domains The history of HugeDomains.com and there epic growth

[Robbie]

HugeDomains.com a company that dominates the aftermarket for domain names has amassed a portfolio of 4,062,803 domain names as today... This figure moves every day... The company has slowly been building its portfolio for over 16 years, starting 2005 with only 8,000 Domain Names Listed For Sale on HugeDomains.com until today where the current nameservers reflect that massive number of domains associated with them.

The company rarely publishes domain names sales but must be completing many every day to afford the huge bills that must be generated from their domain name registration fees if we just do the simple maths of $8 per registration, they need to turn over $32 Million USD Dollars in sales each year just to cover registrations fees.

Then you have all the associated overheads with running this business wage bill, taxes, processing fees, and let's not forget the acquisition costs not all of their domain name inventory are dropped hand registered domain names, often they are bidding in auctions to secure these domain names.

I believe they must be making sales around $1 Million USD or more per week to continue this business model, while I have zero evidence to back that up, just common sense would assume they would be hoping to carry out a figure around this amount...

If you look at a few average selling prices this would give an idea of the number of sales they would need to carry out if it was as high as $1 Million Dollars per week and of course it could be much lower or much higher we just don't actually know...

$5K AVG - 200 Domain Names per week.

$3K AVG - 333 Domain Names per week.

$2.5K AVG - 400 Domain Names per week.

$1.5K AVG - 666 Domains Names per week.

$1K AVG - 1000 Domain Names per week.

What do you believe is their turnover in sales each week... Is it higher or lower than my estimate of $1 Million USD?

What do you believe is their Average Selling Price per domain name each week?

I am not sure how the business is fully structured as the ultimate parent company of HugeDomains.com is TurnCommerce Inc who also operates NameBright.com & DropCatch.com again these entities must be generating millions of dollars in sales too for TurnCommerce Inc from the domain name community alone.

This graph here gives you an idea about the seismic growth of the portfolio but only dates back to 2013, however, check out the screengrabs in time over the past 16 years below...

http://robbiesblog.com/the-history-of-hugedomains-com-and-there-epic-growth/8993

 

[DomainRecap]

I've run the numbers many times, and I just don't see how it's possible for them to make a profit, and it all seems more like a bizarre money laundering scheme.

My only other theory is that HD has some level of ownership, partnership or vertical integration with GoDaddy, or vice versa.

 

[Robbie]

Thanks, DomainReCap, I don't believe it's any kind of money laundering scheme, I can understand the suspicion but I think a lot of domain transactions happen daily that just aren't reported.

In my eyes it's a genuine legitimate business, I am not sure about any GD terms of their deal is but they do sell domain names via their platform you can see this by checking a number of the listings on HD against GD searches and find them there for sale.

I do think that one day GD will snap them up to get a hold of that portfolio of ever-growing domains.

 

[D Haynes]

Brown envelopes and back scratching goes a long way in the business world.

 

[Lox]

Thanks, DomainReCap, I don't believe it's any kind of money laundering scheme, I can understand the suspicion but I think a lot of domain transactions happen daily that just aren't reported.

In my eyes it's a genuine legitimate business, I am not sure about any GD terms of their deal is but they do sell domain names via their platform you can see this by checking a number of the listings on HD against GD searches and find them there for sale.

I do think that one day GD will snap them up to get a hold of that portfolio of ever-growing domains.

Edu about the multiple subsidiaries / SSAs (especially International), deductions allowed by the states, reduction, offset, ping-pong in general ,etc.

Regards

 

[The Durfer]

less than a million a week, my estimate. avg price about $1738 per domain. ty.

 

[Armageddon]

NameBright.com & DropCatch.com cover all cost of HugeDomains.com
I believe that this two generate revenue around 100 - 150 millions/year so 32 millions of HugeDomains is not a problem + they also make domain sales (imo)
I think Mr. Andrew Reberry made a healthy business few years back when start

 

[F.E.]

Hugedomains portfolio - 4,100,000
Average price - $1,738
Minimum sales for renewal return - 18,412 (0.45% of total portfolio)

So, if they are unable to get rid of 0.45% of their portfolio which is expanded day after day, I believe they should just call it quits. Hugedomains do have decent domain names and I am pretty sure that they are able to sell more than above percentage on anual basis, considering number of partners they're working with.

This is just to imagine they are paying $8 price. As I am not familiar with their setup (if they operate their own registrar or not), any existing one would be happy to pay them premium price just to have their portfolio under management for board bragging.

 

[aliweb]

I've run the numbers many times, and I just don't see how it's possible for them to make a profit, and it all seems more like a bizarre money laundering scheme.

My only other theory is that HD has some level of ownership, partnership or vertical integration with GoDaddy, or vice versa.

if it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck

 

[zomainhacks]

Most of their domains are at namebright, if they own namebright their renewal costs are for sure less than the usual retail cost. Anyway, with a portfolio of that size you wont have problems in obtaining highly discounted renewal costs.

That being said, I don't think that it would be too much difficult tracking their sales. You don't know if a sale happened, but if a domain disappears from the portfolio and isn't dropped one can safely conclude that get sold.
I'm pretty sure someone in the industry is arleady traking their sales and keeping the data private.

 

[rentmynames]

If I remember correctly, I was the first owner of the domain, hugedomains.com

 

[F.C.]

If I remember correctly, I was the first owner of the domain, hugedomains.com

You have some amazing domains! Cool to have owned HD once, did you sell it?

 

[iAdam]

That's not a great domain anyway.