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Why Auctioning On 'The Block' Is An Exception To The Rule
So why do The Block insist on auctions? Firstly, they are great for television as they hold suspense and a big audience. This means channel nine can charge big dollars for advertising. They are also great for one of the major sponsors Domain. Domain makes money through advertising homes but rely on agents to sell the benefit of their company. And of course agents benefit from an auction…. (can you see the circle here?).

But here is why auctions work for the show. It is very ego driven and has a national audience. Let’s start with the audience. In the very first season of The Block in 2004 John Ilhan (Crazy John the mobile phone dealer), understood the exposure on national TV would help launch his brand into NSW where the auctions were held. ). Crazy John had a mascot bid at auction and buy one of the homes. Even if he paid over market value it was a smart strategy as this type of brand exposure would be talked about far more than any ad.

Danny was a bidder on the show in 2013 wearing a branded T-Shirt and making odd numbered bids to get noticed. It was a Crazy John type attempt at free publicity but one the audience and producers did not like. The show has evolved over the years and since then only pre-qualified buyers (or maybe not but that is a whole conversation in itself) are allowed to bid.

In 2020 when Danny went on the show it was all about ego. There is no way a serious investor would choose a Block house, let alone three. It is simply not the best use of their money let alone outbid the competition by so much when all you have to do is be the highest bidder in theory by $1. If you do follow the show watch and see what Jimmy and Tams house sells for now, that will be a fairer reflection of the value.

So that is why Auctions work for the show, a private sale has no theatre or way for the Danny’s of the world to splash their cash in a public way. Sure people may fall in a love with a home they see on TV but for $4m they can build their own dream home.
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