Domain Backordering: Benefits, Risks, & How to Do It Right
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You’ve spotted a great domain name but it’s already taken, and the owner isn’t interested in selling.
What do you do?
This is where domain backordering comes in. You can place a backorder on that domain, hoping you can snag it for a lower price if the owner doesn’t renew it when it expires.
Some domains, especially short ones or those with popular keywords, can sell for thousands or more. But the odds of success aren’t always good, and there’s no guarantee that you’ll get a big payout.
Let's look at this domain investment strategy in detail.
Benefits of Domain Backordering
Domain backordering is a step closer to acquiring premium domains. This strategic approach carries great benefits, especially if you're in the domain investment industry.
Here are some advantages of domain backordering:
1. Get SEO Benefits
If you place a backorder on a domain that’s already well-established, you get an SEO boost from the start.
You inherit the domain's backlinks, traffic, and brand recognition, giving you a head start in rankings. This can help you rank faster compared to starting fresh, as long as the domain's history is clean and aligned with your goals.
2. Acquire Domains at a Low Cost
By acquiring registered domains at a low cost, you can sell them later for a profit. Many domains, especially those with strong keywords, can fetch a high resale value. It can even generate long-term value if you can spot a niche that’s about to experience a surge in demand.
3. Shield Your Brand from Competitors
Securing a domain through backordering prevents competitors from using it. This can be a strategic move if the domain holds potential value for your business or audience.
For example, HomeAway purchased VacationRentals.com to keep it away from Expedia. You'll find this kind of domain investment strategy vital if you see a domain that could target your audience.
4. Preserve Your Brand Legacy
Backordering other versions of your brand’s domain can help preserve its legacy and protect your brand from competitors. For example, Apple owns Apple.net, a variation of their primary domain. This way, they can prevent competitors or counterfeit websites from capitalizing on the brand's name.
Risks Involved in Domain Backordering
While domain backordering has a lot of benefits, it’s not without its pitfalls. Before you dive in, make sure you’re aware of these risks:
1. ROI May Not Always Be Worth It
While backordering a domain can seem like a low-cost investment, there are hidden fees and additional costs, especially if multiple attempts are needed. If you don’t win the domain or if it’s difficult to resell, the financial return may not be worth the investment.
Plus, the ROI can depend on changing trends. If the market or industry doesn’t grow as expected, the domain may not provide the profit or long-term value you anticipated.
2. You Could Face Legal Issues
Backordering a domain related to an existing brand or trademark may lead to legal trouble. If the domain name conflicts with an established trademark, you could face legal challenges, including having to forfeit the domain or paying legal fees.
3. Bad Choices Can Affect Your Reputation
If you acquire a domain that has been previously used for negative purposes (like spam or malicious activity), it could negatively impact your site's SEO or reputation.
Rebuilding a domain's credibility can take time and effort, and there’s a risk that the domain may not be able to recover its previous value.
How to Mitigate Risks Involved in Domain Backordering
Some of these domain investment risks can be completely avoided by preparing for them in advance. Here’s how to mitigate them:
1. Research Thoroughly
Before placing a backorder, research the domain’s market value and potential. Specifically, check the following data points to make an informed decision:
- Traffic history: Look at how much traffic the domain received in the past. A domain with high traffic may have more value.
- Keyword relevance: Ensure the domain contains valuable, trending keywords relevant to your niche.
- SEO performance: Use tools like Ahrefs or SEMrush to analyze the domain's backlinks, authority, and any penalties it may have incurred.
2. Diversify Your Investments
Don’t invest all your resources into a single domain backorder. Spread your risk by targeting multiple domains in different niches. This increases your chances of success if one domain doesn't work out.
3. Set a Budget
Establish a budget for your domain backordering strategy. Consider not just the backorder fee, but also renewal, transfer, and hosting fees. Keeping within your budget will prevent overspending.
4. Monitor History and Look for Legal Issues
Make sure the domain doesn’t infringe on trademarks or other intellectual property. Use domain name tools like Bishopi to check for domain history and potential legal concerns, including:
- Trademark conflicts: Ensure the domain name doesn’t violate existing trademarks, which could lead to legal issues.
- Ownership history: Investigate past ownership with the WHOIS Lookup feature in Bishopi. You’ll be able to check the domain expiration date registrar and even check whether the domain was associated with spam, gambling, or other harmful activities.
- Reputation: See if the domain had a history of penalties or had been blacklisted by search engines.
- Domain expiration: Make sure the domain hasn’t expired for too long, as this could affect its reputation and SEO value.
Are All Domains Available for Backordering?
No, some valuable domains are unavailable for backordering because the current owner has decided to renew them or the domain is locked for various reasons.
If the domain is being actively used or has been recently registered, it might not be available for backordering either.
Factors That Affect Domain Backordering Success
Whether you can order a domain name successfully or not depends on a number of factors, including:
1. Registrar and Backorder Service Quality
The quality of the backorder service plays a big role in your chances of success. Reputable services with a strong track record have a wide network of registrars and advanced technology, so they can capture domains faster when they drop.
