An effective website is an investment. At some point, the additional business you gained from your website will pay for the cost of your website.
These days, having an effective website is an essential part of almost any small business's marketing strategy. The old days of customers using the Yellow Pages to find you are fast coming to a close. Most people use a web search engine such as Google when they are looking for products or services.
Therefore your website must attract qualified visitors through good Search Engine Optimization (SEO) techniques and Online Marketing, and it also must convert those visitors into paying customers. If you don't have an effective website that does these two things, you are losing out on potentially tens of thousands of dollars worth of business (or more).
ROI Break Even Point
An effective website can be a considerable investment.
So how do you estimate when the ROI Break-Even Point will be? In other words, how long will it take for your website to pay for itself?
Let's walk through a quick example.
Say you own a bridal salon business and it cost you $2,500 for your website.
Also, you believe that after two months (which is typically how long it takes a new website to become fully ranked in Google's web searches), your website will be generating $6,000 per month in additional business that you otherwise wouldn't have. Out of that $6,000, your net profit is $1,380.
Therefore, after 4 months, the website will have paid for itself:
2 months (2 X $1,380 net profit from website = $2,760) + 2 months (for Google ranking) = 4 months.
This example is admittedly simplified, but it illustrates that at some point, the additional business generated from your website will not only end up paying for your website, but will actually start making you money after the ROI Break-Even Point is reached.