How Godaddy Domain Name Backorders Work

If you are having problems snagging backorder domains from GoDaddy, all hope is not lost. In the past, prior to the launch of the registrar’s aftermarket TDNAM.com auction web site, GoDaddy patrons could backorder domain names and had good luck capturing those names as they rolled off the list. However, after the company began forwarding its own expired domain names to the TDNAM auction, the game quickly changed.

Here is how it works now: If an individual puts a soon-to-be expired domain name on backorder with GoDaddy, he or she will now receive an e-mail following the grace period. The e-mail informs the patron that the domain name has been sent to the TDNAM auction. Additionally, a $10 bid will be submitted on the individual’s behalf. If no one else bids on the name, the individual wins it for the same price as a traditional backorder purchase.

Why the new protocol? By placing a bid, GoDaddy automatically draws attention to the domain name up for auction. This method encourages bidding and thus helps to increase revenue opportunities.

Still confused? Domain Name Wire recently asked Elizabeth Driscoll of GoDaddy to shed light on the backorder and expired domain name procedure at GoDaddy. Ms. Driscoll provided the following explanation:

A backorder at Godaddy.com is $18.95. Once purchased our system monitors the status to see if the domain has become available. If it is registered elsewhere we attempt to capture it when it becomes eligible. Domains at Godaddy.com do go into the expiring domain auction on TDNAM on the 26th day beyond expiration, therefore the backorder holder is provided the initial $10 bid as well as an opportunity to place a proxy bid for the maximum amount they would be willing to bid. The proxy bid allows us to bid on their behalf, in five dollar per day increments, should another party bid on the name. On the 43rd day past expiration the domain would go first to the auction bidder (which may be the backorder holder if they participate) or should no auction winner exist, the name would then be awarded to the backorder holder. Should neither exist the current owner would have approximately 30 additional days during which they could redeem and renew the name before it enters the pending delete status with the registry.