2. Domain Popularity and Demand
The more popular a domain is, the higher the competition will be. Domains with highly sought-after keywords or those with broad appeal often attract multiple backorders, lowering your chances. However, niche-specific domains may have less competition and good investing opportunities.
3. Timing and Persistence
If you place your backorder early, you improve your chances of success. Some services prioritize backorders on a first-come, first-served basis. Consistency also matters—using services that check domain availability frequently can increase your odds.
4. Current Owner’s Actions
If the current owner decides to renew the domain, your domain backorder attempt will fail. Keep in mind that domains usually go through a grace or redemption period, during which the current owner can still renew the domain.
5. Auction and Bidding Process
If there are multiple backorders, the domain may go to auction. Your success here depends on how much you’re willing to bid.
6. Domain Registrar Policies
Different registrars have different rules for expiration, grace periods, and the drop process. Some backorder services have partnerships with specific registrars, which may give them an edge in securing domains managed by those registrars.
7. Domain Characteristics
Domains with popular top-level domains (TLDs), like .com, are often more competitive than those with lesser-known TLDs. Additionally, domains that have a clean history and good SEO performance are more desirable, which can increase competition and affect your chances of securing them.
8. Technical Factors
The speed and infrastructure of the backordering service can also impact your success. Faster servers and advanced algorithms that predict domain drop times help backorder services submit registration requests more quickly.
9. Geographic and Legal Considerations
Domains in certain countries may be subject to regional rules that affect backordering, especially in jurisdictions with stricter registration laws. Also, domains with trademark conflicts could be restricted from backordering.
10. Market Trends and Economic Factors
Shifts in market trends can influence demand for domains. For instance, during economic booms, demand for certain domains might increase, raising competition.
Conversely, during recessions, fewer people may be interested in purchasing domains, which could affect backorder success rates.
Backorder a Domain With Bishopi
How to Place a Domain Backorder: A Step-by-Step Guide
Placing a domain backorder through services like Bishopi.io is a straightforward process. Here’s a step-by-step guide on how to do it:
1. Search for Domain Availability & Check History
Use the search feature on Bishopi.io to check if the domain you're interested in is available for backordering. Simply enter the domain name (e.g., "example.com") into the search bar.
- Domain availability: The service will show if the domain is expired, about to expire, or if it is available for backordering.
- Domain history: Bishopi.io will also display the domain’s ownership history, traffic stats, and any SEO data, if available.
Alternatively, you can also get a list of handpicked list of expired, deleted, dropped, or aged domain names that are available for purchase with the Fresh Drops feature in Bishopi.
2. Place the Domain Backorder
If the domain is available, you can place a backorder. Here's how:
- Select the domain: Once you find the domain, click on it to view details.
- Add to cart: Click the “Place Backorder” or "Add to Cart" button.
- Enter payment information: You'll be asked to provide payment details for the backorder service. The cost of backordering varies by service but is typically a small fee to secure the domain.
3. Wait for Domain Expiration
After placing the backorder, the service will monitor the domain’s expiration date. If the current owner does not renew the domain, it will enter a grace period, and then eventually, it may drop (become available).
You can track the status of your backorder through your Bishopi.io account dashboard. You’ll be notified if the domain becomes available or if someone else places a competing backorder.
4. Wait for Notification
If the domain becomes available, Bishopi.io will attempt to register it on your behalf as soon as it becomes available for registration.
Next, you’ll get either of the two:
- Success notification: If the domain is successfully registered in your name, you will receive a confirmation email.
- Fail notification: If someone else backorders or bids higher, you will be notified that your attempt was unsuccessful.
If you win the domain, you'll need to complete the registration process and finalize the registration payment. After securing the domain, you’ll need to ensure that you renew it at regular intervals to avoid losing it.
Try Domain Backordering with Bishopi
FAQs
1. What is domain backordering?
Domain backordering is a process where you place an order to secure a domain name that is currently taken but is expected to expire soon. If the domain becomes available (due to non-renewal or expiration), the backorder service attempts to register it for you.
2. Does a backorder guarantee domain registration?
No, a backorder does not guarantee that you will get the domain. If the current owner decides to renew it or if someone else places a higher bid or a backorder earlier than you, you might not get the domain.
3. Can multiple people place a backorder for the same domain?
Yes. If that happens, the domain may go to auction, and the highest bidder will secure it. Some backorder services use a first-come, first-served system to prioritize who gets the domain.
4. Why are some domains unavailable for backorder?
Some domains may be unavailable for backordering because the current owner has locked it or recently renewed it. Domains that are part of ongoing legal disputes or those with trademark restrictions might not be available for backordering.
5. What happens after I backorder a domain?
Once you place a backorder, the service will monitor the domain’s expiration date. If the domain becomes available, the service will attempt to register it for you.
If it’s successfully acquired, you will typically be notified and will need to complete the registration. If the domain is renewed or unavailable, your backorder attempt will fail.