*This is a concept webpage only, no offer of any type is being made or implied. All rights protected.

  "The Condo Conversion of Internet Real Estate"

FontainesdDomains.com

The entire marketing community is moving towards more targeted advertising. The Condomains system offers 100% targeting.

The Condomains.com system of domain name ownership opens the doors to many more players, enabling them to reap the traffic benefits of an Internet world where fewer and fewer domains are granted status by the major search engine.

How valuable is a domain name or viable web property?                      Fund.com   -  $9,999,950 (3/08)                      Sex.com  - $12,000,000                  Porn - $9.500,000                            Diamond.com - $7,500,000                 Casino.com - $5,500,000              Korea.com - $5,000,000                   AsSeenonTV.com - $5,000,000                         Wine.com - $3,300,000                                      Loans.com -  $3,000,000                 Vodka.com - $3,000,000                         CreditCards.com - $2,750,000                     Tom.com - $2,500,000                       Autos.com - $2,200,000                 Coupons.com - $2,200,000                     Express.com - $2,200,000                  Savings.com - $1,900,000                Mortgage.com - $1,800,000                      Deposit.com - $1,500,000                Fly.com - $1,500,000                            Men.com - $1,320,000                        Feedback.com - $1,230,000                   Phone.com - $1,200,000                        Find.com - $1,200,000                      Bingo.com - $1,100,000                        WallStreet.com - $1,030,000                        If.com - $1,000,000                             Rock.com - $1,000,000                        Sky.com - $1,000,000 
What if there were a way to allow countless others to benefit from the traffic of these busy domains and websites?
Condomains.com!

Examples of Potential Buyers for Condomains..
*An Internet Investment Group might create a fund to purchase multipe domain names, websites and include Condomain units among their holdings. The top right home page banner on a single major local web portal could be the crown jewel of their holdings. Internet Real Estate Investment Trusts can be created, allow more people to invest in the internet space overall.

*A large real estate franchise could purchase several Condomains on busy newpaper websites to establish a permanent marketing position in a given market on behalf of their statewide franchisees.

*The regional newspaper group could acquire a group of Condomains throughout their market, allowing them to dramatically exapnd the reach of their classified advertising products.

*Global businesses could acquire Condomains exclusively on sites visited by their desired customer base. Eventually replacing ppc or banner rotation marketing positions with self owned and controlled properties. Owning the billboard for less than renting it.

*Would it make sense for Bank Of Americheese to buy up the 20 busiest websites and turn them into mortgage sites? No, they have a website.
*Would it make sense for Bank Of Americheese to buy 1 60x90 pixel Comdomain to advertise on each of those same 20 websites? You bet it would!

Stagnant Domains. *Over 33 million domains were registered in 2007. There are now 153 million registered. Tens of millions of them are "parked" or otherwise unused. By offering a much better parking percentage revenue share, one can't help but to grab business away from parking companies. This would also position us to inherit the new and renewal registration business of these domain owners. To most of them, the opportunity to have a Condomain unit for sale on these domains, while earning some or more revenue than they currently receive, will be a motivating reason to join our network. Additionally, by offering low cost hosting, web design, SEO and related services, while also offering a virbtant domain, website and condomain resale and auction platform, we can position ourselves as the most attractive source for all their domain name, website and advertising needs.

Long Term Lease Option: While a typical Condomain is purchased property, this is not always the case. Seller can create a condomain unit, and offer it on the market as a 5, 10, 20+ year lease, similar to a long term commercial lease. This is for situations where the owner does not want to burden the property with the encumberance of there being an additional ownership interest in the overall property. While not financially as valuable a transaction as a sale, a long term condomain lease will still result in a significant revenue to the owner, and substantial long term benefits to the buyer. Regardless of a sale or lease, Condomains creates a longer term relationship then the typical per click, per impression, per month or other short term agreements.

Revenue Sharing. Why is it that these social networking sites receive the financial benefit of advertising their members create? We should offer a social site whereby the page owner is able to share in the benefit of advertising revenues earned through the traffic and popularity of their sites. A member with a busy site, with lots of friends or compelling content, deserves to benefit from the legitimate traffic those visits create. As it stands now, they are creating hundreds of millions of dollars in advertising revenues that is going to the site owners. So there isn't even a motivation to have a busy or compelling site, other than ego. That will change.

AdMerge.com - This will be the name of our advertising reseller network. ConDomains units for sale can resell advertising impressions through our AdMerge system (as can owned units). This will allow advertisers to pick and choose exactly which ad units on specific websites their advertising will run. Since these are higher quality units targeted specifically by the advertiser, they are worth more than Run Of The Internet campaigns. Since they are higher paying ads and since we give the Condomain owner a higher percentage then the competing adservers, our system is more attractive then the others.

