…and it’s expensive.
It costs expired domain drop catchers $8.03 for every .com domain name they catch for you. So why are they charging customers so much money?
A good place to start is by looking at how much they pay to amass the firepower necessary to be successful drop catchers.
When a domain name deletes, all of the expired domain name services interested in the domain name start pinging Verisign’s servers to try to register the domain name. Many factors go into success rates, but a lot of it has to do with how many registrars they have to ping Verisign for the massive amount of domains they’re trying to snag each day. Think of each registrar as a phone line that goes directly to Verisign. The more lines, the more domains you can catch.
I recently analyzed a list of all new domain name accreditations from February 2012 to September 2016, and the numbers are a bit shocking. Roughly 1,250 new registrars were added, and most of these are solely for drop catching purposes.