When Do Domain Backorders Move to Auctions?
If you or your customers place a domain backorder, there’s a chance it will end up in a domain auction. Participants will have three days to place bids, with the winner getting the chance to register the domain name. Of course, this is the short version, but keep reading for a better explanation of how auctions work, and how resellers can earn commissions for every auction won!
A Quick Recap of Domain Backorders
We recently posted all you need to know about domain name backorders, but here’s a quick summary. Domain names are registered for a certain length of time, typically between one and ten years. If at the end of the registration period, the domain owner does not renew the domain, it will become publicly available. This is referred to as a dropped domain.
If a domainer or domain investor wants to catch a dropped domain, they have two main options:
- Wait until the domain is publicly available and register it manually. This is a simple, yet risky way to get a desired domain since someone might be able to register it before you.
- Place a domain backorder. Using a domain backorder system, you can place a backorder on already registered domains. Should they ever drop, the system will work to catch the domain as fast as possible. This significantly increases the chances of obtaining a dropped domain name.
Are Domain Backorders Guaranteed?
Domain name backorders are never guaranteed. For generic domains that are considered valuable on the aftermarket, there may be competing registration systems all trying to register the domain first. If HEXONET is successful in catching a domain, the new owner will be notified via email.
Multiple Backorders Trigger an Auction
There may be multiple users using HEXONET to backorder the same domain. In these instances, the users who placed a backorder will receive an email from our auction platform partner, Premium Sale, inviting them to register an account to participate in a private auction. This means the auction is only available to those who placed a backorder on the desired domain.
Resellers, please be advised! The invitations are sent to the email address listed in the OWNERCONTACT used to place the backorder. Resellers should advise their customers to whitelist the domain premiumsale.com in their spam filters to avoid missing important information.
How Domain Name Auctions Work on Premium Sale
Private auctions will start at 20:00 UTC at a bid of $10.00 USD. Participants may place bids at $5.00 USD increments and the auction will last three days. However, if a bid is placed in the last two minutes of the auction, then the auction is extended by two more minutes.
The winner of the auction has a week (7 days from the end of the auction) to pay the auction price. The Reseller that submitted the winning backorder will be charged their backorder free once Premium Sale confirms that the winner has paid the auction price.
In some cases, no participants will place a bid for the auctioned domain name. When this happens, the first user who placed a backorder will acquire the domain.
Resellers Can Earn up to 15% Commission on Domain Auctions
As an extra source of revenue, domain resellers can earn commissions when their customers win domain auctions. Elite tier resellers earn 15% commission on winning bids and Pro resellers earn 5%. Offering domain backorders to your customers is a great service with the potential for extra profits.
Start Earning as a Reseller with HEXONET Today
At HEXONET, we’ve created a powerful domain backorder system to catch domains as soon as they drop. When multiple backorders are placed, the domain is sent to auction where resellers have an opportunity to earn commission up to 15%. To get started, create your HEXONET account and feel free to contact [email protected] for more information on domain backorders and auctions.