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Here's the The Lowdown from DN Journal,
updated daily
to fill you in on the latest buzz going around the domain name industry. 

The Lowdown is compiled by DN Journal Editor & Publisher Ron Jackson.

With the ccTLD Market Booming Drop.com.au Joins the Growing Competition for Expiring Australian Domains 

Two weeks ago at this time I was sitting on the opening panel discussion at the T.R.A.F.F.I.C. Las Vegas conference talking about the growing aftermarket for ccTLD domains (some hard data from that talk is included in our latest monthly newsletter). At that show and again at 

the DOMAINfest Global conference that ran last week in Santa Monica, California, I ran into Fabulous.com's long-time Business Development Director Mike Robertson, who is taking advantage of the ccTLD boom with Fab's new drop-catching service at Drop.com.au

The service focuses on catching expiring games in Australia's .au extension (most 

notably .com.au and .net.au) and they have had a lot of success. As of mid-January, Robertson said Drop.com.au had caught over 82% of the domains they went after. As with most dropcatching services, you can enter as many names as you wish and you only pay if they are successful in getting the domain. When multiple orders exist for the same name, the caught domains go to auction, but even in that format the prices have remained very reasonable with the average sale price being just over AU $43 since the service opened last May. As more players have entered the space, that figure has been steadily rising in recent months and hit AU $73 in December.

With the growing interest in Australian ccTLDs the competition is getting stronger for the best keywords too. Drop.com.au's top five sales have been Printing.com.au (AU $9,221), MotorHomes.com.au (AU $5,556), LiveMusic.com.au (AU $4,501), FinancialAdvisor.com.au (AU $3,889) and MotorSport.com.au (AU $2,531)

When I was in Australia for the T.R.A.F.F.I.C. Down Under conference that Fabulous staged in November 2008, I couldn't help but notice the .com.au domains on signs and billboards everywhere I went. I also couldn't help thinking that the extension could be a big hit in the aftermarket if the severe restrictions on .com.au ownership were relaxed. Prior to the middle of 2008 .com.au domain owners weren't allowed to resell names at all

The space is less regulated now, which is opening up aftermarket activity, however there are still some restrictions on who can register and own .au domains. That 

doesn't mean you can't invest though. Robertson said Drop.com.au can get overseas customers set up so they can participate in the Australian domain market. You can learn more about Drop.com.au services in this PDF file.

You might also want to review some of the interesting monthly reports released by AusRegistry.com on growth in the .au space. For example, their December report shows that the  total number of .au domains registered grew over 23% from the previous year to more than 1.58 million. With the aftermarket for this great nation now beginning to open up, I expect we will also see more transactions and higher prices for .au domains in our weekly domain sales reports in the months and years ahead. 

(Posted Feb. 4, 2010)

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