Commercial Drone Operations: Getting Your Part 107 Certificate and Building Your Business

If you're ready to turn your drone flying passion into a profitable business, the path is clear: Get your Part 107 Remote Pilot Certificate, master the rules, build a professional operation, and scale. This comprehensive guide covers everything you need to know: Part 107 requirements, certification process, the 10 key operating rules, insurance needs, pricing strategies, finding clients, avoiding violations, and scaling your business from one drone to a fleet.

Overview of Part 107 Requirements

What is Part 107?

Part 107 (14 CFR Part 107) is the Federal Aviation Regulation that governs small UAS (drones under 55 pounds) commercial operations. It replaced earlier rules and created a clear, performance-based standard for drone businesses.

Key Requirements At a Glance

Requirement	Details
Remote Pilot Certificate	FAA-issued certificate proving you passed knowledge test
Age	Minimum 16 years old
Medical	Self-certification of physical/mental fitness (no medical exam)
Language	Ability to read, write, and speak English
Visual Line of Sight (VLOS)	Drone must remain in sight at all times
Altitude Limit	400 feet above ground level maximum
Speed Limit	100 mph ground speed maximum
Weight Limit	55 pounds maximum takeoff weight
Daylight Only	Can only fly during daylight/twilight (with proper lighting for night)
Registration	Drones must be registered with FAA
Remote ID	Drones must have Remote ID capability (as of Sept 2023)

When You DON'T Need Part 107

• Recreational flying: Personal enjoyment only (must use 44809 rules instead)
• Certain agricultural operations: May be covered under different exemptions
• Government operations: Public aircraft operations have different rules
• Very limited operations: Some micro-exemptions for specific use cases

Important: If you're making ANY income from drone flying, or flying for a business purpose, you need Part 107. Even free or volunteer work may require Part 107 if it's not purely personal.

Getting Your Part 107 Remote Pilot Certificate

Step 1: Determine Eligibility

You must be:

• At least 16 years old
• Able to read, write, speak, and understand English
• In physical and mental condition to safely operate UAS
• A citizen of the United States OR a foreign national with appropriate authorization

Medical Certification: You don't need an FAA medical exam. Instead, you self-certify that you're fit to operate a UAS. This is similar to driving—you don't need a medical exam, but you can't drive while impaired.

Step 2: Study the Rules

What to Study:

• 14 CFR Part 107: The complete rule (read at ecfr.gov)
• Airspace basics: Classes of airspace, how they work
• Weather fundamentals: Wind, visibility, precipitation effects
• How to read NOTAMs and TFRs: Critical for flight planning
• Equipment operation: How to properly use your UAS
• Battery management: Power and endurance calculations
• Loading and performance: Weight and balance, how payload affects flight
• Preflight inspection: What to check before each flight
• Navigation: Using maps, GPS, visual landmarks
• Emergency procedures: What to do if systems fail
• Accident reporting: When and how to report incidents

Recommended Study Materials:

• FAA's Official Study Guide: faa.gov/uas/commercial_operators
• Part 107 Study Courses: Courses available online ($50-$300)
• Books: "Part 107 Study Guide," published by various aviation publishers
• Online test prep: Websites with practice tests (search "Part 107 practice test")
• YouTube channels: Many certified instructors offer free tutorials

Study Timeline: 2-4 weeks for average person, depending on aviation background

Step 3: Obtain Your FAA Tracking Number (FTN)

What is it: Unique identifier for your FAA application

How to get it:

1. Visit IACRA.faa.gov (Integrated Airman Certification and Rating Application)
2. Create an account (use email address)
3. Complete your personal information profile
4. FAA will generate your FTN (usually immediately)
5. Save your FTN—you'll need it for the knowledge test

Cost: Free

Step 4: Schedule and Take the UAG Knowledge Test

What it is: FAA-administered test covering 100 possible questions about Part 107 rules and drone operations

Test Facts:

• Questions: You'll answer approximately 100 questions
• Time limit: 2 hours
• Passing score: 70% or higher (usually 70-80 questions correct)
• Cost: $175 USD
• Testing centers: Pearson Vue testing locations nationwide
• Frequency: Testing available daily at testing centers

How to schedule:

1. Visit faa.psiexams.com
2. Log in (create account if new)
3. Search for "UAG" (Unmanned Aircraft General - Small) test
4. Select testing location and date
5. Pay $175 testing fee
6. You'll receive confirmation and testing information

Test Day:

1. Arrive 15 minutes early
2. Bring government-issued ID
3. No calculators, phones, or materials allowed
4. Testing center provides scratch paper and pencil
5. You'll pass or fail immediately after test
6. If you pass, you'll receive official notice of passing score

Passing Rate: About 80-85% of applicants pass. Those who study the material typically pass.

