Backordering Domain Names Is A Simple Game Of Math – Do You Get It?

As most of you know, I have been an avid pending delete (expired) domains drop catcher for several years now. I have been really successful in what I do & the net profits have never been better. Each day, things get better for me. Why? I guess it’s because I simply never give up. I see a method to make money & I simply rinse & re-use the idea until I feel I’ve beat the horse dead. If the same methods keep rendering in profits, then I keep the momentum going while I make small tweaks & adjustments as I see necessary.

I see a lot of domainers simply give up. They don’t feel the drop catch game is something that works or nets valuable profits. It may be that their system needs work, they need to invest more faith in the system or they simply have bad luck. There’s a lot of misleading information floating around, competition, and secrets in this industry. I feel certain drop catchers feel the less the public knows about their activity, the more names they can scoop up under the radar & make more money for themselves.

On a daily basis, there are nearly 80,000 domains dropping that are .com & .net. That’s everyday! While NameJet, SnapNames & the like go after the best ones, it doesn’t always mean they grab them. I feel services like Estibot & the like leave out a lot of good domains that simply drop & noone notices their worth. I am not setting out to build out a new metrics system like Estibot, but why tunnel vision yourself to what others tell you may be the good drops when you can find more than what these services offer on your own?

In this article, I’d like to focus on Andrew Reberry & his drop catching Forte. If this business was dead, non profitable like everyone tells you, then why are companies like his raking in huge profits? Other than the funding pool his company owns, keep in mind that he started off like everyone else. One domain at a time has built up his domain empire to be what it is today. Currently Andrew’s inventory of domains grows daily as do his daily sales. A year ago or so I set out to findout exactly how many domains Andrew caught under his label(s) & how many sales he had daily. To my surprise around this time last year, TurnCommerce – Andrew’s Label was catching around the figure of 1,000 – 2,200 pending delete domain names each day. He was flipping a couple hundred domain names each day using his outlet: HugeDomains.com. In my opinion every sale HD (HugeDomains.com) had equaled around $1,000 + per domain. These are domains that he paid regfee for.

Over time Reberry’s empire has grown. He owns multiple domain registration registrars which he uses to catch expired domains with. For each sale, it more than covers hundreds & hundreds of more domain registrations. Think of it like an old grandfather clock where once the pendulum starts swinging, it never stops. To this day, I can assure you that TurnCommerce & HugeDomains are making a killer banking. It keeps their investors, employees &  the tomorrow looking happy. To all the nay sayer domainers mentioning that drop catching is over – why would this company be so successful? It’s because they took an idea, rinsed it & reused it into a perpetual garden of profits.

If you’re good with math and willing to take a risk, I recommend you look into drop catching domain names. Try not to follow the crowds, but instead start a new path that you develop. Go after dropping domains weather it be .com, .net, .co, .CCTLD’s domain others didn’t catch as valuable so on. There’s a lot of room to grow & if your ignorance fails you, it surely won’t fail your competition as they get richer & you lose faith in this game. If you compute simple math, an old scenario I developed was to invest around $100 in expired domain names & see how you end up before the renewal fees come up. Keep in mind that you can always drop the domains or sell them at wholesale prices to other domainers at around your net price.  That’s a worst case scenario – best case is that one sale will probably render your $100+ and pay for the lot of domains while keeping you above water to rinse & reuse the system for additional profits.

There’s a lot of individual drop catchers who run their own game & they simply keep doing what they do for their profits on a daily basis. That’s the beauty of this industry that the more you catch & the domains hold value in your eye, they will probably hold good value in your future buyer’s eyes & make you more profit than you thought possible. If out of 80K domains dropping daily, it’s not possible that NameJet SnapNames or the like only detect the top 100 – 200 domains while leaving the rest upwards of 99% of the drops as worthless. You can easily snag valuable domains into your portfolio & gain instant profits if you have the math & eye for quality drop catching.

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12 Comments »

 
  • Michael says:

    Solid post, as usual. Thanks!! Like I said last time, post more! Definitely enjoy reading your posts. The problem is- a newbie who wants to get into the drop catching game…where do they even begin??? There’s so much strategy, API’s, certain times names drop. It seems like hard work (which I dont mind at all), the problem is getting a system and at least learning the basics….

