Whether you’re a liveaboard or a weekly/monthly/yearly user of your boat you’ll find ideas here you may not have thought of before that can help you make money boating. Some of these will be better suited to some types and sizes of boats than others. Browse through and see which could turn your boat from a pain in your wallet into a pleasure craft again.
It may be necessary to check that with your boat insurance company if you wish to take paying passengers or implement some of these ideas. Your policy may need to be changed in order to run your boat as a business. It also goes without saying that it is necessary to have up to date and tested safety equipment onboard sufficient for the number of people on board.
- Can you make Money Chartering your Boat?
- Finding the right boat
- Is Buying a Boat a Waste of Money?
- Is Owning a Yacht Worth it?
- How much do Sailing La Vagabonde Earn?
- How do I Start a Boating Business?
- Can you Drive a Yacht by Yourself?
- How can I make Money with a Small Boat?
- How much is a Small Boat Worth?
Can you make Money Chartering your Boat?
In many industries, the above questions would be rather simple to answer. However, in the boating industry answering these questions with anything else other than “It depends..” requires us to get into more details. At the very least, we need to get into the specifics of the size segment you choose, the primary geographic area, and the yacht charter business model that you intend to implement.
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Looking from outside the yachting industry, charter rates like those of M/Y Serene chartered by Bill Gates for over 2.5M$ a week, might sound as an exorbitant price to pay, but let us look at it differently than simply comparing the charter rate to the alleged value of the yacht at $300 millions.
Indeed, if you take into account a rough estimate of 10% of the [alleged] purchase value (or $30 Million) spent on running the yacht every year and at the number of potential clients that can pay such rates for a week of charter all of a sudden the weekly rate seems not as high anymore.
Should you do to make money?
Finding the right boat
Whatever boat you think of buying get a great surveyor and a good yacht/ship survey done possibly choose a professional with yacht building experience
Finding the “right” boat is crucial in this process because the “right” boat will drive the type of clients who are interested in renting it, the price competitiveness, and maintenance costs. It is not uncommon though to incur the common mistake to think that the right boat is the one you want to buy because much like cars, boats are an investment of passion, thus, are subject to one’s perception of beauty which might not be the same as your target market (your prospective charterers).
For example, not long ago, I have stumbled upon a quite rare fiberglass UK-built fast sail yacht, the McGregor 65. A decent size yacht but yet, not too hard to handle even with only one or two skilled people on board. This boat was for sale at an asking price of slightly less than 100’000 GBP and in very good condition but most importantly it was built with the objective of having to do as little maintenance as possible.
The McGregor 65 was built to go fast upwind so unlike a traditional turkish gulet of similar size its max beam is not as generous, however, it requires much less maintenance than the latter and [it] is certainly not as roomy. Therefore a McGregor 65 would appeal more to clients that look for exciting sailing performances rather than sunbathing areas.
The advantages of such a choice of vessel for a charter boat would certainly be: Low maintenance costs, Little or no crew to be employed, low cost of acquisition/purchase, slower depreciation, and ease of cross Atlantic crossing to extend the season and sell more weekly or even daily charter periods, targeting a more sailing oriented niche of clients.
The disadvantages; fewer cabins, smaller sunbathing areas and overall a less cozy party-type of boat that is less suitable for the occasional party-boat charterers. A vessel like the McGregor 65ft could also be chartered for regattas to customers that are into the sport of sailing rather than the vacation which is a good way to employ the vessel through not very sunny periods of the year or locations.
It’s probably as interesting to point out that such a big vessel can easily cross the Atlantic, thus, it can be chartered during the Caribbean high season when the mediterranean one is low.
When we get to the motor yacht part of the charter business the ‘game’ gets a little more complicated, but don’t panic we can help
Maintenance Costs and engines
The engines and the propulsion system plays a big role in the maintenance of a vessel. The fuel cost, which are variable depending on the power installed, become a cost element on the client vacation. This cost certainly has an influence on the attractiveness of the yacht to the end client.
