How do I backorder a dropping domain on SnapNames?

You can backorder a domain on SN by keying it into the "Search Domains" field on their homepage, checking the box next to the domain's listing on the Search Results page, hitting Add To Cart, and then checking out.  In contrast to GoDaddy, SN does not mandate an upfront backorder fee.  If SN successfully captures the domain and it turns out you were the sole backordering party, SnapNames will bill your credit card on file $59 and deliver you the login information of the account they created for you on their capturing registrar.

If multiple individuals had backordered the domain on SN, a private 3-day auction will ensue among all backordering parties shortly following domain capture.  The highest bidder is deemed the winner of the auction.  If there's a tie (i.e. because multiple parties placed the minimum $59 backorder bid and nobody increased theirs during the auction), the party who had backordered the domain first wins.

For this reason, we actually recommend using SN's Bulk Order (Bulk Tools > Bulk Order) feature to place your backorders.  Bulk Order allows you to set your initial bid to any amount you decide, not the $59 that requesting your backorder through SnapNames' regular procedure defaults to.  Specifically, we advise you to plug a $60 backorder into the Bulk Order tool as the vast majority of participants will place the minimum $59 backorder bid, thus falling just shy of your $60 no matter how far in advance the other parties join.

Backorder auctions can end for any amount between $59 and tens of thousands of dollars.  Obviously, higher-quality domains tend to sell for more, though this does not always turn out to be the case.

SnapNames backorders can be placed up until the minute drops begin.  Since nobody can publicly view which SN domains have been backordered, backorder "sniping" is not necessary.

If SnapNames fails to capture your domain, you should delete it from your backorders list or else SN will re-queue your backorder for the next time the domain drops.