REGISTRY OPERATOR’S PROPOSAL
BUSINESS PLAN
Commercial Connect, LLC
September 30, 2000
1418 South Third Street
Louisville,
KY 40208-2117
(502)
635-7979 – (502) 636-9157
Jeffrey S. Smith, President
BUSINESS PLAN NUMBER: 00-1009C
THIS
BUSINESS PLAN IS CONFIDENTIAL AND THE PROPRIETARY INFORMATION OF COMMERCIAL
CONNECT, LLC., AND MAY NOT BE DUPLICATED OR RELEASED TO OTHERS WITHOUT THE
EXPRESSED WRITTEN CONSENT OF COMMERCIAL CONNECT, LLC..
TABLE
OF CONTENTS
10.0
GENERAL BUSINESS OPERATION GUIDELINES.
11.0
MANAGEMENT AND ORGANIZATION
1.0 MISSION STATEMENT
To create
a new domain name avenue for e-commerce which is immediately clear to Internet
shoppers, customer service oriented to registrars, and an aid in Internet
structural integrity and stability.
2.0 STATEMENT OF PURPOSE
Commercial Connect, LLC. was formed as a startup top level domain name registry formed by a partnership of Computer Analytical Systems, Inc. and Simon Property Group, L.P. with the intent of establishing and supporting new top level domains (TLDs) .mall, .shop, and .svc. Commercial Connect, LLC. seeks ICANN authorization for these new extensions to be worldwide generic top level domains for the purpose of electronic commerce on the Internet.
With the breakup of a government approved monopoly, Computer Analytical Systems, Inc. dba CASDNS under CORE became one of nine (9) companies in the United States initially taking registrations for top level domain names. Of these nine companies, Network Solutions, Inc. (the previous monopoly) was the only company actively marketing generic top level domain name services with the established extensions .com, .net and .org.
With the phenomenal and ever increasing growth of the Internet, it has become clear that the three existing generic global top level domain names will not be sufficient in and of themselves to efficiently support the naming needs of the rapidly expanding electronic commerce of the World Wide Web. Commercial Connect, LLC. supports a hierarchy of generic TLDs to logically classify domain names according to their purpose and function, and specifically was formed with the intention of serving as the registry for the top level domain names of commerce on the web.
While many companies are struggling to get equipment and software in order to propose a new registry, Commercial Connect, LLC. is ideally positioned by virtue of the resources brought by the partnership of Computer Analytical Systems, Inc. and Simon Property Group, L.P. to implement, support, maintain and market a registry and obtain a large market share in excess of the 12,000 domain names registered daily.
Equipment and staff are already in place to provide these services.
This venture, very similar to the breakup of AT&T with long distance, where companies such as MCI and Sprint who were quick to jump into the large long distance market, has thrived in today’s market. Similar experience has been enjoyed by the introduction of registrar competition into the .com, .net and .org registry. Now it is the domain name extensions themselves that have become the monopoly.
Commercial Connect, LLC. intends to capture part of the geometric growth curve of the Internet by offering its customers easy access, diligent support, quick response and competitive pricing, which can be achieved by minimizing costs, effective use of technology and experience in customer support.
Commercial Connect, LLC. will have a unique position in that it is a partnership of two companies that together combine all the elements necessary to establish and maintain through the long term, a registry for the top level domain names proposed. Computer Analytical Systems, Inc., a corporation that is already successfully established in the field as a domain name registrar as well as an ISP, owns the infrastructure and Internet connectivity required for a registry. Simon Property Group, L.P. is a corporation with global geographic presence in business and in commerce with unlimited technical and financial resources, and vast experience in electronic commerce and aggressive business management. Both companies bring a firm commitment to the promotion and facilitation of electronic commerce on the web.
Sales projections for Commercial Connect, LLC. are shown in the accounting appendix to follow.. All sales projections are based on very conservative estimates drawn from a return based on advertising. The return is based on the number of domain registrations to each publication, and then multiplied it by a factor considered reachable with these ads. These estimates are neither binding nor guaranteed accurate.
The
goals of Commercial Connect, LLC. are quite simple. Commercial Connect, LLC.
is preparing to become one of the largest providers of domain name
registrations in the world. With
no physical boundaries, Commercial Connect, LLC. can market to the entire
world. Commercial Connect, LLC. will be targeting the broader segment of the
market desiring establishment of a long term relationship with multiple
outstanding registrars. Innovative marketing plans and pricing contracts have
been designed to retain customers and reward them for additional referrals.
Commercial Connect, LLC. hopes to gain the reputation of a service oriented
registry and capture a large share of the Internet domain names registered for
the purpose of commerce. In
addition, Commercial Connect, LLC. wants to be an asset to the Internet,
shareholders, its community and its employees.
3.0 EXECUTIVE SUMMARY
3.1 Concept
Formation
of a top level domain name registry to seek authorization from ICANN to
establish and support new top level domains (TLDs) of .mall, .shop, and .svc.
3.2 Market
A
report by The Standard has suggested that while stock markets have been
unsteady, all Internet economy indicators continue with remarkable growth.
Specifically, the total number of domain names ending in .com has been
increasing at a rate of over 100% per year. In 1999, on average, over three
million web pages were created daily, and 5.6 million new domain names were
registered. Of these 5.6 million new domain names, 35% were .coms. Although
much of the focus on this market has been with companies such as NSI,
Register.com, and CASDNS that register .com, .net, and .org domain names,
Commercial Connect, LLC. is uniquely positioned to clearly differentiate
itself and is positioned to be the first registry in this arena.
3.3 Successes
The
launch of Shared Registry System has been a huge success. Since offering the
competitive registration of .com, .net and .org in July 1998, the Internet
community has embraced the new registry system. All major media in the United States have tended to treat the
issue with the highest regard, and regularly run stories on the issues.
3.4 Management
and Leadership Origins
The
managers and leaders who run existing companies that will come together to
lead and manage Commercial Connect, LLC. are listed below. The current management team of Commercial Connect, LLC.
combines top quality consulting, Internet and technology experience as well as
the business and commerce expertise of a large corporate entity.
Computer
Analytical Systems, Inc.
Jeffrey S. Smith
President, CEO and Founder, Computer Analytical Systems, Inc.
dba BestRegistrar.com, CAS-Com Internet Services, Inc. and CASDNS, Inc.
