the wrong end users, but it is a battle to get an extra dollar out of them, and then for them to close in a timely fashion another battle. Some are like so I can't have this domain for $100, or $500 my final offer, these are domains that can be sold to domainers for thousands.

It is just education, newbies see sales lists, and get a high thinking they can replicate. TLDPROS not sure what their strategy is, but either they have lots of capital to play with. They keep listing auctions at namejet, but they are not of quality, or reserved to high, and not selling. They can not replicate HUGEDOMAINS which already has a massive portfolio acquired cheaply to feed them for a bit.

Most large domainers I know are actually holding cash to move to other investments, because they feel the auctions are bit overheated, but most of these guys live for the thrill of the chase, and after years of doing it, it is hard to back down from the rush of buying, and selling. There are others who have had great sales of liquid domains, and just have huge bankrolls, but they are not foolish by any means. We are clearly at foolish levels on many names. As long as you are not winning,

I am not sure who is taxing these buyers, but clearly it takes more than 1 to push prices up.

 

[urlurl]

im not getting all the names i want from the auctions at the prices im used to paying. But i am still getting a few that go unnoticed.

 

[urlurl]

thejuicebox. com for $1,200+ (WTF) is their something special about 3 word domains starting with word 'the' that i am missing?

 

[wormfood]

swagnation.com 1,186 USD 2016-12-15 GoDaddy
The email in the whois -> "There are 1,107 domains associated with the email field" (whoisology)

allegis.com 5,150 USD 2016-12-15 GoDaddy
"There are 2,254 domains associated with the email field"
Parked and "Recently listed on domainnamesales.com"
This one is on the second page of google for allegis
"allegis.com has been connecting our visitors with providers of Boston Dating, Chicago Dating, Christian Match Makers and many other related services for ..."

novacore.com 2,000 USD 2016-12-16 GoDaddy
email: [email protected]
just a little too high?

deepstacks.com 2,135 USD 2016-12-16 GoDaddy
Oh good, this one is owned by deepstacks.net now.

But some domainer bid him up on that? lol
It was an expired domain..
Expiration Date: 2017-11-11 Updated Date: 2016-12-23
(novacore.com Expiration Date: 2017-11-11 Updated Date: 2016-12-23)

 

[urlurl]

swagnation.com 1,186 USD 2016-12-15 GoDaddy
The email in the whois -> "There are 1,107 domains associated with the email field" (whoisology)

allegis.com 5,150 USD 2016-12-15 GoDaddy
"There are 2,254 domains associated with the email field"
Parked and "Recently listed on domainnamesales.com"
This one is on the second page of google for allegis
"allegis.com has been connecting our visitors with providers of Boston Dating, Chicago Dating, Christian Match Makers and many other related services for ..."

novacore.com 2,000 USD 2016-12-16 GoDaddy
email: [email protected]
just a little too high?

deepstacks.com 2,135 USD 2016-12-16 GoDaddy
Oh good, this one is owned by deepstacks.net now.

But some domainer bid him up on that? lol
It was an expired domain..
Expiration Date: 2017-11-11 Updated Date: 2016-12-23
(novacore.com Expiration Date: 2017-11-11 Updated Date: 2016-12-23)

if swgnation got that much - maybe they want to buy my S w a g M a i l .com , lol

 

[wormfood]

if swgnation got that much - maybe they want to buy my S w a g M a i l .com , lol

Only if you let it expire, I guess

 

[wwwweb]

swagnation.com 1,186 USD 2016-12-15 GoDaddy
The email in the whois -> "There are 1,107 domains associated with the email field" (whoisology)

allegis.com 5,150 USD 2016-12-15 GoDaddy
"There are 2,254 domains associated with the email field"
Parked and "Recently listed on domainnamesales.com"
This one is on the second page of google for allegis
"allegis.com has been connecting our visitors with providers of Boston Dating, Chicago Dating, Christian Match Makers and many other related services for ..."

novacore.com 2,000 USD 2016-12-16 GoDaddy
email: [email protected]
just a little too high?

deepstacks.com 2,135 USD 2016-12-16 GoDaddy
Oh good, this one is owned by deepstacks.net now.

But some domainer bid him up on that? lol
It was an expired domain..
Expiration Date: 2017-11-11 Updated Date: 2016-12-23
(novacore.com Expiration Date: 2017-11-11 Updated Date: 2016-12-23)

I have Swag Site com, registered since 2001, never even got an offer on it, S S alliteration, good age, when you have it sitting in your account for years at a $1200 cost, then you feel it, my cost was $19 in 2011. I am not going to feel that same pain, and if someone offers $1K, I have options, but if that other person is offered $1K, they are set to take a loss.

2017 I will have to say will be a year, where you have to be more defensive on purchase, and more offensive on sales. Godaddy has been acquiring domains with tens of millions of dollars in hand, their cost acquisition is very low, and they are selling quality names right beside all you guys for pretty attractive end user prices. Prices that are maybe to high for a domainer, but very decent for an end user, so lots of those names when the previous owners owned them had crazy high prices on them, but with one swoop, they are out of safe hands, and actively ready to move.

