Securing Domains with Backorder Services

16 minute read

Imagine securing a high-value domain before anyone else even knows it’s available. That’s the power of domain backordering. For domain flippers, this strategy is a game-changer, offering a unique opportunity to stay ahead of the competition and grab premium domains as they drop.

This guide will take you through every aspect of domain backordering, from understanding what it is to mastering the steps involved in successfully securing a domain. By integrating these strategies into your overall domain investing approach, you'll be better positioned to capture high-demand domains and maximize your investment returns.

What is a Domain Backorder?

A domain backorder is a service that allows individuals or businesses to attempt to register a domain name as soon as it becomes available after its current registration expires. In the competitive world of domain investing, securing a desirable domain can be challenging, especially when it is currently owned by someone else. A domain backorder acts as a reservation, placing you in line to claim the domain the moment it becomes available. This service is particularly valuable when targeting high-demand or premium domain names that are already in use or owned by others.

Domain backordering involves closely monitoring the domain's status and acting quickly when it enters the expired or pending deletion stage. The process can be complex, and success depends on factors like the domain's popularity, the efficiency of the backordering service, and competition from others also targeting the same domain.

Domain backordering has become a less effective way of capturing domain names in recent years due to several factors that have changed the landscape of domain registration and acquisition. Here's why:

1. Increased Competition

• Explanation : The domain market has become more competitive, with more individuals, businesses, and domain investors aware of the value of premium domain names. This has led to a situation where many desirable domains are heavily backordered, increasing the likelihood that these domains will go to auction rather than being automatically awarded to the first backorder.
• Impact : This increased competition means that simply placing a backorder is no longer a guarantee that you will secure the domain. Auctions can drive up prices significantly, making it harder and more expensive to capture a domain through backordering.

2. Domain Name Auctions

• Explanation : Many registrars and domain marketplaces have introduced or expanded their auction platforms. When a desirable domain is backordered by multiple parties, it often goes to auction, where the highest bidder wins. This auction system favors those with deeper pockets and reduces the effectiveness of backordering as a cost-effective strategy.
• Impact : Auctions have become a more common outcome for backordered domains, shifting the advantage away from those trying to secure domains through backordering alone. This has made it less about being first in line and more about being willing to pay the highest price.

3. Domain Investor Activity

• Explanation : Domain investors, often referred to as "domainers," have become more sophisticated and aggressive in acquiring valuable domains. They use advanced tools, algorithms, and multiple backordering services to monitor and capture expiring domains. Some even place backorders on a large scale, scooping up domains to resell at higher prices.
• Impact : The involvement of professional domainers has made it much more difficult for individuals or small businesses to compete. These investors often have the resources to outbid others in auctions or secure domains through more advanced methods, reducing the effectiveness of backordering for the average user.

4. Registrar Practices

• Explanation : Some registrars have started partnering with large domain auction houses or setting up their own auction systems. When a domain is close to expiring, these registrars might automatically move the domain to auction, bypassing the traditional backordering process.
• Impact : This practice means that even if you’ve placed a backorder, the domain might never reach the point where it becomes available through backordering. Instead, it goes straight to auction, where you're competing against many others.

5. Drop-Catching Services

• Explanation : Drop-catching services are designed to capture domains the instant they are deleted from the registry. These services have become more sophisticated, with multiple providers offering fast, automated systems that can snap up a domain within milliseconds of it becoming available.
• Impact : These services have made it harder for traditional backordering to be effective, as drop-catching systems are often faster and more reliable at securing domains as soon as they drop, leaving little chance for backorders to succeed.

6. Domain Renewal and Recovery Improvements

• Explanation : Domain registrars have improved their processes for notifying owners about domain renewals, offering auto-renewal options, and providing extended grace periods. These improvements mean fewer domains are accidentally allowed to expire.
• Impact : With fewer domains expiring unintentionally, there are fewer opportunities for backordering to be effective. Many domains that would have once become available are now renewed or reclaimed before they reach the point of being dropped.

Why Should I Backorder a Domain?

Backordering a domain offers a strategic advantage in the competitive domain market. When a domain name of interest is already registered, backordering is the best method to ensure that you have the first chance to secure it when it becomes available. This approach is particularly beneficial when the domain name is highly relevant to your business, brand, or investment strategy. A well-chosen domain name can significantly enhance your online presence, making the effort to backorder it worthwhile.

Backordering is not about acquiring just any domain; it’s about targeting specific domains that align with your objectives. Whether you’re after a keyword-rich domain or a domain with a strong backlink profile, backordering provides a way to obtain these valuable assets. It’s a proactive approach that can prevent competitors from acquiring a domain that could be pivotal to your strategy. By understanding the value of backordering and incorporating it into your domain acquisition plan, you can position yourself to seize opportunities that others might miss.