AdSpaceAuction.com - This is where we will market the excess advertising inventory of our Condomain unit owners. The competition would fill these spaces with public service announcements, resulting in no revenue to the Condomain owner. We will have an ongoing auction for this excess (unsold) advertising inventory that will pay millions of website owners where they would not have earned anything. And the ability to purchase advertising below the going rates, through an auction format, is sure to draw the attention of advertisers large and small.
A. Executive Summary for ConDoMains.com.
1. Objectives.
2. Mission.
3. Keys to success.
4. Company Summary.
5. Company Ownership.
6. Start-Up Summary.
7. Company Locations and Facilities.
8. Products & Services.
9. Competitive Comparison.
10. Technology and Systems.
11. Market Segment Analysis.
12. Market Trends and Growth.
13. Strategy and Implimentation.
14. Value Proposition.
15. Pricing Strategy.
16. Sales Forecast.
17. Projected Expenses.
18. Projected Net Income.

ConDoMains.com - Executive Summary
The Problem
Condomains - The Condo Conversion Of Internet Real Estate. Condomains is a revolutionary new concept in the internet real estate environment. We will provide a market for the owners and buyers of domain names, websites and online advertising to establish permanent ownership relationships where only temporary month to month leases, CPM or Pay-Per-Click type arrangements currently exist. The existing system of internet real estate ownership and advertising is flawed in that it limits the ability of website owners and their advertisers to make permanent the mutually beneficial agreements they currently enjoy. We correct this limitation by helping the owners of internet properties to establish specified spaces within their properties, and designate those units as "Condomains". A Condomain is a condominium unit established within a domain name or active website. Only one entity can own a given domain or website under the existing models. Yet there is increasing value in these properties. There have been domain name portfolio sales that have recently sold for hundreds of millions of dollars. While most individual domain name sales are never publicized, in 2007 there were over 10 reported sales of individual domain names that went for over $1,000,000 each, the highest reported sale was $9,500,000. By creating the market where units within a domain name can be sold as wholly owned condominium entities, we take the most valuable properties of the internet and increase the number of valuable properties available to be owned by different entities to virtually unlimited porportions. Only one entity can own a 10 bedroom waterfront mansion, unless that mansion is condominiumized into 10 separate units. The perception that "all the good domain names are long gone" will immediately be proven false, because the market will now have a second option, one that allows multiple parties to benefit from a single domain or website. This concept will have a profound impact on how the entire internet real estate market operates. Condomains will be the exclusive broker for this new form of ownership.
The Solution
Condomains will become the Exclusive Listing broker, the registry of domain deeds, the MLS of internet real estate. BigCityDomain.com uses a 3rd party adserver to display ads of BigCityRealtors on their website, year after year. 3rd party adserver charges a 50% fee for this service. BigCityRealtor pays 3rd party adserver $1,000 a month for the top right banner on BigCityDomain.com. 3rd party adserver takes a 50% cut, and pays BigCityDomain.com $500 a month to display the banner. Condomains would help BigCityDomain.com turn that same banner space into a deeded Condomain, and would broker the "sale" of that banner to BigCityRealtor for a negotiated multiple of perhaps 15 years of the rate they currently pay. Since BigCityRealtor pays $1,000 a month, the sales price paid to BigCityDomain.com would be $180,000. As Exclusive Broker, Condomains.com would receive a 12% commission on the sale, or $21,600. 3rd party adsever would have charged $90,000 for the exact same deal, paid monthly over 15 years. BigCityRealtor will now "own" the ad space, having purchased at todays rates, and will have permanently secured the prime marketing position they desired to secure all along. In 15 years they will no longer have that marketing expense. In fact, should plans change, they might very well sell that Condomain unit, and for a profit (subject to deeded restrictions). Having received 15 years worth of advertising for free. One adserver had $1.6 billion in sales in a recent quarter by displaying these ads on websites like BigCityDomain.com, returning $800,000,000 of that to website owners like BigCityDomain.com. The adserver was not paid for delivering traffic, they were paid for delivering the ads. Somewhere between the willing website owner, and the willing advertiser, there was a 50% fee that was charged to facilitate a relationship that both parties wish to continue. The cost of the advertising agreement between local seller and local buyer was doubled, to pay a distant 3rd party adserver. There is a variation to the standard Condomain form of ownership the offers even greater flexibility to the buyer, CondoNames.com. The CondoNames system is where