Many newbies think you go over to godaddy, whip out your cc, buy a name, park it, a few weeks later end user comes knocking with a bucket full of money. It will be interesting for sure.

 

[joro001]

I have Swag Site com, registered since 2001, never even got an offer on it, S S alliteration, good age, when you have it sitting in your account for years at a $1200 cost, then you feel it, my cost was $19 in 2011. I am not going to feel that same pain, and if someone offers $1K, I have options, but if that other person is offered $1K, they are set to take a loss.

2017 I will have to say will be a year, where you have to be more defensive on purchase, and more offensive on sales. Godaddy has been acquiring domains with tens of millions of dollars in hand, their cost acquisition is very low, and they are selling quality names right beside all you guys for pretty attractive end user prices. Prices that are maybe to high for a domainer, but very decent for an end user, so lots of those names when the previous owners owned them had crazy high prices on them, but with one swoop, they are out of safe hands, and actively ready to move.

Many newbies think you go over to godaddy, whip out your cc, buy a name, park it, a few weeks later end user comes knocking with a bucket full of money. It will be interesting for sure.

Yep I am likely to be in the camp of being defensive on purchases barring a massive change to the current status quo. My buying power is already 20% lower post the Brexit vote due to the £ crashing hard so I anyway feel like I need to be extremely careful on the buy since then. Then adding in the extra competition in the last half a year on the buy it is a lose lose.

My main business model is development/marketing anyway so not the end of the world for me but for those relying on this full time I would be worried.

 

[Asfas1000]

Many newbies think you go over to godaddy, whip out your cc, buy a name, park it, a few weeks later end user comes knocking with a bucket full of money. It will be interesting for sure.

That's what I think too. Last year a newbie came here and said hi, I bought this brandable at GD for $1,500 two months ago, what do I do now ? He was stuck, he thought he would flip it in no time.

Newbies have no idea that only a tiny percentage of domains actually sell to end users.

Perhaps it's our fault when we educate them to buy good domains at expired auctions etc. for $100+. They are not in a position to judge how much is a good price for a domain. This takes years to master.

What happens is the prices inflate and the auction houses are laughing at us, while the domainers (newbie or not) cannot get value from their purchases.

 

[wormfood]

I also know one person that told me they were angry (or in a bad mood or something) and they bid up some auctions on godaddy lol. Kind of a weird way to let out emotion.. I think they also said they just did it for fun a couple times.
But he assured me he would pay up if he had to..
Maybe it gave him a rush trying to push the other person as far as he could without winning the auction.
I hope this isn't a common practice for people with a lot of money to blow (who wouldn't mind ending up owning a decent domain if they lost their little game )
The 'clueless newbie' situation is probably quite common though.

 

[wwwweb]

This is everything that is wrong with domaining today:

arizonaredcross.org $608 DropCatch

 

[tha-she]

Why they dont give namepros auctions a visit will be kept a secret... wait, it might just be because namepros still dosnt have an automated auction system and all deals need to be closed via individual conversations instead of hitting a "Pay" button ...

 

[urlurl]

This is the way i see it, it is a combination of a few forces at work here:

1. Big domain house's need inventory and are desperate and end up paying big amounts.

2. Newbies trying to get names they think are worth more than they are

3. Idiots who get off bumping auction prices (i hope they get stuck with them)

4. Foreign domainers who may not have a grasp on the language (we all see that on the forums)

5. Increased demand worldwide

6. Shill bidders

7. bidders who get caught up in the auction or have an ego to satisfy

8. The nube who puts an early bid on a name and alerts other buyers by doing so.(maybe he doesn't know about the watch function)

9. Regular savvy domain investors (we are the only ones smart enough to stop bidding on a name once it gets out of control)

 

[dordomai]

unrealistic prices and expectations => losses and frustration=> domains considered crap investment=> market prices collapse => buying opportunity

 

[parkerpeter223]

Go daddy should had atleast 2 bidders..

 

[WhoaDomain.com]

damn! an I'm looking at one particular domain on there too! guess I can't get it!

 

[VB Domains]

I guess they have HugeBudget too!

 

[BrandChimp]

8. The nube who puts an early bid on a name and alerts other buyers by doing so.(maybe he doesn't know about the watch function)

Lol, I like the number 8.

sometimes I place the second early bid just to see random bots starting a bidding war on OKAY names... I lose 100% of the time when I place an early bid because the bids easily goes over $70 (+renewal).

Ex: Buxler has been sold for $173+renewal... Good name... Sadly, someone did placed an early bid and BOOM....

I can find way better names at that price and even under $45....

I also was part of 2 last minute bidding wars.

Loudio .com $510
Insiderr .com $360

No bids were placed and there was only 5 minutes left to the auctions. I placed a bid and BOOM, Tones of random bidders/bots joined the party...

Sure, they are great brandable names but... that's $870+ 2 renewal.... CRAZY!

 

[Asfas1000]

I just had a look at Namebio and set venue to "Godaddy".

The prices give you the impression there's something rigged to it....

