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opinion Before You Backorder, Be Clear About Why You’re Doing It

This is an opinion held by the original poster regarding the material discussed in the first post of the thread, be it domain name related or not.

Ricado

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This post reflects my own approach to drop domains, not a rule for everyone.

Over time, I’ve found that before looking at keywords, valuations, or drop timing, the most important question for me is simply why I’m buying a domain at all.

Before clicking backorder or waiting for drop time, I always stop and ask myself one thing:

If this domain really has value, why is it dropping now?


Why would a valuable domain drop at all?

Usually it’s one of these reasons:
  • The company shut down
  • The project ended
  • The owner didn’t renew
  • Or it simply never changed hands among domainers
People often assume “forgot to renew”, but in reality that’s rare. Domains with real business value usually get renewed, redeemed, or picked up again during grace periods.

If a name drops cleanly, it’s worth pausing and thinking about where the value actually is.


This is a business, not a hobby

Before buying a domain, I don’t ask “is the name good”.
I ask how does this make money.

Traffic-based names are extremely competitive and already well-priced.
Older domains can work, but if a domain has been sitting in domainer hands for years, most of the traffic is usually gone.

Brand-protection plays only make sense if you know who might need the name and why.

Rare brandable drops do exist, but they’re the exception, not the rule.


“Looks good” doesn’t mean “will sell”

The most common situation is this:

“This name looks great. Someone should want it.”

Before I buy anything, I ask myself two things:

If I were the buyer, what would I use it for?
Who else could realistically want this domain?

My personal rule is simple.

If I can’t think of at least two potential buyers or use cases, I don’t touch it.


A real example

A few months ago, seaxo.com appeared in pending delete.

It’s not a hot keyword.
It’s not a traffic play.
It doesn’t look special at first glance.

But before I decided to go after it, I had already mapped out multiple, very different commercial directions where this name could realistically be used.

Below are three concept directions I had in mind before going after the domain.

SEAXO_02.webp


SEAXO_05.webp


SEAXO_01.webp


I’ve since received multiple four-figure inquiries.
They didn’t meet my target price, so I declined.

This doesn’t mean the domain will sell tomorrow.
It just means I wasn’t buying blind.



Final thought

The drop market isn’t a treasure hunt.
It’s about clarity, not speed.

Before your next backorder, ask yourself:

If someone asked you what this domain is for, could you explain it in ten seconds?

If not, it might be better to skip it and wait for the next drop.


One last note

Of course, if you have a large enough budget, you can buy almost any domain that looks decent, hold it, and wait for opportunities to come. If it doesn’t sell after a couple of years, you can always let it go.

In fact, many platforms operate exactly this way.

If you choose this model, that’s perfectly valid, but it’s a completely different strategy from selectively chasing drops with a clear exit in mind.
 

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Hi, Ricado

What I really like about this approach is that it quietly reframes drops as a signal, not an opportunity by default.

And sometimes, a domain can be perfectly usable but simply wrong for the market cycle, funding climate, or buyer maturity when it was last held.
 

Ricado

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Hi, Ricado

What I really like about this approach is that it quietly reframes drops as a signal, not an opportunity by default.

And sometimes, a domain can be perfectly usable but simply wrong for the market cycle, funding climate, or buyer maturity when it was last held.
Yes, exactly. I don’t see drops as gifts falling from the sky by default. The first step for me is always to ask why a domain dropped and whether there’s still meaningful value there.

When I evaluate that value, I mainly look at it from two directions.

The first is future direction. Beyond any remaining or residual value, what matters more to me is where the domain can realistically go next. If I can clearly see a future use case or a type of buyer, I’m willing to take over a name even if there’s little to no residual value left.

The second is residual value itself. Unless we’re talking about genuine type-in keyword traffic, I think residual value is often overstated. Even a 20+ year old domain, if it has been passed around between domainers and parked or redirected for years, how much traffic is realistically left?

A good example is StarPlaza .com, which is entering pending delete today. It’s registered in 14 TLDs, aged 29.4 years, with an Atom appraisal of $16,199.
I’m not chasing it, not because it has no value, but because I don’t clearly see who I would sell it to, and any meaningful traffic may already be gone. In this case, it’s mostly been redirected for over a decade rather than actively developed.
 
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