the property being purchased is a directory within a domain or website, such as BigCityDomain.com/REALESTATE, OR RealEstate.BigCityDomain.com -  where the directory "/RealEstate/" is being purchased, and sold. This form of ownership is ideal for situations where the owner of the primary domain or website has no interest, plans or expertise in developing "real estate" content on a busy domain, and would otherwise not earn revenue from the real estate vertical. By selling that CondoName to the local Realtor, who has significant interest in owning and operating that directory, seller can generate significant revenues while increasing the quality and depth of their website. While each of these sales will benefit the seller, there are countless types of buyers who would benefit from this form of ownership,  /Mortgages,  /Reservations,  /Rentals,  /CarSales,  /Shopping, etc. The owners of quality domain names would utilize our system to create a series of Domains within their domain, mazimizing potential by selling individual units on a domain that would otherwise have vaulue only to a single buyer.
The Benefits
The benefits of the Condomains system will apply to owners and advertisers, local and global. The local real estate franchise and the local newspaper portal, the major news site and the leading stock broker, each could benefit by the having the option of turning their perpetual monthly advertising agreements into a Condomain sale. Being first to market with this model, Condomains would become the exclusive brokerage to create, list, market and sell available Condomain units. We will help create the individual units, we will be the holding and recording authority for all Condomain deeds. We will handle all sales, resales, subleases and timesharing of all Condomains. This will position us as the Multiple Listing Service (MLS) for internet condominiums. When an owner has an interest in creating a Condomain, they will come to us. When an advertiser or investor is interested in purchasing a unit, we will have the inventory, and they will come to us. Current advertising is based on leasing space on someone elses property. Condomains is a deeded ownership interest in a designated space on a domain name or website, existing or proposed. A buyer might finance the purchase of a Condomain, use it as collateral, amortize the cost, gain tax benefits if they opt to sell it at a loss. The purchase of a Condomain might be financed through a mortgage type instrument which Condomains or our selected lenders would provide. The sale might include owner/seller financing, with 20% down payment and the balance of the sale price amortized over 15-20 years,to be serviced by Condomains, for a fee. Subject to deed restrictions, which will be determined by the seller prior to the sale of a unit, Condomains can be resold, they can be subleased, and owners may have the right to sell some impressions to other interested advertisers. A Condomain unit owner who's business is selling boating supplies might sublease their unit(s) to a company who sells snow skis during the winter months. In each case, the seller is in a position to realize many years worth of revenue, for a small section of thier total property, through a single agreement. In each case, a buyer is able to secure ownership of valuable real estate at a fixed cost, locking in todays rates. Unlike the month to month lease, seller receives infusion of capital, buyer acquires equity.
The Opportunities
The Condomain system is a form of fractional ownership but without the limitations inherent in the existing fractional ownership models.10 partners could not purchase and resell an internet property without the consent of other partners. But if those same 10 partners created 10 individual units within that same property, each of them would have 100% ownership of their unit, independent of the others. The Condomains system opens up an entirely new spectrum of possibilities. Owners of large numbers of domain names and resellers can create condomains and sell individual units, or offer groups of units. Those registering new domains will come to us as we will be the conduit for buyers around that world who have an interest in investing in the domain space, but who feel there are no longer available properties worth investing in. Those looking to acquire a network of ad units covering regional or vertical specific subject matter would shop our inventory of available units. Newspaper groups could acquire a portfolio of Condomain units to establish or enhance a classified advertising network. Advertising agencies could position themselves to not only create the message but deliver it as well. Investment groups could secure a network of high quality valuable units for investment or resale purposes. Condomains would allow large corporations to hand pick valuable ad units on domains and websites and secure ownership of large tracks of prime advertising positions where they could instantly position new products before the public. Condomains empowers the advertisers while dramatically increasing cash flow to the sellers. Website owners could designate a Condomain unit on their site and retain ownership, to be used to offer long term leases to advertisers, where the month to month, or even day to day systems are often their only option.
The Revenue

