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Domain Registrations: Patience Doesn’t Necessarily Pay Off

We’ve heard it countless times over the years. Individuals are reluctant to spend a little bit more to secure their domain early through our drop catching service. Our catching service allows users to nominate the domain they are looking for, before our technology takes over and catches it as soon as it expires (with a 94% success rate). Instead, many people are prepared to risk it by waiting. They say:

“I want the domain but I think I’ll take my chances and register it later!”

In a passive market, this wouldn’t be an issue. However, the industry for domain names is anything but passive, with countless people vying for lucrative naming rights.

Every day, the government appointed regulatory body (auDA), the registry for .au domains (currently AusRegistry Ptd Ltd but soon to be Afilias), and dozens of other outlets (including Netfleet) publish a list that contains the details on domains which have just expired. This list of domains is viewed by thousands of people across Australia, and even beyond, including professional domainers. These professionals make a living out of identifying domains which could attract a market premium from the value they serve particular industries.

Because these lists include the search metrics behind each domain, there is a greater degree of data to support their research than one might think. In some instances, domainers will simply snap up domains based solely on their search volume and estimated Google Cost-Per-Click (CPC). At times, domainers may even overlook the meaning of the domain in favour of the trends supporting them.

Once domainers capture these lucrative names, they will often park the domain, populate them with ads, and then wait for someone to come along and make an offer to buy one or more of them. Domainers may also serve the interests of third parties, by acting as a buying advocate of sorts for businesses. By doing so, they are able to secure domains for businesses who might otherwise not have the insight, nor time, to analyse, monitor and bid for the domain.

Of course, if a domain expires and no one has placed a bid on it through Netfleet or any other professional domain catching service, then you can certainly register the domain without having to pay the catching premium.

However, with all the aforementioned permutations in play, waiting for a domain to expire is an incredibly risky strategy – all in an effort to save a few dollars. It’s worth noting that all the domains which feature on the expiry lists have previously been registered – which means, at some point in time, someone undertook their own due diligence to acquire it. Can you really guarantee you’ll be the only interested party this time around?

If you think a domain has value, it’s likely that someone else will too. So while you can take a chance and hope that you are the only interested party, it’s nothing less than a gamble. If it doesn’t pay off, be prepared to potentially pay 10 fold to buy it back from the domainer.

Best wishes,
The Netfleet Team

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