As President and Founder of Computer Analytical Systems, Inc.
dba BestRegistrar.com, Cas-Com Internet Services, Inc. and CASDNS, Inc.,
Jeffrey Smith brings to Commercial Connect, LLC. extensive education and
experience. He has previously worked as an Internet entrepreneur, managing
systems integration, IT consulting specializing in e-commerce, ERP
(Enterprise Resource Planning) implementation as well as EDI (Electronic Data
Interchange) and CRMT(Customer Relationship Management Technologies) with
multiple companies.
Mr. Smith founded Computer Analytical Systems, Inc. over
twelve years ago. With his leadership and initiative, CAS-Com Internet
Services, Inc. an Internet Service Provider, and CASDNS, Inc., an accredited
ICANN top level domain name Registrar, were started. Mr. Smith has over nineteen years experience in the
information systems and business management fields.
In addition he has consulted for various telecommunications and
high-level technology companies on Internet related issues for the past eight
years.
Simon Property
Group, L.P.
Melvin Simon
Co-Chairman of the Board, Simon
Property Group, Inc.
A native of Brooklyn, New York, Melvin Simon is Co-Chairman of Simon Property
Group, Inc. Simon Property Group, Inc. is the largest publicly traded retail
real estate company in North America.
Mr. Simon also serves as Co-Chairman of the Board of Melvin Simon &
Associates, Inc., which until the 1993 formation of Simon Property Group was
the nation's second-largest developer and manager of shopping centers.
Mr. Simon attended the Bronx High School of Science and the City College of
New York, where he earned a B.S. degree in accounting and an M.B.A. with an
emphasis on real estate. He came to Indiana while serving in the United States
Army, when a transfer brought him to Fort Benjamin Harrison in Indianapolis.
Following his discharge from the Army, and prior to creating Melvin Simon
& Associates in 1960 with brothers Herbert and Fred, Mr. Simon worked as a
leasing representative with the Albert Frankel Company, an Indianapolis
developer of strip shopping centers.
Mr. Simon's diversified business interests include co-ownership with brother
Herbert of the National Basketball Association's Indiana Pacers.
Mr. Simon is a Trustee of both the Urban Land Institute (ULI) and the
International Council of Shopping Centers (ICSC). He holds board memberships
with numerous community and civic organizations, and has received many awards
and honors for his involvement.
Herbert Simon
Co-Chairman of the Board, Simon
Property Group, Inc.
Born in Brooklyn, New York, Herbert Simon is Co-Chairman of Simon Property
Group, Inc., the largest publicly traded retail real estate company in North
America. Simon Property Group, Inc. owns and/or manages some of the nation's
foremost retail properties, including: Mall of America (Minneapolis/St. Paul
area), The Forum Shops at Caesars (Las Vegas), Fashion Centre at Pentagon City
(Washington, D.C. area), and Circle Centre (Indianapolis).
Mr. Simon also serves as Co-Chairman of Melvin Simon & Associates, Inc. of
Indianapolis, which before the 1993 formation of Simon Property Group was the
second-largest developer and manager of shopping centers in the United States.
Prior to creating Melvin Simon & Associates in 1960 with his brothers
Melvin and Fred, Mr. Simon attended the City College of New York where he
earned a B.S. degree in business.
Mr. Simon's diversified business interests beyond real estate include
co-ownership with brother Melvin of the National Basketball Association's
Indiana Pacers.
A firm supporter of professional, environmental and community groups, Mr.
Simon serves on the boards of directors of numerous community and civic
organizations.
David Simon
Chief Executive Officer, Simon
Property Group, Inc.
Chairman
of the Board, Commercial Connect, LLC.
David Simon is Chief Executive Officer of Simon Property Group, Inc., North
America's largest publicly owned retail real estate development and management
company. Currently he also serves as Chief Financial Officer and Chief
Operating Officer of Melvin Simon & Associates, Inc.
Prior to joining Simon in June, 1990, Mr. Simon was a Vice President of
Wasserstein Perella & Co., a Wall Street firm specializing in mergers,
acquisitions and leveraged buyouts. He was formerly an associate at First
Boston Corporation, also based in New York.
Mr. Simon holds a B.S. degree from Indiana University and an MBA from the
Columbia University Graduate School of Business. A native of Indianapolis, he
is the eldest son of Simon Property Group, Inc. Co-Chairman Melvin Simon.
Richard S. Sokolov
President and Chief Operating
Officer, Simon Property Group, Inc.
Richard S. Sokolov is President and Chief Operating Officer of Simon Property
Group, Inc., the largest publicly owned retail real estate company in North
America.
In addition to his corporate responsibilities, Mr. Sokolov serves as Trustee
and as a Member of the Executive Committee of the International Council of
Shopping Centers. Prior to joining Simon in 1996, Mr. Sokolov was
President and Chief Executive Officer of DeBartolo Realty Corporation.
He was formerly a Partner and Executive Committee Member at a major
Baltimore law firm, where he specialized in real estate transactions.
Mr. Sokolov earned his Juris Doctorate degree from Georgetown University Law
Center in 1974. He received his Bachelor of Arts degree in 1971 from
Pennsylvania State University.
David Schacht
Senior Vice President and Chief Information Officer, Simon
Property Group, Inc.
David has been with Simon for
approximately three years. He was
hired as Director of Application
Development and now serves as Senior Vice President and Chief Information
Officer.
During his tenure with Simon, he
has been instrumental in the implementation of a new Leasing System, Payroll
System, Customer Affinity System, Revenue Budgeting System, ShopSimon Portal
and has played a key roll in the development and execution of Simon's digital
strategy.
Eighteen months prior to joining
Simon, Mr. Schacht was engaged by Subaru Izusu of America and Conseco as a
systems consultant. David began
his career with Resort Condominiums International in 1984.
During his twelve year tenure with RCI, David's accomplishments
included automation of 20 plus international offices, implementation of a B2B
resort access system, a marketing data warehouse and authoring RCI's
exchange/match algorithm.
Gerald St. Amand
Information Technology/Research
Specialist/Operations Manager, Simon Property Group, L.P.
As Information Technology/Research
Specialist/Operations Manager of Simon Property Group, Inc., Dr. Gerald St.