Speed and performance play a relatively minor role unless we consider a smaller size segment 25-45ft feet whereby charters can be a day-long or even less. In the above motor yacht scenario, the classic Bagliettos are interestingly underestimated boats in terms of space the provide and low acquisition cost (less than £200’000) but they are not that appealing to the younger crowd who looks for more modern looking boats and performance.
In the motor yacht industry and especially in areas like South Florida, fishing boats and fishing boat charters are very popular and a plethora of interesting boats is available on the pre-owned market. As one would expect fishing boat charters tend to be shorter and often operated by the boat owners or professionals captains.
The vast majority or charter companies (and the biggest ones) specializing in large yacht charter (superyachts) as don’t own the vessels or own a very small % of the vessels the charter and are essentially brokers or at times manage the vessel on behalf of the owner (depending on size).
There are also established brands like Moorings or Sunsail who have engineered managed ownership programs where owners are tight to management contracts that let the charter companies rent the vessel so that the owner can have a paid management service to make up for running costs for most of the year.
We could say, across the board, that the average use of a Yacht by its owner rarely exceeds the 2-3 weeks per year in the Mediterranean therefore, a managed yacht is a good compromise to manage your own boat if your yacht investment is not properly oriented to profit and as a prospective yacht owner you are thinking to mainly cover cost ownership and depreciation.
Is Buying a Boat a Waste of Money?
The huge initial capital and depreciating nature of boats make many people think more than twice before signing the contract. Boats are a good investment if you don’t overshoot your budget. If you research your options and go for a vessel that you can afford, nothing trumps the joy of spending time on the water.
Here is how to make it a good investment.
Decide On What is Best For Your Wallet
Are you a lover of water and sun and all the fun activities that go along with it? Have you wondered how would it be like to own your own boat or you even considered buying one but you’re just not sure if it’s the right investment?
Well, purchases such as this one surely take a lot of debating and calculating because a boat is by no means a cheap thrift. Read about the things you need to take into consideration before you decide whether you will buy a boat
How Often Will You Use the Boat
Boat rides are undoubtedly enjoyable and fun, and they offer many activities for the whole family. That rings especially true if you live by the sea or a lake. Having a boat can be a great investment for you. Whenever you feel like escaping the reality for a while or just wanting to enjoy some time off with your crew, you can hop on your boat and unwind.
However, if you don’t live as close to the water, you may not be able to use the boat as often. If you don’t have enough free time to properly enjoy your boat, you should definitely think about renting a boat instead of buying one if that’s the case.
Maintaining Your Boat
Like any vehicle, boats also need servicing and maintenance. The price for this varies and depends on the size of your boat and whether you will store your boat in freshwater or saltwater. Seasonal boat maintenance can be pretty expensive and time-consuming. When you are a boat renter, your experience will be entirely different than the one of an owner.
Apart from cleaning and fuel expenses, or expenses for maintenance and repairs from time to time, you have to pay for boat insurance and dock fees, which can be quite high. However, you can offset the costs with the help of a Boatsetter platform after buying a boat.
Rent Out Your Boat and Earn Money
One option for you to offset boat costs is to rent out your boat. Whenever you don’t use it, you can rent it out and earn some money from it. The price for the rent will depend on the type of your boat and the location but you can surely earn a good deal of money from it. At least surely enough to cover some of your boat expenses so that the boat ownership isn’t a financial burden.
You can even make it a side business and pay off your boat entirely. There are obviously some issues with this as well. You might be scared to give your boat to anyone and have it returned in poor condition. However, if you set some basic rules and use Boatsetter insurance, there shouldn’t be any problems.
Money Pit or Not
When you calculate everything and take all the pros and cons into consideration, ultimately you will come to a conclusion about whether buying a boat is a money pit or an excellent investment. That entirely depends on you and your point of view.
By purchasing a boat, you get not only an endless resource of fun experiences but also a means for making money. However, if you don’t have enough time to enjoy your boat ownership, you can always use the failsafe solution and rent a boat from time to time.
Is Owning a Yacht Worth it?