Step 5: Apply for Your Remote Pilot Certificate

After Passing the Knowledge Test:

1. Return to IACRA at iacra.faa.gov
2. Log in with your account
3. Complete FAA Form 8710-13 (Remote Pilot Certificate Application)
4. Attach your passing test score notification
5. Submit application
6. Pay any applicable fees ($0-$100 depending on circumstances)
7. FAA reviews your application (usually within 2-4 weeks)
8. If approved, you'll receive your Remote Pilot Certificate (physical card)

Processing Time: 2-4 weeks from submission to certificate arrival

Duration: Your certificate is valid for 24 months. After 24 months, you must apply for renewal (similar process).

Step 6: Activate Your Part 107 Account on FAA DroneZone

What is DroneZone: FAA's online system for Part 107 operators to manage authorizations, waivers, and registrations

How to set up:

1. Visit faadronezone.faa.gov
2. Create account (use business name for "Part 107 account name")
3. Verify email address
4. Complete business/organization profile
5. Add your Remote Pilot Certificate information
6. Register your drones in the UAS inventory
7. You're now ready to operate commercially

Key Feature: DroneZone allows you to request waivers and special authorizations from the FAA

The 10 Key Part 107 Operating Rules

These rules govern every Part 107 flight. Violating any one can result in fines and certificate revocation.

Rule 1: Keep Your Drone in Visual Line of Sight (VLOS)

Requirement: You (or a visual observer) must see your drone at all times without aided equipment (binoculars, cameras, etc.)

Exception: Extended VLOS (EVLOS) with waiver for some operations

What it means: If you can't see it with your naked eye, you can't fly it

Practical limit: Usually 500 feet horizontal range at 200+ feet altitude

Rule 2: Don't Exceed 400 Feet Altitude

Requirement: Maximum altitude is 400 feet above ground level (AGL)

Measurement: From your location (where you launch), not from sea level

Example: If you're flying in mountains at 5,000 feet elevation, you can still only go 400 feet above ground, which might be 5,400 feet MSL (mean sea level)

Exception: Waivers available for higher altitude operations if justified

Rule 3: Don't Fly Faster Than 100 MPH

Requirement: Ground speed must not exceed 100 mph

Measurement: Speed over the ground (not airspeed)

Practical reality: Most commercial drones max out at 40-50 mph anyway

Rule 4: Don't Fly Over People

Base Rule: Cannot fly directly over people unless operating in a specific category (see Operations Over People guide)

Exception: Operations Over People (Categories 2-4) with proper certification and equipment

Practical meaning: Don't fly over crowds, buildings with people inside, moving vehicles, etc. unless you have specific authorization

Rule 5: Don't Fly at Night Without Proper Lighting

Base Rule: Can only fly during daylight or civil twilight

Exception: With anti-collision lighting visible for 3 miles, can fly at night

Cost: Invest in quality lighting system ($100-$300+)

Rule 6: Maintain Situational Awareness

Requirement: Continuously monitor airspace for manned aircraft and other hazards

What it means: Listen for other aircraft, look up periodically, and be prepared to land immediately if you see or hear manned aircraft

Exception: None—this is always required

Rule 7: Yield Right of Way to Manned Aircraft

Requirement: If you see a manned aircraft, you must immediately descend or move out of the way

Legal reality: You're responsible for avoiding them, even if they're in your airspace

Practical approach: Assume you're invisible to manned pilots and stay well away from known flight paths

Rule 8: Don't Fly Under the Influence

Requirement: You cannot operate a drone while impaired by drugs, alcohol, or medications that affect judgment/coordination

Legal standard: Same as driving a vehicle

Testing: FAA can require drug/alcohol testing if accident occurs

Rule 9: Inspect Your Drone Before Each Flight

Requirement: You must conduct a preflight inspection

What to check:

• Propellers: No cracks, damage, or loose attachments
• Motors: Spin freely without grinding sounds
• Battery: Fully charged, no swelling or damage
• Frame: No cracks or bent arms
• Camera/gimbal: Secure and undamaged
• Wireless link: Good signal strength
• Control surface movement: Responsive to commands
• Weight and balance: Drone is properly loaded

Responsibility: If you don't inspect and something fails, you're liable

Rule 10: Report Accidents

Requirement: Any accident involving injury, property damage over $500, or drone lost must be reported

How to report: Contact FAA at 1-844-FLY-MY-UAS or online at faadronezone.faa.gov

Timeline: Report within 10 days of accident

Legal protection: Reporting doesn't automatically mean you'll be fined—FAA looks at circumstances

Insurance Requirements for Commercial Operations

Is Insurance Required?

