Architelos Introduces Online “Business Case Builder” For Domain Name Registries
RESTON, VA, March 15, 2011—Architelos, Inc. today announced the availability of a secure online tool, the Business Case Builder (BCB), which is specially designed for the domain name system (DNS) industry. BCB helps top level domain (TLD) applicants develop the full financials and comprehensive business case for any prospective TLD, prompting them at each step to input data and assumptions for building revenue and cost projections on both a cash and deferred basis as required in the industry.
The results can be downloaded into an Excel spreadsheet with graphic representation as well as customized Key Performance Indicators (KPIs). A BCB tutorial is available on the Architelos website.
Clients can access the tool via a one-time license fee. In addition, they can also engage the industry-experienced Architelos team to review and assess their BCB created business case. Or they can engage Architelos to help them create one from the ground up, with realistic forecasts for registrations and renewals, as well as costs and price points that are necessary to calculate return on investment.
With the imminent deregulation of the DNS industry, many new registries are expected to be established for generic (gTLD) and brand-specific TLDs. However, a business case for a registry is complicated by accounting requirements for both cash and deferred revenue projections. There are also many revenue and cost variables that influence the level of investment and ultimate success of a new TLD.
An apt analogy is the income tax return, says Architelos CEO Alexa Raad. One option is to read the tax code and hope to model all of its variables to develop an accurate return. A better option is to use off-the-shelf tax software. “Our tool prompts users with questions they may not have anticipated but that are essential for an accurate business case necessary to attract investors.”
Architelos developed BCB by leveraging its unique industry experience. Norbert Grey, who joined the Architelos team this week, was vice president of finance and administration at .MOBI and has set-up and managed registry financial and business operations systems. He led the development of BCB. Raad is the former CEO of PIR, the top-level .ORG registry and led the launch of .MOBI, the most successful in the 2004 round. Architelos co-founder John Matson has conducted financial benchmarking studies (PDF) of the internet registry industry and prior gTLD launches.
BCB helps the applicant fully understand registry economics to better negotiate agreements, such as the back-end registry contract, according to Matson. “With an estimated $500,000 initial investment or more to apply for a new TLD,” he says, “developing a solid business case is a wise investment. The Business Case Builder will help our clients and their potential investors make informed decisions.” Architelos, Inc. is a strategy and market development advisory service that focuses on growth, brand, positioning and business development for clients within the Internet and DNS sector. Founded in 2011 by Alexa Raad, former CEO of PIR, the .ORG top-level domain registry, and John Matson, a veteran management advisor to Fortune 500 companies, Architelos brings wisdom and experience to turn rapid market change into innovation and success for its clients.Tweet