The word yacht often brings up an image of luxury living on a sleek boat in the sea with a crew of dozens. We don’t want to take the wind out of your sails, so to speak, but even a mountain of money won’t necessarily have you swimming with the truly wealthy yacht owners. For example, Tiger Woods purchased his 155-foot superyacht, Privacy, for $20 million—and that’s cheap by swanky yacht standards.
The average annual cost of operating your floating symbol of eliteness is 10% of the purchase price.
The word yacht is about as clearly defined as a financial advisor, and you’ll get wildly different answers on what size boat earns that title, depending on whom you ask.
By some definitions, you can still be a yacht owner with a 20-foot boat, and you can join a yacht club and spend your weekends exchanging sea stories with your fellow yacht owners. If you are thinking about investing in a yacht, the first question to ask yourself is how big of a boat can you afford to buy?
Maybe buying a superyacht just isn’t in the cards for you, but if you don’t want a smaller recreational boat, you may want to consider a bareboat charter. It’s like a lease, and just like with a car, you won’t be the owner but you can rent the yacht for a certain period of time.
This could be very short-term—for a yachting vacation—or long-term. For higher-priced vessels, splitting the costs among multiple people could make the price more reasonable. You as the charterer are responsible for nearly all fees, including fuel, insurance, port fees, and everything else.
There are also shared leasing arrangements. In these situations, you pay a monthly fee to a boat club and gain the use of any vessel in the fleet. You still have to pay for fuel and some costs, but the pricing is much more reasonable than trying to purchase the yacht on your own.
Some clubs offer an initiation fee that can go well into the thousands, as well as a monthly fee of a couple of hundred dollars.
Owning a luxury yacht takes truly serious money. But for those who earn a higher-than-average income, renting or leasing a vessel, teaming up with friends, or joining a boat or yacht club can make the price comparatively reasonable.
As with any equipment-heavy hobby, the costs are often higher than you think, so you’ll want an emergency fund in place for those unexpected expenses.
How much do Sailing La Vagabonde Earn?
Sailing La Vagabonde is an Australian YouTube channel that has a net worth of $1.1 million dollars as of November 2020.
The following earnings are estimations of YouTube advertising revenue, based on this channel’s audience.
Sailing La Vagabonde estimated earnings by months
| Month | Estimated Earnings |
|---|---|
| October 2020 | $ 4.67K |
| September 2020 | $ 5K |
| August 2020 | $ 5.98K |
| July 2020 | $ 7.76K |
| February 2020 | $ 6.21K |
| January 2020 | $ 12.4K |
| December 2019 | $ 6.28K |
| November 2019 | $ 6.58K |
| October 2019 | $ 8.26K |
| September 2019 | $ 15.2K |
| August 2019 | $ 8.81K |
| July 2019 | $ 16.3K |
| June 2019 | $ 23K |
| May 2019 | $ 11.5K |
| April 2019 | $ 6.42K |
| March 2019 | $ 5.5K |
| February 2019 | $ 4.11K |
| January 2019 | $ 5.18K |
| December 2018 | $ 6.3K |
| November 2018 | $ 4.29K |
| October 2018 | $ 5.41K |
| September 2018 | $ 4.59K |
| August 2018 | $ 3.02K |
| July 2018 | $ 3.31K |
| June 2018 | $ 2.57K |
| May 2018 | $ 2.39K |
| April 2018 | $ 3.17K |
| March 2018 | $ 2.3K |
| February 2018 | $ 1.8K |
| January 2018 | $ 2.46K |
| December 2017 | $ 2.19K |
| November 2017 | $ 1.93K |
| October 2017 | $ 2.05K |
| August 2017 | $ 2.58K |
| May 2017 | $ 1.66K |
| April 2017 | $ 806 |
| March 2017 | $ 2.07K |
| February 2017 | $ 1.09K |
| January 2017 | $ 3.58K |
| November 2016 | $ 1.46K |
| October 2016 | $ 913 |
How do I Start a Boating Business?