The Domain Name Lifecycle

Understanding the domain name lifecycle is essential for anyone looking to backorder a domain. This lifecycle consists of several stages, with each playing a significant role in determining when and how a domain becomes available for registration. By familiarizing yourself with these stages, you can better time your backorder efforts and increase your chances of successfully acquiring the desired domain.

Available

The Available stage is where every domain name begins its lifecycle.This stage is straightforward; the domain is open for registration, and can be registered by anyone on a first-come, first-served basis. Available domains cannot be backordered, as backordering only applies to domains that are already taken.

Active

The Active stage occurs after a domain has been registered. During this stage, the domain is under the control of the registrant, who can use it for a website, email services, or any other purpose. The Active stage is where the majority of domains spend their time. The domain remains active as long as the registrant continues to renew it.

Renewal

Renewal is a critical sub-stage within the Active period. A domain must be renewed periodically, typically every year, to maintain its active status. If the current owner forgets or chooses not to renew the domain, it moves into the next stage of its lifecycle. Understanding the renewal process and its timing is crucial for backordering because a missed renewal can lead to a domain becoming available.

Expired

When a domain reaches its expiration date without being renewed, it enters the Expired stage. During this time, the domain may still be recoverable by the original registrant, but it is no longer fully active. The domain is typically put on hold by the registrar, and the associated website and email services may be suspended. For those interested in backordering a domain, reaching the Expired stage is critical because it signals that the domain might soon be released for registration

Redemption Grace Period

If a domain is not renewed during the Expired stage, it enters the Redemption Grace Period (RGP). This period usually lasts 30 days, during which the original registrant can still reclaim the domain, albeit for a higher fee. The RGP is essentially a final chance for the owner to retain their domain before it is released back into the pool of available domains. For backorders, this stage is significant because it indicates that the domain is nearing potential availability.

Pending Delete

After the Redemption Grace Period, if the domain is not reclaimed, it moves into the Pending Delete stage. This stage typically lasts for five days, and during this time, the domain cannot be renewed, transferred, or reclaimed by the original registrant. Once the Pending Delete period ends, the domain is released and becomes available for registration. This is the moment when backorder services spring into action, attempting to secure the domain on behalf of those who have placed a backorder.

Gain a deeper understanding of domain management with our lesson: What Is DNS?

Domain Backorder Services

There are several domain backorder services available, each offering different features and levels of success. Choosing the right service can greatly influence your chances of securing a desired domain. While BrandBucket does not offer backordering services, it’s important to be familiar with the leading providers in the market. The following are some of the most popular and effective domain backorder services.

GoDaddy Domain Backorders

GoDaddy is one of the largest domain registrars in the world, and its backorder service is widely used by domain investors. GoDaddy's service allows users to place a backorder on any domain name that is already registered. The process includes domain monitoring, where GoDaddy will alert you if the domain becomes available. One advantage of GoDaddy's service is its extensive customer support and the option to use the backorder credit on a different domain if your initial target is not secured.

SnapNames

SnapNames is a dedicated domain backorder service with a strong reputation for successfully capturing expired domains. SnapNames works closely with several registrars, giving it a higher chance of securing domains that are about to be released. The platform offers auction-style backordering, where multiple parties can bid on the same domain. This service is particularly effective for high-demand domains, as the competitive bidding process ensures that the domain goes to the highest bidder.

NameJet

NameJet is another popular choice among domain investors for backordering services. Known for its partnership with many top-tier registrars, NameJet has a strong track record of successfully acquiring premium domains. The platform operates on a pre-release auction model, allowing users to place bids on domains before they are officially released. This gives you a head start in securing valuable domains that are likely to attract significant interest.

DropCatch

DropCatch is a specialized backorder service that focuses on capturing domains the moment they are released. With a network of over 1,000 registrars, DropCatch has one of the highest success rates in the industry. The platform operates on a first-come, first-served basis, making it essential to act quickly when placing a backorder. DropCatch is particularly useful for capturing domains that are in high demand and likely to be snapped up immediately upon release.

CatchTiger

CatchTiger is a European-based domain backorder service that offers a wide range of domain extensions, including country-code top-level domains (ccTLDs). The platform operates on an auction model, allowing multiple users to place bids on the same domain. CatchTiger also offers domain monitoring services, providing alerts when a domain’s status changes. This service is ideal for investors looking to secure domains within the European market.

