How Much Is Your Website Worth?


I was talking to a prospective client a few weeks back about redesigning their website and we hit a sticking point. The budget was below £500.

Now I understand that some clients have a tight budget and it wasn’t a huge project, but planning a website, designing it, building it, testing it and all those other things take time. It got me thinking how much a website is truly worth?

Show Me The Money

If your website is promoting any kind of service or product then you’re more than likely seeking sales or enquiries, or both. Over the course of a year, how much are those enquiries or sales worth to you? What about the coverage that your website attracts? What’s the real value of your website?

We can’t all be Martin Lewis

Let’s be honest, it isn’t realistic to expect a website that was created for under £500 to bring in tens, or even hundreds of thousands of pounds worth of business (unless you’re Martin Lewis who started moneysavingexpert.com for just £100). If it were that simple, everyone would be doing it and making a fortune along the way.

Calculating the worth

Obviously, there is no real way to calculate the exact worth of your website. You could come up with a crude formula based on sales, coverage, running costs etc etc but it wouldn’t be particularly accurate. It would also be very difficult to factor in any kind of social interaction, allow for growth and truly represent the changing nature of a living, breathing website.

Your website isn’t an expense

Ultimately I think you need to consider how important your website is to your business, whether you could get by without it and how much you value your other marketing activity. Where I don’t think you can put an exact number on the value of your website, I do think you can relate your site’s worth to where it fits into your plans for your business.

As soon as you start looking at your website as an expense rather than an investment then you’re fighting a losing battle.

Comments


James Rothschild:

04 Jun 2014 19:55:05

A very Gentle response :-)
Perhaps DIY would be better under £6k
Or a Payback partnership?

Dave:

05 Jun 2014 08:30:47

Hi James, it’s not that it annoys me that clients sometimes have low budgets. It’s more the unrealistic expectations from that budget. It’s more an educating issue I think. Payback partnership is not something I’ve done before partly because it places a lot of faith in someone else’s ability to run a business.

Liam:

05 Jun 2014 11:37:09

Another good blog post that is relevant from the guys at Erskine about the same subject – http://erskinedesign.com/blog/justifying-the-cost-of-quality/

Dave:

05 Jun 2014 11:55:33

That’s a great post thanks Liam, articulated way better than I ever could. The point they make about underestimating the importance of the website is one that I myself have difficulty conveying to prospective clients.

Gary Bradley:

05 Jun 2014 15:15:45

Good points Dave. The design council have conducted extensive research to which their findings show for every £100 spent on [good] design, the return on investment is often £200+. No amount of good design (or web design) can transform a second rate business and its services into a first rate business in the long term. I think clients often look at design as ‘THE’ solution to their challenges when often it is their service and culture that is in need of a ‘consultation’.

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