While our primary source of revenue will be the 12% commissions, we will be paid by the sellers when we broker the sale of their Condomain units, we anticipate several channels will become available to us through the relationships and trust we will earn through our clients and customers. There will be a $399 fee to have us create the actual domain unit and we will be the holder of all deeds. Many Condomains deeds will stipulate a monthly condo fee be paid for upkeep and promotion of the subject domain, and we will receive commissions on these payments as well. Since our client will always initially be the original owner of the property, all contracts will state that any lease, sublease or resale of a condomain will be required to be brokered by Condomains. The seller, retaining more interest in the overall property than an individual unit owner, would have certain rights that a unit owner will not have, similar to being the president of a condominium association. So a buyer of a Condomain unit will typically have to agree to our exclusivity, or opt not to purchase. We will partner with leading domain name registration companies so that they can offer Condomains services directly at the registration or re-sale level. We will offer domain name registration and hosting services ourselves, or through advantageous relationships with existing registrars. We will hold domain and Condomains auctions, positioning ourselves as a leader in the swiftly growing and extremely lucrative domain auction business. We will be the first entity to offer reliable valuation models and will be among the first to offer brokerage services for the resale of entire website properties. While a Condomain unit is listed for sale, the seller will have the option of having us run a "This Condomain For sale" advertisement in the actual space they are offering. This include websites and unused domain names. The "For Sale" banner will run in rotation with advertisements from our network of advertisers, and the percentage of revenue share going to the seller will be significantly more than what they would get from 3rd party adservers and resellers. The result would be that vacant domains and existing websites would both generate more revenue for the seller than they would receive if they weren't selling that ad space in the first place. Therefore, even with an overpriced Condomain unit that has little chance of selling, both the seller and Condomains will earn revenues while the unit is being marketed.
The Bottom Line
Ultimately, having created the very market, and as the exclusive broker with all the listings, as the broker with all the buyers, as the trusted and reliable holder of deeds and records, we will quickly become the only reputable source for the creation, sale, purchase and authority for internet real estate condominiums, Condomains. Due to the complexity and ramifications of creating ownership interests from what have to this time been short term lease agreements, our relationship with all parties involved with each sale will be considerably more intimate than what other players in the domain space have experienced. We will leverage these relationships, these trusts, so that any client we do business with with want to have us help them with all their internet real estate needs. From domain registrations, to web development services, to website hosting, to marketing and consulting services. We will be the MLS for internet real estate because will will create the market and service it well.

1. Objectives
The objectives of Condomains are:

1) Profit - To generate profits by filling a void and servicing an industry need. We anticipate multiple sources of revenue generation through brokering the sale of internet real estate, managing resales, subleasing of Condomain units, implimenting an advertising network, providing domain registration services, hosting, website development, portfolio management and website sales.

2) Growth - To grow the business at a rate that allows us to take an immediate proprietary leadership position in the marketplace, ensuring exponential growth of many types of services to internet property owners and online the advertising community. We will lead the market through this innovative concept, taking advantage of the fact that each Condomain unit we create on behalf of our clients results in the doubling of internet real estate available to be wholly owned by seperate entities. This increase in inventory can be realized through the exisiting volume of domains and website already owned in the marketplace, but which is not being serviced as it is yet to exist.

3) Honest Brokerage - Our services rely upon earning the trust of our customers and clients alike. While the concept of Condomains will increase the inventory of existing internet real estate by infinite proportions, will save advertisers countless millions and earn sellers countless millions, so to is there a great responsibility we owe to the industry that we remain a fair and honest intermediary for the fair, honest and accurate transactions that we manage. We are dealing with the valuable assets of our clients and customers. We will be the holder of deeds, the recorder of all records. This carries with it the burden of ensuring that long term accuracy and integrity are maintained.


2. Mission
Condomains mission is unique yet simple at it's core:

Purpose - To provide an alternative form of internet property ownership interest. To enable internet property owners the ability to generate significant revenues by segregating small parcels of their overall holdings and selling an interest in that limited space to interested buyers. To allow interested buyers, be they partners, advertisers or investors, the ability to purchase specified units within domain properties owned by others, enabling them to share in the benefits of quality internet space.

Vision - While not the ideal solution for all situations, there is a significant market for Condomains on the both the selling and buying sides. As the Condomains concept takes hold, the volume of Condomains created will grow and the interest in those inquiring and purchasing units will follow. We will leverage our relationships with interested sellers and interested buyers to offer them internet services above and beyond the brokerage of Condomain units.

Mission - The short term objective of Condomains is to start the company quickly and inexpensively, with a minimum of debt. To introduce the concept to the marketplace so that sellers clearly see the benefit of receiving a lump sum revenue payment for an ad unit that might take years to otherwise produce, if ever. To inform buyers and advertisers of an enticing new concept of internet real estate ownership that can solve their long term marketing requirements, in today's dollars. The long term objective is to grow the company into a stable and profitable entity, resulting in Condomains being recognized as the go-to resource for the sale of internet real estate of all types.

Marketing Slogan - "Condomains.com - The Condo Conversion of Internet Real Estate".


3. Keys To Success
The keys to success for Condomains are:

* Creating effective front and back end web development programs and databases to sufficiently service clients and customers.

