When a business decides to launch a new website or develop a web service, one of the most logical questions is: how to assess whether it will be profitable? Investment in a digital platform is just that—an investment—and, like any investment, it should generate a return. But unlike traditional assets, here profit isn’t always immediately visible. ROI from digital solutions requires a more nuanced analysis, where not only numbers but also consequences that affect the entire business are taken into account.
Aliaksei
First, it’s important to understand that a website is not just a showcase; it’s a tool designed to achieve specific objectives. For some, it generates leads; for others, it supports clients; and for others, it enables full sales. Therefore, the assessment of profitability always begins with answering the question: what business function does this resource serve, and how does it impact profit?
Development costs usually seem obvious: team salaries, design, programming, technical support, domain, hosting. But often overlooked are hidden costs, such as team time, manager involvement, expenses for approvals and testing. All these resources are part of the investment and should be included in the calculation. Without this, the evaluation will be inaccurate and distort the final picture.
Revenue from a website or web service can be direct or indirect. Direct is when a customer visits the website, submits a request, or makes a purchase, and you can clearly see the source of profit. Indirect is its influence on other business metrics: brand recognition, increased trust, reduced sales team load, faster service. This is especially relevant for web services that don’t sell directly but automate processes, save time, and reduce human error. These effects may be less obvious but often provide much greater financial returns over time.
To illustrate the principle of ROI calculation, let’s consider a simple scenario. A company spent 600,000 rubles to create a website and another 100,000 rubles on advertising and support over a year. During the same period, the website generated 1.4 million rubles in net profit from leads and sales. The calculation would look like this:
ROI = (1,400,000 – (600,000 + 100,000)) / (600,000 + 100,000) × 100% = (1,400,000 – 700,000) / 700,000 × 100% = 700,000 / 700,000 × 100% = 100%
This means that the investment was fully recouped within a year and provided a 100% return. This result is considered very good, especially when considering that in subsequent years, the website might generate income with lower maintenance costs.
Another important point is the choice of time horizon. Evaluating ROI a month after launch is pointless. A website or service needs time for setup, indexing, and user adaptation. Typically, a correct picture can be obtained after six months to a year, depending on the project scale. This is especially true for products with a long sales cycle, where the effect accumulates over time.
The formula for ROI is generally simple: profit minus costs, divided by costs. But behind this formula lies a strategic view. Sometimes, investments may not be recouped directly but serve as a foundation for future growth, open new channels, or strengthen the brand. In such cases, ROI manifests indirectly, but its impact on the company is no less important.
Assessing ROI is not just about counting money. It’s about understanding the value a digital solution creates for the business, how effectively it solves problems, and whether it can scale. In an era when digital tools are the foundation of competitive advantage, the ability to soberly assess their contribution is a key competency for any manager.
