We have already talked about the backordering process itself. We will focus on the best and worst practices of the process today. I will put this in layman terms, backordering is like tagging domain name you wish to purchase and which is not yet available for free sale. The most used names for this process are the ones that are pending delete. This is the last phase of the domain name life process before it is actually released to the pool of available domains.
Most players in this market like Vastus Domains are using some kind of a registrar service or chain link of them to win the race of winning the domain name when it gets released. Usually this is DDOS type of registration attempt and any individual who think that it can beat the system by manually registering is uninformed at best. Sure you can get domain name this-domain-name-is-da-best.com because there is no competition on it. But you will never be able to get any meaningful or useful domain name by manually trying to drop-catch it.
DDOS type of registration attempts is one of the bad practices. We in the business of drop catching all do this and I am fairly certain that this would get changed in the future. Whether this change would involve priority lists from the releasing registrar itself or ICANN/Verisign it remains to be seen.
Second kind of a bad practice is taking customer money or even credit card information before actually having the domain name for sale. This is a big no-no both ethically and gray zone legally at best. We at Vastus Domains will never claim we own domain name in pending delete state and will accept backorder as an informational value entity only – no pre-pay and no credit card information necessary at this stage.
Sending offers to interested parties can both be good and bad practice depending on the offer email content. Normally this is unsolicited mailing since there is no previous relationship between potential buyer and seller. However to be able to legally send this kind of an offer the offer itself has to have some elements of legal and informative offer. Like the real company address, telephone number, clear statement of an offer and a way to cancel further emailing. Many of our competitors lure you with links to unsubscribe just to land on their email loop and they snatch the name anyways (if they can). This is a very bad practice.
Another bad practice for the first contact email is leaving it all automated. We at Vastus Domains are answering every offer or a query manually to build the trust with our potential customers. It is quite different when you answer directly than using automated process.
If you have any misunderstanding about the process we would gladly clear them up if you pitch us an email to email@example.com