Internet Events International, Inc. is the Sponsoring Organization for a new Top-Level Domain (TLD) on the Internet, namely, .event, in the start-up phase. The company will offer registration services and associated technical support as the Registry Operator for .event. Internet Events International's corporate headquarters will be located at South 4122 Grove Road, Spokane, WA. The company will initially lease 20,000 square feet of office space at this location. The firm will also lease a call center facility in Orem, Utah. The call center is 10,000 square feet. Lease agreements for both facilities are under negotiation. The introduction of Internet Events International’s new TLD and sub-domain system will provide increased structure, accessibility, and stability to the Internet. Upon completion of successful negotiations with the Internet Corporation for Assigned Names and Numbers (ICANN) and selection by them to operate the proposed TLD, IEI will begin pre-registrations for second-level domains (i.e., NBC.event, GE.event, etc.). Through the use of the restricted domain .event, the proposed sub-domain system, and market-neutral search engines, IEI will be able to ensure both advertisers and end-users:
IEI will sponsor the first TLD to focus on global unification, including a minimum of eight distinct language options on our launch date, with planned expansion to meet all international needs. Implementation of the restricted domain .event and the proposed sub-domain system will also appeal to the event industry in its broadest sense, allowing advertisers to post information ranging from upcoming retail sales events to recent medical patents or releases. Management plans further call for the most forward-thinking processes and systems, to include cutting-edge technology which could support all current worldwide TLD registrations and all Internet traffic, in the event of a catastrophic geographic failure of the current Internet. The company will use various media channels (Internet, television, radio, and print media) to launch an advertising campaign designed to educate the public regarding the advantages of searching for information with our restricted TLD and simple sub-domain system. Registrations will be accomplished directly over the Internet and/or via customer service representatives at our call center. Type of Business IEI is an international Internet (start-up) provider of registration services. Sponsoring the new TLD will ensure that IEI is a leader in the event industry, providing direction and organization to the Domain Naming System (DNS) and increasing access to information. The scope of current TLDs, such as .com, is so broad that finding specific information, even with the use of a search engine, is an extremely tedious task. .event will simplify this process by offering an easy, logical separation of data, and will employ search engines organized by sub-domains, not pricing structure. The company’s objective is to help all users search the Internet and actually find what they are looking for, without sorting through many unnecessary sites. IEI, as the Sponsoring Organization for these registration services to .event, will manage the Registration division (comprised of the Registry Operator and the Registrars) and the Policy division (responsible for regulatory compliance and policy determination), as well as general administration. The functions of the corporation are primarily advertising in nature, although an exact SIC code does not currently exist. Consistent with the Internet industry, registration will be available for domestic and international customers, 24 hours a day, seven days a week. Our registration page will feature a fun, visually appealing, and easy-to-navigate interface. The company's pricing will be competitive, and our website will provide access to an extensive database of registered companies. Our management team has effectively identified:
Company or Business Summary IEI is an Internet start-up company. IEI will operate as the Sponsoring Organization for the TLD .event ,the Registry Operator for .event, and a Registrar for .event. Consequently, this business plan will apply to all three organizations/divisions. IEI was incorporated as a Subchapter-S Corporation in the State of Utah in August 2000. As an Internet TLD Sponsoring Organization and Registry Operator, we will enjoy the following key operating advantages over other top-level domains and other Internet advertising companies:
Financial Objectives We expect to become profitable within the first year of operation because of two factors:
Initial market research of global industries has suggested that over 35% of industries are interested in advertising within an event-oriented categorization of the Internet. Additionally, Internet marketing experts have indicated that approximately 35% of current Internet registrations are "protectionist" in nature, either actively or passively. These "protectionist" inclinations can reasonably be expected to carry over into the introduction of new TLDs at a similar rate, if not an increased rate. Despite the fact that either market model could independently exceed our most optimistic sales projections, we have built our budget around the principle of supporting our most aggressive estimates of customer needs with our most conservative estimates of revenue generation.