* Forming a corporate entity and establishing solid legal, structural and formal documentation processes protecting the company, it's clients & customers.

* Marketing and networking, getting the Condomains name and concept into the marketplace.

* Developing relationships with domain name registrars, resellers and other IT companies to created cooperative marketing and sales strategies.

* Developing and retaining a loyal customer base to ensure long lasting relationshships, repeat business and referral opportunities. Create "word of mouth" press.


4. Company Summary
Condomains.com will be a start-up venture with the following characteristics:

* Condomains.com is in the concept stage, has no current debt, has no obligations, and has limited assets.

* Condomains.com will be a sole proprietorship until which time a partner or investor relationship is formalized.

* The goal will be to bring the Condomains system and concept to market as soon as possible, with as little expense and debt as possible.

* Condomains will be run from a home/office in Massachusetts, subject to change upon development of a partnership or investor relationship.


5.  Company Ownership
ConDoMains.com and CondoNames.com are domain names and concepts that are wholly owned by Robert Fontaine, operating as a sole proprietorship.

6. Start-Up Summary
While we will attempt to keep costs and debt to a minimum, there will need to be an initial investment made to create and maintain databases, secure legal council and advice, and initiate implementation of the system. Typical expenses for a growing business would also apply, including but not limited to computers, telephone systems, office space, sales staff and support personnel. Having started without debt or other liabilities, we can be flexible in determining the best use of funds and resources and will consult with partners and/or investors as to the optimal way to proceed.

7. Company Location and Facilities
Condomains.com is currently a home/office sole proprietorship, operating out of the home of the founder, Robert Fontaine. 

* More structured and formal office space would be required prior to going to market.

* Boston Massachusetts would be an ideal location to initiate this venture as this would place us in the center of commerce and potential customers, clients, vendors and partners.

* Aspiring to become a global brand in the internet space, much of our business would be conducted over the phone and through the internet itself. Our primary vehicle to conduct business, take preliminary orders, and garner sales leads would be through our website, Condomains.com.


8. Products and Services
Condomains.com will offer a variety of services to both internet real estate owners, and buyers. The buyers may included existing advertisers, investors, our groups of businesses requesting that Condomains help create and record one or more Condomain units on a start up venture website. The primary services we will provide are catagorized below:

* Creation and recording of a Condomain unit - attached to an inactive domain name, or operating website. Setup & Recording fee of $399.00 will apply.

* The Listing and Sale of one or more condomains names to potential buyers. Brokerage of of 12% of the sale price, if and when a sale is consumated. This fee will include assisting in the negotiation of terms between the buyer and seller, the recording and maintenance of the "deed of sale". *Agreements will stipulate that Condomains will be the "Exclusive listing broker"  for any sale, resale, sublease or timeshare of any unit sold through the Condomains system, and will be entitled to commissions as so stated within the agreement. This is to ensure the integrity of all Condomain sales by requiring a singular recognized recorder and maintainer of all deeds, Condomains.

* While a Condomain is being offered for sale, either on a vacant domain (not live on the internet), or on an active website, the owner of the Condomain unit may opt to allow us to place a "This Codomain For Sale" ad unit to run in the exact place and size of the Condomain unit being offered. Seller may also opt to allow Condomains to rotate impressions between the "For Sale" banner and ads run through our network of advertisers. The commission split on these impressions or clicks will be 25% to Condomains and 75% to the Condomain unit seller. A much more generous split than offered by the major ad servers.

* Having created the market, the concept, we will be the "broker" who has the inventory of Condomain units for sale. This will position us as the defacto Multiple Listing Service (MLS) of internet real estate. Because of the volume of units we will have to offer, we will likely offerer limited reseller or referral rights to a limited number of internet space companies. While each Condomain must ultimately be created, recorded and sold by our staff, we will offer incentives to these resellers by which they send us business from their clients or websites.

* Due to the nature and finality of the services we offer, the relationship we will build with those in the domain space will be much more involved and more personal in nature than the typical "database" type sale. Therefore, we will also offer existing clients needed and profitable services such as domain name registrations, website hosting plans, domain name sales and auctions, website sales and auctions, web design and database services, as well as others.