FAA requirement: No, not technically required

Practical reality: You need it to have any credible business

Why: Clients will require it, and your business is uninsurable without coverage

Types of Insurance to Consider

1. General Liability Insurance

• Covers: Injuries to people, property damage caused by your drone or operations
• Typical limits: $1-2 million
• Cost: $500-$1,500/year
• Essential: YES

2. Hull Insurance (Physical Damage to Drone)

• Covers: Damage or destruction of your drone
• Typical coverage: $5,000-$50,000 depending on drone value
• Cost: $500-$2,000/year
• Essential: Recommended (especially for expensive equipment)

3. Operations Over People Insurance

• Covers: Higher-risk operations involving people below
• Typical limits: $2-5 million
• Cost: $1,500-$3,000/year
• Essential: YES if doing operations over people

4. Inland Marine Insurance

• Covers: Theft, loss of drones and equipment
• Cost: $500-$1,500/year
• Essential: Recommended for businesses with multiple drones

Where to Get Insurance

• Specialized Drone Insurers: Avoidwaste, AeroEye, DroneBase, AOPA (for members)
• General Commercial Liability Carriers: Some major carriers offer drone endorsements
• Broker: Business insurance broker can help find coverage
• Cost comparison: Get quotes from 3-5 providers

Cost Estimates for Starting Operator

• General liability: $600/year
• Hull insurance (optional): $800/year
• Total annual insurance: $600-$1,400 for single-operator business

Pricing Your Drone Services

Pricing Factors

1. Equipment Cost

• Drones: $500-$3,000+
• Batteries, chargers, spare parts: $1,000-$3,000
• Insurance: $600-$1,500/year
• Calculation: Divide total equipment cost by expected lifespan (2-3 years)

2. Operating Costs

• Electricity/battery charging: ~$0.25-$0.50 per flight
• Maintenance and repairs: 5-10% of revenue
• Licenses/memberships: $50-$200/year

3. Time Investment

• Flight time: 15-60 minutes depending on project
• Planning and travel: 1-2 hours
• Post-processing/editing: 2-8 hours per project
• Client communication: 1-2 hours per project
• Total time: 4-12 hours for typical project

4. Market Rate

• Check competitors' pricing
• Research typical rates for your service type
• Adjust based on your experience and market demand

Service-Specific Pricing Examples

Aerial Photography (Wedding/Event):

• Base rate: $500-$1,500
• Additional factors: Duration, editing, number of edits, deliverable format
• Typical markup: 30-50% above direct costs

Aerial Videography (Real Estate):

• Base rate: $300-$1,000 per property
• Add editing/post-processing: +$200-$500
• Package pricing: 5-10 properties for discounted rate

Site Surveys/Inspections:

• Hourly rate: $150-$300/hour
• Project rate: $500-$3,000 depending on scope
• Repeat projects: Build monthly/annual contracts

Construction Monitoring:

• Weekly flights: $300-$600/week
• Monthly contract: $1,000-$2,500/month
• Add-ons: Orthomosaic maps, 3D modeling (+$500-$1,500)

Thermal Inspections (Roofing, Power Lines):

• Premium pricing due to specialized equipment
• Rate: $500-$2,000 per day
• Project-based: $1,500-$5,000+ for complex projects

Pricing Strategy Tips

1. Don't undercut market: Cheap pricing suggests low quality. Price competitively but fairly.
2. Separate components: Offer flight services, editing, deliverables as separate line items
3. Volume discounts: Offer reduced rates for repeat business or bulk projects
4. Package deals: Bundle related services (e.g., photos + video + 3D model)
5. Retainers: For monthly monitoring, offer retainer pricing (cheaper per month)
6. Premium positioning: For high-value work (real estate, professional video), price to reflect quality
7. Track time carefully: Log all time spent to understand profitability per project
8. Raise prices periodically: As you gain experience and reputation, raise rates 10-15%/year

Finding Clients

Service Types and Markets

Real Estate

• Contact: Real estate agents, brokers, property developers
• Pitch: High-quality aerial photos/video boost property sales
• Revenue potential: High volume, moderate per-project price

