Dark Blue Sea which operates Fabulous.com, made a presentation to investors today which you can download and view here.

It’s a very interesting presentation of not only it’s own business, but in great detail outlines the case for the domain industry as a whole.

It’s probably the best explanation I have ever read about the domain industry.  You can direct all those people who never understood what you did for a living to this report and they will understand what you do after they read it.

Some of the highlights of the 34 page document,  as it relates to the domain industry overall:

Domain Names are a strategic asset.

Domain names are the real estate of the internet , account for very high quality traffic called direct navigation.

To have a commercial presence in the online world, you need a domain name; and a web site that is hosted on the domain name.

Domain Names are the vacant land of the Internet, web sites are the buildings and other improvements on the vacant land.

Like offline real estate, domains can be bought, sold, leased, etc.

Domain Names currently cost US$6.86 per year to maintain the registration fees being equated to property  taxes.

The secondary market for domain names values are linked to increased ecommerce activity.

Revenue from domain name traffic is broadly leveraged to the online advertising industry (US $21.1 billion in 2007)

The advertising revenue from the domain name industry is estimated to be US$600 to $800 million per The online advertising industry has been growing at approximately 30% p.a. since the low point in 2002.

Here are some highlights from the report of Fabulous.com, itself:

Fabulous as of June 2008 has approximately A$5 million cash as at June 2008 and no debt.

Fabulous has a Domain name portfolio of approximately 570,000 domain names

Most of Dark Blue Sea’s Domain names are new registrations.

New domain registration costs are treated as a traffic acquisition cost (TAC) and recorded as an operating expense of 57 cents per month over the subsequent 12 months.

The report then talks in great detail about Fabulous Domain Distribution Network.

The idea of course is to buy domains at wholesale and sell them for retail prices to end users.

The report details many domains that were sold by the Domain Distribution Network.

As I said its a great report that does a excellent job of explaining the domain industry to non-domainers.

A must read.

Dark Blue Sea is currently trading like the rest of the market at it’s low for the year at $.18

In November 2007 Dark Blue Sea hit an all time high of $1.14