Domain Backorders: How it Works
In a nutshell?
Domain backordering lets you snatch up valuable, previously-owned domain names before anyone else. These domains are a great opportunity for domain investing at a bargain price! Domain investors aka domainers regularly resell their backordered domains, some at considerable profit.
What is a Domain Backorder?
Every week at exactly 2PM EST (or 3PM EDT) thousands of previously owned .CA domain names expire and briefly become available for registration by new owners through a process called the TBR (To Be Released) Domains Drop.
A domain backorder is the process through which you can request and eventually secure these domains.
Some of the domains that drop during TBR are extremely valuable and represent a great opportunity to obtain a unique domain for a new business project or to invest in a domain at a bargain price, before anyone else.
Experienced domain investors usually buy low during the auction, then sell high to individual buyers and make substantial margins. They can also “park” popular domains and run ads on them.
How does a domain backorder work?
- Check in on WHC’s domain backorder list to see the latest .CA domains dropping each Wednesday. The available list is finalized every Monday morning, and often includes several thousand unique .CA domains.
- Select the domain(s) you would like to backorder, and place a bid. Each domain you backorder requires an entry bid, which is the price you can expect to be charged if and when WHC successfully secures the domain for you, assuming no one else has backordered the same domain.
- At 2PM EST(or 3PM EDT) every Wednesday, the domains drop and WHC competes against dozens of other providers to attempt to be the first to secure your backordered domain(s). This process generally only takes a few seconds, and its results are published within 2 hours in your Client Area Backorder Center.
- If WHC is successful in securing your requested domain, one of two things can happen:
- If you are the only bidder for that domain, you win the domain! Its ownership is transferred to you once you have paid your entry bid and claimed your domain from your Client Area.
- If there are multiple bidders for that domain, the domain goes to auction. The auction lasts 24 hours and closes the next day, as early as Thursday 2PM. The highest bidder wins the auction and receives ownership of the domain following payment.
If WHC is unsuccessful in securing a backordered domain, you will not be charged and the domain is considered Missed. The entire process is therefore entirely risk free!
What are backorders, TBR and Domain Drop?
A domain Backorder is a client order for a recently expired domain that is about to be deleted and gives you the chance to secure it during the Domain Drop, as part of the TBR process.
The TBR stands for To Be Released, and it’s CIRA’s (the .CA registry) name for the process through which deleted domains become available again.
A Domain Drop is the specific event during which expired and deleted .CA domains become available to registrars through a competitive first-come-first-served TBR process. It occurs every Wednesday at 2PM EST, and lasts up to an hour. Top domains are generally snatched up on behalf of clients by leading registrars like WHC within the first seconds of this event. Domains that are not reserved during the Domain Drop are made available to the public as a regular domain registration at the end of the TBR process.
How do bidding and auctions work?
There are two types of bids during TBR:
The Entry Bid
Placing an entry bid from the WHC Domains Backorder page (sometimes referred to as placing a backorder) shows your interest in a particular domain and allows you to participate in its Drop. All entry bids must be placed before the weekly Drop time.
Entry bids represent the price you will pay for the domain if no one else places an entry bid for the same domain. You should consider placing an entry bid for each domain you are interested in securing.
Entry bids start at 20$ and include the cost of the domain registration, if you win the domain. While this amount is not charged when the order is placed, a valid credit card must be provided and will automatically be charged if you are the winner of this domain.
Every time someone places an entry bid for a domain, its cost increases for the next interested client. For example, if someone places an entry bid for somedomain.ca at 20$, the next interested person would pay 35$ for the same entry bid, the following interested client would pay 50$, and so on. Increasing your entry bid (also called minimum bid) before the auction can sometimes send a signal to other bidders that there is strong interest in this domain and potentially sway others from participating in this domain’s auction.
Domains with multiple entry bids go to auction after the Drop.
Entry bids are one of the indicators WHC uses to gage the interest for a particular domain and to prioritize this domain in its internal algorithm when competing against other providers during the Drop.
If WHC secures a domain during the Drop, anybody who placed a backorder for a domain that has received multiple entry bids will automatically participate in its auction.
The auction begins shortly after the Drop has completed, and lasts until 2PM EST the following day (Thursday). You will receive an email if you are part of an auction and can view and update bids through your Client Area’s Backorder Center.
When participating in auctions, you will see the following information for each domain auction:
- Domain: this is the domain in the auction
- Time remaining: this is the time left before the auction ends. Any bid placed in the last 3 minutes of the auction will extend the time remaining by another 3 minutes.
- Current bid: this is the current winning bid for this domain
- My Max bid: This is the highest amount you’re willing to pay for this domain (sometimes referred to as a proxy bid). The system will automatically bid the lowest amount on your behalf as other people bid in the auction, up to your max bid. If someone outbids your max bid, you’ll need to enter a higher max bid for a chance to win the auction.
Keep in mind that popular domains are likely to receive a lot of attention (and bids) in the final minutes before the auction closes. We strongly recommend you set a high enough maximum bid to avoid losing the auction right at the end, and monitor your auction closely in its final minutes. Popular domains often close at auction for amounts greater than C$3,000.
If you are outbid during the auction, you will receive an email letting you know.
The auction results for auctions in which you participate in will be available at the end of the auction in your Client Area’s Backorder Center. This is also where you’ll be able to claim any domains you win.
Why can’t I just register these domains using the regular registration process?
Expiring domains are not available for general registration until after the Domain Drop, and only if no one has claimed this domain during the Drop.
If you’re interested in a popular domain that others are interested in as well, the domain will likely be reserved during the Drop and you will be unable to register it yourself using the regular domain registration process.
As such, the Domain Drop is the best way (and often the only way) to help ensure that you obtain the domain you want before anyone else can.
What happens when I win a domain backorder or auction?
After you win an auction, or if you are the only bidder for a domain, an invoice will automatically be created and we will attempt to bill your registered credit card.
The domain is yours as soon as we process your payment and can be claimed from your Client Area’s Backorder Center. As part of the domain claim process, you’ll need to specify the new domain owner’s contact information.
Once the claim is completed, you can fully manage your domain just like any other from your Client Area.
What is a “Hot” Domain?
Some domains are more valuable than others. Every week, we hand-pick some of the hottest domains that are about to drop, saving you precious time that would otherwise be spent wading through thousands of domains.
Hot domains have a small fire icon next to them on WHC’s Domain Backorders page. You can also choose to sort domains by “Hot” flag.
Hot domains are generally shorter domains (2 to 4 characters) or popular words that are likely to make for a strong online presence. These domains almost always end up in auction.
How much should I expect to pay for a backordered domain?
The final price will depend on the level of interest in the domain. Domains secured through the backorder process can sell anywhere from $20 to four and sometimes even five figures.
Can I backorder other TLDs than .CA?
Not at this phase. However, we plan to open our backorder platform to other popular TLDs soon.
Can I sell my domain through the WHC backorder tool?
Unfortunately, not at this time. We are in the process of improving the platform and working on adding an aftermarket section in the near future.
Can I increase my chances by backordering a domain at WHC and Sibername?
Sibername and WHC use a joint system, so you should only place your backorders at only one of them. Eventually, WHC backorders will replace Sibername backorders.
Where can I learn more about the Backorder policies and procedures?
Read more on our Domain Backorder Terms & Conditions.