DropCatch.com – new domain backordering company with worst possible issue

DropCatch-another-backordering-companyHello and Assalamo Alaikum,

I am not sure if you guys are aware of new backordering service which was publicly beta launched some time back. I came to know about them when I placed the backorders with SnapNames, NameJet and other companies I found that it was caught by a company called DropCatch.com.

Later I found they are part of HugeDomains and they have caught over Β 1,000,000 for themselves and recently launched DropCatch for public. They offer backorders for .com and .net domains only. According to the conversation I had with them in past theyΒ currently have no plans to expand this to other TLDs.

So when I placed my first backorder it was clear that I was the winner because I received an email from them being the winner and can proceed to make payment of $59 and I tried to topup my account but later found that there were some more bidders and their support team apologized by saying we are still in beta and there was a bug which has been fixed. So ultimately the domain went through 5 days auction process. Yes, 5 days auction.

I gave my feedback to their team for changing from 5 days to 3 days and change the auction finish time 3 hours earlier which is quite near to what SnapNames, NameJet and other auction platform time ends. I was happy to see both these changes were made quite quickly and I appreciate that.

But the main problem is whatever the domain I have backordered goes into “Public Auction” since I started using them still exists and they don’t just care about it. Surely, it will hurt them in future and I hope they will listen to their clients or start losing them quickly.

This “Public Auction” is the worst thing I have seen at any backordering company. Let me give you an example for recently concluded auction at DropCatch. I backordered Bespoke.com along with other 44 bidders who had ordered this domain before it was caught by DropCatch. So once the auction started until it finished there were a total of 54 bidders. An increase of 10 bidders jumping into the action and I tell you all those additional bidders came really pumped up the bidding war. My highest bid was in five figures but if those people hadn’t come my chances to win that domain were far better.

Now I don’t have any complaints for those who jumped in at later stage or were not part of the initial backordering stage. All I have problem is with DropCatch system and their team who doesn’t really care about this. I have asked them numerous times to get rid of this or you will start losing interest from people involved in using your backordering service. Their answer as always was that I am the ONLY person who is asking for this change and no one else does!

Is that what you think DropCatch? Check out the comment section at DomainNameWire and you will come to know if I am the ONLY person dissatisfied and asking change for betterment.

This doesn’t make any sense to me that 2 people doing their research, putting all efforts and time finding the gem out of the rough and once the auction starts I simply jump in and start bidding including all other people who were not aware of that domain before the domain got started as public auction. That’s simply waste of time and utter nonsense for the person who did this research. Do you (DropCatch) think we domainers have plenty of time to waste?

Yes, I am still using them because there are not much people who knows about them compare to bidders at SnapNames and NameJet. So with less competition there is always a chance to get a domain at lesser price.

So any one had experienced DropCatch backordering service and what are your thoughts? Feel free to post a comment πŸ™‚

==========
**UPDATE**
==========

Received a response from DropCatch.com official after I sent my and DNW article link mentioned below:

Hello AbdulBasit,

We are following the domain name article and have been discussing the issue you have raised for quite some time.

These things don’t change overnight and we will let you know (probably with a DropCatch blog post) what we decide to do when we have decided it. A lot goes into keeping something like this running. Your patience is appreciated.

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20 Responses to “DropCatch.com – new domain backordering company with worst possible issue”

  1. Zaki Ahmed says:

    Thanks for sharing this,
    Yes this is something unprofessional, Few people do there hard work and zero down to a particular name to catch it, and when it goes public auction, its like inviting Domainers “hi come here to this auction, we have a good name on auction”lol

    One thing is clear is, at the end of the day money is made by this service, if they care for the end user who have put in all the efforts, then they would not keep public auction. But they want to make more money

    Founder
    NamingZone
    http://www.NamingZone.com

    • AbdulBasit says:

      Couldn’t agree more! Very well said. It must be a fair game for everyone. It shows they want to squeeze out as much money as possible. Such business model couldn’t run successfully in the long run.

      • Tauseef says:

        @Zaki
        Sometimes that’s why we should let the name drop completely but it’s a chance we will be taking and I figured out that in Domaining chance or luck has little effect.

  2. AbdulBasit,
    IMHO they don’t care, their business model is based on the maximization of proceeds from the Auction, drop catching is just a tool to get big bucks squeezing as much (easy) money from customers as they can.
    So it’s their interest to make the auction public, in order to attract more people who maybe can pay more for the name at auction.
    Personally I don’t use neither them nor Snapnames or Namejet for those reasons.
    True drop catching is based on first come, first served, which is the best way to reward people who spend time doing their own research.
    And true dropcatching is getting the name on behalf of your clients, not catching it and then reselling it for big bucks to the highest bidder, that’s a distortion of the system, introduced just to make more (easy) money at their clients expense.
    All other providers are just Auction houses in disguise, with a dropcatching mask, and this way only deep pockets win, with no meritocracy.

