Return on Investment (ROI) on the cost of a website is a measure of the financial returns generated from the investment made in developing, maintaining, and promoting a website. It helps assess the effectiveness of the website as a business tool and determine whether the investment is worthwhile. A positive ROI demonstrates the website's value as a business asset.
View the examples below to find out more.
The bakery invests $2,000 in the initial development and design of their website.
$300 per year for webhosting.
The website generates an average of 20 online orders per month, with an average order value of $25. Over 2 years, this results in 480 additional orders. Revenue from additional orders: 480 X $25 = $12,000.
The website allows the bakery to build a customer database and send monthly newsletters, resulting in a 10% increase in customer retention. Additional revenue from retained customers:
$12,000 X 10% = $1,200.
Additional Revenue: $12,000
Customer Retention: $1,200
Total Benefits: $13,200
Website Development & Design: $2,000 One Time
Web Hosting & Maintenance: $600 for 2 Years
Total Benefits - Total Costs =
$13,200 - $2,000 - $600 = $10,600
ROI (%) =
(Net Benefit/ Total Costs) X 100 ROI = ($10,600/ $2,600) X 100 = 407%
The consulting firm invests $2,500 in the initial development and design of their website, including custom content and branding.
$300 per year for webhosting.
Before the website, the firm received an average of 2 client inquiries per month through referrals and networking events. With the website, they experience an additional 5 inquiries per month.
Additional inquiries over 2 yrs: 5 inquiries/month X 24 months =
120 inquiries
The website's frequently asked questions (FAQ) section and downloadable resources reduce the need for extensive initial client consultations. Time saved per client is 2 hours. Additional clients served due to time savings is 20 clients over 2 years.
The website enhances the firm's professional image and establishes them as industry experts, leading to higher fees. Increase in fees per project: $500. Additional revenue from higher fees over 2 years: 10 projects X $500 = $5,000
Additional client inquiries: 120.
Time saved: 20 clients served.
Additonal revenue from higher fees: $5,000.
Website Development and Design: $2,500 One Time
Yearly Webhosting: $600 for 2 years
Total Benefits - Total Costs =
($5,000 + $1,200) - ($2,500 + $600) =
$3,100
ROI (%) =
(Net Benefit/ Total Costs) X 100 ROI = ($3,100/ $3,100) X 100 = 100%
The consulting firm invests $1,500 in the initial development and design of their website.
$300 per year for webhosting.
New clients from website: 15
Revenue from new clients: $25,000
Cost Savings on Traditional Marketing: $2,000
New clients from website: 30
Revenue from new clients: $50,000
Cost Savings on Traditional Marketing: $2,000
Year One: $27,000
(Revenue + Cost Savings)
Year Two: $52,000
(Revenue + Cost Savings)
Website Developement and Design:
$1,500 One Time
Yearly Webhosting: $600 for 2 years
Total Benefits - Total Costs =
($79,000 - $2,100) = $76,900
ROI (%) =
(Net Benefit/ Total Costs) x 100 ROI =
($76,000 / $2,100) x 100 = 3,662%
Based on the projection, the construction company's website investment is estimated to yield a significant ROI over a 2 year period. It's important to note that results vary based on factors such as company's specific market, competition, and current reputation.