International customers often ask why we choose to auction our expired com.au and net.au domain lists prior to catching the domain - because in most other domain spaces, this is how expired domain auctions work. After all, why run an auction when you cannot guarantee the product? The answer relates to .au policy. You can read in detail the about .au policy here.
In short, the following basic policy points in com.au relate to how we run our Drop auctions.
1) Registrars cannot register domain names using their own entity. This is known as Domain Warehousing or Front Running, and it is a serious breach of the registrars accreditation agreement. Therefore, we cannot catch the domain under our own entity and then hold the auction afterward.
2) You cannot register .au domains with the sole intent of sellign them. If a registrar did bypass the first restriction and catch a domain using its own entity, then this policy blocks the option of running a post catch auction, because you will be effectively selling the domain name via the auction. Read the full policy here.
3) FInally, when you submit a Transfer (Change Of Registrant) there are fees. Unlike .com where you can push a domain for free, with .au domains you must complete some paperwork and this process has costs associated. We charge $49.95 for our Transfer (Change Of Registrant) process, however most registrars charge well over $200 per domain!
Importantly, we have a No Win No Pay policy, so aside from the the disappointment of not winning the domain, you won't be out of pocket for the effort or experience of participating at the auctions.