Amand has diverse expertise in the analysis, delivery, and management of
software methodologies, operational programs and services as well as
innovative, administrative management
designed to meet challenging business demands and a solid understanding of
strategic planning used in integrating highly sophisticated technology into
Management Information Systems (MIS), Competitive
Intelligence (CI), and
Technology Transfer Applications. Dr.St. Amand has a verifiable background
of success in providing
leadership in private and educational sectors.
Dr. St. Amand holds a Ph.D. in Administration in the Higher
Education Program at Indiana University. After taking graduate courses in Business Administration at
Michigan State University, he earned an M.A./Economics with a minor in Finance
from the University of Detroit (Now
University of Detroit - Mercy). He
holds a B.S. in Finance from the University of Detroit, where he was a
Fitzgerald Award winner.
Dr. St. Amand is the published author of A
Management Game with Financial Emphasis for Time-Sharing and a book
reviewer for The Accounting Review.
Board of
Directors, Simon Property Group, Inc.
Melvin
Simon, 73
Co-Chairman
of the Board
Executive Committee Member
Herbert
Simon, 65
Co-Chairman
of the Board
Executive Committee Member
Compensation Committee Member
Nominating Committee Member
David
Simon, 38
Chief
Executive Officer
Executive Committee Member
Nominating Committee Member
Richard
S. Sokolov, 50
President
and Chief Operating Officer
Executive Committee Member
Hans C. Mautner, 62
Vice
Chairman of the Board
Executive Committee Member
M.
Denise DeBartolo York, 49
Chairman
and Chief Executive Officer,
The Edward J. DeBartolo Corporation
Nominating Committee Member
Robert E. Angelica, 53
Chairman
and Chief Executive Officer,
AT&T Investment Management Corporation
Compensation Committee Member
Birch
Bayh, 72
Senior
Partner,
Oppenheimer, Wolff, Donnelly & Bayh, LLP
Compensation Committee Member
Nominating Committee Member
G.
William Miller, 75
Chairman
and Chief Executive Officer,
G. William Miller & Co., Inc. and
Chairman, Home Place of America, Inc.
Nominating Committee Member
Audit Committee Member
Fredrick W. Petri, 53
Partner,
Petrone, Petri & Company
Audit Committee Member
Compensation Committee Member
J.
Albert Smith, Jr., 59
Managing
Director,
Bank One Corporation
Audit Committee Member
Pieter S. van den Berg, 54
Adviser
to the Board of Managing Directors of PGGM
Philip
J. Ward, 51
Senior
Managing Director,
CIGNA Investments, Inc.
Compensation Committee Member
4.0 PRODUCT / SERVICE
4.1 Product
Commercial Connect, LLC. proposes the introduction of three new top
level domain names, .mall, .shop, and .svc. for the exclusive use of Internet
domains involved in the use of electronic commerce.
The existing top level domain .com, originally intended for this
purpose has become too broad in its scope and so generic that it no longer
exclusively denotes its original intention.
In fact, the .com extension has suffered from its popularity more than
any top level domain currently in use world-wide.
With over 18 million names registered in the .com domain alone, it has
become nearly impossible to find or improvise an available short descriptive
and desirable name. This
difficulty is becoming more acute daily, and as already implied by the
continued geometric growth of the Internet, will become exponentially more
difficult in the future. Twenty
and thirty character domain names have now become common, and quite a
disadvantage to their owners. Soon,
descriptive names of fifty to sixty or more characters may be the only option
under the present system, putting domains who are required to use them at a
serious disadvantage as users must correctly type what amounts to a small
paragraph into the address bar of a browser to reach these sites.
In
addition, there are no distinctions between these 18 million companies .com
web addresses; there is no logical structure behind the intention of the
millions of web pages. By
offering a set of alternative commercial extensions, the mechanics of global
commerce via the Internet will be greatly enhanced.
The
proposed individual domain names are:
.shop
Both
a noun and a verb, this extension is understood in many languages.
We propose that this name be used for electronic commerce sites that
actually provide on-line shopping and ordering, whether the site is associated
with a physical store or not.
.svc
Intended for e-commerce sites offering a service.
A company who has diversified interests in many services and products
would find it beneficial to register a .shop or .svc extension for the purpose
of selling their products, thus giving the consumer an easy path to purchase.
.mall
The
most restrictive domain of the three, .mall is intended as an umbrella domain
under which multiple .shop and .svc sites may be assembled. It may also be used for the web site of an actual, physical
mall or shopping center. By
virtue of limited usefulness in any other context, this extension could be
considered self-regulating.
4.2 Service
Please refer to the Registry Operator’s Proposal – Technical Plan for a detailed discussion of Registry Services.
5.0
MARKET ANALYSIS
Commercial
Connect, LLC. will begin to aggressively market its services and obtain the
staff necessary to effectively provide quality customer support the moment
ICANN gives its approval for our proposed new top level domain names.
Commercial
Connect, LLC. is in a unique position due to the fact that its high-end
registry infrastructure equipment and connections are already in place.
Commercial Connect, LLC. is located in the same office building as
principal owned CAS-Com Internet Services, Inc., Computer Analytical Systems,
Inc. dba Bestregistrar.com and CASDNS, Inc.
Each company provides Commercial Connect, LLC. with Internet services
and equipment respectively. Low
rent, plentiful space for expansion, along with readily available Internet
service and abundant equipment create a synergy between these three companies.
Commercial Connect, LLC. will obtain additional equipment for its sole
use should this proposal be accepted.
By
all estimates, the market for Internet domain names is growing geometrically
along with Internet users. According
to Business Week, the "Internet craze" is going to provide
big opportunities to entrepreneurs who manage to provide services to a
clamoring clientele. PC
Magazine, a highly regarded bi-weekly periodical with a circulation in
excess of one million, has stated that Internet users are growing at a rate of
160,000 per month. MIT reports
that the number of Internet subscribers is doubling every six (6) months.
The
stability of the Internet is based on the number of highly funded, research
oriented government institutions that have provided the backbone of the
Internet. The Internet started in
the mid 1960's as a Defense Department project called the ARPAnet.
Used primarily to support research on packet switched networks, the
Internet has grown through the addition of host computers and local area
networks that provide connectivity to millions of people.
