Build vs. Buy: The Hidden Costs of an In-House Custom Domain Solution

Your engineering team just delivered the roadmap for Q2, and buried on page three is a line item that makes your stomach drop: "Custom Domain Integration (3-6 months, 2 senior developers)"

Sound familiar? According to recent software development research, mid-sized projects with complex features typically require 3-6 months of development time with costs ranging from $50,000 to $200,000.

But when it comes to custom domain functionality, the decision isn't just about upfront development costs. The real question every SaaS leader faces is: should we build our own custom domain solution, or buy an existing one?

The Real Cost of Building Custom Domain Functionality In-House

Development Team Investment

Building custom domain functionality requires specific expertise. Based on current market data:

Developer Costs: North American software developers charge $46-$70 per hour according to Glassdoor, with senior developers typically commanding the higher end. For a 6-month project with two senior developers working 40 hours per week:

• Labor cost calculation: 2 developers × $65/hour × 40 hours/week × 26 weeks = $135,200

• This doesn't include benefits, which typically add 25-30% to base salary costs

Required Team Composition:

• 2 Senior Backend Developers (DNS expertise)

• 1 DevOps Engineer (infrastructure)

• 1 QA Engineer (testing)

• 1 Project Manager (coordination)

The Technical Complexity You're Actually Building

When you decide to build in-house, you're not just building "domain connection." You're building:

Core DNS Management:

• CNAME, A, and TXT record creation and validation

• Support for 50+ major domain registrars (GoDaddy, Namecheap, Cloudflare, etc.)

• OAuth and API key authentication for each provider

• Real-time DNS propagation verification

Security and User Experience:

• Clear error messages for failed DNS configurations

• Secure storage of API credentials and audit logging

• User-friendly interfaces for non-technical users

• 24/7 monitoring and performance optimisation

Hidden Costs That Will Surface Later

Maintenance and Updates

DNS integrations require ongoing attention:

Quarterly API Updates: Domain registrars regularly update their APIs. Each change requires testing, code updates, and deployment coordination.

Estimated ongoing maintenance: 10-15 hours per month of senior developer time = $8,000-$12,000 annually

Support Overhead

DNS issues are inherently complex for end users. Your support team will handle authentication problems, DNS propagation delays, and configuration errors - typically requiring technical escalation.

Opportunity Cost

The most significant hidden cost is what your team doesn't build while focused on DNS integration. Mid-sized projects with more features and complexities might range from $50,000 to $200,000 - resources that could fund significant product improvements directly impacting revenue.

The "Buy" Alternative: What SaaS Companies Are Choosing

Immediate Implementation vs. 6-Month Development

Modern DNS-as-a-Service solutions offer:

• Integration time: Days or weeks instead of months

• Pre-built provider connections: 100+ domain registrars already integrated

• Proven reliability: Battle-tested with thousands of domains

• Ongoing maintenance: Handled by the service provider

Cost Comparison

Year 1 Costs:

• Build: $135,200+ (development) + $10,000 (maintenance) = $145,200+

• Buy: Typically $5,000-$50,000 annually depending on volume

Ongoing Costs:

• Build: $10,000+ annually (maintenance + updates)

• Buy: Predictable annual subscription costs

When Building In-House Makes Sense

Building your own DNS solution might be right if:

• You have unique requirements: Highly specialised DNS configurations not supported by existing services

• You have available resources: Dedicated engineering capacity and DNS expertise already on your team

• DNS is your core business: Domain management is central to your product value proposition

Making the Decision: A Framework

Calculate Your True Build Cost

1. Development time: 4-6 months (conservative estimate)

2. Team cost: $135,000+ for core development team

3. Opportunity cost: Features not built during DNS development

4. Ongoing maintenance: 10-15 hours monthly

Consider Your Strategic Position

Time-to-Market Priority: If getting custom domain functionality to market quickly impacts your competitive position or customer retention, buying usually makes sense.

Engineering Capacity: If your team is already stretched thin or lacks DNS expertise, building in-house adds significant risk to your delivery timeline.

Conclusion: The Strategic Choice

Choose "Build" if:

• DNS integration is core to your competitive advantage

• You have available engineering capacity and expertise

• Timeline pressure isn't a factor

Choose "Buy" if:

• Time-to-market is critical for your business

• Your engineering team has higher-priority features to build

• You want predictable costs and reliable functionality

• You prefer to focus on core product differentiation

With mid-sized software projects costing $50,000-$200,000, the resource investment for building custom domain functionality could fund significant product improvements that directly impact customer acquisition and retention.

Your Next Step:

If you're leaning toward "buy," evaluate available DNS services based on integration timeline, provider reliability, pricing structure, and feature completeness for your use cases.

Remember: the fastest way to eliminate DNS friction in your onboarding is often to let domain experts handle the complexity while your team focuses on building features that delight customers and drive growth.

Choose "Buy" and save your team 6 months and over $145,000. Learn how Zonify provides an instant, expert solution to custom domain functionality. Schedule a demo to see it in action.

Sources:

• Successive Technologies: "How Much Does Software Development Cost?" (February 2023)

• How Much Does Software Development Cost in 2024?