9. Competitive Comparison
The primary service and product offered by Condomains does not currently exist. So there is no competition to speak of at the present time. In fact, the competing companies that come closest to offering similar types of services to domain owners, sellers and advertising buyers, will likely not be pleased to see of the concept we are bringing to market as our service provides options to the industry can only draw business away from them. These potential competing classes include:

* Major search engines offering pay-per-click search position marketing. Condomains.com will effect this dynamic to our advantage by selling Condomain units to advertisers so they no longer need to pay exorbatent fees to be in the "sponsored by" positions at the top of search results. Instead, they can secure the same results by owning ad units within websites who are the "natural" results for searches the advertiser wants to be found under. Studies have shown that a great number of search engine users bypass the "sponsored by" results of the major search engines, viewing them as paid commercial instead of the best natural results for their search. Another important advantage to our system over the traditional pay-per-click system is "click fraud". There is considerable concern within the internet advertising community about click fraud, where competitors or others click onto the advertisement of a company to cost them money, having no interest in actually doing business with that company. The Condomain model renders this concern a moot point. The advertiser continues to benefit by the traffic and clicking on the advertisers banner has no effect whatsoever.

* 3rd party adservers and affiliate programs. Often run by the same major search engines who charge for search position, these adservers additionaly charge for advertisement to be show on the very pages that are found within their search results. Two bites at the apple. Every single Condomain ad unit placed into service will reduce the number of advertisers needing to participate in these programs. Every owner of the millions of websites who designate specific locations on their websites to display these 3rd party advertisements will reduce the number of websites available to the adservers to display the ads. Being that the adservers generate hundreds of millions of dollars a month by charging 50%+- fees, there is clearly substantial incentive for the primary parties to the sale, the buyers and sellers, to consider the vaslty less expensive alternative options available to them. Condomains creates this alternative option.

* Parking and domain registration companies. Millions of domains rest dormant on parking and domain registration companies servers. Parking companies display generic ads on the owners website, and shares revenues earned 50% to 50%. These are typicall templated web pages with the same content, one after the other. Domain registration companies simply place "holding" pages in place of domains that the owners have yet to develop, keeping all of the proceeds earned. In each instance, the advertisers paying for those less-than-optimal ad positions are the reason that Condomain ownership is an attractive option to begin with. The quality and relevancy of the website on which your brand is seen has a substantial effect of the results one can expect from that ad. Our system will profer much more relevant ads for the domain owner and at a substantially higher percentage payout going to them. To the advertiser, by picking and choosing exactly where their advertising is seen, where their brand is being nurtured, means they will realize increased sales for less money. Between click-fraud and less than quality template websites, the $3 per click that the advertiser paid to be seen on "a" website, certainly is not well spent most of the time. Yet they pay a 100% premium because the adserver is retaining 50% from the website owner.

There are several types of competitors who could compete for some of our ancilliary businesses. Domain name registration and web site hosting and design companies could compete with us for registration services, but our model assumes that we partner with these registration companies providing them with a new profit center, and we will also utilize our more personal relationship with customers and clients so they utilize us as their preferred vendor. And we'll offer lower rates than the competition.


10. Technology and Systems
Technology is, of course, vital to the success of the Condomains.com system. Because our system includes the unique concept of transferring ownership interest in an otherwise shared domain entity from party to party, it is imperative that we have a secure and stable database by which to maintain the records of all Condomain name deeds and records. The burden of the permanency of the deals we broker, the value of the property we manage, is also one of our strengths. When we create the market and then are recognized as the authority for this type of ownership, the public will not have trust in or accept transactions certified by less recognized companies, should others attempt to compete in the space we create. We will need a stable, trustworthy database system with fully secure backups in place.

We will clearly need a network of computers to operate the business, and a fully developed, secure website. In order to operate a domain registration service to enable us to receive referrals and allow "affiliate" reseller programs such as domain registration, reseller, and web development companies, we will need vibrant infrastructure that can handle several varying types of leads, sales and agreements. We will need to build an auction platform for the sale and auctioning of domain names and active websites. While each of these services might not be necessary in order to take our primary product to market (Condomains), it is clear to the founder that turning away potential business from a customer or client with whom we've established a relationship with, is akin to throwing away money. Trust, trust, trust. That term best describes what will differentiate Condomains from others who will see we have created a who new market, and aspire to compete with us.


11. Market Segmentation Analysis
Condomains.com will focus on the following end users:

1) Owners/Sellers. Individual domain name owners and owners of domain name portfolios. Owners of domain name properties that are currenly unused "vacant" or which are at Parking Companies, are realizing either 50%+- of every dollar an advertiser somewhere is paying to have advertisments seen on their domains. Not only do we offer a much more generous split to these domain owners, but we will place more relevand ads on those site while marketing the Condomain for sale. When we effect a sale, the owners of those domain names will recieve a lump sum payment equalling approximately 15 years worth of revenues they would otherwise receive, for allowing the sale of a single, standard ad unit "Condomain" on their domain, leaving the rest of the domain property for whatever use the owner desires. Unlike a newspaper, a webpage or website is approximately 8.5 inches wide, by infinity. You can create content downward on the page forever, you can add secondary pages forever. To the owners of existing active websites, we will space the same exact spaces on their website that they use for advertising by 3rd parties anyways. We'll just wont be keeping 50% like the adsevers do. And, once again, the sale of a single defined as unit for 15 years worth of revenue is an option that not many would be interested in ignoring.

