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business chicks latte magazine
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T
he good news is that it just got a whole
lot easier to buy and sell domain names.
The AUDA (the Australian Domain
Name Register) introduced a policy in June
which outlines that as long as what your busi-
ness does or sells has a "close and substantial
connection" to a domain name, you are free
to buy it if its owner is willing to sell it.
Melbourne IT chief technology officer Dr
Bruce Tonkin says the revised policy reduces
red tape for businesses that want to trade do-
main names.
"For the first time in the .au domain space,
businesses can purchase useful domain
names directly from other businesses who
may not be fully utilising them and also se-
cure a fair value for a domain name that they
themselves are not using," Tonkin says. "Put
in real estate terms ­ there are many vacant
blocks of land that are not being used for any-
thing other than advertising billboards." Not
only does the new policy allow businesses to
gain access to this land and put it to good use,
he says, it also enables them to reinvest any
proceeds from domain name sales back into
their businesses.
Rather than being a tiresome proc-
ess of trying to find a domain name that
hasn't been registered, securing the do-
main name you want will now be a matter
of negotiation.
There are rules, however, and for anyone
planning to buy up big on domain names in
the hope of selling them later at a profit, this
could be bad news.
You can't register a domain name for the sole
purpose of resale or transfer to a third party. And
to further put the brakes on domain name farm-
ing, any domain name registered for the pur-
poses of earning money from advertising on a
website must only display content related to that
domain name. The domain name must not be
an entity name, personal name or brand name in
existence when it was registered and registering
misspellings of a company or brand name is also
banned when it is a deliberate attempt to trade
on the reputation of another entity's goodwill.
Tonkin says the .au domain name market
has grown by more than 25 per cent a year
over the past five years. Names such as super-
model.net.au and debtconsolidator.com.au
have been advertised for sale at prices
in excess of $10,000.
The .com market commands
million-dollar price tags for similar
premium names. Pizza.com sold for
US$2.6 million in March and fund.com
sold for almost US$10 million.
Although the Australian market is unlikely
to make anyone an overnight millionaire due
to its relatively small size (the number of visi-
tors to a .com.au name is between 10 and 100
times lower than an equivalent .com name),
Tonkin predicts we will see a level of interest
The value of a name is roughly proportional
to the number of people that visit that site,
he says.
L
The right domain name can drive enough traffic to a
website to dramatically reduce marketing spend but
what do you do if someone already has the name
you want? Louise Elder finds out.
t your service
the hard question