How to buy an expiring domain name
Registering a soon-to-be expiring domain name is a bit different than registering a regular domain name. The key difference between the two is you've got much more competition with expired domain names than with regular unregistered domain names, which means there's a race to register first. Success depends on luck, timing, and hedging your bets. This article will outline three methods to successfully capture an expired domain name:
- Automated Registration Software Backorder
- Pre-Release Backorder
- Manual Registration
Before continuing with this article, we recommend you first familiarize yourself with the domain name expiration process.
Automated Registration Software Backorders
This type of backorder uses automated software to register a domain name after it completes the full expiration process. The moment the domain name is deleted from the registry in Step 4, the automated registration software attempts to snap it up.
The competition can be fierce for valuable expiring domain names, with some registrars reportedly sending over 1500 Automated Registration Software ("ARS") requests per second. Verisign has since initiated a cap of 250 simultaneous ARS requests per registrar. As a result, the more successful ARS backordering services have developed a network of registrars who pool their resources to backorder domain names, thereby maximizing the number of simultaneous requests. For example, one registrar can only make 250 simultaneous requests, while a network of 10 registrars can make 2500 simultaneous requests.
Because of the nature of backordering, and the level of competition for some valuable expiring domain names, not all ARS backorders are successful. As a result, most ARS backordering services only charge their fees if they are successful in capturing the domain name. The cost for backordering services varies, ranging from $20 to $100, or more, per successful backorder, with the more expensive services generally having a higher success rate. To maximize your chances of success, it's recommended you hedge your bets and use multiple ARS backordering services for any single expired domain name you're interested in.
With the more valuable domain names, there are often situations where multiple people attempt to register the same expired domain name using the same backordering service. In a situation like this (assuming it's captured by the backordering service), the domain name will be placed in a private auction between those who backordered it. For example, if there are 4 people who backorder a domain name through eNom, and eNom successfully captures it, these 4 people only will be able to bid in a private auction. The highest bidder will win. But be careful when deciding on your maximum bid amount, as the bid generally does not include the backordering fee (the total cost for the domain name would be your bid plus the backordering fee).
A few of the more popular ARS backordering services are:
All domain names listed under Pending Delete and Redemption Period in the Dropscout.com website can be captured using the ARS backorder method.
Pre-Release Backorders
When a domain name is not renewed by its owner, the registrar typically requests it be deleted by the registry in Step 2 of the domain name expiration process. Once deleted it becomes available for registration by the general public through ARS Backorders. For pre-release domain names, the registrar does not request the domain name be deleted, but instead keeps it for the purposes of resale through a pre-release backorder. A pre-release backorder can only be used to capture these types of domain names, and cannot be used to capture those that complete the full expiration process.
Some registrars sell only their own expired domain names (eNom and GoDaddy each pre-release only their own expired domain names), while some registrars have an agreement to pool their pre-release names and make them available for purchase on a single website (SnapNames - where pre-release domain names from multiple registrars are available).
Pre-release domain names are typically only available for purchase in a public auction, which is open to all bidders. The highest bidder will win. Although it's generally more expensive to acquire a domain name through this method compared to the ARS backordering method, it's more reliable because you will always have an opportunity to acquire it, whereas with the automated method there's a chance you will miss out completely.
A few of the more popular pre-release backordering services are:
All domain names listed under Pending Delete and Redemption Period in the Dropscout.com website cannot be captured using the pre-release backorder method.
Manual Registration
Although it's technically possible to manually register an expired domain name as soon as it becomes available, your chances of success are quite low, especially if it has any value. Professional ARS backorders have many orders of magnitude the resources of private citizens. So if you think the domain name will be contested at all, it's worthwhile looking into backordering services.
Conclusion
The first step in registering an expiring domain name is to determine if it will complete the full domain name expiration process, or if it's a pre-release domain name. To do this, perform a WHOIS lookup on the domain name and find its registrar. Once you know its registrar, you can figure out if that registrar pre-releases their own domain names, or if they follow the full domain name expiration process. Remember, even if the registrar does not pre-release domain names themselves, they may still have an agreement to pool them for sale on a separate website. This information can typically be found on the registrar's website, or by contacting the registrar directly.
Once you know if the domain name is a pre-release name or not, you can determine which backordering method should be used. ARS backorders can only be used to grab domain names completing the full expiration process, and pre-release backorders can only be used for pre-release domain names.
Now that you know how to register an expired domain name, check out our article how to find a valuable expiring domain name for tips in finding top domain names to backorder.
Dropscout.com provides free expired domain name research. Read more expired domain name articles, or send us your comments and questions.
Last Updated: April 4, 2007 |
