30 Nov '15, 1pm

How Domainers Get Into Financial Messes https://t.co/EOBZ5JKFA4 via @whizzbangsblog

How Domainers Get Into Financial Messes https://t.co/EOBZ5JKFA4 via @whizzbangsblog

So many business owners have an incredible desire for profit but so few actually understand why it’s so important or how to attain it. So I’m going to first ask a really dumb question, “So why is profit so important?” At its core, profit is a measure of a business’s sustainability. If year after year a business is not profitable then it will ultimately fail. Yes, you can keep on raising capital but at some stage investors will stop investing and demand a return on their investment. This will either be in the form of a dividend or a capital increase. So in terms of a domain portfolio, unless you are earning a profit then your business will fail unless you (ie. the shareholder) keep on funding it through cash injections. This is very different from running short of cash to pay domain renewal fees….more on that later. So the question needs to be asked, why do domain business ...

Full article: http://whizzbangsblog.com/index.php/article-archive/artic...

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