Tucows 2014 Annual Report Download - page 69

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Portfolio names are sold through our premium domain name service, auctions or in negotiated sales. The size of
our domain name portfolio varies over time, as we acquire and sell domains on a regular basis to maximize the overall
value and revenue generation potential of our portfolio. In evaluating names for sale, we consider the potential foregone
revenue from pay-per-click advertising, as well as other factors. The name will be offered for sale if, based on our
evaluation, the name is deemed non-essential to our business and management believes that deriving proceeds from the
sale is strategically more beneficial to the Company. In addition, we generate revenue from the payments for the sale of
rights to gTLD strings under ICANN’s New gTLD Program.
Portfolio names that have been acquired from third-parties or through acquisition are included as intangible
assets with indefinite lives on our consolidated balance sheet.
We also generate advertising and other revenue through our ad-supported content site, tucows.com. This site
primarily derives revenue from banner and text advertising. In addition, their revenue is derived from software developers
who rely on us as a primary source of distribution. Software developers use our Author Resource Center to submit their
products for inclusion on our site and to purchase promotional placements of their software.
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