2) Advertisers/Buyers. The regional newspaper group could purchase a dozen carefully chosen Condomains by which to enhance (or create) their online classified advertising network. The investor group could acquire a single quality Condomain on each of 50 different busy websites, one in each state, by which to create their own reseller advertising system. The local realtor could purchase a Condomain on the local newspaper portal, instead of paying the 3rd party adserver a 100% premium to place them in the exact same place. And as a purchase instead of a lease, they can retain that optimal position for as long as they desire, only to sell it at a profit when they no longer have use for the space. The advertising agency, the tri-state auto dealer, the global brand, each of these entities could benefit by acquiring and securing Condomains on otherwise unaffiliated websites, for the purpose of putting their message where they want, not where the adservers have available inventory, and at a defined price, in todays dollars. And they each end up with a marketable entity that could one deay result in selling the Condomain portfolios at a profit. Meaning they would have advertised where they wanted, for years, for free. 


12. Market Trends and Growth
The growth pattern for domain name registrations, the number of commercial websites, and spending in the online advertising sector has been growing at a rapid pace for the past decade. According to industy analyst D N Journal, The top 100 reported domain names sales this year (2007) compared to last year (2006), the top 100 median sales price has increased from $124,000 in 2006 to $197,500 in 2007. According to DomainTools.com, over 400,000 new domain registrations are purchased every day. In 2007, the developed website Business.com sold for $345,000,000. In 2006, Marchex Inc purchased a portfolio of 100,000 domain names for $164,000,000. Domain name auctions are held nearly every month, and domains originally registered for under $10 each result in auction sales of hundreds of thousands of dollars. The value of domain names, the value of traffic, is growing by the day. Market share is being taken from traditional media like newspapers and other print media. Online advertising has increased year over year and is expected to continue this trend. According to internet the IAB Internet Advertising Revenue Report, In the US alone, spending on Internet-based ads reached nearly $17 B last year, representing nearly 6% of all media spending up from 4.5% versus the previous year. The internet is barely 10 years old, yet internet marketing continues to eat away at traditional media advertising. It is universally accepted that this trend will continue, and there is much room for growth. This is a unique time in history for a visionary company like Condomains to present the next generation of internet marketing and valuation standards. One need not own the majority of the market to become successful, but by controlling the majority of a major news segment of this medium, the potential profits are hard to comprehend. Imagine being the exclusive broker for all condominiums sales in Las Vegas? In Nevada? In the United States? Globally? The opportunity is there for the taking, and Condomain is situated to do just that. It will take only one notable Condomain purchase or sale by a large corporation, or even a long term lease agreement, until the markets view Condomains as a viable alternative solution to the existing internet real estate ownership and advertising models.

13. Strategy and Implimentation
Condomains.com will focus on the following to establish and grow the business:

* Five main promotion strategies: networking and referrals, internet based promotion, traditional media advertising, affiliate and co-branding agreements, and non traditional creative marketing.

* A value proposition of efficient, affordable, and practical internet real estate monitization services, to include the Condomains concept of ownership and advertising along with domain name regisitration, hosting, development, sales and auction services.

* A competitive edge by being 1st to market with the concept, and by earning the reputation as the exclusive trusted source for the registration of deed and contracts.


14. Value Proposition
The value proposition offered by Condomains is quite simple: innovative internet marketing, ownership, investment and advertising solutions and services. Practical, personalized solutions offered at reasonable prices while recognizing that each client's needs are unique. We will be entrusted to broker the sale of valuable property, our clients cannot conduct business with us by using an automated form, as they do with competing services. Each client will have an account rep who's name they know.

15. Pricing Strategy
Condomains.com, introduding an entirely new product to the market, will have two pricing philosophies. One for our primary, exclusive product line based on Condomain creation and sales, and another for our ancilliary services in which we compete with others.

* Pricing for Creating Comdomains: The creation of a single Condomains unit on a website, including recording of the contract and maintaining of the deed: $399.00. The creation by a client of more that one Condomain, when ordered at the same time, will be discounted by approximately 10%. For ten to 20 Condomains created through the same order we will offer a 20% discount on the total charge. We will have proprietary pricing exclusive to large domain portfolio owners that will be negotiated through Comdomains management and the portfolio owner.

