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.au Pricing Before and After Transition

Discussion in 'Domain News' started by trellian, Jul 17, 2018.

  1. trellian

    trellian Membership: Community

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    From what I have been able to work out the pricing for .au domain registrations before and after transition.
    BEFORE TRANSITION

    $8.75 per year
    $17.50 ex GST
    $19.25 Inc GST for 2 years

    Break up: (obtain from Neustar reports)

    auDA makes: $2.25 ex GST ($2.48 inc GST) per domain per year broken up into these below amounts:
    - $1.375 per year per per domain plus
    - $0.605 per domain in registry per year
    - $0.20 ($0.275 per financial transaction (add, renew, cor) per QTR works out to be around $0.20 per domain per year)
    - $0.07 around this per domain in the form of a subsidy from ausreg for secondary DNS

    AusReg $6.50 ($7.15 inc GST)
    (note around $0.30 was paid out for marketing rebates/bounties so AusReg share at the end was around $6.20 ex GST

    Gives our current Total $8.75 ex GST ($9.625 inc GST) Total per year per domain.

    AFTER TRANSITION The new pricing under Afilias ex GST
    $2.80 afilias (based on what we have been told)
    $5.08 auDA (increase of $2.83 from prior $2.25 fee)
    $7.88 Total per year (based on a 10% reduction of current wholesale costs)

    So instead of seeing a $3.70 per year reduction the amount of saving moving to Afilias, we are given only $0.87 per year.

    So yes there was definitely more that they could have passed on. I personally would have liked to have seen the wholesale price reduced down to $6.00 ex GST per year. $12 for 2 years. So a more of an even share of the saving that we would have passed in full to our registrar clients.

    This is what I would have liked at a minimum:
    $2.80 afilias
    $3.20 auDA
    $6.00 wholesale total

    If you want to do some sums, with over 3 million names, (3,133,144) as of May 2018 that is $15,916,371 per year for auDA. Where as before it was $7,049,574 a nice additional $8,866,797 per year for auDA.

    Over 4 years auDA will make $63,665,484 and extra $35,467,188, yet they only plan to spend $12mil over 4 years in marketing. I am not sure what their plans are for the Extra $23.5 million on top of what they already make to be used? Any one know?

    I for one think that the $12mil in grants and marketing incentives to help grow the industry is very much needed and actually a great step forwards. Most registries do this, so about time auDA did as well. Plus the grant formats that we have been told, seems fair and accessible. But as with all marketing and grant budgets, they always requires a lot more work and not everyone will benefit from them or be able to claim all that they can per year. I would anticipate that less than half of the $12 mil over the 4 years will be claimed. I could be wrong but that seems to be far too common when there are such programs in place.. What will happen to the amount not claimed is currently not known.

    As an industry we got 10% discount, $12mil over 4 years in grants that registrars can apply for, so this is a good start and better than what we had before, but in my opinion is still falling short of what could have been passed on and allocated. Hopefully auDA can reconsider the wholesale price and reduce this more.

    Cheers
    David
     
  2. DomainNames

    DomainNames Membership: Community

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    David, Congratulations for speaking up.

    Why don't the others in Supply speak up also? They think by mass sign uips of their staff they will get more benefits and more of the marketing funds? Watch this space for reality.
    1. current auDA and Board is now ripping off every Registrar consumer
    2. current auDA management and Board is now ripping off every Reseller consumer
    3. current auDA management and Board is now ripping off every .au domain name registrant owner CONSUMER.
    Why has Cameron Boardman offered to buy Registry.com.au from someone who spoke out when Cameron Boardman set up Registry.au? Where is the accountability and transparency?

    Cameron Boardman and the current Management and Board are planning to run the wholesale registry still it seems in the future.. It appears this is true with their secret planned Constitution changes they want also.. Wake up Afilias.. you are a temporary solution they put in.

    auDA CEO Cameron Boardman and Board still planning to run .au wholesale Registry internally once the updated auDA Constitution allows it...
    http://domainincite.com/21780-three-million-domain-au-deal-up-for-grabs


    Wake up Supply.. you are being conned and ripped off by CURRENT auda management and board.
    The con exposed
    1. https://www.smh.com.au/business/sma...n-name-owners-ripped-off-20170807-gxqpzs.html
    2. https://www.channelnews.com.au/australians-said-to-have-been-ripped-off-on-domain-names-since-2008/
    4. https://www.itwire.com/strategy/82986-auda-directors-vote-to-give-themselves-pay-rises.html

    REGISTRARS, RESELLERS AND CONSUMERS SPEAK UP VOTE FOR REMOVAL OF THE PROBLEM
     
    Last edited: Jul 17, 2018
  3. snoopy

    snoopy Membership: VIP

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    They made a huge mistake keeping almost all of the cost saving. This should have been passed through.

    auDA has $20 million+ cash reserves already. An organisation with 14 employees does not need $100 million+ in the bank which is how it will get.

