Backorders don’t take place if a domain name expires at a registrar that has an auction partner, unless no bids are placed at that auction partner prior to the expiration date. Backorders (when domains are “caught”) only happen when a domain name goes through the full lifecycle and expires, is removed from the registry’s database, and becomes available for new registration.
The biggest advantage of using expired domain names to earn cash online is that they belonged to a website that had already establish, registered with several search engines companies and has existing backlinks and traffic. In general, by making use of expired domain names you tap into the resources that were created by someone else to get rich within a short time unlike when you do all the dirty work to get your website recognized immediately.
It is very possible that the owner has a recurring payment in place, or that the owner renews after it expires. Because GoDaddy gives a redemption period like all registrar, many domain name investors will actually allow their domains to go through auction to see what the “market value” is of a domain name and THEN renew it. It sucks if you’re the buyer thinking you won the auction. It happens often, unfortunately.
If you *really* want to be sure the auction partner is NameJet (because it’s a name you cannot afford to lose in the drop), you can email the technical support team at SRSPLUS and ask them if they follow the same expiration/auction procedures as Network Solutions. Be specific and ask, “Will the domain name, (fill in), expire and be available for auction on NameJet.com as the process is listed at https://www.domainsherpa.com/how-to-grab-an-expiring-domain-name/?”
Finally, if you were to manually check for drop domains, you have to jump through many hoops. It's a very labor intensive and often confusing process. When you see that a domain name is available, you shouldn’t just stop there. You should also pay attention to how many backlinks it had, how niche-specific the domain is, what kind of websites link to it, did it get signals from social media, and other indicators of quality. If you were to try to look for drop domains manually, it can be a very, very intimidating process. Thankfully, there is an easier solution.

Here's an old post on search engine roundtable that claims google's policy is to discount previous backlink juice when a domain changes ownership.  I'm not convinced whether this is actually true or something Google says to discourage excessive domain buying / 301 redirecting for SEO benefit.  The comments above seem to give varying opinions on this matter. Would be great to get to the bottom of that one!

Searching for a suitable domain name for your website can be quite trying. The reason for this is that the names that you want to get have already been assigned and are not available. As an SEO you know the importance of getting a domain name that describes your business as closely as possible. For example, if you are running a car rental service, you will look for a domain name that has the words ‘car’ and ‘rental’ in it. So if you can’t find a suitable name, you could use the expired domains tool which might show you domain names that would meet your requirements.
When you are searching for the expired domain which you might consider buying, you can conduct expired domains search and learn how to buy expired domains. Or you can take an easier route and go to searchenginereports.net from your browser’s search bar. Once you are on the site, click on the ‘Free SEO Tools’ icon. Scroll down the list of free SEO tools icons till you come to ‘Expired Domains Tool’ icon.
If your domain name was in fact stolen from you, please go file a police report as soon as possible. If, instead, you allowed your domain name to expire through carelessness or ignorance, then you’ve learned a valuable lesson: domains have value. I’m not saying this to be a jerk, I’m saying this because words matter and saying something was “stolen” when in fact it was allowed to expire is not truth. I’m happy to share my knowledge as clearly as possible for others to benefit from, and all I ask is that others do the same.

Finally, if you were to manually check for drop domains, you have to jump through many hoops. It's a very labor intensive and often confusing process. When you see that a domain name is available, you shouldn’t just stop there. You should also pay attention to how many backlinks it had, how niche-specific the domain is, what kind of websites link to it, did it get signals from social media, and other indicators of quality. If you were to try to look for drop domains manually, it can be a very, very intimidating process. Thankfully, there is an easier solution.
If you buy keyword specific domains, you're really buying the type in traffic.  I use the URL builder and redirect through that URL so you can see how much traffic your getting from the keyword domain.  There seems to be no rythme or reason to what keyword domains deliver traffic and what don't.  By tracking traffic with the Google URL builder you get a feel for what names are giving you traffic and which are not. ie. the plural, the singular, two words, three words, the possessive, etc.

Alternatively, you can monitor a domain name for free at a number of locations. DomainTools.com offers a free domain name monitor tool, as does DomainHole.com (both available with free member registration). Once you receive an email notification that a domain has changed status from active to expired, you can follow the process listed above to enter a bid at the auction partner site.
By strategically buying expired domain names which have certain quality features, you can create a link "pump" to your target sites. From an SEO perspective, this can turbo charge your rankings on Google and other search engines. Also, you can make money directly by promoting products on high ranking search results. Additionally, you can make money by selling links on your network to people looking to get an SEO boost.

Backorders don’t take place if a domain name expires at a registrar that has an auction partner, unless no bids are placed at that auction partner prior to the expiration date. Backorders (when domains are “caught”) only happen when a domain name goes through the full lifecycle and expires, is removed from the registry’s database, and becomes available for new registration.
You can easily find domains using the best metrics available from Ahrefs, Moz, Majestic, SEMRush, Similar Web, SEMrush, Domain Scope and Social Networks. We buy only the best, the latest, and, the most comprehensive industry wide metrics so you have the maximum amount of information to make a decision. No other tool gives you access to 90+ metrics.
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