We continue our series on why spending money on domains is not only logical, but a cost effective marketing strategy for your company or as an agency of record (AOR)*. According to a Cushman & Wakefield publication titled Main Streets Across the World 2017, retail space costs some serious buckaroos for a brick and mortar business model. Consider the graphic below redacted to solely the top ten.
Credit 2017, Most Expensive Locations by Country by Cushman & Wakefield
Next, let’s consider the average square feet needed for a successful brick and mortar business model. Acording to the balance the formula Sales Volume ÷ Sales per Square Foot = Selling Space may be applied to deciding the retail space needed to be successful in the traditional business model. There are a lot of businesses out there, so let’s consider one specific niche… COFFEE! According to Starbucks their average store size is 1,700 square feet. Now… let’s apply this to the top ten list above!
According to those figures an average cost for retail space of an Upper 5th Avenue coffee shop in New York City per year would be $5,100,000! Going down the list respectively: Hong Kong @ $4,632,500, London @ $2,922,300, Milan @ $2,436,100, Paris @ $2,391,900, Tokyo @ $2,040,000, Sydney @ $1,700,000, Seoul @ $1,553,800, Zurich @ $1,501,100, & Vienna @ $833,000… PER YEAR!
So why spend money on acquiring a domain? I can think of millions of reasons… millions of $s that is… Consider investing in a domain name that describes what you do and is memorable for your customer. That being said some things are never going to be challenged by the online retailer… like coffee right? Think again!
Credit 20th Century Fox’s 1984 Movie Revenge of the Nerds
*Note: An agency of record or AOR in the advertising world is a single agency responsible for all the services that a particular business might require. These services traditionally include a brand strategy including creative and media placement.