Business Case Builder: Page 6

The Good Stuff

Architelos has designed a best of breed demand model tool that takes the pain out of calculating domain revenue and costs on a deferred or cash basis. The end user is empowered to spend their time analyzing results rather than number crunching. However, we didn’t stop there!

The demand model has a built-in performance dashboard that allows the user to visually view the results of their financial planning benchmarked against incumbent domain performers. Imagine you are inputting the assumptions and domain volumes for your new gTLD into our model. Almost immediately you can view the high-level financial results for revenue, COGS & margin. Now at the touch of one more button, you can view the main KPI’s and assess how it stacks up against .com and .net.

Table 8: Average Life Gauge

Table 9: Renewal Rate Versus Industry

Click the image to enlarge.

Table 8 & Table 9 are examples of two graphs designed by Architelos and automatically available with the demand model. We’ve complied all the essential KPI’s of the main incumbent gTLDs and have designed graphs that compare the results of your inputs in the demand model against the industry. Architelos is available to help interpret the results of this industry benchmarking and can assist tweaking your business plans to optimize your results.

Architelos developed the demand model to be used as a stand-alone solution or can be bundled with financial forecasting consultancy services. Our entire team has worked in senior financial capacities in gTLDs that have been through the launch cycle.

Some users may simply want a quick and reliable solution to calculating their revenue and COG on the twin cash and deferred revenue basis. Our demand model is ideal for their needs. In two minutes the user can input key assumptions and domain volumes and instantaneously view their cash sales, accounting sales, cost of sales service (including provider and ICANN fees), gross margin on a cash and accounting basis, domains under administration and full deferred revenue calculations. Users could then journal these key figures into their existing forecasting model, if appropriate.

Alternatively, Architelos can be engaged to build a fully customized forecasting model for the client. Architelos has a team of senior financial professionals with deep experience in financial planning in the domain industry. Architelos would collaborate closely with the client’s senior management and agree on the required structure of a financial plan. Using the demand model as its base, our team would design a budget model with detailed P&L, balance sheet, cash flows and KPIs dashboard to the client’s specification.