2) prerelease auctions.  These are domains where the auction venue has contracted with the registrar, like Fabulous or Moniker, to auction off non-renewed domains.  Just before a domain enters the pending delete process, it goes to a private auction to any person who has backordered the name.  Some people feel that back links on these type of auctions still provide a SEO benifit. My testing indicates that there is zero SEO benifit when these domains are redirected into another site.  So if you get a domain with "pink squirels" in a lot of achor text to a domain and then point it at your domain, you don't rank for "pink squirels"
Your best chance of getting it is contacting the current registrant and negotiating to buy it. After that, your best chance is buying it in auction or finding it listed with a “buy it now” price at a marketplace. Your other option is to find a broker who can negotiate on your behalf (if the domain name sells for a few thousand or higher…brokers likely won’t have the time or inclination to negotiate smaller deals).
Warehousing: I have no clue to a percentage of warehoused domains but I know it happens. Tucows even admitted it on my blog “I know you don’t like that we’re allowed to select expiring names for the Tucows Portfolio rather than letting them all go to auction or drop but that seems to be something we have to agree to disagree about.” ~ Ken Schafer (1st comment) http://www.dotweekly.com/could-you-explain-tucows
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.
Hey, what’s up everybody. It’s Brian Dean from Quick Sprout. In this video, I’m going to show you how to buy affordable expired domains and how to evaluate the potential value that an expired domain could bring to your site. Now, expired domains is pretty gray hat, black hat type of thing because there’s basically two things you’re going to do in an expired domain.
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.
Backlinks – These are basically anchor links present on external websites that take the visitor back to a domain. The higher the number and authority of backlinks, the higher the authority of a domain. For example, if a domain has a backlink from Forbes, TechCrunch or BBC, it’ll gain a lot of authority in the eyes of Google and other search engines. It’s like attaching a reference letter from Bill Gates to your CV.
Answer: Yes. For a vast majority of domain names that expire (greater than 99%+), the rules and processes listed above are valid. However, there appear to be exceptions to these rules. For example, registrars “warehouse” or take for their own domain name portfolios some domain names, and other domain names a renewed even past their expired or redemption periods. In addition, there is at least one registrar that does not have an auction partner, allowing expired domain names to simply drop and be available for hand register.
I've seen some people comment about losing the link value of domains that have expired and picked up, but what about non-expired domains?  Let's say a competitor is going out of business and they still have a year or two left, and we buy their domain and site.  Is there a risk changing registrant info and registrars, even if I keep their site up and mostly the same as before?  I was under the impression that I'd want to keep it under their name so as not to hit the uber-reset button on the domain's inbound link value.
The following TLDs are now fully supported with a deleted list and a droplist (pending delete list). .hn, .ht, .rw, .cr, .gl, .gy, .gs, .om, .qa, .ir, .pe, .com.pe, .tc, .ky, .th, .co.th, .ke, .co.ke, .uz, .kz, .pm, .re, .tf, .wf, .yt, .sx, .gd, .gi, .kg, .mu, .im, .ug, .sb, .tl, .st, .sm, .so, .sn, .pf, .nyc, .cloud, link, .ms, .mk, .af, .bi, .pr, .com.pr, .nf, .nc, .dm, .bo, .ki, .iq, .bj, .am, .as, .ax, .fo, .mg
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