HR.com Strategic Valuation Report
Prepared for Debbie McGrath, CEO, HR.com Limited
1. Executive Summary
You asked one question: how should the HR.com domain be valued in a bundled sale, and what does it mean for you financially?
Our recommendation: Lock a fixed allocation method into an engagement letter amendment now — before a buyer appears. Set the domain at the greater of an independent appraisal or 15% of total bundle price, capped at 25%. At a $22M deal, this means $3.3M–$5.5M attributed to the domain and $16.5M–$18.7M to the business.
A note on Debbie's experience: You have done this before. You built CEO Group Inc. and sold it to the Washington Post. You have been through two cross-border acquisitions requiring Canadian-to-US entity restructuring. This report assumes you are a sophisticated seller who wants the numbers, the options, and the risks — not a tutorial on M&A.
2. The Question from Our Call
On April 15, you, Ewing, and Mark discussed the unresolved domain valuation question. The conversation surfaced six specific concerns:
- The “throw in the business” scenario: ATM’s buyer offers $12.5M for the domain and says: include the business at no additional cost. No agreed method exists to determine fee allocation.
- The reverse scenario: NCA brings a buyer at $20M for the business. The buyer doesn’t value the domain independently.
- Buyer’s tax preferences: A sophisticated US buyer will want to classify the purchase in whatever way minimizes their tax liability.
- Canadian tax treatment: Selling a domain vs. selling a business triggers different tax treatment under the CRA. GST was a specific concern.
- IP relocation: In two prior sales to US buyers, you were required to close the Canadian entity, incorporate in Delaware, and relocate IP — ~$2M cost.
- Ewing’s 50/50 proposal: Ewing suggested valuing the domain at 50% of any bundle. You rejected this. This report explains why you were right.
This report addresses all six concerns with data, precedent, and specific recommendations.
3. What HR.com’s Domain Is Worth
The Asset Profile
- Two-letter .com: Only 676 two-letter .com combinations exist. They cannot be created — the supply is permanently fixed. Most held by major corporations (Merrill Lynch, Goldman Sachs, British Airways) and rarely trade.
- Category-defining acronym: “HR” is the universal abbreviation for Human Resources — a $30B+ global industry. Understood in every English-speaking country.
- Dual nature: HR.com is simultaneously a premium two-letter .com AND a perfect industry-keyword domain. Of the 676 two-letter .coms, fewer than 20 map directly to a major global industry vertical (HR, AI, IT, PR, TV, AD, RX, FX).
- 27 years of operation: Continuous since 1999. Carries massive SEO authority, backlink equity, and brand recognition.
- Revenue on the domain: The business generates $10–12M in annual revenue with approximately 20% EBITDA margins ($2M–$2.4M) and 1.9M registered members.
Two-Letter .com Market Data
| Domain | Sale Price | Year | Buyer / Context |
|---|---|---|---|
| FB.com | $8,500,000 | 2010 | Facebook — brand alignment |
| IG.com | $4,700,000 | — | IG Group (London) |
| IS.com | $1,950,000 | — | End-user sale |
| EE.com | $1,350,000 | — | End-user sale |
| IZ.com | $625,000 | — | Low-meaning pair, still 6 figures |
Category-Keyword .com Market Data
| Domain | Sale Price | Year | Context |
|---|---|---|---|
| LasVegas.com | $90,000,000 | 2005 | $12M upfront + 35 years monthly payments. City government buyer. |
| CarInsurance.com | $49,700,000 | 2010 | QuinStreet. Highest verified keyword domain. |
| Insurance.com | $35,600,000 | 2010 | QuinStreet. Media/tech asset bundle, court-verified. |
| Voice.com | $30,000,000 | 2019 | Block.one. Sold separately from $60M trademark package. |
| PrivateJet.com | $30,180,000 | 2012 | Industry keyword. |
| Internet.com | $18,000,000 | 2009 | Category keyword. |
| 360.com | $17,000,000 | 2015 | Vodafone to Qihoo 360 (China). |
| Insure.com | $16,000,000 | 2009 | Category keyword. |
| Chat.com | $15,500,000 | 2023 | HubSpot — strategic rebrand. |
| Sex.com | $14,000,000 | 2005 | Sold again for $13M in 2010. |
| Icon.com | $12,000,000 | 2025 | Most recent top-10 entry. |
| Hotels.com | $11,000,000 | 2001 | Later sold with business for $1.1B to IAC/Expedia. |
The Five Independent Valuations
HR.com sits at the intersection of two premium categories. Two-letter .com comps: FB.com at $8.5M (2010) is the most relevant — adjusted for 16 years of domain appreciation, a category-defining two-letter .com today benchmarks at $12M–$17M.
