What is drop-catching?

Drop catching, sometimes referred to as domain sniping, is a competitive practice in the domain name industry where individuals or companies attempt to register a domain name the moment it becomes available after its previous registration has expired. This process is highly sought after for several reasons, including the value of the domain in terms of brand recognition, prior search engine optimisation (SEO), web traffic, or its potential resale value on the secondary domain market.

Here’s a detailed look at the process:

Domain Expiration and Drop Process

1 Domain Expiration: When a domain name is registered, it is typically done for a period of 1 to 10 years. If the domain owner does not renew it before its expiration date, the domain enters a multi-phase process before it becomes available for re-registration:

• Grace Period (0-45 days): After the initial expiration, many domain registrars offer a grace period (typically around 30-45 days) during which the original owner can renew the domain at the regular price.
• Redemption Period (30 days): If the domain isn’t renewed during the grace period, it enters the redemption period. At this stage, the domain owner can still reclaim the domain, but it usually comes with an added redemption fee.
• Pending Delete Status (5 days): Once the redemption period expires and the owner hasn't taken any action, the domain enters a "pending delete" status, lasting around five days. During this time, no one can register the domain, but it is officially scheduled for release (or “drop”).

2 Domain Dropping: After the pending delete phase, the domain is finally released and becomes available for public registration. This "drop" happens at a precise time, and the domain becomes free for anyone to register.

3 Drop Catching: Once the domain is dropped, it’s essentially a race to re-register it. This is where drop catching services come in. These services use sophisticated algorithms and software to monitor domain expiration cycles and attempt to register the domain the second it becomes available. The speed at which they can submit the registration request is critical, as multiple individuals or companies may be trying to acquire the same domain at the same time.

Why People Use Drop Catching

Several factors contribute to the desirability of expiring domains:

• Established SEO Value: Some expiring domains may have built-in SEO benefits, such as backlinks, high search engine rankings, and traffic from people who previously visited the site. Acquiring such a domain can provide a head start in online visibility for a new website.
• Brand Value: Domains that are short, memorable, or contain key keywords (e.g., carinsurance.com) are highly valuable. These domains can be resold for a profit or used to establish a new brand.
• Traffic: Many expiring domains still receive direct traffic from users who are familiar with the previous website or through type-in traffic. A domain with consistent traffic can generate ad revenue or help drive business.
• Resale Potential: Domains, especially premium ones, have become valuable digital assets. Drop catchers often target high-value domains to resell them on the aftermarket for a profit.

Drop Catching Services

Several companies specialise in offering drop catching services, and they use highly optimised systems to increase their chances of registering a dropped domain. Some popular services include:

• Drop.com.au
• SnapNames
• NameJet
• DropCatch
• Pool.com

DOMAINSAFE will soon offer its own drop catching service.

These services allow users to place a "backorder" on a domain, meaning that if the domain drops, the service will try to catch it for the user. In many cases, multiple users may place backorders on the same domain. If the service successfully catches the domain, the domain is either awarded to the person who placed the first backorder or auctioned to the highest bidder among those interested.

Competition and Auctions

Due to the competitive nature of drop catching, it’s common for multiple parties to be interested in the same domain. If a drop catching service successfully grabs the domain, and there are multiple backorders, the domain often goes to auction. In these auctions, the highest bidder wins the domain, which can drive prices up significantly, especially for premium domains.

Automation and Technical Challenges

The key to successful drop catching is speed. Since domain drop times are precise, drop catching services often rely on:

• Automated Systems: These systems are designed to send multiple registration requests the moment the domain is released. Some services even have partnerships with registrars to increase their chances of success.
• Multiple Registrars: Many drop catching services utilise a network of registrars to send registration requests, increasing the odds of securing the domain. Since different registrars are connected to different parts of the domain registration infrastructure, having access to many registrars means more chances to secure a dropped domain.

Risk of Losing a Domain

Even with automated services, there’s no guarantee of success in drop catching. The process is extremely competitive, especially for high-value domains, and even with a backorder, there is a chance that another service or individual might secure the domain first.

Conclusion

Drop catching is a high-stakes, fast-paced part of the domain name industry, driven by the desire to acquire expired domains with valuable attributes like established SEO, brand recognition, or traffic. The process relies heavily on automation, technical expertise, and strategic timing, often resulting in fierce competition among drop catching services and individual buyers. Successful drop catching can result in owning a valuable digital asset, but it’s a competitive game that often ends with domains being auctioned to the highest bidder if multiple parties are involved.

If you'd like to know more about drop catching, or if there's a particular domain name you're interested in acquiring, please get in touch.