Backorder is a term one may encounter numerous number of times while searching a domain name. One may confuse what is the backorder and how does it work.
Backorder is used to get a domain name which is currently with some other owner. It gives a possibility to acquire the domain name if its current owner does not renew it next time.
However, backorder is not as simple as it looks. First you have to understand the process of expiration of a domain name.
Once a domain name registration period comes closer to ending. The domain owner is given reminder to renew it. Due to some reason if the registrant forgets to renew the domain name, the registrar waits for renewal confirmation for some days (40 days for .com). This waiting period is called Grace period. During this period, the DNS, mail and other features of the domain will not work. If registrant renew during the grace period, he will not be charged any extra amount as the late fine.
Once the grace period is over, the domain will be marked as pending deletion and Redemption period (30 days for .com) will start. During the redemption period if the registrant wants to renew their domain, he have to pay some extra amount ($75-$100) which depends on the registrar. Most of this amount goes in the paper work to revert the deletion process.
Even, if the original registrant do not renew the domain name after redemption period, the domain will be removed from the registry after 5 days between 11 AM to 2PM Pacific Time. Once it is removed from the registry anyone can take the domain name. The whole process takes almost 75 days. However, this time varies from one extension to another and from one registrar to another.
The backorder is used to be the first buyer to claim for a domain name after it drops from the registry. One does not have to worry about the drop, if they have already booked the domain as backorder.
However, if the expiring domain is going to be huge in demand many different companies and individual will try to grab it just after it drops. As the registration of a domain is on the basis of first come first serve. It is highly recommended to take the help of best backorder service provider like Snapnames. They give this service as free. You have to worry about paying only when the complete their job.