As the ARPAnet grew as a gateway, the common denominator used to
interpret the different layers was called the "Internet Protocol."
The overall collection of all the networks and host computers is now
simply called the Internet.
With
the growth of the hosts on the Internet, there is an abundant need to group
these hosts. This is where domain
names are used. Domain names are
synonyms for a numerical address or group of addresses on the Internet. We see
them daily when referring to a web site.
The domain name is the name of the computer network or virtual network
on the Internet. An example of
this is “IBM.com.” In order
to obtain this domain name, the company has had to request it from a Top Level
Domain Registrar. The registrar verifies that the name is not in use by
others, then registers the name and charges a prepaid fee per year for a
subscription. This means that the
customer can use this domain name for the number of years reserved, and when
someone refers to the domain name they will be directed to their network.
After
it’s subscription expires the customer is charged an additional fee per year
to keep the rights to the domain name. If
the fee is not paid, the name goes into the “available” status and can be
registered by another party.
Network
Solutions, Inc., the former registry monopoly, reported in 1997 that there is
an average of 12,000 domain names registered daily.
The
total registry business brings in $150 million in renewal years alone for the
registry and possibly an additional $150 million for registrars.
For
the most part a commercial organization will presently use the .com extension
to register its company. In a
report by NUI.ie , it was stated that 98% of all of the words in the Webster
American English Dictionary have previously been registered. Since there are only so many combinations of words and over
25 million have been registered, there has been a large outcry from the
Internet Community requesting additional extensions. This could bring the
yearly revenues to $3.2 billion in the year 2001.
While this is an extreme estimate, it is a very attainable goal.
6.0 MARKETING GOALS
Commercial
Connect, LLC.’s major goals are:
1.
Receiving
the license to be the registry for .shop, .svc and .mall.
2.
Marketing
and advertising to all current and potential e-commerce companies.
3.
Increasing
the number of e-commerce sites on the Internet.
The Year One Marketing Goal for Commercial Connect Inc. is to rapidly accelerate .shop, .svc and .mall into the preferred and accepted vehicles for e-commerce.
It is vital to catapult these new TLDs into this leadership in e-commerce in a manner that rapidly creates and defines the accepted standard for on-line transactions. Initial momentum is required to prevent other potential TLDs (ex - .buy) from siphoning off both buyers and sellers as well as becoming a viable transactional alternative to .com
Generating
a continuing stream of consumers and individuals sampling, accepting, and
embracing the new TLDs is likely
to be the most difficult and vital element of the Marketing Plan.
The Internet landscape is littered with excellent, high-concept sites,
which failed due to a lack of consumer/individual traffic. The challenge, to
get potential buyers to change their established behavior and use the new
suffix, .shop, .svc or .mall, is undoubtedly broader reaching and much more
difficult than driving traffic to a new site.
To be successful the TLDs must enhance the business model of the
participating “seller” partner sites with sustainable buyer utilization.
It is acknowledged that purchase behavior and habits are difficult to
change. The transition from
telecommunications toll-free “800” numbers (i.e. .com) to toll-free “888”numbers
(i.e. .shop) was more difficult and took longer than anticipated. The .shop, .svc, .mall proposition must overcome any such
transactional resistance.
Once a critical acceptance point of “marketing mass” is achieved, the new TLD shifts from being a “wanted” to a “must have” Internet address. This is a classic marketing opportunity or dilemma of “which comes first… the buyers or the sellers?” A balanced and calibrated marketing approach is required to ensure that sufficient numbers of buyers and sellers are engaged together in the initial phase of acceptance development. The number of buyers generates the number of sellers utilizing the TLD. Greater numbers of sellers generates buyers who are “sampling” .shop, .svc and .mall as a preferred and more convenient alternative.
Simon Property Group, a Commercial Connect, LLC. partner, provides an unsurpassed reputation and contacts among the world’s largest retailers. This will enable the key initial surge of the new TLD sites so critical to becoming the transactional suffix of choice. Retailers in a current contractual relationship with the Simon Property Group account for $38 billion in sales.
Target Audience
Commercial Connect, LLC. evaluates the .shop, .svc, .mall concept to have substantial and real benefits for both consumer-to-business and business-to-business e– commerce applications. “Buyers” can and should include both consumers and companies. “Sellers” can and should include both retailers and business-to-business organizations.
The breadth of opportunity and potential for the new TLD requires a multiplicity of constituents and target audiences including but not limited to:
I. “Sellers”
-Current transactional consumer and business –to –business sites
-Small business companies
-Bricks and Mortar retailers
-Entrepreneurial and start-up companies
II. “Buyers”
-Consumers of the entire gamut of consumer goods and services
-Corporate government and institutional purchasers
III. Existing Registrars
7.0 MARKETING PLAN
Executive Summary
The purpose of Commercial Connect, LLC. is to become the premier e-commerce domain registry in the world. Its target market is all e-commerce companies currently doing business on the web, and all other retail product and service providers looking to enter the Internet sales market. With its combined years experience in commercial real estate, catering to the retail market and domain registration and ISP, Commercial Connect, LLC. is undoubtedly qualified to provide the latest TLD to the e-commerce market.
The company's major competitive advantage is its immediate ability to leverage retailers
in 25% of the top regional malls in North America, owned by Simon Property Group, and the over 30,000 domain names currently registered through BestRegistrar.com, to register with the new TLD. These actual future registrants, in addition to the enormous network of retail and e-commerce companies already established, put Commercial Connect, LLC. in a position to make the new TLD as successful as possible, and more so than any other company in the world.
Situation Analysis
As Internet use increases, so does e-commerce and different web-based ideas for marketing products and services. Conventional e-companies are increasing their ability to serve the public, while the original "brick and mortar" companies all seem to be increasing their Internet presence and expanding the goods and services they offer on the web. With such marked increases in Internet use, e-commerce and conventional business, there is an ever-increasing need for new domain names. In addition to an increased need for names, there is also a need to better categorize sites on the web.
As e-commerce increases, so does the need to not only add new domain names, but to help organize web sites, and help differentiate between e-commerce and other Internet sites and offerings.
