10) What Will Your Operating Costs Be?

What will it cost to operate and profit from your investment?


If you’re investing in a website, and a promotional strategy to grow your business, you need to understand your setup and operating costs as part of your investment. Most importantly, you don’t want to be caught unprepared for the cost and effort required to see your investment through.

You want to understand your cost structure and profit model before you start. The easiest place to start is by mapping out your setup and anticipated operating costs. Then, you can measure your cash flow based on conversion assumptions.

Typical costs include:

Annual domain registration, hosting and SSL certificates
CMS fees and software plugins
Email marketing and sales management software
Directory listing fees and search marketing costs
Affiliate marketing services and marketplace service fees
Tracking and reporting services
Ongoing design, content and process refinements
Maintenance updates and security patches
Social media management and SEO
Content creation and distribution
Payment processing and shipping fees

Your technology choices will have many unforeseen costs, and it’s key to make sure all of your ongoing expenses are taken into account.