Management Overview The management team at IEI has a great deal of relevant experience with technology-dependent companies and general business management. The current President and CEO, Mr. Loren D. Hollingsworth, has founded a not-for-profit organization aimed at assisting high school students and increasing the credibility of our educational programs on a national basis. He has also served as President/CEO of three other successful organizations, and brings a great deal of business experience to the management team. Mr. Neal D. McLain, Vice President of Policy, and Mr. Brian J. Burnett, Vice President of Registration, have a combined total of over 50 years experience in engineering, technical operations, and Web-based business. The final member of our current Board of Directors, also our Executive Vice President, is Mr. Stephen W. McLain, who brings extensive administrative, security, and technological expertise. Ongoing recruitment efforts are in place for several other top executives and an advisory board. Products and Services IEI will be selling TLD registrations and advertising on the Internet, to corporations, small businesses, and individuals. Although direct competition will be limited to other TLD registries, no other current TLD registries offer our combination of restricted domain access and sub-domain system, logical organization of the event industry, global unification focus, or technological superiority. Funds Requested IEI is prepared to issue up to 500,000 Class B Preferred shares (non-voting) to a venture capital fund or a syndicate of funds. This would represent a 50% equity position in the company. The corporate charter may be amended to authorize another 200,000 shares to be awarded to the current shareholders on a pro-rata basis. In return for the 50% equity position, the company is seeking $5,000,000. IEI is also pursuing advertising contracts initially intended to generate $6,200,000 in return for a 3-5 year exclusive banner advertising provision. Exit IEI expects to become profitable within the first year of operation. All stockholders should anticipate a disbursement of dividends no later than immediately following the March 2002 meeting of shareholders. While the company does not anticipate an IPO at this time, the option will remain open. Similarly, though not anticipated, options for the dissolution of the company will also remain open.
Business History On August 15, 2000, Internet Events International, Inc. was founded by Mr. Brian J. Burnett. Mr. Burnett, as President of Virtual Unlimited, Inc., a not-for-profit company, had been researching the viability of utilizing online advertising for the event industry. He had also been discussing the concept of developing new top-level domains in an effort to provide greater organization and stability to the Internet, with Internet industry experts, such as the Chairman of the Board for the Internet Corporation for Assigned Names and Numbers. Shortly before ICANN announced their intention to solicit sponsorship of new TLDs, in early 2000, the market research finally indicated that the global event industry was ready for the transition into the Internet community. The coincident timing of the two events provided the perfect opportunity to introduce the conceptual and technical models proposed by IEI. Subsequent discussion with experts in both industries has indicated that the models will be favorably received. Growth and Financial Objectives
Operating Performance Highlights
Legal Structure and Ownership Internet Events International Inc. is a Subchapter-S Corporation incorporated in the State of Utah. 1,000,000 shares of stock have been authorized: 300,000 shares to be issued as Class A, Preferred Voting Stock, and 700,000 shares to be issued as Class B, Preferred Non-voting Stock. Currently, only 100,000 shares of Class A stock have been issued. No Class B stock has been issued. The principal stockholders are Brian Burnett, Stephen McLain, Lora Mohr and Loren Hollingsworth. Company Location and Facilities Internet Events International is currently located at 10901 S. 1000 E., Sandy, UT 84094. The corporate headquarters will be located at South 4122 Grove Road, Spokane, WA. The company will initially lease 20,000 square feet of office space at this location. The firm will also lease a call center facility in Orem, Utah. The call center is 10,000 square feet. Lease agreements for both facilities are under negotiation. Plans for Financing the Business IEI is prepared to issue up to 500,000 Class B Preferred shares (non-voting) to a venture capital fund or a syndicate of funds. This would represent a 50% equity position in the company. The corporate charter may be amended to authorize another 200,000 shares to be awarded to the current shareholders on a pro-rata basis. In return for the 50% equity position, the company is seeking $5,000,000. IEI is also pursuing advertising contracts initially intended to generate $6,200,000 in return for a 3-5 year exclusive banner advertising provision. All indications suggest that IEI will be profitable within the first year of operation. A core of experienced and talented managers has been assembled to form the management team.
Loren D. Hollingsworth, 31, President. With over 10 years of management experience, immediately prior to joining IEI, Mr. Hollingsworth was President of Empire Homes, an organization which achieved a 400% increase in net profit within one year. Mr. Hollingsworth has also served as the President and Chairman of the Board for the Utah Association for Excellence in Forensics since 1997.
