Part 10 – Portfolio Management – Direct Expenses

Part 10 – Portfolio Management – Direct Expenses

Most domain investors are very familiar with the direct cost of domain renewals but from experience, I find that many are not as aware of many of the other costs associated with running their business. It’s very easy to get so enamoured with the thought of selling one of your domains for a million dollars that you forget that time is ticking by and costs are mounting up.

There are two types of costs for any domain investment business. Direct costs are those that include, domain renewals, accountants, lawyers AND your time. I want to particular highlight your time as it’s often the forgotten or neglected cost.

Many domain investors have another job that puts food on the table for their families and they end up running their business more like a hobby. It’s fun finding domain names and making a few bucks on the side either through traffic revenue or selling domains but the question that all of us needs to answer is whether we are running a business or enjoying a hobby.

Let me be very blunt here. If you value your time at zero, then you aren’t running a proper business at all. You need to be tracking the number of hours you spend managing your domain portfolio and attributing an hourly rate for your time. As well as being prudent it will help you work out if your time would be better spent in some other activity rather than on your portfolio.

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