Most people love to enjoy a peaceful time at the sea and every year when the weather is favorable, people tend to flock to the seasides and hire cruises to spend a romantic time out or throw parties. The number of such an audience is growing and it is a good time to look at the potential of a charter boating business in your region.
There is nothing like an experience of being around the water which revitalizes your spirit! Here are the ways you can start a charter boat business:
Market research
Get your facts straight. Do some primary and secondary research about the market and the potential. Find some gaps and always be on the look for filling those gaps. Boating business is remarkably saturated and it can use some innovation in any form.
Invest in the right boat
Leasing a boat is giving away your freedom. If you research your clientele and their scale of preferences, you may be able to design your own boat accordingly. Travelers are keen about a particular kind of boats which can suit their interests.
It is important to get a boat that can seat a fair number of people and is up to the mark in terms of luxury and comfort. Besides, get some add-ons, like food and snacks on the go. Your clients would also want binoculars for a bit of sightseeing.
Outsource boat lifting
Follow the footsteps of different other boaters and join hands with HydroHoist Boat Lifts, a company that specializes in dock handling of boats. The company utilizes the immaculate technology of a hydro-pneumatic system which the founder, Henry Rutter invented himself back in 1960.
The technology utilized here creates airspace by displacing water from the bottom of the boats to let it free-floating. You can get in touch with the company and use their services for your charter boat because boat lifting is something that you would definitely require.
Branding and licensing
Marketing and branding is a crucial step here, which you must be on the look for. The right kind of marketing and branding strategy can do wonders for you and would generate sales leads. Use all channels of media depending on your scope. You should profoundly leverage the power of social media and influencer marketing because it has replaced conventional marketing as the foreground of communication between brands and customers.
You would also require to get your boat licensed and the individuals who would be driving your boat must also have a boating license. It is necessary to get in touch with some legal professional in this case because they would give you optimum advice on taxation, registration and some legal proceedings regarding your business.
Can you Drive a Yacht by Yourself?
As far as the US is concerned, you can sail it yourself as long as you aren’t charging anyone for it (though they can contribute equally to expenses like fuel as long as it’s not a condition of passage). States that you launch from/land in may have their own rules like requiring a boating safety class, a driver’s license, or a boating license.
That said, if you have insurance, which is always a good idea but often/always required by the bank if the boat is financed, the insurance company will demand that you obtain the necessary skill & experience to operate the yacht.
You may have to hire a training captain for a certain number of hours or meet whatever conditions the company imposes as a condition for insuring your boat. You’re also going to be liable if you cause a collision or allision, so it’s really not a good idea to just wing it.
But legally speaking, if you’re operating a recreational vessel, there’s no federal licensing requirement, and many states also don’t impose one.
How can I make Money with a Small Boat?
An adventurous boat owner might cast off his lines for a relaxing day sail, a weekend powerboat cruise or a longer vacation aboard his cruising trawler. Although he derives great enjoyment from his time on the water, he might also seek a boat-based business income stream to offset his ownership expenses.
After he analyzes his market and obtains business start-up information, he can explore creative options for turning his boat into a business platform.
Charter Business
A boat owner who plans to conduct small-group sightseeing tours or who wants to pick up income from guided fishing trips can often enjoy his boat while he generates revenue.
Before he can legally carry paying passengers, however, he must obtain the United States Coast Guard Operator of Uninspected Passenger Vessel or OUPV License. Also known as a “Six-Pack” License, this credential permits the captain to take six or fewer paying passengers for trips less than 100 miles from shore.
The Coast Guard’s National Maritime Center requires applicants to pass a physical exam and comprehensive written test. Applicants must also document a specified number of sea service days, must show proof of recent drug test compliance, and must submit three recommendation letters.
Finally, the captain should have a Coast Guard Auxiliary member conduct a free courtesy exam of the boat’s navigation, safety and pollution prevention gear. The Coast Guard does not require a formal inspection of OUPV vessels.
Advertising Wraps
A business owner with a boating-friendly target market might propose a mutually beneficial arrangement to an income-seeking boat owner. The business owner pays for the installation of a computer-created advertising wrap, often used on land-based vehicles but adaptable to boats as well.
