Introduction
If you read my article, How to Become a Licensed Drone Pilot in 2023, you have the basic steps for obtaining your license. Now, let's break down the costs for before and after you get that license.
Below, I am going to go into detail about testing, business, and operating expenses. I will also offer up a free template I use to track my day-to-day income and expenses.
Testing Expenses
There are two primary expenses that come with taking your FAA part 107 exam. The cost of the exam itself, as well as the study material you use to prepare for the test.
First off, the fee for the test is $175 which will be paid when you schedule your exam. You can find your nearest testing center and schedule your exam here.
The only other cost associated with your test will be your studying material. This cost will vary based on your needs. There is free content on YouTube such as FREE Drone Certification Study Guide: FAA Part 107 sUAS Test, which proved to be a valuable tool for learning basic terminology and how the test is structured.
When it comes to paid study material, you can expect to spend anywhere between $50 and a few hundred dollars depending on the experience you are looking for. Personally, I went with the 2023 Remote Pilot Test Prep Plus Prepware, which was $50 and provided me with a knowledge book and test bank loaded with a few hundred questions. Alternatively, there are interactive courses that offer a "passing guarantee" that I have seen range from $100-$300. Depending on your background and learning style, one of these will give you all the information you need to know to pass the exam.
Business Expenses
Depending on how you structure your business and organize your expenses, the expenses in these next two categories can be interchanged. For the sake of this article, I will be labeling my business expenses as the upfront costs to get me up and running.
Let's start with drone registration. This is going to cost you $5 for each drone you operate and will be valid for 3 years. You can register your drone by mail or online through the FAA Drone Zone.
The main expense to get your business off the ground will be your drone and added equipment. This cost is going to vary based on your set up and you should ask yourself your goals and desired market when determining which drone you are going to purchase. Personally, I will be using my drone to supplement my consulting business and will be relying on mapping, so I went with a little more expensive setup. I currently run the DJI Mavic 3 Enterprise Thermal with the RC Pro Enterprise & Battery Kit. I purchased everything as a package, and have just shy of $6,300 into it. The capabilities of this drone are truly incredible, and I project a full ROI within 12 months.
Lastly, you have costs for setting up your LLC. There are online services out there that you can pay a premium for setting up and handling the documents of your business, but with a little due diligence, setting up an LLC on your own is more than doable. Like your setup, this cost will vary depending on which state you live in. For the state of Ohio, the cost to set up an LLC is $99.
Altogether, I had between $6,400-$6,500 in my business becoming fully operational. Keep in mind I am offering more advanced aerial services, and if you are looking for an introduction to the industry, you are able to get started for much cheaper.
Operating Expenses
Now, let's get into the reoccurring expenses. Depending on your niche, you will have more or less monthly expenses, but I will give you an idea of what I have and how I track it.
Most important, insurance. Your equipment is the investment that keeps you up and running, so you are going to want to be sure you protect it from accidents. I cover my equipment with Skywatch.AI. They offer flexible packages to fit your needs and have a great customer support line. You can get coverage by the day, month, or year, and they offer hull & liability coverage. The monthly plan for my setup (hull & liability) comes to roughly $130. They do offer a big discount for annual plans, so if you anticipate work throughout the year this could be something worth looking into.
The rest of your monthly expenses will fully depend on what type of drone business you are running. I personally do most of my work in mapping and aerial photography, so the rest of my monthly expenses are for my mapping software, editing software, and marketing costs.
I use WebODM Lightning for all of my mapping needs. I am able to upload data from my drone directly to the cloud, so I don't take up a ton of storage space and computing power on my laptop. The Lightning version is a pay-as-you-use service where you purchase credits that you use in exchange for processed data. If you would like to give WebODM a try, feel free to use my referral link to get started.
For editing, I try to keep things simple. I use Adobe Lightroom, which is $10/month and provides more than enough editing features for me to provide my clients with high-quality photos.
Your marketing costs are going to depend on what type of advertising you will be running. Once you find your niche, you will have a better idea of how much you will be contributing to advertising and where.
Free Template - Income/Expenses
Now, let's get to the free stuff! When budgeting for my business, I try to keep things as simple and user-friendly as possible. Keeping track of all of my revenue and expenses in a Google Sheets document helps me stay on top of things. You can find that template here.
If you are looking for more content, keep an eye out for future articles, and feel free to follow me on social media.
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