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Key Highlights

• This business is a 21-year brand management company with 1400 resellers and over 1000 retail clients.
• It has over 1700 domains under management via long term contracts with large companies.
• The business is easy to run as all services are automated. The only thing which is not automated is the new registration for corporate clients as they require different countries. That said, once the corporate clients are quoted, our platform can onboard them in minutes
• Trading at 2.99X proift (as of 10/25/22) and card payments have increased 218% year over year)

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Business Structure:

Our business consists of three parts namely:

• Brand Management Channel: 
  • This is where we manage the intellectual profit rights of businesses as well as large corporations.
    • Clients pay by invoice on 30 days term. Recurring contract from 1 to 5 years term. Over $100k in contracts until 2030.
  • Majority of revenue comes from these domain renewals from large clients.
• Retail Channel: 
  • Small to medium size businesses and resellers buy services such as domain, and hosting on this section of the site.
• Amazon Store:
  • While this is not a core business, we have managed to get to 100k sales across Amazon UK and EU
    • Gained more than 200 domain services clients from the Amazon store so it is a great lead source.
• Domain Auctions/Brokering:
  • We buy and sell domains on behalf of clients = this is not included in profit for the last year but money was made (so an opportunity for new owner).

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Financials:

• Revenues come from domain management, registrations and renewals as part of the brand management channel. (approx. 25% of total revenue in the last 12 months)
• The retail channel invoices corporate client on 1 to 5 years basis and PayPal and card payments for the French site. (approx. 25% of total revenue in the last 12 months)
• Amazon brings another 15k in profit from hardware sales across UK and EU. (approx. 50% of total revenue in the last 12 months)

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Business operations:

There are 2 parts of the domain registry business.

• Brand Management Channel:
  • Corporate retail and wholesale customers are on contract and we invoice them on contract renewals. As per the excel spreadsheet, some contracts are renewed between 1 to 5 years usually. payments are received by wire transfer to a USD account. For corporate clients we make use of our network of freelancers through upwork.com or freelancer.com whenever we need to register a trademark or need a local translator.
• Retail Channel:
  • Small to medium-size businesses and resellers going through the French site.
  • Customers and resellers are on pre-paid accounts. They add funds to their account via PayPal or card prior to buying services on the site.The renewals are sent automatically by email. We take payments from different sources:
    • Visa/mastercard with barclaycard
    • Paypal, gocardless.com and squareup.com
      • Note: we are in the process of moving all online revenues to Stripe for ease of management

This channel of the business is  100% automated. The only work to be done is to update pricing when new services are available for resale.

On the other side of the business, there are also 2 main parts

• Amazon Business
  • The business sells laptops on AmazonUK at a minimal profit 
  • Main strategy is to use Amazon to generate customer leads for domain business
• External Services
  • The business has main addon services to the domain registry to generate additonal funds
    • Examples include selling hosting, doing domain auctioning, and other things.

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Domain Breakdown:

• The corporate platform we use mainly for CCTLDS
  • 1046 active domains
• There are also domains registered directly with the registries
  • 50 active domains.
• The self service prepaid platform for small biz has 1000 retail and 1400 resellers
  • 625 active domains
• Resellers
  • Biggest reseller: 179 domains
  • Biggest customer: 282 domains
  • Indonesia reseller: 30 domains
  • Saudi Arabia: 21 domains
  • Peru: 10 domains
  • Sweden : 11 domains
  • UK: 6 domains
• Extra Services
  • SSL cert : 19

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Customer Acquisition:

Customers are acquired through:

• Online advertisement using keywords (paid via Google Adwords)
• Natural SEO (from age of website and historical traffic)
• Word-of-mouth referrals (unique due to age of business and quality of customers)

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Opportunities:

The new owner would benefit from implementing the following steps:

• Integrate Stripe and other payment options so that it is more accessible.
• Upgrade UI of site to be more modern to increase conversions.
• Utilize case studies/testimonials of well-known currnet customers to attract more large clients and SMEs.
• Scale up Amazon business and launch new product offerings.
• Investigate other lead channels to drive domain sales.
• Automate onboarding of corporate clients to save time and improve experience.