    • Without mentioning all the distortions coming from shill bidding, fake bidders, etc, which are part of this dropcatching + auction system.
      As I said, true dropcatching is getting a name on drop on behalf of your client, and they are paid for this service.
      The fact is that they allow multiple bidders, so they get paid for the dropcatching service from all of them, plus they get the (fat) proceeds from the auction, from an asset that technically they should not be allowed to own.
      They operate this way because traditional dropcatching is not profitable enough for their (greedy) minds.
      Personally I think the dropcatching + auction system should be banned.
      Technically speaking, a dropcatcher should never become the owner of the domain they get on behalf of their client, and therefore they should not be able to auction it.
      Since you can auction only something you own.
      True dropcatching consists in acting ON BEHALF OF your client, never becoming the owner of the domain you get for him/her, and the name should remain in the dropcatcher account only the time (a few minutes) needed to get it and move it to your customer account.
      As I said before, different solutions are not dropcatching, are just auction tools to squeeze the most money they can from people who instead paid them for a specific (fixed price) service.

      • AbdulBasit says:

        Shill bidding like it happened at SnapNames in the past could be happening at other drop catching companies. I can’t be sure until I have some proof but there is always a possibility.

        I agree most of the part what you said but personally I don’t think the procedure of grabbing the domain and become the owner. Later auction it off and whoever pay the maximum price gets the domain. In other words, they are simply giving us the service and in return highest bidder/winner paying the fee.

        If such services get banned it won’t be stopped completely because there are drop catching software in the market who grabs the domain on your behalf. I haven’t tried ever. Yet, that is different that dropping catching sites who grabs the domain and auction it off.

        • About shill bidding and fake bidders, it’s more than a possibility (IMHO the “Hank Alvarez” case was just the tip of the iceberg), it’s a reality, used to inflate prices.
          And I don’t believe to the idea that a person alone can do all that without other people of the same organization not being aware of what’s happening.
          Something similar cyclically happens in the financial industry, as you probably know or you heard of.
          You can’t easily get a proof of that, because they own the system and they can easily delete or manipulate all traces of wrongdoing.

          “but personally I don’t think the procedure of grabbing the domain and become the owner. Later auction it off and whoever pay the maximum price gets the domain.”
          I was referring to the legal structure of the dropcatching process, I think you misunderstood what I meant πŸ™‚

          “they are simply giving us the service and in return highest bidder/winner paying the fee.”
          We are talking about a dropcatching service, not about an Auction house service, so the price has to be fixed in advance and not subject to the outcome of an auction, otherwise is not dropcatching, it’s something else, as I told you before.
          They are paid with a fixed fee for that, but they want more, auctioning something that they are supposed to get on behalf of their customers for a fixed fee.
          As I said, that system always favors big pockets, and there is no real competition based on merit and hard work.
          A question for you, AbdulBasit: would you prefer to get a domain because you are smarter or just because you have more money to spend? which option would make you pride of your work? πŸ™‚

          “If such services get banned it won’t be stopped completely because there are drop catching software in the market who grabs the domain on your behalf.”
          I’d prefer paying for such a software, which you can use multiple times, than being deceived or overpay in those auctions.
          That would be true competition in the drop market.

          “Well, I use all these drop catching services because there is no other alternative for us. If the domain is within the budget I will happily buy or pass on.”
          They profit from the fact that people think there is no alternative, imposing this kind of things to the customers.
          Personally I prefer to pass on a name rather than being tricked in some “opaque” auctions.
          Just my view though πŸ˜‰

          • “proud”, not “pride”, sorry for the typo. πŸ˜€

          • AbdulBasit says:

            To a certain degree it’s right that it’s the inside job but not all companies practice this method to hike up the prices.

            The legal structure of domain dropping is it gets publicly available and whoever has the ability to grab it quicker gets the domain. That’s the first part. Secondly, there are two scenarios. Either I will keep the domain for myself once snapping it through using drop catching software, backordering service or hand registering it. Or I will sell to enduser or auction it off among domainers. That’s what these companies do like NJ, SN. I don’t think there is anything wrong with that unless that involves fake bidders, shill bidding, etc.

            I don’t think the price needs to be fixed because the market (domainers) decides the price.