Category-keyword comps: Chat.com ($15.5M, 2023) and Icon.com ($12M, 2025) are the most relevant recent sales. Voice.com at $30M represents what a deep-pocketed strategic buyer will pay. “HR” is a larger, more universal category than “chat” or “icon.”
The dual-nature premium: HR.com is not merely a two-letter .com (like IZ.com). It is also a perfect category keyword. This dual nature is extraordinarily rare. A 20–30% premium over pure two-letter comps is applied.
The most conservative method. Values the domain as a traffic-generating asset independent of the business.
Type-in traffic: Estimated 50,000–100,000 monthly direct type-in visits. At HR-industry CPV of $3–$8: $1.8M–$9.6M annually in traffic replacement value.
SEO authority: 27 years of continuous operation. Domain Authority likely 85+. Annual value of SEO moat: $1M–$3M.
Combined annual value: $2.8M–$4M. At 3x multiplier: $8.4M–$12M. With uncertainty discount: floor at $5M.
This is intentionally the floor methodology — it captures only provable, quantifiable traffic value.
Measures what HR.com saves you versus not having it. Scenario: buyer operates on “hrplatform.com” instead.
- Direct navigation loss: Re-acquiring 1.9M members at $2–$5 each = $3.8M–$9.5M
- Brand credibility gap: Annual brand premium of $2M–$4M
- SEO reconstruction: $5M–$10M in content marketing and link building (5+ years)
- Advertising offset: $1M–$2M/year additional paid media indefinitely
Total replacement cost (NPV over 10 years): $10M–$25M.
676 two-letter .com combinations exist. Floor price for low-meaning pairs: ~$270K. But HR is top-tier.
Fewer than 20 two-letter .coms are universally recognized industry abbreviations: HR, AI, IT, PR, TV, AD, RX, FX. “HR” represents a permanent, non-cyclical $30B+ industry present in every company with 5+ employees.
Benchmarked against FB.com ($8.5M in 2010 ≈ $15M–$18M today) and recent Chat.com/Icon.com sales, HR.com is placed in the top 5–10 most valuable two-letter .coms by category alignment.
Tier 1 — HR tech giants ($20M–$30M): Workday ($73B), ADP ($100B+), SAP SuccessFactors. HR.com = permanent brand dominance.
Tier 2 — Growth-stage ($10M–$20M): Rippling ($13.5B), Deel ($12B), Gusto ($10B). Transformative brand asset.
Tier 3 — PE rollups ($8M–$15M): Crown jewel brand for HR tech platform rollups.
Tier 4 — Media ($8M–$12M): LinkedIn, Indeed, Glassdoor — vertical media acquisition.
With 10–15+ credible strategic buyers, competitive bidding pushes price 20–40% above appraised value.
Consensus Range
| Method | Low | High | Weight |
|---|---|---|---|
| Comparable Sales | $8M | $20M | Highest — actual transactions |
| Traffic & Revenue | $5M | $12M | Floor methodology |
| Brand Replacement Cost | $10M | $25M | Highest ceiling — economic moat |
| Scarcity & Category | $12M | $22M | Strong — permanent & verifiable |
| Buyer Demand | $10M | $30M | Widest — auction dependent |
Confidence: Medium-High. Broker’s assessment: list at $18M–$20M, expect close at $12M–$16M. With 3+ qualified bidders, $18M+ is realistic.
