Website Cost Benefit Analysis
The importance of a business’s website clearly relates to what % of revenue it is wholly or even partially responsible for.
You could say the same for a Salesman or any employee really – they help generate turnover – therefore their loss also effects it.
If overnight a company lost its whole Sales and Marketing Department, or a shop couldn’t open the front doors due to a flood, or a factory had a serious fire – the loss of revenue would be highly damaging until the situation was corrected.
Likewise if the Sales and/or Marketing department are substandard, or in the case of a retail outlet – it resides in a street where no one goes – neither businesses are able to discover or reach their potential. This is all common sense stuff.
Cheap Websites Are Not Just Cheap Looking
Getting back to websites – If your website disappeared for 12 months – how much of an effect would it have on your business?
If the answer is a massive loss of enquiries and revenue – then consider this – rather than losing your website – what if it was just a poor website; cheaply designed, badly search optimised, out of date, hard to navigate, ineffective or cheesy calls to action?
All these things are also effecting a business’s ability to reach its potential – its being throttled, revenue lost to competitors, wasted opportunities, etc.
Worse still, a poor website could actually be damaging; having a negative effect upon the reputation, revenue and profits of a business. For example, we’ve seen plenty of Solicitor websites that are shameful – poor design, out-of-date, arrogant, spelling and grammatical errors, no guidance, etc.
A poor website is therefore not only holding back a business, its likely that its doing more damage to that business than if it had just gone offline.
Conversely, how much more revenue (and profits) could your company produce if it had a “World-Class Website”, with all the important aspects taken care of? – With interesting/useful/engaging/fresh/unique content, properly search engine optimised, well-crafted and memorable graphics, nice styling and formatting, easy to navigate and use, socially engaged, professionally created “calls to action” and marketing functions, no speling mistaks, etc.
The reason your website is not performing well, or worse – damaging your business’s potential – is simply that too little time, effort and money is (or was) put into it.
If an improved website could double or quadruple your turnover, and further increase it in following years – how much would you invest to get that improved website? Forget the 1% you spent on your website – how about investing 5, 10, 25% or more of turnover?
Think of the vastly increased shareholder value should you wish to sell at some point, due to greater turnover, a greater quantity of regular and sustainable enquiries, and not forgetting having a great website that all can see – your staff, customers, clients and potential buyers.
Cheap websites are not just cheap looking, they’re also created with little time, thought and effort. What they are most likely losing you in potential enquires, lost revenue and damaged reputation is a vast multiple of the original cost. It’s madness. You’d be better off taking the festering homage to 70’s magazine advertising offline.
Gotsta Get Paid!
How will you know that investing £10,000 to £50,000 in a world-class new website will double your turnover – you don’t, no guarantees in life. No guarantee a new employee will cut the mustard, no guarantee a new product or range will sell, no guarantee that a new piece of plant with make an ROI. You get the point.
The new and vastly improved website will need food, water and pay – regular input of time and effort and therefore money. An appointed webmaster diligently adding fresh content, removing out of date info, adding new functionality, etc. But if its become as valuable as a whole team of marketeers and salesmen – it’s gotsta get paid!
If you already have a great website; that’s very effective at producing enquires and sales – yet you only paid the hard-working and dedicated web designer less than a few percent of your turnover – you underpaid them, you manipulated them into quoting low just to get you as a client, you told them you knew someone else who would do it for less (ignored quality), you plead poverty – so expecting the designer and coder to work for free, or minimal fee. If this is you – go write them out a large bonus cheque for a fair percentage of the extra revenue their creation has generated for your business – as you would pay a professional introducer, a referring partner, a bonus to top salespeople, a top performing executive or director.
Pay a decent amount next time, its amazing what a talented creative will produce when you pay them well, compared to being grossly under-paid.