            First come first serve drop catching services like Name.com and DomainMonster.com have issues as well. Let me address that as well. If I want to backorder 50 domains at Name.com for which I have to pay $2500 and roughly they will catch 5 domains for me. The problem here is why I should pay in advance and stuck my money?

            For DomainMonster, the only good thing for a person is to dream that all domains backordered with them will be caught because I have never seem them catching any .com domains. The problem with them is you can backorder hundreds and thousands of domain with no upfront fee and they will charge only when they have caught the domain on your behalf which unfortunately never happens…

            I don’t think merit and hard work is that much creativity any more in this business. Everyone knows where to find the dropping list and find their type of domains and set the budget accordingly.

            To answer your question, honestly speaking I would say it’s the combination of both. If I am smarter I have the edge over the next person and money is what you never make easily. So a guy having big bucks must have hard earned through whatever mean is investing in domains. πŸ™‚

            That’s the preference you have set for yourself and I am in the same boat and I would like to know if there is any software which regularly beats SN, NJ. Until it’s coming we all are “forced” to use these drop catching services IF we need any particular domain. πŸ™‚

            I don’t think they are imposing anything on us. We are free to make our own software to snap the expiring domains. But either we don’t have the ability or the spare time to do it. That’s why all domainers simply go to these auction houses for buying domains. Although I am not 100% in favor of these auction houses.

            I couldn’t pass on the name if it’s within my budget πŸ˜‰

    • AbdulBasit says:

      Exactly. They are not treating their customers well and that isn’t going to pay off well in future for them…

      Well, I use all these drop catching services because there is no other alternative for us. If the domain is within the budget I will happily buy or pass on.

      There are some companies offering drop catching service on first come first served basis like DomainMonster.com and Name.com but both have poor reputation in catching names specially DomainMonster.com for .com/.net domains. Though Name.com has caught over a dozen domains for me in the past but of low quality.

  3. AbdulBasit says:

    ==========
    **UPDATE**
    ==========

    Received a response from DropCatch.com official after I sent my and DNW article link mentioned below:

    Hello AbdulBasit,

    We are following the domain name article and have been discussing the issue you have raised for quite some time.

    These things don’t change overnight and we will let you know (probably with a DropCatch blog post) what we decide to do when we have decided it. A lot goes into keeping something like this running. Your patience is appreciated.

  4. Garandy says:

    At the end of the day, would you rather deal with public auctions or having to pay HugeDomains’ exorbitant prices? I’m willing to wager that there’s a lot of overlap between the domains that go to auction and the ones that would have gone to HD if it was still a closed system.

    I don’t know if you’ve ever run a large business, but the goal isn’t to avoid making money; when you have the ability and inclination to catch 1/3rd (or more) of the good domains on the drop and a big customer like HugeDomains willing to backorder the ones no one else does you have a good bargaining position and failing to exploit that is going to make their stakeholders mad. This is really just a very vocal minority being upset over what is really a good business decision.

    • AbdulBasit says:

      I was one of the initial bidder for Bespoke.com which finally went for $18k and my highest bid was in the five fig range. It was well worth it. But when I saw it’s going over my budget I just stopped. I don’t want to pay extra money to any one no matter what type of domain or service I am using it. Sometimes we get lucky and I have got some decent names at really good prices with DropCatch. That doesn’t mean I am in favor of them completely.

      Everyone’s goal is to make money but there should be some ethics and rules to follow. HD can’t simply go this way just to squeeze out as much money as possible.

      Yes, there are less people upset over this issue compare to what we see the active participants in the DC public auction. I have complaint against them for this issue but I am still using their system just because I need the domain but at the right price. If that comes within my range I take it or pass on…

  5. @ AbdulBasit:
    I perfectly know what happens when a domain drops, but that’s not the point here.
    When you provide a dropcatching/backorder service, you are acting ON BEHALF OF your customer, your client pays you for that specific service (grabbing dropping domains for him), so their remuneration should come from this service, not from auctioning the domain they grabbed on behalf of someone else.
    I’m just saying that they are grabbing a name for you, on your behalf, not for them, so they should not be allowed to auction it.
    If they catch the domain for them, that’s not dropcatching, it’s getting the name and reselling it.
    When you add the auction part to the dropcatching model, you introduce a distortion in the system.
    This system is malformed and clearly favors one side.
    If you don’t find anything wrong, well, we just have different views on that. πŸ™‚

    Yes, it’s the market which fixes the price, but when you purchase a service (like dropcatching) you have to know the price in advance.
    This is another factor that confirms they are just auction houses, dropcatching is just a tool.

