Return on Investment - Web Development

ROI Calculation - Cheap website design vs. well-developed website

ROI, or Return on Investment, is a measure of how much money is gained or lost in relation to the money invested. In the case of website design, ROI can be calculated by comparing a cheap website with a well-developed one.

Average monthly traffic refers to the number of visitors coming to the website each month. Qualified leads are those visitors who have a high probability of becoming customers. Customer value is the amount of money each customer is expected to spend on the business.

For an inexpensive website design , the investment cost is $15,000, and only 0.1% of qualified visitors are expected to become customers. With these numbers, the website is expected to generate $9,000 in revenue each month, which equates to $108,000 in revenue per year. The ROI for this website is 1.67 months.

For a well-developed website design, the investment is $40,000, but the increase in qualified leads is expected to be 300%. With more qualified visitors, the website is expected to generate $18,000 in revenue each month, which equates to $324,000 in revenue per year. The ROI for this website is also 1.48 months. In addition, this website is expected to generate additional revenue of $18,000 per month, which equates to $216,000 per year.

In summary, although the well-developed website requires a higher initial investment, it is expected to generate more revenue and have the same ROI as the cheap website in a similar period of time.