    Maybe for your next post? ; ) Piss some people off and shake things up a bit??

    Till next time- thanks!
    -Michael

  • mike says:

    Not sure this makes sense.
    Any name worth anything at all is going to be scooped up by hugedomains. Or by someone else playing the game. Unless you happen to own a domain registrar, you going to be left to pick through a lot of really bad names to find a needle in the haystack that slipped through. You are better off paying $59 at namejet and getting a better name and jumping in front of hugedomains et al. So you spend $50 more, but you get a domain that you have a much better shot at flipping.

  • Mike says:

    I like the spirit of your post but I’m certain Reberry is/was not flipping a couple hundred reg fee domains per day. At that rate they’d be selling at least 73,000/year. Right on the HugeDomains site it states they have 350,000 domains, so that would equal turning over 20% of their portfolio per year in sales (a HUGE number).

    In contrast, BuyDomain/Afternic has over 4,000,000 domains listed for sale, plus deals with dozens of registrar partners to get wider distribution, and according to weekly sales reports they are only selling closer to a couple hundred per week, not per day. Yes there is still opportunity out there but the streets are not paved with gold.

  • Arseny says:

    Thanks for sharing! But what tools would you recommend to use?

  • Mark says:

    Agree with both previous replies.
    Great post indeed but where one should start from? I can not see any other ways to jump in front of HD but to pay NJ and SN their fees in order to get more or less good domain.

  • admin says:

    Mark,

    Maybe you should look for unique domains that the metrics don’t detect. I’m not asking you to eyeball the whole droplist of 80,000 domains daily, but perhaps do keyword searches for domains that have had good sales in the same categories of the domains that are dropping daily. I’d recommend checking out the estibot list stats, but that’s what everyone is doing. They are also checking the lists at the major drop catching sites. it’s time to think outside of the box & perform your own metrics to determine what expiring domains will work for you.

    Dan

  • admin says:

    Hi Arseny,

    Some users use dnpunch’s tools, while others have their combination of homebrewed apps. It’s not about the tools, but instead about the dropping domains & what you can do with the lists. Once you have a solid list of domains to go after, there’s tools for that too. It depends on your strategy & how much work you want to put in & receive in return. Estibot’s tools are used by many & they leave out a lot of resellable domains out. It’s a matter of determining which dropping domains make sense to you & chasing those. If you capture any, then try to align a buyer.

    Dan

  • admin says:

    Hi Mike,

    Perhaps the stats I checkout on dailychanges.com are not comparable to the actual activity Reberry is flipping. However, these domain are changing hands. I may be wrong in my post, but there’s alot that goes on behind the scenes. Perhaps the streets are not paved with gold for some, but for others – they may be. Take into consideration HugeDomains, Epik, BackorderZone & the like. They are becoming the one wiz wonders overnight in profits. A few good sales make up for the less than spectacular sales, but every bit counts in the long run!

    Dan

  • alex says:

    Hi Dan,

    So where is the best place to find quality dropping domains, and how would you differentiate the good sellable ones from the bad?
    And then how would you go about selling them? Or would you just park at the auction houses and wait for a bid !?
    Thanks

  • As someone starting out in this business (I have so far concentrated on .co uk domains as I am english) where would you recommend getting list data for dropping domains and which company to use to attempt to catch tje dropping domains. I have looked at pool.com dropping.com but would be good to know who jas used what. And st what cost / success.

  • admin says:

    Hi Jonathan,

    I usually use estibot.com or my judgement in determining which domains to catch. While this applies mostly to .com/.net domains – you may want to watch .co.uk drops at the forum: acorndomains.com. They usually give insight on .co.uk drop lists.

    Dan

  • admin says:

    Hi Alex,

    I try to use my best judgement to find dropping domain names I target. I use the experience I have to determine in my head which domains may sell. As a dropcatcher, I have adapted to discipline myself & stop falling into the same mistakes I fell into before.

    For selling my domains, I like the attack method I developed. This method stems from emails, to phone calls to visiting businesses in my area or out of my area to sell my domain to the right end user. The sky is the limit & you can always find the right buyer if your domain is worth attracting an audience. Again, this goes back to the above about the discipline trial & error I developed with experience.

    Dan

 

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