Search

Website Profitability and Costs Website Profitability and Costs

All the respondent companies claim to be making some attempt to account properly for their website activity, with 57% reckoning that it is profitable.

When all the relevant operating costs of your websites are set against their revenues, are they generally.....

Profitable57%
Break-even 19%
Loss-making24%
Do not know 0%
TOTAL100%


Yet digging in more detail into how specific website costs are allocated reveals a wide range of accounting practice. Around 20% of companies are not actually allocating costs to a specific cost centre or do not know what their company practice is. Of those who do allocate costs, the most common route (with over half doing so) is to allocate to a specific website cost centre, rather than losing them in the general company overhead or the overall brand costs .

Looking at the cost of your company's web presence, how do you allocate the following costs?

COSTSCompany Overhead General Brand Cost Centre Specific Website Cost Centre Do Not Allocate Specific Costs Do Not Know TOTAL
Content creation15% 25% 38% 15% 7% 100%
Content production15% 23% 38% 17% 7% 100%
Design16% 17% 48% 13% 7% 100%
Content management system / support23% 12% 56% 0% 8% 100%
Infrastructure / hosting25% 9% 47% 11% 7% 100%
Bulk email distribution (newsletters etc)23% 14% 39% 14% 10% 100%


To leave your comments click here.

Have your say

Online is creating more opportunities for us than problems

Quotes from the survey

I know that we have to go more fully down the online route. But I would sleep better at night if I could see what the hard financial return was going to be.

National Newspaper Publisher

Your comments

The report is well-presented and refreshingly honest, particularly regarding how...

John Kelly

Read full comment

In terms of business models I'd generalise and make the...

Ashley Friedlein

Read full comment

This all seems to be about right. Well done on...

Robert McCaffrey

Read full comment

View all comments