I am curious to know exactly how the dropcatching companies like Pool, Snapnames, etc. work that snatch up those expired names then auction it off to the highest bidder. Do they have to pay any fees for the privelage of becoming a dropcatching company? Do they actually pick up those names at reg fee, then onsell it off to the highest bidder, while making thousands in the process for each name sold? I have always wondered exactly how it works & am sure they are making a killing in the process.
They work with a set of registrars The registrar picks the name the second the registry let it go Dropcatchers auction it and split the profits with the registrar Lately they don't need registrars at all The open they own registrars and dump the other registrars so they keep the profits 100% for them (just check the accreditation list for enom for example)
i think they just have servers that pick up when a domain is dropped and then that registers the domain name, and then sells it to the person that wants it.
The registry limits the no. of connections a registrar can open, so the drop catchers have tieups with many registrars.
If you mean that the dropcatchers on their own to have servers, no that is not true. No connection other than registrar's can't connect faster with registry's servers for domain registration My reply above doesn't include speculation, it's the way they do it