Construction/Engineering

• Contact: General contractors, project managers, construction firms
• Pitch: Progress documentation, site surveys, inspection
• Revenue potential: Regular contracts, high per-project rates

Inspections (Roofing, Power Lines, Infrastructure)

• Contact: Inspection companies, utilities, municipalities
• Pitch: Safe, cost-effective inspection without scaffolding or climbing
• Revenue potential: Specialized service, premium pricing

Events (Weddings, Festivals, Sports)

• Contact: Event planners, venues, photographers, videographers
• Pitch: Unique aerial perspective for memorable content
• Revenue potential: Seasonal, moderate to high per-event

Mining, Agriculture, Environmental

• Contact: Farm operations, mining companies, environmental consultants
• Pitch: Monitoring, mapping, asset tracking
• Revenue potential: Specialized, high-value contracts

Marketing Strategies

1. Build a Strong Portfolio

• Start with discounted/free projects to build samples
• Create a professional website showcasing your work
• Post high-quality examples on social media (Instagram, YouTube, TikTok)
• Organize portfolio by service type and industry

2. Network and Relationship Building

• Join local business groups and chambers of commerce
• Attend industry events relevant to your services
• Connect with related professionals (photographers, videographers, engineers)
• Ask happy clients for referrals

3. Online Presence

• Professional website with portfolio
• Google Business profile for local SEO
• LinkedIn for B2B networking
• Instagram/YouTube for visual work examples
• Client testimonials and case studies

4. Strategic Partnerships

• Partner with photography/video companies (you're the aerial specialist)
• Partner with engineering firms for inspections
• Partner with real estate teams for routine property work
• Create referral partnerships with complementary services

5. Direct Outreach

• Target real estate brokers with sample aerial shots of local properties
• Call construction companies about monitoring services
• Email event planners with drone service options
• Follow up consistently; sales often require multiple touches

6. Specialization

• Become expert in one niche (e.g., real estate, inspections, events)
• Specialize more than generalize—it's easier to market expertise
• Develop relationships with industry-specific platforms and groups

The 10 Most Common Part 107 Violations (and How to Avoid Them)

Violation 1: Flying Without Current Remote Pilot Certificate

The Error: Operating commercially without an active Part 107 certificate

Penalty: $27,500 civil fine, criminal charges possible

How to avoid: Ensure your certificate is current, renew before expiration

Violation 2: VLOS Loss

The Error: Flying beyond visual line of sight (relying only on video feed)

Penalty: $10,000-$25,000 fine

How to avoid: Keep drone within 500 feet horizontal distance; never fly beyond visual horizon

Violation 3: Flying Over People Without Authorization

The Error: Intentionally flying over people without proper certification

Penalty: $27,500 fine, potential criminal charges if someone is injured

How to avoid: Obtain proper Operations Over People certification or keep drone away from people

Violation 4: Exceeding 400 Feet Altitude

The Error: Flying higher than 400 feet AGL

Penalty: $10,000-$25,000

How to avoid: Monitor altimeter constantly, understand AGL vs MSL altitude

Violation 5: TFR Violation

The Error: Flying in a Temporary Flight Restriction area

Penalty: $50,000-$250,000 fine, potential criminal charges

How to avoid: Check B4UFLY before EVERY flight, understand TFR boundaries

Violation 6: Flying at Night Without Lighting

The Error: Operating after sunset without anti-collision lighting

Penalty: $10,000-$25,000

How to avoid: Invest in quality anti-collision lights; verify functionality before night flights

Violation 7: Inadequate Preflight Inspection

The Error: Flying without checking drone condition, leading to failure that injures someone

Penalty: $27,500+ fine, potential criminal charges

How to avoid: Conduct thorough checklist before every flight; document inspections

Violation 8: Not Reporting Accident

The Error: Failure to report drone accident/injury within 10 days

Penalty: $10,000-$25,000

How to avoid: Report any accident immediately, even minor ones; keep records

Violation 9: Operating a Non-Registered Drone

The Error: Flying a drone that's not registered with the FAA

Penalty: $27,500 fine per drone

How to avoid: Register all drones in DroneZone; maintain registration current

Violation 10: Remote ID Non-Compliance

The Error: Flying without Remote ID or with disabled Remote ID

Penalty: $27,500 fine (increasing to $250,000 after 2027 deadline)

How to avoid: Ensure drone has Remote ID; enable before flight; verify it's working

Scaling Your Drone Business

From Solo to Multi-Operator

Phase 1: Solo Operation (First 6 months)

• Focus: Build portfolio, establish