- The $22M high requires a competitive auction with multiple Tier 1 HR tech companies. Plausible but not guaranteed.
- FB.com comp ($8.5M in 2010) is 16 years old. Recent comps (Chat.com $15.5M, Icon.com $12M) are stronger anchors.
- Brand replacement cost ($10M–$25M) assumes current business scale. A buyer of just the domain wouldn’t inherit 1.9M members.
- The $30M buyer demand ceiling is aspirational, not expected.
- Two-letter .com appreciation rate (8–12% annually) is an industry estimate, not verified.
4. What History Tells Us
All Nine Precedent Transactions
| # | Transaction | Total Value | Domain Alloc. | Business Alloc. | Buyer | Relevance |
|---|---|---|---|---|---|---|
| 1 | Insurance.com (2010) | $35.6M bundle | ~25% ($8–10M) | ~75% | QuinStreet | 9/10 |
| 2 | Business.com (1999/2007) | $7.5M → $345M | ~2% at exit | ~98% | R.H. Donnelley | 8/10 |
| 3 | Voice.com (2019) | $30M + $60M TM | 33% (isolated) | 67% (separate) | Block.one | 10/10 |
| 4 | Hotels.com (2001/03) | $11M → $1.1B | ~1–2% at exit | ~98% | IAC/Expedia | 7/10 |
| 5 | Cars.com (2014) | $872M spinoff | ~5–8% imputed | $800M+ | Spinoff | 6/10 |
| 6 | CarInsurance.com (2010) | $49.7M | ~70–80% | ~20–30% | QuinStreet | 5/10 |
| 7 | LasVegas.com (2005) | $90M structured | ~80%+ | Minimal | City govt | 3/10 |
| 8 | Chat.com (2023) | $15.5M | ~97%+ | Negligible | HubSpot | 4/10 |
| 9 | FB.com (2010) | $8.5M | 100% | $0 | 2/10 |
Key Patterns
Six Allocation Methods Found in Practice
| Method | How It Works | Pros | Cons |
|---|---|---|---|
| Independent Appraisal | Certified domain broker values domain in isolation | Third-party defensibility | Appraisals can swing 3x |
| Revenue Attribution (“but-for”) | What would the business earn on a generic domain? Delta = domain value | Ties to economics | Speculative, hard to model |
| Replacement Cost | Cost to replicate domain’s traffic/SEO/brand via paid acquisition | Auditable numbers | Conflates marketing with asset value |
| Buyer’s PPA (ASC 805) | Buyer’s accountants allocate post-close under GAAP | Happens automatically | Brokers don’t control it |
| Fixed Floor/Ceiling | Agree upfront: domain ≥ $X and ≤ $Y | Eliminates fights | Requires early negotiation |
| Proportional to Standalone | Pro-rate bundle by ratio of independent valuations | Mechanically simple | Garbage-in if valuations disputed |
Recommended Method: Fixed Floor/Ceiling
- Defensible — no party can claim arbitrary allocation
- Protects Debbie from fee inflation (25% cap)
- Protects ATM from domain being zeroed out (15% floor)
- Aligns with precedent (Insurance.com ~25%, Voice.com ~33%)
- Can be locked in NOW, before a buyer appears
5. Your Money Under Each Scenario
Fee Formulas Reference
Domain Fee = 10% × Domain Value (flat rate) Business Fee = $200,000 + 2.0% × min(Business Value, $16,000,000) + 3.0% × max(0, min(Business Value − $16,000,000, $6,000,000)) + 5.0% × max(0, Business Value − $22,000,000) − $50,000 retainer credit
Structure 1: Sell the Domain Alone
Keep the business, migrate to a new domain
| Low | Medium | High | |
|---|---|---|---|
| Domain Price | $5,000,000 | $10,000,000 | $18,000,000 |
| Total Fees (10%) | $500,000 | $1,000,000 | $1,800,000 |
| Tax (26.5%) | $1,325,000 | $2,650,000 | $4,770,000 |
| Net to Debbie | $3,175,000 | $6,350,000 | $11,430,000 |
| Low — A1 | Low — A5 | Med — A1 | Med — A5 | High — A1 | High — A5 | |
|---|---|---|---|---|---|---|
| ATM receives | $375K | $300K | $750K | $600K | $1,350K | $1,080K |
| NCA receives | $125K | $200K | $250K | $400K | $450K | $720K |
Considerations: Migrating the business to a new domain would be severely disruptive. 27 years of SEO, bookmarks, and brand recognition lost. Estimated 20–40% traffic decline in first 12–18 months. GST: zero-rated if sold to US buyer.
