How much of turnover should a website cost?

Key takeaways

There is no fixed rule, but many UK service businesses spend about 1% to 3% of annual turnover on their website over its life, and online sellers more. A business turning over £500,000 might spend £5,000 to £15,000 a year on build, care and growth combined. Base the final figure on what the site produces, not on a percentage alone.

• Service businesses: often about 1% to 3% of turnover.
• Online sellers: often higher, as the site is the shop.
• £500,000 turnover: about £5,000 to £15,000 a year.
• Final test: cost per enquiry or sale.

What share of turnover should go on a website?

Many UK service businesses spend roughly 1% to 3% of annual turnover on their website when build, care and growth are spread across its life. Online sellers, where the site is the shop, often spend more. These are rules of thumb, not standards, and should be checked against results.

• Website total cost of ownership over five years
• How much does a business website cost in the UK?

How do you work out the figure?

Work out the figure by spreading the build over three to five years, adding yearly running and growth costs, and dividing by turnover. Compare that with what share of new business arrives through the website. If the site brings half your new clients, a higher share is reasonable.

• Build divided by years of use.
• Plus yearly hosting, care and growth.
• Divided by annual turnover.
• Compared with the site's share of new business.

What do worked examples look like?

A trades firm turning over £300,000 with a £4,500 site over three years and £1,800 a year running costs spends £3,300 a year, about 1.1% of turnover. An online shop turning over £300,000 spending £15,000 a year on its site is at 5%, reasonable when the site produces most sales.

• Shopify website cost: setup, apps and monthly fees

Why is a percentage only a starting point?

A percentage ignores what the site produces. Two firms at the same turnover can need very different sites. Use the percentage to sense-check, then judge by cost per enquiry or sale, tracked through analytics key events.

• Cost per enquiry: what your website leads really cost
• When does a new website pay for itself?

When should you spend above the range?

Spend above the range when the website is your main source of new customers, when entering a new market, or when the current site is clearly losing work. Spend below it when work comes mostly from referrals.

What does this look like in practice?

At Global Bridge Labs (GBL), a UK surveying firm turning over £1.2 million spent £1,500 a year on its website, about 0.1% of turnover, yet a third of new clients found them online. Raising spend to about 1% funded better service pages and tracking, and online enquiries grew steadily.

• See client work
• Website Design & Development for UK businesses

Budget sizing checklist

• Spread build over its years of use.
• Add yearly running and growth costs.
• Divide by turnover.
• Estimate the site's share of new business.
• Compare cost per enquiry or sale.
• Review yearly.

• No budget? The minimum viable business website
• Website grants and funding for UK small businesses

Next step

Find out what share of last year's new clients first found you online. Use that, not a rule of thumb, to set your website budget.