A professional contractor applies this colorful laminated vinyl wrap to the boat, which serves as the business’s traveling advertisement. The boat owner receives payment for allowing his boat to be used as an advertising platform. Because vehicle wraps are designed for longer-term use, typically three years or more, a boat owner should consider this option carefully before he makes a commitment.
Floating Bed and Breakfast
A gently rocking hotel room might appeal to travelers desiring an alternative to cookie-cutter accommodations. A nicely appointed “boat and breakfast” might also provide an enticing getaway destination for local residents ready for a change of scenery. Partner with a local eatery that can prepare the guests’ breakfasts for delivery to the boat.
Obtain permit information, along with operating cost figures, and realistically evaluate your profit margin. If you decide to move ahead, list your “boat and breakfast” in your city’s lodging database. Work with a graphic designer to create a striking rack card for your Chamber of Commerce or visitors’ bureau.
Refreshment Delivery Service
Ports considered boating vacation destinations, along with often-visited cruising yacht anchorages, can provide viable markets for boat-based refreshment delivery services. These businesses often use smaller vessels, such as runabouts or small sailboats, to sell morning coffee and pastries, sandwiches and other refreshments to anchored boaters.
Delivery service staff can also ferry groceries and boating supplies to customers who cannot easily get ashore. Before a boat owner adopts this business idea, he should evaluate the potential demand, identify reliable suppliers and obtain realistic income and expense projections.
If he proceeds, he can help reach his market with promotional fliers at nearby marinas and boating supply stores. He can also spread the word through boaters’ social media outlets.
How much is a Small Boat Worth?
Well, that depends on what kind of boat we’re talking about. You can buy an inflatable dinghy for about $35, with tax, paddles included, and then (sort of) call yourself a boat owner.
Or you can get a tandem kayak for closer to $900 and enjoy some river travel or fishing. Most jet skis cost between six and ten grand.
A used 22-foot sailboat will cost you about $25,000, while a used 118-foot Hatteras yacht will cost you between three and four million bucks, depending on the year and the features.
And a United States Nimitz-class nuclear-powered aircraft carrier costs about $8.5 billion, plus the salaries of the 5,000+ person crew.
The fact is, it’s impossible to give a blanket answer to the general question “How much is a boat going to cost?” But what you can do is think through the many costs that are universally associated with boat ownership, from boat insurance to dock fees to fuel and more, and then calculate the specifics based on the type of boat in question.
That yacht will use more fuel than the jet ski, for example, but fuel costs are universal for any boat without paddles, a sail or a nuclear reactor.
Buying a boat is a major investment, so take the time to fully understand how much boat ownership really costs, and that means purchase price, annual boat costs and calculating the likely lifetime investment your vessel will require.
Once you know the likely overall cost of owning a boat, you can choose the craft that’s right for you and your family, and not end up forced to sell the boat at a loss a few years down the line or wishing you had gone ahead and bought that larger boat you weren’t sure you could afford.
Your Choice of Boat
We’re going to assume you’re not actually in the market for an inflatable dinghy or for a nuclear-powered super weapon, and instead we’re going to discuss three of the most common types of boats American families own.
Those are the pontoon boat, the outboard motorboat and the inboard motorboat.
The average price for a brand new pontoon boat is around $35,000. That’s for the popular 22-foot pontoon boat size that can be seen on lakes and rivers all around America. You can find smaller pontoon boats for less than $20,000 and you could easily spend more than $50,000 as well.
A motorboat with outboard motors and no cabin, often called a speedboat or powerboat, also often designed for fishing, can cost anywhere from $20,000 if bought used to many hundreds of thousands of dollars for new models of the fastest speedboats on the water. The high performance models, even secondhand ones, will start around $30,000 or more.
Larger motorboats with inboard motors and cabins are often known as cruisers (these aren’t quite large enough to be considered yachts, for the record). These boats will often cost hundreds of thousands of dollars (or even seven figures) if bought new, though many used cruiser motorboats in good condition can be had for less than six figures, of course.
