Do You Count Time Spent as an Expense BEFORE You Sell a Website?

bernard

bernard

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In calculating return on time spent, money invested, in a website, would it be reasonable to account for exit-value? I realize this is more a psychological aspect than actual accounting, but say you put in quite a lot of time in writing content. Would it be "reasonable" to account for this in your the discounted future earning of your website? I have been able to sell all my websites in the past, so not getting a sale is unlikely.

Is it ok to think, yeah I put in 100 hours and little income, but counting my assets, I have a future cash flow waiting?

Make sense?
 
@ragnar, It's an unrealized return. So "realistically" I wouldn't account for it until it lands in your bank account. But to get a "reasonable" idea of what you're really earning with your time, I think it makes sense to use it in a calculation. I'd calculate with and without the flip price so you can have both points of view, if it's just for your own files and info. If you're including your time spent on your expense chart before a sale, you're just hurting yourself.
 
Samwise89 said:
@ragnar, It's an unrealized return. So "realistically" I wouldn't account for it until it lands in your bank account. But to get a "reasonable" idea of what you're really earning with your time, I think it makes sense to use it in a calculation. I'd calculate with and without the flip price so you can have both points of view, if it's just for your own files and info. If you're including your time spent on your expense chart before a sale, you're just hurting yourself.
Click to expand...

Interesting, can you expand on the bolded?
 
If you're including your time spent on your expense chart before a sale, you're just hurting yourself.
Click to expand...

I'm not the guy but I'm pretty sure he's saying that you're adding extra expenses that aren't a must. And then you end up reporting less profit. And since the price of a sale is usually based on a multiple of the average rolling profit of the last 3 or 6 months, you're reducing the amount of money you'll get for the sale.

No broker or auction site can standardize the monetary value of a person's time or expect people not to lie about it. So nobody cares one way or the other. They want to know mainly about the revenue. I'm not saying it's dishonest not to add the cost of your time to the expense table. I'm saying that nobody does it and nobody expects it. Keep that for your private data.
 
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