With these factors in mind, Commercial Connect, LLC. has come up with e-commerce-specific TLD's in order to become a facilitator for Internet commerce. The TLD's are .shop, .svc, and .mall. Such TLD's will send a clear message to the user community as to the kind of site they are visiting or searching for, and will offer purveyors of e-commerce a new and specific outlet and naming opportunity for their web sites. The joint forces of the Simon Property Group and BestRegistrar.com are in the ideal strategic positions to best manage these TLD's and to market them to companies both Internet and brick and mortar based, who wish to sell goods and services on the Internet.
8.0 PUBLIC RELATIONS
Publicis
Dialog, the Public Relations division of the agency will be an integral part
of the .shop communications effort. They will work in tandem with the Publicis
team to ensure a seamless communications and marketing program for .shop.
Their broad range of expertise includes media relations, service/product
placement, business-to-business communications, reputation/issues management,
investor relations and special events, all of which will be essential in the
effort to successfully launch .shop.
Publicis
Dialog specializes in leading the revolution from one-way “message delivery”
to a two-way “dialog” mode. This relationship enables all communication
vehicles to become more effective and accountable. Enveloping and engaging the
target with an overall approach creates a stronger, more lasting brand
impression.
They have
a national presence with offices in Seattle, San Francisco, Salt Lake,
Chicago, Indianapolis, New York and Dallas. Their client base includes
Whirlpool, PETsMART, Voice Stream Wireless, Pitney Bowes, American Express,
Samsung, Agilent Technologies, Nestle and the 2002 Salt Lake City Olympics.
8.1 Public
Relations Services/Marketing
Commercial
Connect, LLC. has selected and retained the Publicis Groupe SA as its
marketing/communications professional partner.
Publicis is uniquely qualified to assist Commercial Connect, LLC. in
building .shop, .svc, and .mall to its full global potential.
Publicis brings all the required communications expertise under one
corporate roof.
Publicis
Groupe SA is listed on the Paris Bourse as well as on the New York Stock
Exchange in the form of ADR’s. Publicis
Groupe is the fifth largest global communications agency.
This worldwide
network spans 5 continents, 100 countries, and offices in 165 cities.
The experience base in fully integrated communications includes such
business-to-business and consumer global accounts as Coca-Cola, Hewlett
Packard, Ericsson, Whirlpool, UBS Warburg, L’Oreal, Pfizer, Siemens,
Fujifilm, Syngenta, Nestle, and Renault.
Publicis
U.S.
In the
U.S. Publicis has billings of $1.2 billion in three geographic centers of
excellence. Simon has worked very
successfully with Publicis for over 6 years.
Publicis
brings a highly relevant combination of expertise in brand-building and
in-depth experience in retail with such clients as Zales, Champs, TGIF Friday’s,
BMW, GNC, Rite Aid, and PETsMART.
Seamless,
fully integrated communications for clients are developed through interlocking
specialty Publicis groups in general advertising, business-to-business, public
relations, sales promotion, and e-commerce.
In this manner, the Publicis agency speaks with one voice across all
communications disciplines for its clients.
For
example, each of the major Publicis offices includes fully integrated
communications capabilities and resources.
Business-to-business
clients of Publicis U.S. are Hewlett Packard, Ericsson, UBS, Siemens, United
Healthcare, Fujifilm, TXU, etc. This
is matched by consumer goods clients such as Citizen Watches, PETsMART, Del
Webb, BMW, Cellular One, and L’Oreal.
9.0 E-COMMERCE EXPERTISE
In addition to standard e-commerce advertising by all offices, Publicis has a specialized Publicis Technology Division with over fifty dedicated professionals to support on-line marketing and advertising for .shop.
This
Division has a full complement of interactive staff, including HTML
developers, programmers, graphic designers, information architects, producers,
and web strategists delivering everything interactive from online advertising
strategies to web solutions. Typical
online products include: online
advertising, banners, eCommercials, microsites, jump pages, corporate web
sites, intra and extranets, CD ROM authoring, interactive kiosks,
eRelationship marketing programs, online loyalty clubs and online lead
management.
Publicis
Technology is a team of skilled e-thinkers and experts at building brands with
a significant technology dimension. This
is focused on the point where technology and humanity intersect. The passion is for translating the power that technology
brings to our world into the benefits it brings to customer lives.
A high level of integration of on and offline skills within one
organization are achieved. The seamless transition from the offline brand promise into
the online brand experience are highly focused on driving customers through
the buying decision cycle irrespective of transition across the medium. All
the technologies needs to create tomorrow’s interactive environments;
everything from simple HTML through database middleware and to e-commerce
architecture solutions. A broad
range of clients have become category leaders in e-commerce, such as Zales,
Cellular one, Hoover’s Online Garden Ridge, BMW, PETsMART, Lancome, and L’Oreal
Kids working with Publicis Technology.
10.0 GENERAL BUSINESS OPERATION GUIDELINES
Commercial
Connect, LLC. will have an operation manual detailing complete company policy
and standards for many possible situations that may arise. It will be a fluid
document, for as new protocols and standards arise, the manual will be
amended. The goal of the operation manual will be to standardize as many parts
of the business as possible, in an effort to control cost and aid growth.
Commercial
Connect, LLC. will operate registry services 365 days a year, 24 hours a day.
The Internet never closes, so access to it must be available for all users
independent of time, place or other conditions that might limit business hours
for any other operation.
Technical
support for users will be available in four different ways. First will be a
manned support desk, from 9:00 a.m. to 5:00 p.m. EST. The second part of technical support will be the
addition of voice mail to insure that if the support desk is held up answering
a customer's questions, the person on the other end of the line will be able
to leave a message including a return phone number for help regarding a
particular problem. The third part of the equation will be the ability of
customers to leave an e-mail message addressed to the technical support staff
with guaranteed twenty-four (24) hour or less response. The fourth and final
part will be that questions may be faxed to the support desk for a guaranteed
response within twenty-four (24) hours. The response may state that the
technical support staff is researching the problem, but at least communicating
with the customer will offer them the security that their problems are being
addressed in a professional and courteous manner. Additionally, voice mail will provide a conduit to reach a
technician twenty-four hours per day, seven days per week, should a problem
arise.
Registrar
customers will make payments to Commercial Connect, LLC. primarily by wire
transfers or company checks.
