A Guide to Dropcatch Domains

Have you ever watched a perfect domain name slip away, only to become available again when it expired? That’s where drop catch domains come into play. These are the names that once had a home but were left to expire, now available again for sharp-eyed entrepreneurs.

For domain resellers, this is not just about capturing a good URL; it is a strategic opportunity to grow their business using reseller hosting platforms to manage and monetize these domains effectively.

In this guide, we will explore the ins and outs of drop catching and reveal how resellers can use reseller hosting services to maximize the value of their newly acquired domains.

A Guide to Dropcatch Domains

There are around 350 million registered domains online in 2023. This means that when you want to start a new website, and register a domain for it, that you might have a hard time getting the name you want. This is where dropcatch domains can be an option to consider.

What is a dropcatch domain?

A dropcatch domain is a type of domain that was registered once the registration has lapsed. This means that someone owned the registration of the domain, and forgot to renew it, and then someone else bought the registration when the previous year’s registration had expired. It can sometimes be known as domain sniping.

What is the lifespan of a domain?

When a person buys a domain, they can buy it for a minimum of 1 year, or for several years. They get a whole year to do whatever they want to do with the site, whether make a website for it or sell it to someone else.

If the domain owner has only purchased the domain’s registration for a year, they will usually receive an email at the 11-month mark to let them know they can renew the domain for another year, or for multiple years.

Once the domain expires, regardless if the domain is associated with a live site or not, the domain registrar will put it into an auto-renew grace period for about 15 days. If the domain owner either forgets to renew or just doesn’t want to renew after that time, the registrar puts the domain in a redemption grace period (RGP) for 30 days. During the RGP, the domain registrar tacks on a sort of redemption fee.

The redemption fee might seem like the domain registrar is holding the domain hostage, but by the time that the domain has gone to RGP, and with all the renewal reminders since the month before the domain’s expiration, the original domain owner had plenty of time to pay the lower fee. It’s important for any domain owner to keep their contact details up-to-date, and to check their email for anything concerning their domain, including renewal reminders.

After the 30 day redemption grace period, the domain registrar puts the domain in a 5-day pending deletion phase. From there, people can snag it up once the domain is released, or the domain may be sent to a domain auction.

What is the redemption period of a domain?

The redemption period of a domain is the time 15- 30 days after the registration’s expiration, where a domain owner can retrieve their domain. This specific time is more costly than a regular renewal, as the domain registrar has allowed the domain to sit through a non-penalty phase.

During the redemption period or RGP, the domain registrar isn’t trying to be mean, but it is trying to run a business. When anyone signs up and purchases a domain, the terms of service include how long the domain is live, and what the user can do to keep the domain after one year. They also make sure to let buyers know what happens after not renewing a domain. However, a lot of people miss reading the terms.

When can drop catching occur?

Drop catching can occur when the domain is at the end of the deletion pending phase, and about to be released either to be an option to buy again or released to domain auctions. This is a small window of time, and a risk, as you’re not guaranteed that you’ll get the domain, especially if someone else purchased a backorder.

A domain backorder is not the same as drop catching, and it is where someone wants a specific domain, and will wait until the original domain owner no longer has control over the registration. This means that sometimes the person backordering the domain may wait a long time. If the original domain registration holder continues to keep the domain, then the backorder may not be fulfilled. This is a risky way to try to gain an existing desirable domain, without negotiating with the domain’s owner.

With drop catching, once the domain leaves the deletion phase, it’s mere seconds that the domain could be grabbed up by someone. That’s why it’s often known as domain sniping - you have to be quick to get the domain.

Can you do drop catching yourself?

If you have the resources and patience to do drop catching, you certainly could take a stab at it. However, there are companies like DropCatch.com and CatchTiger.com, that specialize in drop catching, and grabbing up oodles of domains that were fresh out of the deletion phase. You’re better off using those types of services if you don’t know how to go about it or have your own automated drop catching program put together.

Is drop catching domains legal?

Drop catching is legal. The domain, by the time it has been released from the registrar, is free and clear of the previous owner. Say the previous owner didn’t check their emails for renewal reminders or they weren’t attentive in seeing that their website was down. They also went through the entire redemption grace period without renewing.

Unfortunately for them, it’s all fair game when the domain is released. That’s why it’s extremely important to renew your domain’s registration on time, or buy multiple years, and set your account to auto-renew the payment.

Benefits of Drop Catching for Resellers

Engaging in drop catching provides several benefits for resellers:

• Portfolio Diversification: Resellers can broaden their inventory with unique domains that attract a variety of buyers, from investors to businesses looking for a perfect domain match.

• Increased Revenue: Acquired domains can be sold at a premium, generating significant profit margins.

• Client Retention: Offering drop catching services can help resellers build long-term relationships with clients who value proactive service and expertise in securing high-demand domains.

How Resellers Can Profit from Drop Catching Domains

Drop catching domains, once a niche tactic, has evolved into a significant profit-making strategy for domain resellers.

1.Reselling Process

The primary method for profiting from dropcaught domains involves purchasing these domains as they become available and selling them at a higher price.

The key is to target domains that have a history of traffic, a sought-after keyword, or inherent brandability. Once acquired, these domains can be held until a buyer is found, often resulting in substantial profit margins.

2. Choosing a Reliable Reseller Hosting Provider

A reliable reseller hosting provider is instrumental in managing a profitable domain portfolio. For instance, Verpex Hosting offers a suite of tools that simplify the management of multiple domains.

Their services support not just the acquisition and sale of domains but also their maintenance and development, ensuring that each domain retains its value and appeal.

3. Leveraging Reseller Hosting for Additional Revenue

Beyond just managing domains, reseller hosting allows users to package and sell web hosting services under their brand.

This creates an additional revenue stream by offering a complete package to customers who purchase dropcaught domains, providing them with both the domain and the hosting services they need to get their site up and running.

Conclusion

Drop catching offers a lucrative opportunity for resellers to secure valuable domains that can boost their portfolios and yield profits. This strategy requires quick action to capture these domains before they are auctioned off or claimed by others.

This guide highlights how Verpex Hosting's reseller services can enhance your drop catching efforts. With features like automated domain management, support for multiple domains, and easy setup, Verpex's plans are designed to streamline your operations effectively.

If you are a domain investor or reseller looking to grow your business, Verpex Hosting’s reseller plans are worth exploring. These plans are crafted to ensure seamless and profitable management of your domains, helping you optimize your reselling strategy.

Frequently Asked Questions

What is a domain name?

A domain name is the name of your website. A domain name is a word or a phrase that people enter in their browsers in order to be taken to a certain website on the Internet.

What is domain flipping?

Domain flipping is the practice of getting a domain name as cheap as you can and then selling the domain name to an interested party for more than what you paid.

What makes a certain domain valuable?

Valuable domains are usually memorable, easy to spell, pronounce, and short.

What are some popular domain marketplaces?

Popular domain marketplaces include BrandBucket, Efty, Namecheap, Sed, and Flippa.

What should I look for in a reseller hosting provider for managing drop catch domains?

Look for a provider that offers robust tools for automated domain management, supports multiple domains, and provides excellent uptime and security features. A provider like Verpex Hosting is ideal due to its comprehensive tools that simplify managing a portfolio of dropcaught domains.

Can anyone engage in drop catching, or is it only for experienced domainers?

While anyone can engage in drop catching, it typically requires some level of knowledge about domain names, the registration process, and the tools used for drop catching. Newcomers to domain investing should start with thorough research or consider partnering with experienced domainers or services that specialize in drop catching.