Organizational Structure
Principal Stockholders Below is a summary of the current stockholders and their holdings:
Our marketing and demographic data is based on accepted historical data and current projections of future market trends. This data has been compiled from standard industry sources including, but not limited to, the following:
Industry Analysis The World Wide Web has been available to the general public since 1988, with the authorization of the .com TLD. It began its current explosive expansion in about 1994, and today represents a multi-trillion dollar industry with on-line advertising contributing several billion dollars annually. As of August 29, 2000, over 27.6 million domain names had been registered on the Internet. The demand for domain names within the TLDs currently available is increasing at a rate of approximately 18.5% per quarter, which compounded, equates to a 97% annual growth rate. Target Market Our first year target demographic model includes all 28,781,217 current US and international Domain Name Holders for the purposes of introducing a new organizational system of restricted Domain Names simplifying the process of reaching a specific target market, as well as Trademark, Famous Mark and Branding Protection. In addition, there are approximately 144,000 businesses and other entities on the Internet Corporation for Assigning Names and Numbers’ (ICANN’s) mailing list which have specifically requested notification of the launch of the new Top Level Domains. Through an aggressive and innovative marketing campaign we will educate and entice the US and global Internet communities to use the easier system of restricted TLDs (ours in particular) for attracting attention to specific happenings in their respective organizations. The nature of our proposed TLD is such that it is also expected to attract some of the 55,000,000 global, non-Internet businesses to use the Internet to easily and effectively reach their target markets. After the first six months, our target demographic model expands to include smaller organizations and individuals by introducing a system of categorically focused sub-domains allowing them to effectively reach smaller, even private, target markets. Customer Profile Due to the extremely diverse characteristics of Internet users and the global appeal of .event, further specification of customer profile is unproductive. Major Competitors and Risk Factors The only currently active competition comes from other TLD registry organizations. As ICANN is currently negotiating to add many new TLDs, the field of competition is fluctuating. Market Segmentation During the start-up period our market will consist of only extant businesses, Trade Mark holders, owners of Famous Marks, and current operators of active Internet Domains (not to include cyber-squatters and/or others in the business of domain name resale). During the period following start-up and continuing until the end of 2001 our market will be expanded to include any and all businesses or related entities which meet our domain registration restrictions. Starting January 2002, our market will be expanded to include any person or persons who meet our domain registration restrictions. At this time all entities meeting the registration restrictions will be accepted. Any expansion or modification of our market beyond this point will be in reaction to the market itself and determined by the .event Policy Group. Projected Market Growth and Market Share Objectives
IEI will be selling TLD registrations and advertising on the Internet, to corporations, small businesses, and individuals. Product and Service Uniqueness As an Internet TLD Sponsoring Organization and Registry Operator, we will enjoy the following key operating advantages over other top-level domains and other Internet advertising companies:
Competitive Comparisons Although IEI’s primary source of competition will be other TLD registry groups, the unique nature of our model does not allow for effective competitive comparison. Research and Development A vast majority of research and development investment will be in the area of logistics and technology. Improvements in the way we deliver content, interact with consumers, and deliver products will be the top R&D priorities. A significant portion of gross profit will be dedicated to ensuring that we employ the most cutting-edge technology available and proven effective. Web Site A website will be established to facilitate registrations to .event and provide an open medium for public comment. Full technical plans have been designed to support all associated registration functions. Policies The Policy Board of the Sponsoring Organization will be responsible for receiving and processing as well as replying to input from domain holders, registrars, users and the public at large. In addition to unsolicited input, we will regularly place ads in different print media, including event and expo industry magazines. If our Policy Board feels that the input it is receiving seems to be missing representation of certain groups within our target market, such as international users or sub-domain holders, it will actively seek input from these groups through advertising and other forms of communication directed at these markets. It is our intent to meet regularly with ICANN and/or other registries to share successes and struggles and to discuss the marketplace at large. As trends of the Internet continue to change and flow, we have left our policies open to changes as needed. Openness and transparency policies will be handled by the Policy Board. We will have a dedicated staff member to post information, policy change, meeting minutes, public notices and also respond to and monitor bulletin boards on policy.event. All TLD policies will be posted at policy.event with links from register.event, search.event, etc. We will practice an "open-door" policy among our employees and also through the bulletin board system from the public. All comments and suggestions are welcome and will be responded to in a timely manner. Major policy changes will also be announced via newswire services and other means as appropriate and as approved by the Policy Board. One of our general hiring policies is to hire from within whenever possible. Our hiring model is as follows: General