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tech Why I Stopped Using Discount Backorders

Ricado

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Over the past several months, I’ve actually picked up more solid domains than before.

Ironically, that happened after I stopped using discount backorders.

Let me explain.



My Original Process​

For pending delete domains, I usually evaluate them one or two days before drop and grade them internally.

If I expect strong competition → I use a standard backorder.
If I believe the name is niche but still valuable → I use a discount backorder.

At first, discount backorders worked. I caught a few names without issues.

Then I started noticing a pattern.



What I Observed​

It’s completely normal when a standard backorder enters auction due to multiple bidders.

It’s also normal if a discount backorder loses to a standard backorder or to another platform.

That’s competition.

But after reviewing many failed discount backorders, I noticed something consistent:

A large portion of those names were caught by what the platform labels as a “partner.”

In practice, that “partner” is simply another entity within the same ecosystem. The registrar, the drop-catching operation, and the secondary marketplace are structured as separate websites or brands, but they operate within the same corporate network.

So effectively, many of these names were not being caught by outside competition. They were being caught internally.

That’s when I started experimenting.



The Timing Experiment​

I tried placing discount backorders later — closer to drop time rather than days in advance.

For a short period, this worked surprisingly well. I caught almost everything I targeted.

Then it stopped working again.

Which made me question something deeper.



The Structural Paradox​

There is a contradiction built into the idea of discount backorders.

Discount backorders are meant for low-attention domains.
Names unlikely to attract serious competition.

But the moment you place a backorder — whether standard or discount — you increase that domain’s attention level within the platform.

From the system’s perspective, it now has visible demand attached to it.

So here’s the paradox:

Discount backorders are designed for low-visibility names.
Yet placing one may elevate the domain’s visibility inside the very system evaluating it.

If the platform reallocates resources based on perceived demand, then a discount backorder might function less as a competitive catch tool and more as an interest signal.

That changes the strategic dynamic entirely.



The Turning Point​

Eventually, I stopped using discount backorders altogether.

Instead, I began manually registering names after drop — sometimes even hours later.

The surprising result?

Roughly half the time, I was successful.

Which suggests something important:

Many of these domains were not heavily contested at all.

If they can be registered hours later, then there wasn’t real competitive pressure.

So the question becomes:

Were some discount backorders failing because of true market competition
Or because of internal priority allocation?

I don’t claim to know the answer. But the behavior pattern is hard to ignore.



My Current Strategy​

Now I keep it simple:

High competition → Standard backorder
Moderate interest → Wait and monitor the drop
Low interest → Ignore

Since removing discount backorders from my workflow, I’ve actually captured more names, not fewer.

More importantly, my cost structure is cleaner and easier to model.



Open Question​

Has anyone else observed similar patterns?

Have you compared:

Standard vs discount performance?
Early vs late submission timing?
Manual registration success rates?

Once you move beyond picking domains and start analyzing platform mechanics, the game changes.

Sometimes, removing a tool improves your results.
 

nicenicnicenic is verified member.

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Hi Ricado,

Yeah, your manual-registration results are actually the more telling data point.

If you’re able to hand-reg a significant portion hours after drop, that suggests the true market competition was thin.

In that case, the difference isn’t about who outbid you. It’s about how the platform allocates catching resources based on perceived value.
 

Ricado

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@nicenic
That’s exactly my thinking.

If a domain can still be manually registered hours after drop, then real market competition clearly wasn’t strong. So the issue doesn’t appear to be bidding pressure — it seems more related to how catching resources are internally prioritized.

In simple terms, using a discount backorder may unintentionally flag a domain that the platform initially considered low priority. And once flagged, it may no longer be treated as low priority. In some cases, placing a discount backorder might be the very action that elevates a domain from “ignored” to “worth allocating resources to.”
 
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