While some people do just make websites for fun, or for a web design class, a majority of individuals and companies make websites for one reason– to make money. A website’s ROI (Return on Investment) can tell exactly how well a website is making money. How do you find a website’s ROI? Some of the tips below can help.
Manual Calculations
One of the most basic ways to calculate a website’s ROI is to do all the basic math yourself. While this may sound difficult, it actually just takes a bit of addition and subtraction. Firstly, you need to know how much money your website makes. Add up all of your sources of income, no matter what the source. Once you have this number, subtract all of your expenses related to your website. This can include hosting fees and payments made for blog writers, web designers, and other employees. Once you do this simple calculation, you will know how much money your website makes in any given amount of time. The more money you make, the higher the website’s ROI.
Digital Calculations
If you are not comfortable with doing the calculations yourself, or do not want to do it for another reason, you can always use an ROI calculator online. Some of these calculators are free, while others are not. Choose whichever one you think will work best for you. Some of the best ROI calculators are listed below.
- Calculator.net
- Omnicalculator
- Calc XML
- EasyCalculation
- Bankrate
Of course, there are many more websites and apps you can use that are not included in the above list. No matter which option you choose, they all work about the same way. You need to input some basic information (the sites cannot figure out these numbers for you). Most often, you will need to input the amount of money you invested, the amount of money you made, and the time period in which these transactions occurred. The calculator will then be able to tell you how much money you made within that time period, as well as the increase in percentage you made, which will be the actual ROI.
Whether you choose to do the calculations manually or digitally, the important thing is that your ROI needs to be a positive number and needs to be growing over time. Without these two things, the ROI will show that your website is either losing money or in decline. If you have a positive and growing ROI, then your website is healthy and on the way to becoming even more successful!