Business Case Builder: Page 5

View the Results
At the click of a button, the demand model will calculate the entire suite of essential facts and figures required to calculate monthly cash sales, monthly accounting sales, deferred revenue, cost of goods sold and gross margin by accounting sales or by cash sales basis. The user can choose to view a very detailed domain revenue & COGS calculation or an executive summary of domains revenue & COGS calculation.

In a matter of seconds the user has their entire domain revenue, cost of revenue, gross margin and deferred revenue calculations at their fingertips. Without the benefit of this tool, the user would spend weeks trying to research the rules of domain revenue and cost recognition and even more developing a forecast model to work it out. With the Business Case Builder, users can redirect their time into value-added activities like industry benchmarking and financial analysis rather than “number crunching.”

Table 3 & Table 4 show the high level view of the demand model. A running total of the domains under administration is displayed on a month-by-month basis from your chosen launch date to as far out as 2025, split into new creates, renewals and even deletes by month. This is key information on the growth of the potential domain franchise, and because it deals with volume only, users can compare their forecast performance with other TLD launches of the past. The model also discloses the relevant domain years sold each month (see Table 3).

Table 3: Demand Model Summary Section 1

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Table 4: Demand Model Summary Section 2

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Table 4 illustrates the key revenue figures that are output instantaneously. Users can cash sales and accounting sales on a month by month basis out to 2025. Once the user decides when the launch dates are for Sunrise, Landrush & General Registration, the demand model calculates every material figure and organizes the data in a simplified view so as not to overwhelm with detail. Table 4 also displays the deferred revenue movements that are essential for accurate balance sheets.

Architelos has designed the model in a cascade fashion so that the user can seamlessly view figures for one launch phase (Sunrise) or for the entire group. Table 5 illustrates the demand model for the General Registration phase only. User flips between seeing the figures for Sunrise, Landrush, Premium Names or the entire group by changing the plan from another drop-down menu. This was design by Architelos experts who fully understand how financial information needs to be presented and “flipped” for many different views of the same information.

Table 5 : Viewing financial highlights for General Registration only and how we flip to other launch phases or view group results

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At the click of another button, the user is presented with revenue, COGS & gross margin on a cash sales basis or accounting sales basis. See Table 6 & 7 for both views.

Table 6: Revenue, COGS and gross margin on a cash sales basis

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Table 7: Revenue, COGS & Gross Margin on a deferred revenue basis

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The demand model was built by Architelos’ domain industry experts and designed to demystify the complicated world of domain industry accounting by presenting it in a simple form and leaving all the complicated calculations hidden in the background. For detail junkies, there is the ability to drill down to the minutia of each micro calculation by running canned reports and by viewing the details that are readily available.