The Australian Domain Name Administrator (auDA) recently relaxed its rules on domain name transfers by introducing a new Transfers (Change of Registrant) Policy. Significantly, the policy allows domain name registrants to transfer or "sell" their .com.au domain name licences to any other eligible person or entity by any means. So what will be the effect of this relaxation in policy? Will the market be flooded by enterprising domain name registrants seeking to trade their .com.au domain names?
The birth of online domain name trading website Netfleet.com.au (Netfleet) may signal a new era in Australian domain name trading. Through Netfleet, domain name registrants can list their domain names for a fixed price or for auction within a range of categories. The site currently lists over 3,400 domain names in 22 categories such as health, finance, business, careers, sport, leisure and shopping. Prices being sought range from $180.00 (for memes.com.au) up to $1,000,000.00 (for business.com.au). Although buyers and sellers are required to subscribe to the Netfleet site, no fees or commissions are payable. This will ensure that the Netfleet online trading forum is available to all enterprising domain name traders.
But before you go snaffling up available domain names in search of a quick dollar, it's worth remembering that there are some restrictions in place. The new auDA Transfer Policy explicitly prohibits the registration of domain names solely for the purpose of resale. To this end, the auDA can prevent or cancel the transfer of any domain name made within 6 months after the domain name is first registered. Also, domain names can only be registered by, and transferred to, people or entities that are eligible to hold the domain name under auDA's existing eligibility rules. This policy requirement will initially limit the pool of available buyers and sellers by requiring each to demonstrate that they have a genuine interest in using the domain name. A genuine interest is usually demonstrated by providing evidence of an associated company name, business name or trade mark.
So if you can prove you are eligible to hold a domain name, are able to wait 6 months after its registration and can find a willing buyer that is also eligible to hold the domain name under the applicable auDA eligibility rules, you're in business. Even with such restrictions in place, it is likely that budding entrepreneurs will seek to take advantage of the new transfer policy by registering a portfolio of tradeable domain names with a view to selling them to the highest bidder. Only time will tell whether a thriving domain name transfer market arises and whether the auDA will stem the tide by stringently enforcing its prohibition on registration of domain names for the sole purpose of resale.
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