staff will be screened by HR and hired as needed. Supervisory positions will also be screened by HR and then interviewed by a panel of "peers," meaning employees at the same level of authority. Positions at the "Manager" level and above will be hired in similar fashion, but will also be presented to the Management Board for approval. Standard employee contracts will be "at-will," meaning no notice is required for termination of service by the employee or by the company. Management level contracts will generally be for two years, unless otherwise negotiated and stated in writing in the contract. Compensation will be competitive for the market and field of the position. Salaries and other compensation will be set in the Human Resources manual with a base pay rate for each job title and standard policies for level of proficiency pay raises. Bonuses and shares will be awarded for performance and service and will be voted on and determined by the Management Board. Annual raises will be a percentage above base salary at a rate determined by and voted on by the Management Board. Any general staff member may be dismissed "at-will" based on company needs. Management level employees will be given two weeks’ severance or notice based on security policies. Dismissal may be for poor performance and/or attendance, failure to work with team members, theft or other criminal activity, including failing random drug tests at work, inability to perform the required job functions, violating the open-door policy, or other reason as determined by supervisor and approved on a case-by-case basis by Human Resources and/or the Management Board. All dismissals may be appealed in writing within two weeks of initial written notification of dismissal. Appeals will be handled by Human Resources managers and may also be brought to the Management Board by HR or Supervisor. No employee will be fired on the basis of religion, political beliefs, gender, sexual orientation, injury, race or disability (provided the disability does not prevent the employee from performing the requisite tasks and was disclosed at time of hire). We support and practice fair hiring procedures and the Americans with Disabilities Act and our policies can be updated or amended at any time by proposal to the Management Board. No employee shall be liable jointly or individually for any loss, judgment, injury, etc. unless proven to be criminally involved as stated in the by-laws of the company. All policy must be in agreement with our stated mission statement. As described above, we follow an "open-door" policy for all aspects of company operations. Initial policies of the company were written and agreed upon by the shareholders and approved by the Board of Directors. Any policy changes in the future will be reviewed by the Policy Board at its weekly meeting. Ideas for policy change may come from any source as per our "open-door" policy. Ideas from shareholders, employees, domain name holders, ICANN, registrars, etc. will all be accepted and given fair treatment by the Policy Board. Any idea presented to the Policy Board from any source that is voted on and becomes new policy will result in some form of compensation to the person or persons that initially submitted the idea. Those ideas that the Policy Board deems merit further consideration will be presented at the general Board of Directors meeting for discussion and vote. When any policy is changed, Corporate Policy manuals will be updated and the Policy Board will assign a team to implement the new policy including, but not limited to, purchasing equipment, providing training or assigning the training team to conduct training, and releasing this information to the public, ICANN, our employees and any other interested parties. Shareholders will meet annually on the fifteenth day of March at 10 a.m. at the principal office of the corporation or at such other places as the Board may authorize for the purpose of electing directors and transacting any such other business as may properly come before the meeting. In the event of March 15 falling on a holiday or weekend, the Board may choose to change the date, but may not change it more than 7 days previous to or following the 15th day of March. Special meetings of the shareholders may be called at any time by the Board, the President, or by the holders of twenty-five percent (25%) of the shares then outstanding and entitled to vote. The Board of Directors shall hold an annual meeting immediately following the annual meeting of the shareholders and shall be convened at the same location on the same date as the shareholders adjourn. The Board shall also hold a semi-annual meeting six months after the adjournment of its annual meeting. This meeting will be held at the principal place of business or any other location that the Board may deem appropriate. Matters of policy change or other corporate business that require the vote of the Board of Directors will be considered at the annual or semi-annual meetings unless the Policy Board, the President, or one of the directors has reasonable cause to convene a special meeting of the Board of Directors. The Board from time to time, may provide by resolution the holding of other meetings as it deems necessary and may fix the time and place thereof. Officers of the company, department heads, etc. may have meetings as frequently as deemed necessary for smooth operation of their departments and/or the company at large but shall convene at least quarterly. Shareholders, Directors, Officers, employees, etc. may participate in meetings through the use of a telephone or the Internet if such can be arranged so that all members can hear all other members. The use of a telephone or the Internet for participation shall constitute presence in person. The corporation shall keep current and correct records of the accounts, minutes of the meetings and proceedings and membership records of the corporation. Such records shall be kept at the registered office or the principal place of business of the corporation. Any such records shall be in written form or in a form capable of being converted into written form. The Secretary of the corporation shall be charged to compile, keep and otherwise maintain these records as provided for in the by-laws or other policies of the corporation.
