How much should you spend for a successful website?

Chart showing the amount a company should budget for its website based on its annual revenues.

How much should your website cost? The amount you should pay is dependent on the current revenue potential for your company.

Scenario 1: If your company has less than $10,000 in annual revenue.

If your company is new, has less than $10,000 in annual sales, and you’re operating in a market in which you have no previous experience, you should not pay more than $2,000 on your website. However, you should definitely expect to pay more than $1,000 for a quality website.

Why is $2,000 a good budget? Because, at this nascent stage for your company, your website is not going to be a major source of sales. You need to invest money where you’re going to get the biggest return on investment. Beyond $2,000 you’re getting diminishing returns on your money.

Nevertheless, you absolutely need a professional looking website; otherwise, customers won’t take you seriously.

Scenario 2: If your company has between $10,000 and $100,000 in revenue.

If your company is currently generating well over $10,000 per year, hopefully closer to $100,000, then you should expect to spend at least $5,000 on your website. To spend any less would not do justice to your company. You want to make sure your website has a level of quality that is comparable to your business stature.

When your business has reached the $100,000 point, your company now has some brand recognition and word-of-mouth. You’re probably starting to get a few customers searching you out, instead of you doing all the searching. At this point, your website is going to become a significant starting point for new customers to learn about your company and decide whether to purchase your product or service.

Now you can justify spending the extra money on your website.

Scenario 3: If your company has between $100,001 and $500,000 in annual revenue.

If your company is currently generating well over $100,000 per year, hopefully closer to $500,000, then you should expect to spend at least $10,000 on your website. Again, to spend any less would not do justice to your company.

At this point, your business has the ability to generate a significant portion of revenue online. Your website should be a powerful sales tool and you should not be afraid to spend heavily on it. At this point, you have customers that will direct new prospects to your website through word-of-mouth. Existing customers will be checking your website for company updates and product information. You likely have at least one salesperson whose prospective buyers will check your website before purchasing.

Of course, you still must spend wisely. Many expensive websites end up being no better than glorified brochures. An effective website should be much more than that. However, explaining what makes a website effective is beyond the scope of this article. Feel free to read our other articles to answer that question.

Conclusion:

These figures provide a reliable barometer based on experience in the industry. The key for you is to identify what category your company falls under. Adhering to these budget guidelines will help you spend the right amount on your website.

Your next step, once you’ve set a budget is to choose your website designer. However, before you have someone design your website, I recommend you learn what makes a website effective. Otherwise, how will make sure you spend your budget wisely?