DomainMonster

DomainMonster offers a straightforward backorder service with a focus on user-friendliness and reliability. The platform is known for its transparent pricing and no-win, no-fee policy, meaning you only pay if your backorder is successful. DomainMonster is a good option for investors who are new to backordering and want a simple, no-nonsense service.

How Do I Backorder a Domain?

Backordering a domain is a multi-step process that requires careful planning and execution. The following steps outline the general process for backordering a domain, from purchasing a backorder credit to securing the domain.

Step-by-Step Guide to Backordering a Domain

Step 1: Understand the Backordering Process

Before diving into the backordering process, it’s crucial to understand that placing a backorder does not guarantee acquisition of the domain once it becomes available. There are several variables, such as the current owner renewing the domain or competition from other bidders, that can affect your chances. In fact, more often than not, you will not win a domain through backordering.

Step 2: Learn How Domains Expire

Domains expire when the current owner fails to renew the registration by its expiration date. After this, the domain enters a 40-day grace period, during which the owner can still renew it. If not renewed, the domain enters a "redemption period," making it more difficult and expensive for the owner to renew. After this period, the domain goes into a deletion phase and, after approximately 75 days from the initial expiration, becomes available for registration.

Step 3: Identify the Domain's Registrar

To effectively place a backorder, you need to know which domain registrar currently holds the domain. Conduct a WHOIS search using your desired domain name to find this information. The registrar's name will guide you to the appropriate auction site where the domain might be available.

Step 4: Determine the Auction Partner

Most registrars have exclusive partnerships with auction houses where expired domains are listed. The three major auction houses are GoDaddy Auctions, NameJet, and SnapNames. Once you know the domain’s registrar, refer to the appropriate auction house to track and bid on the domain.

Step 5: Create an Account on the Auction Site

Once you’ve determined the correct auction house, sign up for an account on their website. This allows you to place a backorder and participate in auctions once the domain becomes available. Make sure to do this before the domain reaches its expiration date or during its expired period.

Purchase a Domain Backorder Credit

The first step in backordering a domain is to purchase a backorder credit from your chosen service provider. A backorder credit is essentially a voucher that you can apply to any domain you wish to backorder. The cost of a backorder credit varies depending on the service provider and the specific domain. Some services, like GoDaddy, allow you to transfer your backorder credit to a different domain if your initial target is not successful.

Apply Your Domain Backorder Credit

Once you have purchased a backorder credit, you will need to apply it to the specific domain you wish to backorder. This involves selecting the domain and entering the necessary details on the service provider’s platform. It’s important to ensure that all information is correct, as any errors could result in a failed backorder attempt. Some platforms also allow you to set a maximum bid amount if the domain goes to auction.

Step 6: Monitor the Domain's Status

Regularly monitor the status of your desired domain on the auction site. Domains that receive no bids during the auction process may drop and be caught by an automated dropcatching service. Keeping a close watch increases your chances of securing the domain.

Step 7: Place Your Backorder and Bid

When the domain enters the auction phase, place your backorder and start bidding. Remember that the domain goes to the highest bidder, so be prepared to compete with others who are also interested in the domain.

Step 8: Consider Using Multiple Backorder Services

To increase your chances of success, consider using multiple backorder services. Some services specialize in specific registrars or offer additional features like monitoring and alerts. This strategy can give you an edge in acquiring the domain.

Step 9: Be Prepared to Walk Away

Set a maximum price that you’re willing to pay for the domain and stick to it. If the bidding exceeds this limit, be prepared to walk away. This tactic can sometimes bring the domain owner back to the table with more favorable terms.

Step 10: Finalize the Purchase

If you successfully win the auction, follow the auction house's procedures to finalize the purchase. Ensure that the domain is transferred to your account and that all necessary details are in order.

By following these steps, you can maximize your chances of successfully backordering and acquiring a domain.

Set Up Domain Monitoring

Domain monitoring is a critical component of the backordering process. By setting up monitoring, you can track the status of the domain and receive alerts if it moves into the expired or pending delete stage, giving you the best chance to act quickly when the domain becomes available.

The Domain Name Registrar - Different registrars have different policies and timelines for releasing expired domains, so understanding who the registrar is can give you an advantage.

Changes in the Nameservers/ Domain Name System (DNS)

Monitoring the nameservers and the Domain Name System (DNS) settings of the domain is another crucial aspect of domain monitoring. Changes in nameserver settings can indicate that the current owner is either transferring the domain or allowing it to expire. By keeping an eye on these changes, you can anticipate when the domain might become available. Some backordering services provide tools to monitor DNS changes, allowing you to stay one step ahead in the process.

