If a domain has multiple interested buyers, it will be put up for auction, if I understand correctly.

In the event that a domain has no interested buyers, it will be available for registration through any registrar at the regular price.

So, what is the benefit of placing a backorder for a domain at a higher cost rather than directly participating in the auction when there is demand, or registering at the regular price when there is no demand?

This way, if there is no demand, you can purchase the domain at a lower or regular price instead of the higher backorder price.

Am I overlooking anything?

Placing a backorder for a domain at a higher cost has its benefits and considerations.

Firstly, placing a backorder allows you to express your interest in a specific domain before it becomes available. This can be advantageous if you strongly desire to acquire that particular domain and want to increase your chances of obtaining it. If there is competition for the domain, a backorder ensures you are in the running, even if you are not actively participating in the auction.

Secondly, by placing a backorder, you can potentially avoid the risk of missing out on the domain altogether. If the domain garners significant attention and goes into auction, you may face more competition and potentially higher prices. By securing a backorder, you have a better chance of acquiring the domain without going through the bidding process.

However, it's important to note that placing a backorder does come with additional costs and risks. The higher price you pay for a backorder is essentially a premium to reserve your spot as an interested buyer. There is no guarantee that you will be the only one who placed a backorder, so it doesn't guarantee you will acquire the domain.

On the other hand, if you wait until the domain becomes available for registration at the regular price when there is no demand, you may indeed be able to purchase it at a lower cost. However, this approach also carries the risk of someone else registering the domain before you do, especially if it is a popular domain.

consider regarding placing a backorder for a domain:

1. Time and Convenience: Placing a backorder saves you time and effort. Instead of constantly monitoring the availability of a domain, you can simply place a backorder and let the system handle it on your behalf. This convenience can be worth the additional cost for some individuals or businesses.

2. Exclusive Access: By placing a backorder, you gain exclusive access to the domain if it becomes available. If you have a specific use case or branding strategy in mind for that domain, securing it through a backorder ensures you have priority access over others who may later express interest in the same domain.

3. Potential Value Increase: Some individuals believe that the value of certain domains can increase over time. By placing a backorder, you are essentially speculating on the potential future value of the domain. If the domain becomes more desirable in the future due to market trends, industry developments, or increased demand, your backordered domain could prove to be a valuable asset.

4. Risk Mitigation: Placing a backorder can help mitigate the risk of missing out on a domain that you really want. If you are genuinely interested in acquiring a specific domain, taking the proactive step of placing a backorder reduces the chance of regret or disappointment later on.