Mike Mann / HugeDomains / BuyDomains Business Models

[Federer]

Although Mike Mann / HugeDomains / BuyDomains have a large number of premium-quality domains, the vast majority of their portfolios are comprised of medium/mediocre quality .COM domains - the vast majority of which they seem to have acquired (and continue to acquire) for "low cost".

Based on average sell-through rate (1%-2%), it seems like a very interesting and profitable model for those holding large quantities of .COM brand type domains.

For every 1000 domains, there could be 15 (end user) sales during the course of any given year. Many of their domains seem to be priced in the $2800-$4800 range. Assuming 15 sales at $3.8K, and deducting the initial cost (assuming registration fee for the majority) would leave a profit of $50,000 for every 1000 domains.
The renewal costs would then be deducted, setting up an ideal scenario of more profits/end user sales for the year to come.

Even a 1.5% sell-through rate (based on the fact the domains are have some kind of brand appeal*) covers initial cost, renewals and leaves plenty of profits on the table.

I am certain the landing pages (especially HugeDomains.com landers) also contribute to a consistent ratio of solid sales. They offer monthly payments also that I know help them close some of the sales.

Examples of some of their (HugeDomains/BuyDomains) recent sales (most in the $1.5K-$5K range), include average domains such as:

ILoveStartup.com
ILoveSz.com
StainedGlassShop.com
Uniquid.com
LesterToledo.com
decenthuman.com
niceyard.com
locksbox.com
TheBBG.com
TalentLivesHere.com
Sndcc.com
OurLoveableLabs.com
DareToAchieve.com
PakMachinery.com

What are your opinions on this type of business model? (acquiring hundreds/thousands of average .COM brands at low cost)

 

[En]

Daily Domain Deals
These low priced domains are on sale for a limited time only.

AliceHeise.com $795 5/5/2016
AlisonAndMark.com $795 5/5/2016
ElizabethTower.com $795 5/5/2016
JessicaCatherine.com $795 5/5/2016
JoannaPetrie.com $795 5/5/2016
JosephBishara.com $795 5/5/2016
JosephMoniz.com $795 5/5/2016
MichelleAndBrad.com $795 5/5/2016

Get the name that your parents gave you from birth from HugeDomains' at a discounted price!

 

[En]

Capital-parasitism

"an organism which lives in or on another organism (its host) and benefits by deriving nutrients at the other's expense."

No ethics.

It's one thing realising the future potential of music.com, onlinedating.com, domains.com, etc.

Huge Domains is another level.

 

[Jurgen Wolf]

Already saw tons of dropped domains by BuyDomains...

 

[GoKaizen]

Great domains are sought out by multiple buyers all the time but HugeDomains doesn't have great domains this is why a great looking website matters. They have a mass quantity of marginal quality names mostly priced in the low to mid $X,XXX range. The key to selling in this price range is hooking the consumer with a high quality professional website. HugeDomains has around 1 million domains. 1 million domains at a 2% sell through rate is selling 20,000 names a year at an average of probably $1,800 which is 36 million in sales with 8 million in reg fees. 28 million minus a few million in expenses and they are obviously kicking ass. Even if the sell through rate is much less they are still knocking it out of the park.

Factor in operating the dropcatch registrars, building the system, and hosting. That costs a lot.

 

[Federer]

There is nothing wrong with their business model.
They acquire mediocre .COM brand-type domains en mass (often between 900-1500/day) and offer them at end user affordable prices, primarily in the 1K-3K sweet spot.

 

[En]

https://www.theknot.com/us/michelle-trenn-and-brad-ginter-jun-2016

@MichelleAndBrad HugeDomains.com has baked you a lovely cake for your special day! And it's on sale now!

MichelleAndBrad.com (Obviously a legitimate use of ingredients)

 

[Federer]

If you own 5000-10000 marginal quality .COM domains, you are going to make end user sales more frequently than if you own 500 average-quality domains.

Even if the quality is mediocre, it is still a number's game in the long run as HugeDomains model clearly shows.

 

[garptrader]

a reverse whois lookup seems to indicate they have 2.5 million domains 99% .COM

 

[Federer]

The quality matters less when you have countless average .COM brands.

They have it down to a science.

By consistently selling 1-3 "$1.5K-$3.5K" domains in every 100, they can more than afford to aquire/hold/renew hundreds of thousands of domains..... or even scale up to millions.

 

[Arca]

a reverse whois lookup seems to indicate they have 2.5 million domains 99% .COM

In 2013, their website's header tagline was “shop for over 350,000 premium domains” - Now, in 2016, it says “shop for over 200,000 premium domians”. Wonder why they changed 350,000 to 200,000, instead of 2,500,000.

 

[DreamLife]

Great domains are sought out by multiple buyers all the time but HugeDomains doesn't have great domains this is why a great looking website matters. They have a mass quantity of marginal quality names mostly priced in the low to mid $X,XXX range. The key to selling in this price range is hooking the consumer with a high quality professional website. HugeDomains has around 1 million domains. 1 million domains at a 2% sell through rate is selling 20,000 names a year at an average of probably $1,800 which is 36 million in sales with 8 million in reg fees. 28 million minus a few million in expenses and they are obviously kicking ass. Even if the sell through rate is much less they are still knocking it out of the park.

HugeDomains has over 2.5 Million domains FYI ... since Jan 1 2016 over 2 Million