The Status of a Domain Name

A domain name’s status can change multiple times throughout its lifecycle. Monitoring the status codes associated with a domain can provide valuable insights into its current state. For example, a status like “Pending Delete” or “Redemption Period” indicates that the domain is in a critical phase where it might soon become available. Understanding these status codes and their implications is key to timing your backorder efforts effectively.

The Domain Expiration Date

The domain expiration date is perhaps the most important piece of information to monitor. This date marks the point at which the domain will move from the Active stage to the Expired stage. By keeping track of the expiration date, you can prepare to place or adjust your backorder as the domain nears availability. Some backorder services will automatically notify you as the expiration date approaches, while others may require you to set up manual reminders.

Learn more about safeguarding your assets in our lesson on how to Understand Brand Protection.

Own Your New Domain

If your backorder is successful, you’ll be notified that the domain has been secured in your name. The next step is to complete the registration process and transfer the domain to your account. Depending on the service you used, this may involve finalizing payment, confirming your contact details, and configuring the domain for use. Once the domain is fully registered to you, it’s yours to use as you see fit—whether for a new website, as an investment, or for resale.

What Happens if Multiple People have Placed Backorders on a Domain?

It’s important to understand that placing a backorder does not guarantee that you will successfully register the domain. Several factors can influence the outcome, including competition from other backorders, the efficiency of the backorder service, and whether the current owner decides to renew the domain at the last minute. While backordering significantly increases your chances of acquiring a domain, it’s not a foolproof method.

Multiple people can backorder the same domain name, and this is a common occurrence with high-value or in-demand domains. When this happens, the domain typically goes to auction, where the highest bidder wins the domain. Some backorder services, like SnapNames or NameJet, specialize in auction-style backorders. It’s crucial to be prepared for this possibility and have a strategy in place for if the domain you’re targeting attracts multiple backorders.

I Didn’t Get My Backorder – What Should I Do Next?

If your backorder attempt is unsuccessful, there are several steps you can take. First, review the reasons why the backorder failed—whether it was due to competition, a last-minute renewal, or another factor. Depending on the service you used, you may have the option to apply your backorder credit to another domain. Additionally, consider setting up ongoing domain monitoring to stay informed about future opportunities. If the domain you wanted was secured by someone else, you might also explore the possibility of acquiring it through negotiation or a domain marketplace.

Final Thoughts

Domain backordering is a powerful tool in the domain investor’s arsenal, offering a strategic advantage in acquiring valuable domains that are already registered. By understanding the domain name lifecycle, selecting the right backorder service, and implementing effective monitoring practices, you can position yourself to capitalize on opportunities that others may miss. However, it's important to recognize that backordering is not a guaranteed method—competition, timing, and the actions of the current domain owner all play a role in the outcome.

As you integrate backordering into your domain investment strategy, approach it with a blend of patience and persistence. Success in domain backordering often requires careful planning, quick action, and sometimes, the willingness to pivot when a backorder doesn’t go your way. By mastering the process outlined in this guide, you can enhance your ability to secure high-demand domains, ultimately strengthening your portfolio and increasing your potential returns. Remember, in the world of domain investing, being proactive and well-informed is the key to staying ahead of the competition and achieving long-term success.

FAQ

When Do I Pay For The Domains?

Payment for backordered domains typically occurs once the domain has been successfully secured on your behalf. The exact timing and process vary depending on the service provider. Some platforms require payment upfront in the form of a backorder credit, which is only charged if the backorder is successful. Others may charge a fee once the domain is successfully registered in your name. It’s essential to understand the payment terms of your chosen backorder service to avoid any surprises.

Why Are Some Domains Available for Backorder?

Domains become available for backorder primarily due to expiration or abandonment by their current owners. When a domain owner fails to renew their registration, the domain enters the expiration process and eventually becomes available for others to backorder. Additionally, some domains might be released intentionally by their owners or through registrar auctions, making them available for backordering. Understanding the reasons behind a domain’s availability can help you identify valuable opportunities and make informed decisions.

What Happens After I Backorder a Domain?

After you place a backorder, the backordering service will monitor the domain and attempt to secure it as soon as it becomes available. If the domain moves into the Pending Delete stage, the service will act to register it on your behalf. If successful, you will be notified, and the domain will be transferred to your account. In cases where multiple backorders are placed, the domain may go to auction, where you will have the opportunity to bid against other interested parties. It’s essential to be prepared for all possible outcomes and to act quickly when the domain becomes available.

Next Lesson >> Negotiate with Domain Owners