
In the dynamic world of domain names, drop catching—the practice of registering expired domains the moment they become available—remains a lucrative endeavour. Recent high-profile acquisitions, such as Spend.com by DropCatch.com, underscore the ongoing viability of this business model. Spend.com, was sold for $800k recently in an auction caught by DropCatch.com after its former registrar, Amazon, allowed it to lapse.
What is Drop Catching of Domain Names?
Drop catching, often referred to as "dropcatch", involves registering domain names immediately after they expire and are deleted from the registry. When a domain's registration isn't renewed, it undergoes several stages—expiration, grace period, redemption period, and pending delete—before becoming available again. This process creates an opportunity for individuals or companies to "catch" the domain the moment it becomes available. Given the competitive nature of this practice, specialized services and registrars have emerged to increase the chances of successfully acquiring these expiring domains.
The Role of ICANN Accreditation in Drop Catching
For domain investors aiming to secure premium domains, obtaining ICANN Accreditation offers a significant advantage. Accredited registrars gain direct access to domain registries, enabling them to monitor and swiftly register expiring domains. This direct access increases the likelihood of successfully capturing high-value domains as they become available.
Business Models of Leading Drop Catching Platforms
Companies like DropCatch.com have established networks of multiple accredited registrars, enhancing their capacity to secure expiring domains. Similarly, Gname.com has expanded its operations by adding numerous ICANN-accredited registrars, aiming to bolster its drop-catching success rate. These companies typically offer backorder services, where clients can place orders for specific domains they wish to acquire upon expiration. If multiple clients are interested in the same domain, an auction is often held to determine the new owner. This approach ensures that valuable domains are allocated efficiently, reflecting their market demand.
Technical Aspects of Drop Catching
Drop catching is a highly competitive process that requires a deep understanding of the domain lifecycle, precise timing, and specialized technical infrastructure.
How Drop Catching Works
When a domain name expires, it doesn't become available for registration immediately.
The typical lifecycle of an expired domain includes several stages:

Expiration: After the domain's registration period ends without renewal, it enters an expired state
Grace Period: Many registrars offer a grace period (commonly 30 to 45 days) during which the original registrant can renew the domain without additional fees.
Redemption Period: If not renewed during the grace period, the domain enters a redemption period, typically lasting 30 days. During this time, the domain can still be redeemed by the original owner, usually with an additional fee.
Pending Delete: Following the redemption period, the domain moves to a pending delete status for about 5 days. During this phase, the domain is scheduled for deletion and cannot be renewed or registered.
Deletion: After the pending delete phase, the domain is deleted from the registry and becomes available for registration by the public.
The exact timing of when domains are dropped varies by registry. For example, .com domains often drop between 11 a.m. and 2 p.m. Pacific Time, but the precise timing can be unpredictable.
To successfully catch a dropping domain, drop-catching services monitor the pending delete lists and use automated systems to attempt registration the moment the domain becomes available. This requires sending rapid and repeated registration requests to the registry, often within milliseconds of the drop time.
Limitations in Drop Catching
Despite the advanced systems employed, drop catching has inherent limitations:
Competition: Multiple entities may target the same high-value domains, leading to fierce competition.
Registry Restrictions: Registries may limit the number of queries or connections from a single registrar to prevent abuse, constraining the ability to send multiple registration attempts.
Technical Constraints: Network latency and server performance can impact the speed and success rate of registration attempts.
Why Companies Apply for Multiple Registrar Accreditations
To overcome some of these limitations, companies often apply for multiple ICANN accreditations. Each accreditation allows the company to operate as a separate registrar, providing several advantages:
Increased Request Volume: Operating multiple registrars enables a company to send a higher volume of registration requests simultaneously, improving the chances of securing a dropping domain.
Diversified IP Addresses: Using different registrars allows requests to originate from various IP addresses, reducing the likelihood of triggering registry-imposed rate limits.
Strategic Distribution: Multiple registrars can be used to distribute the load and reduce the risk of systemic failures affecting all registration attempts.
However, this strategy requires significant investment, as each ICANN accreditation involves substantial fees and compliance with regulatory requirements. Companies like DropCatch.com have employed this approach, operating numerous registrars to enhance their drop-catching capabilities.
Industry Statistics and Insights
The drop-catching industry remains robust, with significant financial opportunities. For instance, the auction for Spend.com reached a high bid of $802,500, surpassing previous records for DropCatch.com auctions. This underscores the substantial financial opportunities available in the drop-catching market.

The domain name industry continues to evolve, with drop catching remaining a dynamic and profitable avenue for domain investors. Securing expired domains, especially premium ones, requires a strategic blend of technical expertise, timely execution, and robust infrastructure. ICANN Accreditation plays a pivotal role in this process, granting direct access to domain registries and enhancing the efficiency of drop-catching operations.
Companies like DropCatch.com, Gname.com, and Zname.com exemplify successful business models in this space. By operating multiple, they increase their chances of acquiring valuable domains. This approach, while effective, also raises discussions about fairness and competition within the industry.
For domain investors aiming to capitalize on drop catching, understanding the technical aspects and limitations is crucial. The precise timing of domain drops, registry-specific policies, and the competitive landscape all influence the success of drop-catching endeavours.
In summary, with the right combination of ICANN Accreditation, strategic infrastructure, and industry expertise, companies can effectively capitalize on the drop-catching business model. As the domain landscape continues to evolve, staying informed and adaptable will be key to sustained success in this competitive field.
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