Registrars,
once established, will have a customized web page on Commercial Connect, LLC.’s
host server. They will need to
answer several questions as to their billing and contract preferences. During
the initial sign up screens, they will be queried for specific billing
information, and will be allowed to choose a password that will be stored by
the system. They will also be presented with all of the particulars of the
system including technical support hours, payment plans, etc. The billing
system will also provide statistics to insure the most efficient use of
technical resources.
11.0 MANAGEMENT AND ORGANIZATION
11.1. Management
Jeffrey Smith, Daniel Kalef, Warren Brown and Nancy Angermeier
are Commercial Connect, LLC.’s four officers.
Jeffrey Smith is CEO of Commercial Connect, LLC..
He is also President and founder of Computer Analytical Systems, Inc.
He has a background that combines application development, public relations
and IT consulting. He extensive educational background includes health care
administration programs at University of Kentucky, West Texas State University
now Texas A&M and Business related program at the University of
Louisville. For the twelve years, he has owned and operated Computer
Analytical Systems, Inc. which started CAS-Com Internet Services, Inc. an
Internet Service Provider and CASDNS, Inc. an accredited ICANN top level
domain name Registrar. Mr. Smith has over nineteen years experience in the
information systems and business management fields.
In addition he has consulted for various telecommunications and high
level technology companies on internet related issues for the past eight
years.
Daniel Kalef is Chief Revenue Officer of CommmercialConnect.
Daniel was most recently the Vice President of Business Development for
onGiving.com, an ASP that channels Internet advertising dollars to charitable
causes and organizations. Daniel
has spent eight years raising money and consulting on management and
organizational structure for a number of national and local non-profit
organizations, including the Galef Institute in Los Angeles, CA and the
Olmsted Parks Conservancy. Most recently he started Icarus International, an
international import/export company in the business of exporting consumer
goods to former Eastern Block countries, and importing wine from these same
countries to the U.S. Prior to
his non-profit management work and the start up of Icarus International,
Daniel was a practicing attorney in Chicago, Illinois, specializing in
corporate and intellectual property litigation. Daniel is a graduate of joint
programs between Yeshiva University and New York University in New York City,
as well as the Benjamin N. Cardozo and NYU Schools of Law. Daniel brings an
extensive knowledge of, and skill in, relationship building, negotiation,
sales, marketing and overall business development.
Warren Brown is Chief Information Officer.
He has spent the last twenty years in the database and software
development communities. He
started Business Electronics Network in the early eighties which provided
medical billing software to various ambulance companies worldwide.
In 1988 his company merged with Metro Ambulance Service and he
continued developing ambulance billing software.
In 1996 he accepted a position with Computer Analytical Systems, Inc.
where he was Director of Programming Management.
In this position he oversaw the programming team on the development of a Shared Registry Systems to interact with
CORE, then later a turnkey system to Interface with Network Solutions
Registry.
Nancy Angermeier is the Director of Accounting for Commercial
Connect, LLC.. She has fifteen
years accounting experience with eight years of certified public accounting
firm experience. In 1990
she started Systems Management Group, Inc.
Systems Management Group, Inc. was a consulting firm for the healthcare
and legal industry specializing in billing systems and office automation.
In 1994 she came to work for Computer Analytical Systems, Inc. as a
specialized consultant and strategic partner.
This alliance merged her company’s expertise with the medical
expertise of Computer Analytical Systems, Inc.
She has made an invaluable team member and has accepted the position in
September, 2000.
Commercial
Connect, LLC. recognizes that additional staff is required to properly support
the company functionality. Our
intention is to begin with the following and modify when needed:
1.
Chief
Executive Officer
2.
Chief
Financial Officer
3.
Chief
Information Officer
4.
Chief
Operations Officer
5.
Chief
Revenue Officer
6.
Director
of Accounting
7.
Network
Administrator
8.
Programmer-Senior
9.
Programmer-Junior
10.
Customer
Service/Technical Support
11.
Accounting
Clerk
12.
Administrative
Assistant
13.
Secretary
14.
Receptionist/Telephone
Operator
15.
Satellite Office Staff
11.2 Advisors
The
Commercial Connect, LLC. Board of Directors plays an active role in assisting
the company in various facets of its operations.
David E. Simon is currently the only board member of
Commercial Connect, LLC.. He is
the Chief Executive Officer of the Indianapolis based real estate development
and management company, Simon Property Group, Inc., the world’s largest
publicly traded retail real estate company.
Before joining Simon in June, 1990, Mr. Simon was a vice-president of
Wasserstein Perella & Co., a Wall Street firm specializing in mergers and
acquisitions and leveraged buyouts. He
was formerly an associate at First Boston Corporation, also based in New York.
The
balance of the seats are being filled by prominent members who are contacts of
the company's principals or company principals.
12.0 OPERATIONS
12.1 Headquarters
Commercial
Connect, LLC.'s corporate headquarters will be located in Louisville,
Kentucky. The office will
be 6,000 square feet and will consist of offices and cubicles with enough room
for 20 people. There is a secured server room and constant high speed Internet
access. Web and database servers are currently hosted by CAS-COM Internet
Service. There is a technologically advanced phone system to enable us to
handle the volume of calls made from this location.
12.2 Expansion
After
the first year of operation, Commercial Connect, LLC. will expand its offices
if necessary by obtaining additional space at or adjacent to it’s corporate
headquarters in Louisville, Kentucky.
Currently there is an additional 9,000 square feet available to be
committed to them. In addition,
from Simon Properties assets of over 184 million square feet of gross leasable
area, we have designated satellite offices in London, U.K.; Atlanta, Georgia;
San Francisco, California; Indianapolis, Indiana and Chicago, Illinois.
12.3 Legal
Counsel
Commercial
Connect, LLC. has retained the services of Jones, Day, Reavis & Pogue for
intellectual property and international legal issues.
In
addition, the general counsel and legal department of the Simon Property
Group, L.P. and its entities will contribute their legal services.
The department holds significant expertise in the area of Internet law
and has a significant base of operation
in
many areas of the Internet.
12.4
Accounting, Back Office and Financial Services
Arthur
Andersen, LLP has been retained to handle many aspects of the company's
financial, tax, and some back office concerns.
Some core services being provided by Arthur Andersen, LLP include:
• High-level strategic consulting
• Financial and tax consulting
12.5 Job
Descriptions
Chief Executive Officer - CEO
Development and implementation of primary goals,
operating plans, policies, and short and long range objectives for the
organization. Directs and
coordinates activities to achieve maximum profit and return on capital.
