Stuntdubl has a very interesting and well thought out post on domaining. Near the end of it I found this little gem of wisdom.
So why is it domainers (and most entrepreurs for that matter) underestimate the cost of development?
The number one reason this happens is because business goals aren’t developed before the project starts. One of the most exclusive problems to a business that fails online is a lack of understanding in execution the marketing and business development strategies. Underestimating the true nature of the project is a realization that nearly always occurs at the end of a failed businesses’ lifecycle.
Forgive me if the gratuitous bold type hurts your eyes. I copied/pasted it right from Stunt’s blog and it’s a relatively small amount of bold text compared to the entire post. He really wanted to make his point.
I consider it a point well taken. Many domainers, and ordinary every day webmasters too, start their businesses on the wrong foot. They don’t truly understand the high value of website development. One of the problems seems to be that website development is confused with website design and they aren’t the same thing. In fact, they are completely different.
Website design is about making your site pretty. Website development is about making it functional. While a pretty site is a good thing, a functional one is even better. In fact, many ugly websites have turned a profit for their owners while many more pretty ones have failed miserably.
Before you create your very first web page you should seriously consider what your business plan is. Don’t get off track. That’s easy to do, but it is avoidable. Map your plan then follow it!
If a business plan doesn’t produce a profit for you after a reasonable amount of time then it’s for one of two reason:
- Either it was a bad plan;
- Or it was poorly executed
Good plans that are well executed make a profit. It’s that plain and simple. And it always, always – without exception – involves website development based on solid core development principles.
Bottom line: If you want to make money online, either as a domainer or as an entrepreneur, you’ve got to develop a website from the ground up with the idea that it is a business. That means you have to understand website development and how to create a plan, build on it, market it and do all the things that running a business online require. If you do not have that knowledge and skill yourself then you need someone on your team who does. Otherwise, you might as well plan to fail.