Structure 2: Bundle — Domain-Dominant (65% domain / 35% business)
| Low ($15M) | Medium ($22M) | High ($32M) | |
|---|---|---|---|
| Domain / Business | $9.75M / $5.25M | $14.3M / $7.7M | $20.8M / $11.2M |
| Domain Fee (10%) | $975,000 | $1,430,000 | $2,080,000 |
| Business Fee | $255,000 | $304,000 | $374,000 |
| Total Fees | $1,230,000 | $1,734,000 | $2,454,000 |
| Fee % | 8.2% | 7.9% | 7.7% |
| Net to Debbie | $9,795,000 | $14,436,000 | $21,066,000 |
A3 (NCA introduced): NCA 75% / ATM 25%
| Low | Med | High | |
|---|---|---|---|
| NCA | $922,500 | $1,300,500 | $1,840,500 |
| ATM | $307,500 | $433,500 | $613,500 |
A4 (ATM introduced): ATM 75% / NCA 25%
| Low | Med | High | |
|---|---|---|---|
| ATM | $922,500 | $1,300,500 | $1,840,500 |
| NCA | $307,500 | $433,500 | $613,500 |
Structure 3: Bundle — Business-Dominant (35% domain / 65% business)
| Low ($15M) | Medium ($22M) | High ($32M) | |
|---|---|---|---|
| Domain / Business | $5.25M / $9.75M | $7.7M / $14.3M | $11.2M / $20.8M |
| Domain Fee (10%) | $525,000 | $770,000 | $1,120,000 |
| Business Fee | $345,000 | $436,000 | $614,000 |
| Total Fees | $870,000 | $1,206,000 | $1,734,000 |
| Fee % | 5.8% | 5.5% | 5.4% |
| Net to Debbie | $10,155,000 | $14,964,000 | $21,786,000 |
A3 (NCA introduced): NCA 75% / ATM 25%
| Low | Med | High | |
|---|---|---|---|
| NCA | $652,500 | $904,500 | $1,300,500 |
| ATM | $217,500 | $301,500 | $433,500 |
A4 (ATM introduced): ATM 75% / NCA 25%
| Low | Med | High | |
|---|---|---|---|
| ATM | $652,500 | $904,500 | $1,300,500 |
| NCA | $217,500 | $301,500 | $433,500 |
Structure 2 vs. Structure 3: Debbie’s Savings
| Total Price | Domain-Dominant Net | Business-Dominant Net | Debbie Saves |
|---|---|---|---|
| $15,000,000 | $9,795,000 | $10,155,000 | +$360,000 |
| $22,000,000 | $14,436,000 | $14,964,000 | +$528,000 |
| $32,000,000 | $21,066,000 | $21,786,000 | +$720,000 |
Structure 4: Sell the Business Alone
Retain the domain for later sale or licensing
| Low ($4M) | Medium ($8M) | High ($14M) | |
|---|---|---|---|
| Business Fee | $230,000 | $310,000 | $430,000 |
| Fee % | 5.75% | 3.88% | 3.07% |
| Tax (26.5%) | $1,060,000 | $2,120,000 | $3,710,000 |
| Net to Debbie | $2,710,000 | $5,570,000 | $9,860,000 |
| Low — A2 | Low — A6 | Med — A2 | Med — A6 | High — A2 | High — A6 | |
|---|---|---|---|---|---|---|
| NCA | $172.5K | $138K | $232.5K | $186K | $322.5K | $258K |
| ATM | $57.5K | $92K | $77.5K | $124K | $107.5K | $172K |
Two-transaction strategy: Sell business at $8–$14M (3–4% fees), retain domain, sell domain later at $10–$18M (10% fees). Total: $18–$32M with $1.3–$2.2M total fees. More total dollars but higher total fees, and requires two buyers on two timelines. Under B3, NCA retains perpetual 25% of any future domain sale if business closes first.
