Rebranding is one of the key moments when domain strategy becomes critical. When a company changes its name, launches a new product line or enters a new market, corporate domain managers go to work securing new domains both for use with live websites and for defensive purposes. If everything goes smoothly, this translates into a series of domain name registrations. As the reader may already have experienced, these projects are rarely so smooth and it’s more common to encounter some domains unavailable to register.
The options may also be familiar: (A) buy the domain from its current owner, (B) file a dispute or (C) set up a back order. Most managers of corporate domain portfolios are familiar with these three options and will know which one is best for a given case.
Choosing Option C makes sense when there are budgetary constraints and no grounds to dispute the registration, but understanding exactly what happens next can be elusive. This article sets out to orient readers on the business and technical landscape of back orders, to provide more complete advice to their clients and stakeholders.
The Basics:
You probably already understand this part: A domain back order, alternately called “snapback,” means an attempt to re-register a domain name soon after it becomes available to the public.
The upside to backorders is that they’re less expensive than buying the domain from its owner or filing a dispute. There are two main downsides: First, if the domain is renewed then you can’t try again for another year. Second, you’re competing against an unknown number of parties that may want the same domain. It’s common for there to be multiple competing back orders for the same domain.
For expensive domain names that have little intrinsic value, daily checks of domain availability can be sufficient to submit a timely domain registration request. On the other hand, if the domain is short, consists of a 1-2 dictionary words or has been used previously for a live website, IP Twins highly recommends avoiding the manual option and using a professional back order service.
A professional service entails the use of software to check domain availability at regular intervals and immediate trigger a registration command the moment a result of “available” is returned. IP Twins operates software of this nature and offers access to it under our Standard Back Order service.
Standard vs. Premium
Note the reference to Standard Back Order in the previous paragraph. Perhaps an IP Twins manager has previously offered you a Premium Back Order in its place. What’s the difference between the two and why do registrars tier back order services at all?
First and foremost, we should clarify that corporate domain managers are mere guests in the back order space. There are companies and individual investors whose entire business centers around registering valuable domains at the standard registry price, then reselling these domains at a much higher price. Companies in this business dedicate immense resources just to be a split second faster with their registration commands. For example, when there’s a minimum interval between queries that a registrar can send, this can be circumvented by opening additional registrar accounts and distributing queries among them. When a registrar like IP Twins uses its own back order routine, the frequency of checks is much lower.
The good news is that the most sophisticated back order systems are public services and can be used by anybody. The price to place the back order is reasonable and these providers catch a good percentage of domains ordered.
The bad news is that these companies accept multiple orders for the same domain and conduct auctions among interested parties. Winning bids can run very high, but still represent a relative bargain compared to buying a domain directly from its owner. In other words, if you lose one of these auctions, the winner will likely list the domain for sale at a price far greater than their winning bid.
When an IP Twins Account Manager recommends a Premium Back Order to you for a .com or popular domain name extension, this is what they are offering: The Account Manager places the order at a leading provider and monitors the result. When there is an auction, the client provides their budget and bidding strategy in advance.
Registry Auction
Speed is key for catching .com domains and many other generic domain name extensions. There are, however, other mechanisms for allocating domain names that remove speed from the equation entirely.
Verisign is the registry for .com domains. When this operator releases domains, they immediately become eligible to register on a first-come, first served basis. Companies unaffiliated with Verisign develop methods to catch these domains and sell them at a profit, as described in the previous section.
Unlike Verisign, other domain name registries hold expired domains for a period and determine their own methods of selling them to the public at a price higher than the normal registration fee. To catch an expired domain under one of these extensions, the interested party needs to log on to a registry interface to bid in an auction or register at a premium price.
IP Twins has experience with these registry platforms and in many cases, has access only by virtue of being an accredited registrar. Alternately classified as Premium Back Order or Premium Registration, this is another direction the order can take: Instead of placing the back order with a technically superior provider, the Account Manager accesses the appropriate registry platform soon after the domain has dropped and supervises the auction or purchase.
Specialized Country Code Providers
Market-leading back order providers have limited support for country-code domain name extensions and few country-code registries sell or auction their own expired domain inventory. When a customer has a priority back order for a country-code domain name, it can be necessary to make use of smaller, specialized providers.
The popular generic domain name extensions are managed by a small group of companies, using similar protocol. Country-code domains are a different story: There are around 100 different national registries, most managing just one top-level domain each. Protocol can vary greatly among these registries. Back order services that are proficient in catching .com domains cannot realistically replicate their product for so many country-codes and limit their offering to a workable set of domain name extensions.
This does not mean that the back order market has entirely abandoned country-code domains. There is a network of smaller providers around the world that catch only their country’s domain name extension or perhaps a small handful from their region. Their success comes from specialized knowledge of drop times, or other factors that bigger operators haven’t taken the time to master.
IP Twins has helped clients catch domains in Romania, Poland and other countries in this manner. The Account Manager will identify the proper supplier based on past positive results, place the order and supervise the eventual transfer to IP Twins’ usual registry account.
Conclusion
Clients and stakeholders may be content to close a file upon receiving confirmation that their back order has been placed. A corporate domain manager will generally avoid overwhelming their contacts with detail on processes, but it can be useful to find a middle ground and provide a short overview of what’s to come.
Whether it be with IP Twins or any other provider, we’d encourage domain portfolio managers to inquire about how a back order is executed prior to confirming their request. This can help manage expectations, both in terms of cost and probability of success. In more tangible terms, it helps avoid the unpleasant conversation that follows when the client or stakeholder hears about an auction only after it’s begun, or worse that another party has succeeded in registering their domain using a public service.
IP Twins’ Account Managers are well-versed in the back order landscape described in this article and are prepared to give transparent and frank advice on these orders. If you’re thinking of acquiring a domain, feel free to reach out to our team at juristes@iptwins.com for a free consultation on the options available.
