Backordering a domain is crucial part of domaining. This is how you’re able to buy domains for the lowest possible price. Here is a little overview of domain backordering and how to go about backordering a domain.
While this may be a post for somewhat of a newbie domainer, I wanted to also give a few pointers that even pros can use.
What Is Domain Backordering? As many should already know, domains require an annual renewal fee. You must continue paying the renewal fee if you want to keep the domain. Seems simple enough, but many people including businesses sometimes forget to pay the renewal fee for whatever reason, and the domain goes into the expiring process. Without going into too much detail on the expiring process, that domain eventually gets scheduled to be deleted and go back into the pool of available domains. At this point anyone can register it, even tough it was owned by someone else previously. Now, is forgetting to renew a domain the only reason why people let them expire? Of course not, could be number of reasons: Maybe the owner got sick or was out of town, or worse no longer around; or sometimes it as simple as they don’t care about the domain anymore, they don’t want to pay the renewal fee.
This is where domain backordering comes into play. Sometimes because domain may be worth more than just the regular registration fee, multiple people want to register that expiring domain and so whoever registers it first, gets to own it. Domain backordering service basically has multiple automated processes in place, to register the domain the second it becomes available. Therefore, it is impossible for anyone to try registering that domain via the regular process as they can’t compete with the speed of several computers/servers. These backordering services charge a fee to try and get the domain for you, usually under $100. It is important to note that you will NOT be charged any fee unless the backordering service acquires the domain for you.
However, it doesn’t stop there, it gets more complicated. Now, because there are several backordering services, the same domain could be backordered at multiple places. Therefore, it makes computers compete with each other basically. So how do you make sure you get a chance at owning the domain? If you really like a domain for any reason, you should backorder it in all major backordering services: Pool.com, Namejet.com, SnapNames.com, GoDaddy.com, these are the biggest. In fact, only recently backordering a domain at multiple places helped me acquire it as I would have never guessed that that particular service would be the one getting it.
But it doesn’t stop there. What happens if multiple people want the same domain and they all backorder it. This is where the auctions come in to the play and I’d say how backordering services make the most money. Basically, whichever backordering service acquires the domain, they put the domain in auction. They all have their own online auctions.
This is not a regular auction, this is a private auction. Only the people that backordered that specific domain, are able to participate at the auction. Of course, auctions have end date/time and whichever person bids the highest is able to get the domain. So there is no limit as to how high the price may go up, some domains sale for thousands of dollars. And these auctions are not ebay style, they don’t end at the exact date/time. In the final minutes, each new bid, increases the time left by 5 minutes or so. Giving opportunity for everyone else in the auction to increase their bids.
In a nutshell, that is the backordering process.
Now more important tips:
1) Many of these backordering services publicize the domains that get the most bids before the cut off date/time. In fact, this is how many other domainers are able to find great domains by seeing number of bids a certain domain has. And because it’s as simple as sorting the result via number of bids, often times, just by having bids, domain gets higher exposure and causing the price to go up.
Many pros do not place bids on domains early on for this reason. This is not widely talked about subject, so I wanted to share with you. If you really like a domain or if you want to be a domainer, you have to wait and place your bid as close to the cut off time as possible. This will minimize the exposure that particular domain gets. Because there are at least 100k domains expiring every day, it’s not easy to find the good ones. And if you have done the research and found a domain you want, you should maximize your chances for getting the domain. So again, don’t place backorder on it too early.
Often times, I see a lot of bidders on a particular domain and I wander. Most pros already know this and those bidders must be somewhat of newbie domainer or simply people who want to own the domain.
2) My other tip is that if domain goes into auction, make sure you use your own favorite calendar to set a reminder for the exact date/time that the auction ends. Unfortunately, this is one that even pros need to do. I can tell you that I’ve missed out on number of auctions because I simplify forgot and the alert systems that these backordering services have aren’t that great.
3) do not place your max bid if you can participate at the auction. You may know this from ebay auctions as well. If you put in your max to early, others will keep trying until they can overbid your price. Usually, ends up increasing the price of the domain. So if you’re at the auction, simply try to bid enough to overbid the other one by not too much. This will give them a chance to bid and overbid your new high and make them think that they have the winning bid. Now, because each bid increases the time left by a few minutes, if they think they’re winning, they may turn away for a minute or two and sometimes they forget to come back and check. Hence, making you the winner if you overbid their high at the last minute and they don’t check their computer for 5 minutes or so. Doesn’t work all the time, but does help.
4) do not try posting or talking about the domain you don’t own yet. This is kind of obvious, but I’ve seen people do it on the forums or what not. This will simply create more competition for you.
5) Do your research before hand. Many times I see worthless domains having ton of bids. Or domains with trademark in them. It is important to understand the domain quality as well as its past. It will save you a lot of money, if you do simple due diligence on the domain before spending hundreds or thousands at the auctions.
That’s all. Happy New Year