The Definitive $22M Bundle Sensitivity Table
| Domain % | Domain $ | Business $ | Domain Fee | Biz Fee | Total Fees | Debbie’s Net | vs. 15% |
|---|---|---|---|---|---|---|---|
| 0% | $0 | $22.0M | $0 | $650K | $670K | $15.50M | −$234K |
| 10% | $2.2M | $19.8M | $220K | $596K | $816K | $15.35M | −$88K |
| 15% | $3.3M | $18.7M | $330K | $551K | $904K | $15.27M | baseline |
| 20% | $4.4M | $17.6M | $440K | $502K | $942K | $15.23M | +$38K |
| 25% | $5.5M | $16.5M | $550K | $480K | $1.03M | $15.14M | +$126K |
| 30% | $6.6M | $15.4M | $660K | $458K | $1.12M | $15.05M | +$214K |
| 35% | $7.7M | $14.3M | $770K | $436K | $1.21M | $14.96M | +$302K |
| 40% | $8.8M | $13.2M | $880K | $414K | $1.29M | $14.88M | +$390K |
| 50% | $11.0M | $11.0M | $1.10M | $370K | $1.47M | $14.70M | +$566K |
| 65% | $14.3M | $7.7M | $1.43M | $304K | $1.73M | $14.44M | +$830K |
| 100% | $22.0M | $0 | $2.20M | $0 | $2.20M | $13.97M | +$1,296K |
6. The Scenarios You Raised on the Call
Scenario A: ATM brings buyer at $12.5M — “throw in the business”
Under recommended 15–25% allocation: Domain = $1.875M–$3.125M. Business = $9.375M–$10.625M. Your total fees: $525,000–$675,000.
At $10–12M revenue and ~$2M–$2.4M EBITDA, a $12.5M deal represents roughly 1–1.25x revenue — a reasonable but not premium offer. The allocation method protects you regardless of deal size.
Scenario B: NCA brings buyer at $20M who doesn’t value domain
Under recommended allocation: Domain = $3M–$5M. Business = $15M–$17M. Your total fees: $750,000–$990,000. ATM receives $187,500–$247,500 via the 25% cross-participation. This is the cost of cooperation — and it is reasonable.
Scenario C: Buyer wants to classify assets for their taxes
Scenario D: GST
Scenario E: IP relocation / Delaware incorporation
Buyer-side structural requirement, not a valuation issue. Precedent cost: ~$2M. At a $22M deal, this drops net from ~$14.9M to ~$12.9M. Negotiate as the buyer’s expense. You have leverage — category-defining domain, established platform, 1.9M members.