But keep in mind, the final purchase price of your boat is just the beginning.
Average Annual Mooring Fees
Once you own a boat, you need someplace to put it when you’re not out on the water enjoying it. If your boat is small enough to fit on a trailer (or if you have an extremely large trailer) you might be able to keep your boat parked on your property.
If not, you’re going to have to pay for dock or harbor space. Depending on the size of your boat and the rates at the local marina, you can expect to pay between a few hundred dollars a month to more than a thousand dollars monthly just for a place to leave your vessel.
The annual mooring range is vast, then, from around $3,000 a year to well over $15,000 or more. You might also want to consider having a boat lift, to keep your boat from getting damaged in the water.
Buying a Boat Trailer
For the record, a boat trailer usually costs between $2,000 and $5,000, so if you’re vacillating between keeping your boat in the water at a marina or harbor or hauling it back and forth from your home, the trailer is the cheaper way to go by far. But it’s not the easier way, of course.
The Price of Winter Boat Storage
And of course unless you live in Florida, Hawaii, Southern California or a few other warm, lovely parts of the country, you’re not going to leave your boat in the water all year round. You need to have that boat hauled up onto the land and winterized each year to protect your vessel. And that can cost several thousand dollars.
The expense with boat winterizing comes in the form of storage fees, shrink wrapping, draining and/or changing of oil, fuel and other fluids, and other general maintenance required before and after a long period the boat will spend out of the water.
Average Annual Boat Fuel Costs
Most motorboats suck down a lot of gas, that’s just the way it is. And quite often the price of fuel on the water is much higher than you would pay when filling up your car at the gas station.
We’ll use the per gallon price of fuel as $2.50 as our rate, though it will be higher than that in many places. Many fast motorboats use between 20 and 30 gallons of fuel per hour when cruising at speed; average that to 25 gallons per hour, and a five-hour trip could cost you more than $300 per outing. Assuming you use your boat once a week, that’s more than $16,000 in gasoline alone.
On the other hand, a slower pontoon boat will use much less gas. Many consume closer to five gallons per hour, thus have an annual fuel cost of closer to $3,000 for the same total hours out on the water. So boat fuel costs can be affordable, as long as you don’t have the need for all that much speed.
The Price of Boat Insurance
Unless you have a private lake on your property, you should never operate a boat without current boat insurance. There are nearly 5,000 recreation boat accidents each year, and the expenses resulting from a boating accident can be astronomical.
Fortunately, for most private citizens, boat insurance costs only a few hundred dollars per year, though in some cases it may be more than $1,000, depending on the type of vessel and the history of the owner/operator.
The number of people on the policy (and their ages) will also play a role in determining boat insurance costs. Make sure to file your insurance information properly, as you’ll end up paying dearly for a false claim!
The Legalities
You’ll need to pay for registration and licensing, as well as any local taxes that are applicable in your state. These usually won’t add a ton to the total price of ownership, but they’re additional expenses worth considering.
Total Likely Costs of Boat Ownership?
Let’s assume you bought a used motorboat in decent condition and spent $100,000. And let’s assume your marina charges a mid-range $5,000 per year. And that you keep the speed down but head out at least once a week, so that’s around $12,000 a year for fuel. And let’s say $1,500 a year for insurance, and a mere $1000 for winter maintenance and storage.
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Barring the need for repairs and other incidentals, like the addition of marine window tint, cool boat gadgets or other upgrades, if you own your boat for ten years, you can expect to pay a grand total of around $295,000 for that decade of boat ownership. That’s $29,500 a year, or just under $2,460 a month.
But keep in mind, with a pontoon boat, it could be less than half that. With a luxury yacht, it could be ten times as much or more.
Buying used and boating in your backyard would reduce all these costs dramatically.
In the end, it boils down to what you need and wants from your boating experience. Make these decisions before making your purchase, and tally up an estimated cost ahead of time! If you do this, you’ll go into your boat purchase completely prepared.