Creating and Maintaining Customers With over 28 million current registrants on the Internet, approximately 144,000 entities which have specifically requested notification of the launch of new TLDs, and millions of businesses globally that are not yet on the Internet, a strong customer base already exists. Consequently, one of the keys to the global acceptance of .event will be brand-name recognition. This will be accomplished through the use of a comprehensive advertising campaign. Product Pricing Strategy
Promotional Strategy As previously mentioned, the company will use various media channels (Internet, television, radio, and print media) to launch an advertising campaign designed to educate the public regarding the advantages of searching for information with our restricted TLD and simple sub-domain system.
Estimated Start-Up Capital
Financial Highlights
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| ASSETS | 2001 | 2002 | 2003 | 2004 | 2005 | |
| Current Assets | ||||||
| Cash or Equivalents | 91,791 | 162,848 | 238,490 | 323,039 | 420,150 | |
| Net Account Receivable | 3,718 | 2,829 | 3,048 | 3,392 | 3,872 | |
| Inventory | 0 | 0 | 0 | 0 | 0 | |
| Other Current Assets | 0 | 0 | 0 | 0 | 0 | |
| Total Current Assets | 95,510 | 165,677 | 241,538 | 326,431 | 420,150 | |
| Fixed Assets | ||||||
| Capital Assets | 0 | 0 | 0 | 0 | 0 | |
| Accumulated Depreciation | 0 | 0 | 0 | 0 | 0 | |
| Total Net Fixed Assets | 95,510 | 165,677 | 241,538 | 326,431 | 424,022 | |
| LIABILITIES | ||||||
| Current Liabilities | ||||||
| Accounts payable | 808 | 820 | 860 | 914 | 981 | |
| Short-term notes | 0 | 0 | 0 | 0 | 0 | |
| Other short-term liabilities | 0 | 0 | 0 | 0 | 0 | |
| Total current Liabilities | 808 | 820 | 860 | 914 | 981 | |
| Long-term Liabilities | 0 | 0 | 0 | 0 | 0 | |
| Total Liabilities | 808 | 820 | 860 | 914 | 981 | |
| Shareholders' Equity | ||||||
| Capital Stock | 100 | 100 | 100 | 100 | 100 | |
| Retained Earnings | 94,602 | 164,756 | 240,577 | 325,418 | 422,941 | |
| Total Shareholders' Equity | 94,702 | 164,856 | 240,677 | 325,518 | 423,041 | |
| TOTAL LIABILITIES & EQUITY | 95,510 | 165,677 | 241,538 | 326,431 | 424,022 | |
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| 2001 | 2002 | 2003 | 2004 | 2005 | ||
| Beginning cash balance | 0 | 91,791 | 162,848 | 238,490 | 323,039 | |
| Cash from operations | 189,794 | 140,039 | 151,642 | 169,680 | 195,046 | |
| Depreciation & amortization | 0 | 0 | 0 | 0 | 0 | |
| Total Available Cash | 189,764 | 232,100 | 314,490 | 408,170 | 518,086 | |
| Capital Expenditures | 0 | |||||
| Change of Inventory | 0 | 0 | 0 | 0 | 0 | |
| Change in Accounts Receivable | 3,718 | (890) | 219 | 344 | 480 | |
| Dividends | 95,162 | 70,154 | 75,821 | 84,840 | 97,523 | |
| Change in other assets | 0 | |||||
| Sub-total | 98,881 | 69,265 | 76,040 | 85,184 | 98,003 | |
| Cash Surplus (Deficit) | 90,883 | 162,835 | 238,450 | 322,986 | 420,082 | |
| Change in Accounts Payable | 808 | 12 | 40 | 53 | 68 | |
| Short-term Loans | 0 | |||||
| Long-term Liabilities | 0 | |||||
| Change in other Liabilities | 0 | |||||
| Capital Stock Issues | 100 | |||||
| Sub-total | 908 | 12 | 40 | 53 | 68 | |
| Ending Cash Balance | 91,791 | 162,848 | 238,490 | 323,039 | 420,150 | |