7. Tax Considerations
| Item | Treatment | Impact |
|---|---|---|
| Domain to US buyer | Zero-rated GST (Schedule VI, Part V, Section 10) | No 14% GST. Biggest finding. |
| Capital gains on domain | CCA Class 14.1 (replaced eligible capital property regime Jan 1, 2017). 5% CCA rate. 50% inclusion. | ~26.5% effective tax rate. 27-year hold supports capital gains treatment. |
| CRA intent test | Intent at acquisition + frequency + holding period. You bought HR.com for business, not trading. | Capital gains treatment (not business income). Favorable. |
| Business sale (shares) | 50% inclusion. May qualify for LCGE. | ~26.5%. LCGE could shelter significant portion. |
| Business sale (assets) | Mixed: goodwill = cap gains; inventory = ordinary income. | Higher blended rate. Structure matters. |
| Section 167 Election | Form GST44: jointly elect no GST/HST if buyer takes 90%+ assets. | Eliminates GST even for domestic buyers. |
| Canada-US Tax Treaty | Capital gains taxed only in Canada (seller’s country). | No US withholding on outright sale. |
| Royalty/license option | 10% treaty withholding (vs. 25% statutory). | Ongoing income but lower tax efficiency. |
| Transfer pricing | Domain FMV must be substantiated by independent appraisal for both CRA and IRS. | Regulatory requirement. The recommended appraisal (R2) serves double duty. |
| US buyer: Section 197 | 15-year amortization of acquired domain. ~21% tax shield. | At $5M allocation: ~$1.05M shield. Buyer will push domain allocation up. |
| IP relocation | ~$2M precedent. Canada imposes departure tax on unrealized gains when IP leaves. | Negotiate as buyer’s expense. |
Tax Strategy Summary
- Zero-rated GST to US buyer — confirmed, no 14% hit
- Capital gains treatment strongly supported (27-year business hold)
- Internal fee allocation and buyer’s tax allocation can differ
- Share sale may unlock LCGE benefits — have CPA model this
- Maximize domain allocation (Section 197 amortization benefit)
- Prefer asset purchase for step-up in basis
- May require Delaware restructuring pre-close
- Their allocation preference need NOT match your internal fee allocation
8. Recommendations
R1: Lock the allocation method now
Action: Amend engagement letter & split fee agreement: domain = greater of (a) independent appraisal or (b) 15% of total, capped at 25%.
Why now: Negotiating after an LOI arrives is adversarial. ATM will find it fair (guaranteed 15% floor). NCA supports it (caps domain pool). You benefit (limits fee exposure).
ATM’s likely objection: “Domain is worth $12M+ standalone.” Your response: “The allocation governs fee calculations, not standalone value. Precedent range: 15–33% of enterprise value (Insurance.com, Voice.com).”
R2: Get an independent domain appraisal
Action: Engage Hilco Digital Assets, MediaOptions, or equivalent. Cost: $5K–$15K. Expected return: $8M–$14M formal valuation letter.
This appraisal serves double duty: (1) anchors the fee allocation formula floor, and (2) satisfies the transfer pricing requirement for cross-border transactions with both CRA and IRS.
R3: Sell bundled, business-dominant
Action: Advocate for 35% or less to domain in any bundle.
At $22M: saves $528,000 vs. domain-dominant. At $32M: saves $720,000. No crossover point — business-dominant is always better. Internal fee allocation can differ from buyer’s accounting allocation.
R4: Retain a Canadian cross-border tax advisor
Action: Before any LOI, engage a CPA/tax lawyer experienced in Canada-to-US M&A with intangible assets.
Share vs. asset sale, LCGE, Section 167, departure tax, and treaty provisions all require professional structuring.
R5: Prepare for buyer structural preferences
Expect: (1) Delaware incorporation request (~$2M), (2) Section 197 amortization push (higher domain allocation for their books), (3) asset purchase preference, (4) earnout provisions.
Your leverage: $10–12M revenue, ~20% EBITDA margins, category-defining two-letter .com domain, 1.9M members. You are not desperate. Negotiate IP relocation as buyer’s cost.
9. Risk Matrix
| Risk | Probability | Impact | Mitigation |
|---|---|---|---|
| ATM disputes allocation formula | Medium | High ($500K+) | Lock now while cooperative; cite precedent |
| Domain appraisal lower than expected | Low | Medium | 15% floor provides backup |
| No competitive bidding (single buyer) | Medium | High | Market to both HR tech and domain universes |
| Buyer demands domain-dominant for taxes | High | Medium ($200–$700K) | Separate internal from buyer allocation |
| Canadian tax structuring error | Low | Very High | Retain cross-border CPA before LOI |
| IP relocation required | High | Medium ($2M) | Negotiate as buyer expense; budget worst-case |
| Deal doesn’t close; assets sold separately | Medium | Low | B3 gives NCA perpetual 25% domain participation |
10. What This Report Does Not Cover
- Formal business valuation. The business ($10–12M revenue, ~20% EBITDA, 1.9M members) requires separate valuation using revenue multiples, EBITDA multiples, or DCF.