* Pricing for the Sale of a Condomain: Condomains will be offered for sale on a commission basis, the fee is earned upon a successful transfer of the deed from seller to buyer. The standard commission amount will be twelve percent (12%) of the sale price. *This rate assume that seller agrees to include language that grants Comdomains.com the right to be the exclusive broker if and when the buyer of the Condomain should sublease or resell the unit. **This strategy is to insure that Condomains can retain it's proprietary position of Exclusive Brokers for all Condomain sales, while also ensuring our position as such does not result in anti trust or monopoly type legal claims. "Condomains" may become a generic word, but it will be foremost a "system" and a "brand", protected by copyright and patent laws.

* Pricing of Condomain Adverser System: While a Condomain unit is being marketed for sale, or otherwise, we will offer the owner the opportunity to display "This Condomain For Sale" type banners in the actual ad unit that is for sale. Owner has the option to have our network of advertisers "Ad Network" run ads in rotation with our For Sale banner. The revenue split for these 3rd party advertisements will be 75% to Condomain owner, 25% to condomains. 50% less then competing advservers charge.

* Pricing for Ancilliary Services: Condomains.com will be in a position to offer additional internet related services to our clients beyond our core products. These include domain name registrations, domain sales and auctions, hosting and web development, and other services. It will be our policy to meet or beat the best rates charged by legitimate competitors who are operating at a profit. So long as we are not selling for less than our cost. Even the lowest priced vendors in each of these segments makes money on their services, some just make less per sale than others. Due to the added advantage we will receive by establishing relationships with the typical customer, which the competition does not enjoy, offering these products and services for minimal profit is actually a means to increase client base for little or no cost. As additional means of creating revenues, Condomains might also assist with the financing of Condomain units, either directly or through partner lenders.


16. Sales Forecast
The sales projection figures shown below are based upon the assumption that sufficient capital investment has been made in the company so that all required elements of a successful operation and in place, and we are fully prepared to bring the product to the market. Yearly figures for subsequent years include assumed product growth, re-sales, affiliate/partnership income generated as business grows, and understanding and acceptance of the system by the industry.
Sales Forecast FY 2009 FY 2010 FY 2011
Condomain Units Created 3,600 11,000 34,000
Creation & Recording Fee @ $399. 1,436,400 4,389,000 13,566,000
Condomains - Unit Sold 1,200 6,000 15,000
Average Sales Price 42,000 64,000 84,000
Total Sales in Dollars 50,400,000 384,000,000 1,260,000,000
12% Commission Earned 6,048,000 46,080,000 151,200,000
Condomains Using Ad Network 1,800 5,400 16,000
Ad Network Sales in Dollars
*Assumes $100 in sales mo per unit
1,800,000 6,480,000 19,200,000
75% to Condomain Unit Owner 1,350,000 4,860,000 14,400,000
25% to Condomains 450,000 1,620,000 4,800,000
Registration, Hosting, etc. in Dollars 1,200,000 2,800,000 6,300,000
Net Revenues Earned by Condomains
*Assumes over profit margin of 10%
120,000 280,000 630,000
Projected Total Sales Income: 8,054,400 52,369,000 170,196,000

17. Projected Expenses
Because Condomains.com assumes there will be investment and management participation from other parties, projected expenses will depend greatly on concensus decisions regarding intended rate of growth, equipment. The projections stated below will likely be amended considerably.
Projected Expenses FY 2009 FY 2010 FY 2011
Employees 27 120 400
Payroll & Payroll Taxes *$60k/yr/Average 1,620,000 7,200,000 24,000,000
Sales and Marketing 1,000,000 3,000,000 8,000,000
Leased Equipment 400,000 600,000 1,000,000
Purchased Equipment 2,000,000 4,000,000 6,000,000
Utilities 300,000 800,000 2,500,000
Insurance 120,000 400,000 600,000
Rent 90,000 450,000 1,300,000
Other 1,500,000 2,500,000 5,000,000
Total Operating Expense 7,030,000 18,950,000 48,400,000

18. Projected Net Income
Projected net income for Condomains.com is determined by calculating Earnings Before Interest, Depreciation And Amortization (EBITDA).
Fiscal Year: FY 2009 FY 2010 FY 2011
Projected Sales: 8,054,400 52,369,000 170,196,000
Projected Expenses: 7,030,000 18,950,000 48,400,000
Projected Net Income: 1,024,400 33,419,000 121,796,000