Content-Based Website

Accounting for Cost of Sales when you've no inventory

[crashtest77]

Hi, I'm a newbie to the eCommerce world, and I'm trying to build the pro formas for our new content-based, user-built website. Social networking is a poor descriptor, but it's along those lines.

My question: if any of you are experienced in business management of content-based/ informational websites, what do you include in your direct costs (Cost of Sales/ Goods Sold) versus what you allocate as fixed costs and overhead?

Thanks!

[LifeinAsia]

What are you actually selling? You usually only use COGS if you have direct, identifiable costs associated with selling individual items. Otherwise the costs are fixed.