- Buyer outreach strategy. Who to approach, auction structure, competitive dynamics between ATM and NCA buyer universes.
- Employment & key-person retention. 299 employees and Debbie’s post-transaction role.
- Legal drafting. This report recommends commercial terms. Legal counsel should draft amendment language.
Appendix A: Complete Fee Waterfall Reference
Business Fee = $200,000 + 2.0% × min(Business Value, $16,000,000) + 3.0% × max(0, min(Business Value − $16,000,000, $6,000,000)) + 5.0% × max(0, Business Value − $22,000,000) − $50,000 retainer credit Domain Fee = 10% × Domain Value
| Business Value | Fee (after $50K credit) | Effective Rate |
|---|---|---|
| $4,000,000 | $230,000 | 5.75% |
| $8,000,000 | $310,000 | 3.88% |
| $10,000,000 | $350,000 | 3.50% |
| $14,000,000 | $430,000 | 3.07% |
| $16,000,000 | $470,000 | 2.94% |
| $18,000,000 | $530,000 | 2.94% |
| $22,000,000 | $650,000 | 2.95% |
Appendix B: Precedent Transaction Database
| Domain | Price | Year | Type | Domain % of Total | Relevance |
|---|---|---|---|---|---|
| Voice.com | $30M + $60M TM | 2019 | Separated assets | 33% | 10/10 |
| Insurance.com | $35.6M bundle | 2010 | Media/lead-gen | ~25% | 9/10 |
| Business.com | $7.5M → $345M | 1999/07 | Domain-first | ~2–3% | 8/10 |
| Hotels.com | $11M → $1.1B | 2001/03 | Domain-first | ~1–2% | 7/10 |
| Cars.com | $872M spinoff | 2014 | Inseparable | ~5–8% | 6/10 |
| CarInsurance.com | $49.7M | 2010 | Keyword traffic | ~70–80% | 5/10 |
| Chat.com | $15.5M | 2023 | Strategic rebrand | ~97%+ | 4/10 |
| LasVegas.com | $90M structured | 2005 | Government buyer | ~80%+ | 3/10 |
| FB.com | $8.5M | 2010 | Pure domain | 100% | 2/10 |
Appendix C: Full $22M Sensitivity Table
| Domain % | Domain $ | Business $ | Domain Fee | Biz Fee | Total Fees | Net to Debbie | vs. 15% |
|---|---|---|---|---|---|---|---|
| 0% | $0 | $22.0M | $0 | $650K | $670K | $15.50M | −$234K |
| 10% | $2.2M | $19.8M | $220K | $596K | $816K | $15.35M | −$88K |
| 15% | $3.3M | $18.7M | $330K | $551K | $904K | $15.27M | baseline |
| 20% | $4.4M | $17.6M | $440K | $502K | $942K | $15.23M | +$38K |
| 25% | $5.5M | $16.5M | $550K | $480K | $1.03M | $15.14M | +$126K |
| 30% | $6.6M | $15.4M | $660K | $458K | $1.12M | $15.05M | +$214K |
| 35% | $7.7M | $14.3M | $770K | $436K | $1.21M | $14.96M | +$302K |
| 40% | $8.8M | $13.2M | $880K | $414K | $1.29M | $14.88M | +$390K |
| 50% | $11.0M | $11.0M | $1.10M | $370K | $1.47M | $14.70M | +$566K |
| 60% | $13.2M | $8.8M | $1.32M | $326K | $1.65M | $14.52M | +$742K |
| 65% | $14.3M | $7.7M | $1.43M | $304K | $1.73M | $14.44M | +$830K |
| 75% | $16.5M | $5.5M | $1.65M | $260K | $1.91M | $14.26M | +$1,006K |
| 100% | $22.0M | $0 | $2.20M | $0 | $2.20M | $13.97M | +$1,296K |
Next Chapter Advisory Group · Confidential · Prepared for Debbie McGrath · April 15, 2026