The mystery of the backorders money.

[mojojo]

A domain expires, then many people try to get it by backorders at pool, snapnames,...then an auction, 48 after someone will win and be happy but...


WHERE THE MONEY GOES?


Is all for the register?

 

[Oblivion.]

The drop catcher...

 

[smub]

as far as i am concern if you does not get a domain you can backorder the other domain for free until you get one of the domains you wish

 

[gazzip]

As far a I know some of the drop companies have partnerships with various registers - so the name is "probably" passed in these cases rather than dropped - I assume they will both get a share in the profits.

If in the case the name is dropped by a register that does not have an agreement with a drop company then I would guess that all the profit goes to the winning drop company who secured the domain.

I do not know is this is a fact for sure - but in most partnerships sharing of profits would be a common practise - a financial incentive is sure to be present IMO

 

[Castlemelody]

I paid $60 for snapnames just recently for getting a dropped domain. At any rate, it is a good catch.

In my opinion, there is some sort of partnership between the drop company and the domain name registrar, most likely a percentage sharing. Well, that's business. Hence, it is better to renew domains on time.

 

[gazzip]

Does just networksolutions pay a % of dropped names caught to the previous owner or GD too?

I am not sure - the first I heared about registers paying the prior owner a percentage was a post by RJ here recently - I have'nt looked into it further yet - Great idea though - Imagine getting a surprise 10% of a couple of thousand dollar sale out of the blue - excellent if you no longer needed the domain anyway. (thinking average user here) Of course a different case if you let it expire by mistake :td:

 

[DropLister]

i was told, the registrars want something like a minimum 15k a month from the partnership.

 

[gazzip]

i was told, the registrars want something like a minimum 15k a month from the partnership.

That would'nt surprise me one bit - Can you image how much Snapnames makes off all the dropping names !!! - Scary thought :yell: a1.com - $260,250 alone, I was keeping a track of all the prices of the ones I was in - lost count after a few hundred thousand !

I would of thought it would be more likely to be a percentage based agreement ?

 

[mojojo]

do you think this is fair?

 

[DropLister]

I would of thought it would be more likely to be a percentage based agreement ?

It probably is, but from what i understand, around 15k upfront a month is the start

 

[Simsi]

do you think this is fair?

Personally, no. I have an uneasy feeling about the whole "monopoly" thing that has been undoubtedly created and i would have thought "fair" would mean creating equal opportunity in the marketplace, which this clearly doesn't.

I'm sure the dropcatchers (read "Internet Estate Agents") would argue that they then allow everyone to compete for the name in an open market place. But by this time, at Snapnames for example,the price has already increased approximately 10 fold just to get the opportunity to bid.

That all said, its only a matter of time before the system changes. As Internet IP gets more sought after, or if ICANN get superceded, or regulated more forcefully, or even if the powers that be suddenly realise the easy money that is being made, this situation will have to change. Although it could be some time admittedly.

Cheers

Simsi