 

[brandsly]

Lol, I like the number 8.

sometimes I place the second early bid just to see random bots starting a bidding war on OKAY names... I lose 100% of the time when I place an early bid because the bids easily goes over $70 (+renewal).

Ex: Buxler has been sold for $173+renewal... Good name... Sadly, someone did placed an early bid and BOOM....

I can find way better names at that price and even under $45....

I also was part of 2 last minute bidding wars.

Loudio .com $510
Insiderr .com $360

No bids were placed and there was only 5 minutes left to the auctions. I placed a bid and BOOM, Tones of random bidders/bots joined the party...

Sure, they are great brandable names but... that's $870+ 2 renewal.... CRAZY!

I was the winner for the mentioned insiderr .com. I was willing to pay $360 because I liked it that much. I also got an offer/inquiry shortly after it landed in my account. And no I did not use a bot, I started watching the name 5 days before the auction ended. People always think they are the only ones watching the name, and wait until the last 5 minutes to place a bid in hoping to win it for $12, but once that bid is in, other watchers that like the name also HAVE to start bidding to get the name. It only takes 2 people to like the name substantially to drive the price quite high. If you don't want to get in a bidding war and drive prices high, then stop putting the bid in if there are no bids on the name, even before the last 5 minutes! If you wait until the auction ends, you will at least have a chance to get it for $11. If you don't, then you are just not fast enough. If you like the name enough to pay up and don't want to risk losing it at all, that's when you put a bid in. When you put that bid in, you will have a ton of other biders bid on it since they are also watching the name like you are (even if you don't think so). If you win it for cheap, then it's either because there are only very few other people like it / nobody like it THAT much, or it's a great name that went under the radar (which happen very rarely these days).

 

[Asfas1000]

I was the winner for the mentioned insiderr .com. I was willing to pay $360 because I liked it that much.

Thank you for the information.

I too like insiderr but I wouldn't bid more than $50. Do you think it is a viable business model to buy brandables for $350 and sell for $3,500 ? (They won't all sell, you know - only a small fraction). Brandbucket sells at lower prices and has a much lower sell-through rate, despite getting a ton of traffic.

If you don't want to get in a bidding war and drive prices high, then stop putting the bid in if there are no bids on the name, even before the last 5 minutes! When you put that bid in, you will have a ton of other bidders bid on it since they are also watching the name like you are,

Very well said. Infact you have LESS competition if you let it hit closeout !

 

[BrandChimp]

I was the winner for the mentioned insiderr .com. I was willing to pay $360 because I liked it that much. I also got an offer/inquiry shortly after it landed in my account. And no I did not use a bot, I started watching the name 5 days before the auction ended. People always think they are the only ones watching the name, and wait until the last 5 minutes to place a bid in hoping to win it for $12, but once that bid is in, other watchers that like the name also HAVE to start bidding to get the name. It only takes 2 people to like the name substantially to drive the price quite high. If you don't want to get in a bidding war and drive prices high, then stop putting the bid in if there are no bids on the name, even before the last 5 minutes! If you wait until the auction ends, you will at least have a chance to get it for $11. If you don't, then you are just not fast enough. If you like the name enough to pay up and don't want to risk losing it at all, that's when you put a bid in. When you put that bid in, you will have a ton of other biders bid on it since they are also watching the name like you are (even if you don't think so). If you win it for cheap, then it's either because there are only very few other people like it / nobody like it THAT much, or it's a great name that went under the radar (which happen very rarely these days).

I really liked Insiderr. It is a kick ass brandable name. However I use to pay less than $100 for double letter names. I have to stick to my winning strategy.

I stop to placing last minute bids on the names I really want unless I am ready to pay the big price. It is too easy to over bid on godaddy auction these days.

 

[Name Trader]

8. The nube who puts an early bid on a name and alerts other buyers by doing so.(maybe he doesn't know about the watch function)

This might be a small factor only. Any domain of interest is going to have it's watchers. And any bid in the last 5 minutes is going to attract other bidders. So. Even if they waited for the last 5 minutes to bid. They are going to be sunk.

 

[wwwweb]

I was the winner for the mentioned insiderr .com. I was willing to pay $360 because I liked it that much. I also got an offer/inquiry shortly after it landed in my account. And no I did not use a bot, I started watching the name 5 days before the auction ended. People always think they are the only ones watching the name, and wait until the last 5 minutes to place a bid in hoping to win it for $12, but once that bid is in, other watchers that like the name also HAVE to start bidding to get the name. It only takes 2 people to like the name substantially to drive the price quite high. If you don't want to get in a bidding war and drive prices high, then stop putting the bid in if there are no bids on the name, even before the last 5 minutes! If you wait until the auction ends, you will at least have a chance to get it for $11. If you don't, then you are just not fast enough. If you like the name enough to pay up and don't want to risk losing it at all, that's when you put a bid in. When you put that bid in, you will have a ton of other biders bid on it since they are also watching the name like you are (even if you don't think so). If you win it for cheap, then it's either because there are only very few other people like it / nobody like it THAT much, or it's a great name that went under the radar (which happen very rarely these days).

Interesting comments, how high were you willing to go?