A Formula for Value

Real-world overhead costs for a physical store should be used as a primary measurement to determine the value of a great domain name.

Common Storefront Costs

Monthly rent









Long hours



Typical OH for One Store

Rent $2500/mo, $30k/yr, $300k/10 yrs

Electric $500/mo, $6k/yr, $60k/10 yrs

Insurance, garbage, security, maintenance, $1,000/mo, $12k/yr, $120k/10 yrs

$480k (@ 10 years) before salaries not including several other unmentioned business expenses

Sunk costs that are local versus a domain name that is global 🌎

The Cost of a Store

And what is the COST of building just one store? The land, the building, the furnishings, the employees, the YEARS of research to find a proper location??? These costs should also be considered for appropriate domain name valuation.

The Cost of a Kiosk

In the real world, you expand by adding more locations. Then, for greater coverage, you add more locations. In the online world, you expand by having a great idea and a great and memorable domain name.

Let us cite an example from the real world. Suppose you have 20 locations at urban malls across the state of Florida. A kiosk in one of these malls will cost you about $2,000 per month. That is a kiosk; it is not a storefront! With each location costing rent of $2,000 a month, you are spending $40,000 per month! That is just the rent! That does not include any other expenses that go with it. Online, you just need one great idea and one great location, and you will serve the world. (Credit: Rick Schwartz, domainking.com)

The lifetime and expandable foundation of a business in the 21st century is now built upon a solid domain name.