To increase a customer’s chance of registering the domain name, the service is based on placing multiple backorders through complementary independent backorder service providers.
DomainMart today announced that it has introduced an enhanced domain name backorder service. To increase a customer’s chance of registering the domain name, the service is based on placing multiple backorders through complementary independent backorder service providers.
“There is no single domain name backorder provider that has a dominating strategy,” notes Alex Tajirian, DomainMart President & CEO. “Using multiple complementary services reduces the chance of a domain name slipping through the cracks when using a single backorder model”, adds Tajirian.
Backorder is a service that attempts to register an expired domain name on behalf of an entity before someone else grabs it. Over 750,000 domains expire every month!
It should be noted that not all expired domain names can be backordered, as the registrant might renew them before being deleted by the registrars or they might be on HOLD status pending a settlement of a trademark dispute.
Domain names are registered for a specific time period, typically between 1 to 10 years and can be renewed at any time for a maximum of 10 years. If the registrant or the administrative contact does not renew a domain name, it expires. And that’s when the action to grab it starts. Registries have adopted different procedures to handle expiring domain names.
Two pricing and allocation models have emerged. The first uses a fixed-price with domain name allocated on a first-backorder-first-serviced basis. Others have adopted more lucrative and fair auction mechanisms, whereby the highest bidder is awarded the domain name at the bid price (an English auction). The fixed-price model providers typically charge an upfront fee and allow a customer to backorder three alternative domain names in the event the client’s first choice is not secured on their behalf. On the other hand, under the auction model, a customer gets charged only if the domain name is registered on their behalf.
DomainMart charges the same minimum fee for simultaneously using multiple service providers. DomainMart provides additional services including appraisal of value and advise on a bidding strategy for an additional $25 (total $85), while charging $50 for the bundle of valuation and bidding advice.