Establishes organizational structure and delegates authority to
subordinates. Leads the
organization towards objectives. Determines action plans to meet needs of shareholders.
Represents organization to financial community, major customers,
government agencies, shareholders, and the public.
Chief Financial Officer - CFO
Directs the overall financial plans and accounting
practices of an organization. Oversees treasury, accounting, budget, tax and
audit activities of the organization. Oversees
financial and accounting system controls and standards and ensures timely
financial and statistical reports for management and/or Board use.
This is the top finance and accounting position for the organization.
Plans and directs analysis of financial data.
Provides assessment of existing and proposed financial plans and
policies.
Chief Information Officer - CIO
Directs IS operations including computer operations,
technical support, systems analysis and programming.
Manages the acquisition, installation, and maintenance of the
organization's local area networks and wide area networks. Directs database
management, telecommunications, IS training and microcomputer technology.
Manages LAN/WAN performance and security. Establishes and implements policies
and procedures for LAN/WAN usage, technical priorities, standards, and
procedures. Ensures sufficient systems capacity for organizational needs.
Contributes to general business planning regarding technology and systems
required to maintain company operations and competitiveness. Analyzes and
recognizes new developments in information systems technology, and anticipates
organizational modifications. Establishes long-term needs for information
systems, and plans strategy for developing systems and acquiring hardware to
meet application needs. Ensures confidentiality and reliability of corporate
data, proprietary information, and intellectual property.
Chief Operations Officer - COO
Implements
programs to ensure attainment of business plan for growth and profit. Provides
direction and structure for operating units.
Manages, directs and coordinates activities by directing and
coordinating activities consistent with established goals, objectives and
policies. Follows direction set by Chief Executive Officer and Board of
Directors. May report to a
Director or COO, assists with development of organization related to policies,
practices, and attainment of operating goals. Reviews and analyzes reports,
records, and directives, and obtains data required for planning activities,
such as new commitments, status of work in progress, and problems encountered.
Assigns or delegates responsibility for specified work or functional
activities and disseminates policy to employees. Gives work directions,
resolves problems, prepares schedules, and sets deadlines to ensure timely
completion of work. Coordinates activities of department with related
activities of other departments to ensure efficiency and economy. Monitors and
analyzes costs, prepares budget, and prepares reports and records on
department activities for management, using computer. Evaluates current
procedures and practices for accomplishing department objectives to develop
and implement improved procedures and practices. May initiate or authorize
employee hire, promotion, discharge, or transfer.
Chief Revenue Officer
Manages development programs and activities to facilitate introduction of new
products or processes or recommend improvements to existing products or
processes. Oversees research and development of new products and services as
well as related marketing and sales strategies for these products. Integrates
research, development, sales and marketing strategies to successfully install
new products and services or to revise existing product lines.
Director of Accounting
Compiles and analyzes financial information to prepare entries to accounts,
such as general ledger accounts, documenting business transactions. Analyzes
financial information detailing assets, liabilities, and capital, and prepares
balance sheet, profit and loss statement, and other reports to summarize
current and projected company financial position, using calculator or
computer. Audits contracts, orders, and vouchers, and prepares reports to
substantiate individual transactions prior to settlement. May establish,
modify, document, and coordinate implementation of accounting and accounting
control procedures.
Network Administrator
Installs, configures, and maintains the organization's LAN server and
workstations. Manages performance and maintains security of LANS. Works with
multiple hardware and software platforms at the most complex level. Monitors
reliability of network infrastructure and operating systems on multiple
platforms. Diagnoses and repairs system problems.
Programmer – Senior
Prepares specifications and programs of a highly
technical or complex nature. Analyzes, designs, codes, tests, implements,
maintains, and documents computer system software. Usually works on one or
more specific software applications and includes operating systems, compilers,
utilities, job control language, and other control modules. Requires advanced
technical knowledge in all areas of applications programming, system design,
update, storage, and retrieval methods
Programmer – Junior
Analyzes user specifications and requirements.
Encodes, tests, debugs, and documents programs on projects. Assists the Senior
Programmers as required.
Customer
Service/Technical Support
Provides technical support to workers in information
processing departments. Develops
work goals and department projects. Assigns
and coordinates work projects, such as converting to new hardware or software.
Designates staff assignments, establishes work priorities, and evaluates cost
and time requirements. Reviews completed projects or computer programs to
ensure that goals are met and that programs are compatible with other programs
already in use. Modifies,
tests, and corrects existing programs. Evaluates and tests vendor-supplied
software packages to determine compatibility with existing system, ease of
use, and if software meets user needs.
Assists user to resolve computer-related problems, such as inoperative
hardware or software. Reads
technical journals or manuals and attends vendor seminars to learn about new
computer hardware and software. Writes project reports and documentation for
new or modified software and hardware.
Accounting Clerk
Verifies and posts transactions to journals, ledgers
and other records. Prepares statements, invoices and vouchers. May handle
balancing and reconciliations. May specialize in one area of the accounting
function. Requires understanding of bookkeeping procedures and 1-2 years of
relevant experience.
Administrative Assistant
Supplies administrative support services to an executive, professional group,
or organizational department. Uses
independent judgment in completing activities and operates under general
supervision. Oversees administrative procedures and processes for assigned
area. May act as an
administrative liaison with internal and/or external sources. Assigns duties
and direct activities such as typing or word processing documents, filing,
answering phones, ordering supplies, mailing correspondence or packages, or
other services. Examine workflow and revise processes as necessary to improve
efficiency.
Secretary
Needs to have a working knowledge of Microsoft Word and Excel and be able
to perform other general office duties such as filing, copying, and faxing.
Must possess excellent written and oral communication skills and strong
organizational skills. Must
communicate in a very professional manner.
Schedules appointments, gives information to callers, takes dictation, and
provides secretarial and administrative support. Reads and routes incoming mail. Locates and attaches
appropriate file to correspondence to be answered by employer. Composes
letters and memoranda from dictation, verbal direction, or from knowledge of
company policy or procedures. Assists executive in some administrative
details. Takes dictation in shorthand or by machine and transcribes notes or
voice recordings. Composes and types routine correspondence, files
correspondence and other records. Answers telephone and gives information to
callers or routes call to appropriate official and places outgoing calls.