    They are sucking up most of the wholesale cost. What other regulator takes most of the money?
     
    Bacon Farmer and DomainNames like this.
  4. trellian

    trellian Membership: Community

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    The SGM really should have been thought out a bit better and have the wholesale price being reduced as one of the voting items...Now that is something I would have voted on...
     
    Rhythm likes this.
  5. Bacon Farmer

    Bacon Farmer Membership: VIP

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    The current wholesale pricing is something that would go if we get rid of the current cabal. They are the ones the sucked up the cost reductions for their own purposes.
     
    joshrowe likes this.
  6. snoopy

    snoopy Membership: VIP

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    auDA's lawyers will throw up every impediment possible. If the resolution isn't specifically about removal of a director they won't put it on the agenda. Legally they cannot refuse those resolutions and that is why the SGM only contain motions for director removals. Over the last 2 AGM's they have removed every other resolution.
     
    Scott.L and joshrowe like this.
  7. DomainNames

    DomainNames Membership: Community

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    Hi David,You must vote FOR to solve the problems. There is no other option.

    The wholesale pricing rip off from current auDA was included and guess what it was even on the 2017 election campaign also. auDA current management and Board need to be removed and replaced. Easy

    Members are stakeholders are being lied to. The crap$ going on under current Management, current CEO and Board is worse than anyone can imagine.

    REGISTRARS, RESELLERS AND CONSUMERS SPEAK UP VOTE FOR REMOVAL OF THE PROBLEM
     
  8. DomainNames

    DomainNames Membership: Community

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    https://www.communications.gov.au/have-your-say/review-australias-au-domain-management
    https://www.communications.gov.au/publications/review-au-domain-administration

    " 1. That auDA continue to operate as a not-for-profit entity and does not seek to maximise profit."

    "2. The Chair has a fundamental role in driving the effectiveness of the board by providing leadership to the board and in engaging with the CEO.[1] The AICD also notes that good governance practice in Australia recommends that the Chair be an Independent Director to ensure the Chair is free from conflicts of interest.[2]

    Traditionally, auDA’s Chair has been an Independent Director. However, in late 2015 the Board appointed a director elected by the Demand class as Chair. Similarly, following the resignation of the Chair in August 2017, a director elected by the Supply class was appointed as interim Chair. The Review considers that the independence and role of the Chair should be specified. Providing such clarity may reduce the future risk of the auDA membership seeking to remove a board Chair, as the Chair will be operating within a more clearly defined framework.

    Likewise, in terms of transparency of internal governance, the Review also finds that there were no public documents outlining the role of the CEO. It was unclear as to the limitations of the CEO and how the position functioned alongside the Board. While the role and responsibilities of the CEO should be clarified, the Review also considers that the functions of this position should be reviewed, including the standards by which the CEO’s performance is assessed.

    As noted previously, Cameron Ralph Khoury was commissioned by auDA to develop a Board Charter. A Board Charter is an effective means for outlining policy on the respective roles, responsibilities and authorities of the board, the directors and the management team in setting the strategic direction of a company.[3] In articulating the roles and responsibilities of a company’s board and management, a charter also provides a framework for assessing the performance of the board. The Charter should also describe the basis for appointment of the Chair position.

    The Review considers that a Board Charter should be established to articulate the roles of the Board, the Chair and the CEO. In terms of transparency and accountability, the Review further considers that auDA should report annually and publicly to its stakeholders on the Board’s performance against the requirements of this charter. This would enable the Board to also assess the effectiveness of its Board Charter annually."


    [1] AICD, 2013, Good governance principles and guidance for not-for-profit organisations, p.21.

    [2] AICD, 2016, Director tools: Role of the chair, p.2.

    [3] AICD, 2016, Director tools: Board Charter, p.2.


     
  9. nt81

    nt81 Membership: Community

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    Personally, not worried but that's just me.

    The businesses that I work for re-sell domains and our clients are happy to pay $20-$30+ GST per year for domains*.

    Plenty of meat on the bone for us. Yum yum.

    * Still shy of the melbourneIT pricing. lol