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Home » Domain Names » Domain Name Backorder Prices are Going Up

Domain Name Backorder Prices are Going Up

Posted on July 15, 2016 Written by Bill Hartzer

Backordering a domain name is going to start costing more money starting soon. Both Snapnames and Namejet have announced that the price of backordering a domain name is going to increase from the base of $69 to $79. While you won’t pay the backorder fee unless the drop catching service catches the domain name for you, the price is going up.

namejet

Namejet.com sent an email today explaining their price increase:

“As of Tuesday, July 19, 2016; 2:00pm Pacific Time (US) the minimum price for a new Pending Delete backorder will increase from $69.00 to $79.00 USD. Systematically, you will not be charged for your backorder until we fulfill it. This rate increase will only affect Pending Delete names. We will honor the preexisting minimum rate of any backorder in your account at the time of the price change for any domain currently in Pending Delete status.”

If you’re not familiar with the backordering of domain names, here’s a quick primer:

– Someone registers a domain name. They have to renew the domain name every year (or they can renew it up to 100 years in advance).
– Domain name owner doesn’t renew the domain name (for whatever reason).
– Domain name enters “expired” status for a certain number of days.
– Domain name enters “redemption period” status for a certain number of days.
– Domain name enters “pending delete” status for a certain number of days.
– Domain name becomes available (it “drops”).

At any time, you can go to “drop catching” service and add a backorder on the domain name. There are a lot of services that will “catch” domain names for you, in that they will try to catch or purchase the domain name on your behalf if you’ve placed a backorder on it with them. If they get the name for you, then you’ll pay a fee (Namejet, Snapnames is now $79). If more than one person has backordered the domain name at the same service that catches the domain, then it will go to a private auction amongst those who backordered it. The drop catching service keeps the fee (or whatever the purchaser ends up bidding on it).

There are times when a service such as Namejet.com will enter into an agreement with a current domain name owner to sell their domain name using the auction process, which is separate from the backordering and domain name drop service. Those tend to be for premium domain names.

Here are some additional drop catching services:

dropcatch.com
namejet.com
snapnames.com
pheenix.com (I have gotten quite a few domains using their service)
GoDaddy.com (you have to pay ahead of time for backorder “credits”)

If you’re interested in getting a list of the pending delete domain names ahead of time and backordering some of those names, then there are lists out there available for download. Epik.com has a good list that includes an estimated value of each domain. I recommend getting an Epik.com account if you don’t have one already.

Since the New gTLDs have been out for a few years now, I’m starting to see more and more of those names drop, as they typically will have a premium renewal rate associated with it (more than the typical $10 per year for a .COM). But, there are some good opportunities every day.

Filed Under: Domain Names

About Bill Hartzer

Bill Hartzer is the CEO of Hartzer Consulting and founder of DNAccess, a domain name protection and recovery service. A recognized authority in digital marketing and domain strategy, Bill is frequently called upon as an Expert Witness in internet-related legal cases. He's been sharing insights and research here on BillHartzer.com for over two decades.

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