Schedules appointments for employer. Greets visitors, ascertains nature of
business, and conducts visitors to employer or appropriate person. Anticipates
ways in which executive time may be saved. Handles details and performs
administrative functions based on understanding of company policy, executive's
views and philosophy, which can be assumed by this level of executive
secretary.
Receptionist/Telephone Operator
Receives incoming telephone calls for corporation.
Obtains caller's name, and forwards call to appropriate person or takes
a message. Greets clients and visitors and directs to conference room or staff
member's office. May record calls and visitors. Provides information and
assistance to clients and customers. Answers inquiries for the general public.
Schedules appointments, maintains conference room schedule, receives or sends
out messenger/courier items. Performs typing and other clerical duties.
13.0 FINANCIAL
Simon
Property Group, L.P. will hold a substantial interest in Commercial Connect,
LLC.. Attached is a copy of the
report filed on Form 10-Q for the quarter ending June 30, 2000 from Simon
Property Group, L.P. which demonstrates that sufficient financial resources
are available and committed to support the business and operations of
Commercial Connect, LLC..
Simon
Property Group, L.P. has pledged all necessary financial backing for the
operations of Commercial Connect, LLC. as stated in the attached letter from
Chief Counsel James M. Barkley.
13.1 Pro Forma
Statements
Commercial
Connect, LLC. expects to be profitable during its second year of operation.
Any net profits will likely be reinvested in the company.
13.2 Financial
Backing and Revenue
Commercial
Connect, LLC.’s financial backing will be from the assets of the Simon
Property Group, L.P. As noted in
form 10Q page 3 the joint venture has at its disposal current cash assets of
over $133 million USD and total assets in excess of $13 Billion USD. From this will come the funds for our plan to aggressively
solidify our first-to-market opportunity, to expand our technology and product
offerings and to enhance our management team. The company expects to be
profitable within 2 years. Revenues
are to be derived solely from domain name registry operations.
13.3 Accounting
Procedures
All
bookkeeping, accounting and financial information will be prepared using Peachtree
Complete Accounting in the most current version available.
The chart
of accounts shall be developed by the Chief Financial Officer to facilitate
accurate and proper documentation of all activities and transactions in the
operation of the business, utilizing generally accepted accounting procedures
(GAAP) as allowed by the software.
The Chief Financial Officer and other accounting personnel will track,
forecast and budget the company’s finances to best utilize the information
vital to our success and growth.
Capital
assets are to be scheduled and managed through the use of the Peachtree Fixed
Assets module, with appropriate tracking taking place as well within the
general ledger. This provides the
necessary documentation and treatment for financial statement preparation as
well as for federal and state tax basis reporting requirements.
Revenue
will come into the business primarily through wire transfers and possibly
later by corporate check, thereby eliminating the need for a great deal of
security in handling large sums of cash.
The bank or depository institution will then transmit a daily
transaction report of funds received and deposited.
The registry information will be turned over expediently to the
appropriate department for further processing.
The revenue information will be recorded as a cash receipt for the
appropriate day as well as simultaneously being reported to the appropriate
revenue account. Totals reported
as received by the financial institution will be balanced against the totals
of detail transaction entry, and any fees or costs charged by the financial
institution will then be posted as expenses.
Reports from the registration section shall be compared with the
financial reports in order to maintain the integrity of the procedure.
Any discrepancies are to be reconciled immediately so that all daily
reports are synchronous with each other.
Utilization of daily concomitant controls prevents excessive and
repetitive auditing of detail records at later times.
Expenditures
for costs of revenue and general operations shall be made promptly and
according to procedure as determined by the Chief Financial Officer and other
financial personnel. Purchase
Orders are to be issued by appropriate personnel upon receipt of documents of
approval to purchase necessary items and services for operations.
When merchandise or services are received, a signatory document
confirming receipt of the merchandise or service shall be submitted as proof
that the merchandise or service has been performed or received.
Upon receipt of the invoice for the merchandise or service, the
purchase order, the signatory document of receipt and the invoice are put
together and submitted for payment.
Accounts
payable are to be reviewed and payments of vendor invoices are to be
determined as necessary by appropriate accounting personnel.
All payments are to be made timely so that further costs are not
incurred. Payments are to be made
in such a manner as to maximize profitable utilization of cash reserves and
other resources of the company while maintaining standard area business
practices and vendor relations. Utilization
of computerized checks will keep processing within the standardized system,
thereby eliminating manual intervention and reducing the margin for error.
Upon determination of signatory requirements for checks, appropriate
accounting personnel shall sign checks as required and submit them for further
processing and receipt by vendors.
Proper
handling of the bank statement upon its delivery to or on behalf of the
business is done as recommended by GAAP and accepted auditing standards. The bank statement is to be reconciled within
twenty-four hours of its receipt by accounting personnel.
Utilization of the account reconciliation feature of the software will
facilitate completion of this task in accordance with procedures.
Upon completion, the bank statement documents are to be safely and
accessibly stored should further access be needed.
Additional debit or credit adjustments to be posted to the general
ledger are to be approved by the appropriate personnel and promptly entered
into the system, also by the appropriate personnel.
Monthly
transactions, general ledger and financial statement detail are to be reviewed
for accuracy and completeness prior to issuance each month.
Interim reports and financial statements are to be provided to Chief
Officers and management personnel as they may require.
All
financial information is to be held in strict confidence by all employees of
the corporation.
14.0 RISKS
There
are substantial risk factors associated with Commercial Connect, LLC.. The
company has a limited operating history and is introducing a new product to
the market.
There
is little reputation or history on which to rely for assumptions made in this
business plan.
·
The
company will be highly dependent on key personnel. Any change in personnel
could be detrimental.
·
Forward-looking
statements in this plan may be inaccurate.
·
The
company will be dependent on the continued growth and acceptance of the
Internet and domain names.
·
The
company will be dependent on its perception on the Internet
·
Legal
issues faced by other registries will be of great concern
·
There
may be problems with computer systems that will disrupt operations.
·
There
may be security problems with computer systems.
·
There
may be future government regulations on Internet companies that adversely
affect revenue.
15.0 TECHNOLOGY
See Registry Operator’s
Proposal Technical Plan.