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HugeDomains is a U.S.-based domain reseller operating under TurnCommerce, alongside NameBright (its registrar) and DropCatch (its dropcatching platform). The company manages a vast portfolio of over 4 million domains.
The company's business model consists of optimizing the business by minimizing human intervention as far as possible, except for the sales negotiation part, which is managed by agents. For its acquisitions, the company cleverly uses auctions from its customers on its platform and from third parties on other platforms to identify domain names with potential value. HugeDomains' basic reasoning is that if someone places a reservation on a domain name and/or makes a bid, then it has potential value. For example, every domain name obtained via its Dropcatch Discount service is tested by an algorithm. If it is a sought-after term, in dot COM and without hyphens or numbers, it is not allocated to the customer who placed the backorder with the highest amount but is attributed to HugeDomains. Dropcatch indicates "Partner" as the result, taking care not to explain to the customer the customer that they have just done free research work for HugeDomains.
HugeDomains uses a similar technique on GoDaddy's ExpiredAuctions. Even when a bid is made in the last few seconds, HugeDomains' robots will bid higher, up to $500 if necessary, as soon as its algorithm considers that there is a potential resale value for the domain name. This second example highlights a flaw in this system, which is based solely on automation. In the absence of human supervision, HugeDomains' purchasing decisions are often irrational, which casts doubts on the company’s profitability .
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