| 1.1 Portfolio
02 Domain Policy | |
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| 1.1.04 Domain Policy: | | Domain management is undertaken by the Portfolio Director as a valuable resource with an ever increasing value as the world demand increases exponentially. Too many companies did not comprehend to value of domain names and did not acquire ten years ago what they will need for the next ten years. | | A very large pool of domain names have been acquired to enable our customers to benefit from meaningful domain names for the long term. In the same way as 4 part IP addresses have now all been used up, all 2, 3 and 4 character domain names have been leased and now any domain name that is less than 8 characters has a high inherent value. In the good old days, people would buy a domain name to match their company name, today, entrepreneurs buy a domain name and then buy a company name to match. |
| New Businesses: | | Company formation is not something that many people are experienced at and so it has a great sales opportunity. A set of domain names covering all the premium top level domains are acquired together with a matching company name. Each domain is given a web site that can earn real revenue by selling luxury goods such as watches. | | After 6 months of positive trading history, the package is placed on eBay for sale with a minumum price of £1200 and a string of conditions. The condition is that we are looking for a buyer who needs a professional CRM, booking application, insurance application or trading application. Each package is a marketing proposition to find entrepreneurs who need our application services, financial services and business services. At all times, a new company formation package is available on eBay with very different characteristics to what went before. |
| Domain Portfolio: | | A domain portfolio exists and will grow by a few hundred names each year. When a pronouncable short name is found to be available, the major TLD versions of that domain are instantly acquired and put to work. | | All focus is on 5 to 8 character domain names - almost anything that is available as a COM, NET, BIZ, INFO, ORG and CO.UK will be purchased as a long term fixed asset. A world demand has fuelled the need for these names with prices showing a 50% increase year on year. | | A key factor in the application services that we provide to customers is a reasonable domain name, so a simple policy has been implemented to lease domain names, but never sell domain names. For the benefit of the next generation, a massive portfolio of pronounceable domain names will exist for new application services to be provisioned. |
| Diversification: | | It has always been good to diversify and sell what the customer wants to buy, rather than what an expert wants to sell. Is it easier to sell a £2000 holiday villa or a £2000 oil painting - it depends on the customer. Is it easier to sell a £2000 car or one thousand £2 toys - it depends on the customers. | | By using fulfilment houses to manage stock, cost of doing busines is well managed and small profits come from every sale. |
| Brand Valuation: | | It can take many weeks of brainstorming for a marketing company to invent a new brand name that is available as a company and set of domain names. As the world supply of domain names is finit, the cost of finding a new brand name is increasingly becoming more expensive. Is it said that £10,000 is the minimum cost of starting up a new brand. | | The old fshioned bill board in a city center costs £3,000 per month. A radio advert slot os £200 and five slots per day are recommended - that can be £25,000 per month. With Google, we spend £4,000 per month to promote holiday villas in France using Ad-Words. | | It is hard to imagine any domain that has a few years positive traing history to be worth less than £1200 as next years revenue. In fact, as the "do nothing" scenario is to earn £1200 in the next year, the real long term value must be many times greater. |
| Revenue Generator: | | Profit is the very small difference between two very big numbers as cost and revenue. When the cost is less than the revenue, then a viable business exists that can be multipled over and over again. When the revenue is less than the cost then the business is closed the same day - without exceptions. | | Each domain name has a target revenue stream of £1200 per year (in 2010 terms). This may be earned from direct sale of goods, direct subscriptions or indirect advertising; or any combination of all methods. A domain name can be loaded as an eBay trader account to sell many thousands of goods that are stocked by a fulfilment house. It does not matter what these goods are, so long as the fulfilment house is able to supply these goods directly to the customer without a high returns liability, then any domain can be made to earn revenue. |
| Sandbox: | | Google and thousands of oher search engines have a sandbox where a new domain brand may remain for up to 6 months to prove it is a true survivor. For 6 months it may have a low ranking, but time is a valuable ranking criteria and after 6 months the omain is released from its sandbox and given proper page ranking - its value increases ten-fold overnight. This means that domain brands must exist with a long term purpose so the asset valuation continually increases as revenue increases because of better eBay trader history and Google page ranking. | | Domain brands are purposfully created to complete with one another - to give the customer choice of buying the same goods for any one of your ten web sites. Many domain brands must look amerturish - people love a bargan and so a closing down sale, fire sale or liquidation sale can have real benefits. Customers who buy on low price are not looking for a long term relationship. Customers who need a long term relationship will buy from eBay and Amazon trader accounts where price is still the most important criteria. |
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