HOW MUCH SHOULD I SPEND ON A WEBSITE?
You don't want to be cheap; after all, your website is your best marketing asset and your best sales person. How effective do you want your best advertising asset to be and how prepared do you want your best sales person? Kind of a "no brainer"; right?
With that said, never feel bad or embarrassed about your budget. We are where we are and working to grow from there. This should also be considered an investment. When done properly you will get a great return.
So for your business, what should you spend on your website?
Well, let's break down this down into two separate things; building your website and promoting your site. We'll include building a new site, redesign, developing online applications, modifications and additions under building your site. Then, much like a new retail location, you have to let people know your site exists to be successful.
What does this have to do with your question of how much to spend? Depending on the age and size of your business you may benefit from spending more in building or marketing.
For a startup - the goal should be focused on building something minimal under $15K depending on your type of business. You may be get an good site between $3K- $5K. If you just need to get online you should spend no less than $1K, but I would be careful of going below $2K for a site. Remember this is your best advertising asset and number 1 sales person.
For the "small" small business - If you're generating between $250K and $500K in revenue; we'd recommend spending the equivalent of one employee's salary on your total budget for the year. This should cover the build of the site as well as any ongoing advertising needs. I'd recommend that your build is in the $10K - $20K range while your marketing budget is $10K - $20K for promoting the site. This site should include optimizing the site for conversion, landing pages, SEO and paid ads to maximize traffic.
For the small business - Okay if you're making $500K - $1M a year. You should be continually improving your website. We'd recommend spending $3K - $6K a month on your site and promoting it. This can include adding new areas to the site, improving user experience, creating marketing assets, capturing and nurturing leads, tracking conversions, blogging, SEO, PPC, social media and all the bells and whistles. Doing this can help your business grow more than 20% month over month.
For medium and large businesses - it's not uncommon to spend over $100K on the site alone. On top of that for a truly effective site you should spend between $7K - $20K per month in improvements and advertising the site. A growth driven design process along with inbound marketing would be the best approach in our opinion. This would help create the best possible site with the best possible performance for your business.
If all else fails - here's a number that you can live with as a minimum spend for your business no matter its size. 10%. Spend 10% of your annual revenue on your site each year. If you can't budget for growth driven design then spend 1 year's budget to build or improve your site and the following year promoting the site.
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