Registry Operator's Proposal - BUSINESS CAPABILITIES AND PLAN

D13.2.2. Revenue model. A full description of the revenue model, including rates to be charged for various services.

Group One Registry will pay the Registry Operator $0.50 per registered domain name subject to a minimum monthly payment of approximately $178,000. The minimum monthly payment has been set in this model to cover the minimum registry operator operating costs. This minimum monthly payment will be increased on an annual basis for cost inflation.

The flowchart graphically depicts the flow of funds both into and out of the Sponsoring Organization and the Registry Operator. Summarized, the Sponsoring Organization will earn its revenues from the registrars as those registrars register domain names. These revenues, in addition to the Sponsoring Organization's commitment of $12 million in initial funding, will fund minimum payments to the Registry Operator, the sales and marketing plan, ICANN's cost recovery and a fund for Internet development. These revenues and costs are more fully explained in Section D13.2 and D13.3 of the Registry Operator's proposal, and in Section C12 of the Sponsoring Organization's proposal.