    I never mentioned other dropcatchers, my intention was not making comparisons among them. I’m not sponsoring any of them.

    When I say “fixed price” I mean that the price for the backorder/dropcatching service should be a fixed amount, I never said it has to be paid in advance.
    If and only if they get the name for you, they can charge you, with no money stuck.

    Personally I think there is a lack of regulations in this aspect of the domain business, for the reasons I mentioned before, and they profit from this, “imposing” a biased system.

    On the remaining points, probably we have a different vision of life :).

    Anyway, it’s up to people decide how they prefer to use or waste their money. πŸ˜‰

    @Garandy:
    True dropcatching is not grabbing domains and reselling it to your customers, it’s acting on their behalf to get a particular domain for them for a price which has to be known in advance (just known, not paid in advance).
    If the system has been distorted, it’s due a lack of regulations which allow these kind of business practices …

    If HD catches names for itself, that’s not a dropcatching service for third parties, open to public.

    I’d rather to see a true dropcatching service, without the auction part, but that would not be enough profitable for their “easy money” minds.

    Nice sense of humor, I perfectly know how companies work, big or small they are, it’s obviously a good business decision for them …

    Let me also add that, as usual, and also in this business, conflicts of interest are a big and growing issue …

    Good luck!

  6. AbdulBasit says:

    @Andrea

    They must have clearly mentioned in their TOS about the whole process after getting the domain caught by them. Nothing is hidden. So we all accept their TOS while creating an account or before bidding. If you check the FAQ section at https://www.snapnames.com/faqs.jsp#howwork it clearly states that the domain will go into auction if there are more than 1 bidder so there is no hiding.

    “If we are successful in acquiring the domain name after it is released and yours is the only order, it will be yours for the minimum bid price posted on our website. If we have more than one order for the name, it will go to auction for three days and be awarded to the high bidder. We will inform you by email in either case.”

    These companies are both drop catching services + auction houses. They actually charge us for their drop catching service and auction the domain between the interested parties is just getting the market value for any domain.

    You are quite right. They are mainly auction houses and drop catching is just a tool/service but that’s what really matters. Whoever is able to grab the name first is the one making money from it.

    Well, both Name and DM are not sponsors of this blog but I gave the reference just for the comparison purpose. I have no hard feelings against them. I have got some domains caught by Name.com and DM was good at catching some .cc domains.

    It shows you are more interested with the DomainMonster backordering system which takes backorder for as many domains you like to place order and will charge you only when they have caught on your behalf. But there is one big problem here… When they newly launched .CO backordering service they were the first one to do so and I was the very first person to know about that. I simply backordered thousands of .CO domains and they caught several for me. Now you see only 1 person was getting the advantage of this and rest of the people just watching domains getting dropped and going to my account. At that time, there was only 1 company offering backordering for .CO domains and it was DomainMonster. I am not in favor of this at all.

    At least you get a chance to get in the auction of domains at SN, NJ but no chance at first come first serve basis if some other guy has BO domain in advance. There should be some kind of balance yeah…

    There are no issues if we have different views on some points and always good to discuss and share our thoughts and experience to gain more knowledge. πŸ™‚

    Thanks for your time and sharing your opinion in this regard πŸ™‚

  7. Tauseef says:

    AbdulBasit, Thanks for writing in detail about DropCatch. Read about it earlier but not tried their service. I hope they will improve and make it transparent for their customers to stay in business.

    • AbdulBasit says:

      Thanks for your comment bro πŸ™‚

      My purpose of writing about them was just to make people aware of their poor system but that doesn’t mean at all that I am trying domainers NOT to join them and creating room for myself so that I could have less competition.

      Any one can join and no one is going to stop but the issue is clear and it seems they are NOT going to make it private very soon as per their message…

      We can only hope for the best πŸ˜‰

  8. NameYouNeed says:

    Technically GD auctions are public. Doesn’t seem like DropCatch is doing it right IMO though.

    • AbdulBasit says:

      Exactly. Technically GD auctions are public too but those domains are open for everyone to be searched and start bidding. At DropCatch, a couple of person doing their research, finding the domain, placing backorder and later finds out that there are 10 other users jumping into the auction and that too at the end of auction which gives me no idea or timing to think in readjusting my budget for that particular domain.

      I was caught in similar situation for 1 domain and lost the other due to readjustment for the domain which got too many bidders in it. Eventually, I lost both auctions and was frustrated with DC public auction system. They are simply ruining their reputation (if there is any).

  9. […] received an email from DropCatch.com for which I had a bad experience in past. They have also posted detail about the announcement on their blog as well which I have […]

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