The results are IN…
When things go back a ‘new normal’, you’ll want to explore new ways to increase profits and your clients will want to accelerate their marketing.
Adding websites to your list of services is a great way to monetise this opportunity.
Now isn’t maybe the right time to start pushing website sales. Instead, I wanted to use this time to put together some research for you. To help you to see how much you could be charging for a website and how much profit there is to make.
That’s why last week, I asked you and 100+ other MSPs how much you feel you could charge for a 5 page website.
Here are the top 20 answers that appeared the most:
| £150 a month | £1499 no content / 1 yr free hosting |
| £400 upfront not inc. hosting or maintenance | £299 |
| £150 upfront. £10 monthly fee | £499 + vat upfront £50 + vat monthly |
| £995 + vat one off | £999 + vat |
| £750 + vat / £130 a page | £799 + £30 a month hosting |
| 499 /599 upfront / £29 a month | £1,999 |
| £2000 | £999 + vat then £50 in second year |
| £1000 - £1500 | £300 |
| £500 upfront £50 a month afterwards | £1000 |
| £150 12 month DD | £40 + vat an hour (around 5 hours work) |
If you total up all of the different costs, the average price suggested is £997.25
Interestingly, 19/20 answers involve, or is a one-off upfront cost. I’ll come back to this later.
Are you undercharging or overcharging?
When creating pricing, there are two things to consider:
- What clients are willing spend
- What other businesses are charging and how
Marketing spend
There’s a lot of different research around, but most of it suggests that a business’s marketing spend is between 5% and 10% of gross revenue.
Here’s a table of results showing the average marketing spend a month at 6% of a client’s gross annual revenue:
| Gross annual revenue | AVG. Monthly marketing spend at 6% |
|---|---|
| 0-100k | £500 |
| 200k | £1000 |
| 300k | £1500 |
| 400k | £2000 |
| 500k | £2500 |
| 600k | £3000 |
| 700k | £3500 |
| 800k | £4000 |
| 900k | £4500 |
| 1m | £5000 |
| 2m | £5500 |
| 3m | £6000 |
| 4m | £6500 |
| 5m | £7000 |
(Employee count is a bit of a tricky one to average because it differs massively on the industry.)
Your ideal clients
Most MSPs I speak to want to work with businesses that have more than 10 end users as a minimum. With their ‘sweet spot’ being around 25 / 50 end users.
Highlighted in green is your target market.
What are other businesses charging and how?
There are 3 different types of providers to consider:
Online website builders
| Company | Price |
|---|---|
| Square Space | £15 a month |
| IONOS | £15 + vat a month |
| GoDaddy | £14.99 a month |
| Wix | £6 a month |
Freelancers / Individual developers / Yell
| Type | Price |
|---|---|
| Yell | £499 + vat upfront Monthly costs starting from £35 |
| Freelancers / Individual developers | £1000 - £2000 |
Marketing Agencies
| Type |
|---|
| £1000 - £2000 Usually offered as a monthly service |
You provide your clients with a high-tier service and should match prices being offered by marketing agenciesYou do not provide a lower tier service for anything you do
One-off or monthly service?
Why have all of the lower tier providers chosen a monthly DD model? Because they know how to make money. Direct Debit is king and the quickest way to grow your MSP is to increase monthly recurring revenue as much as possible.
Websites should no longer be perceived as a one-off purchase. Instead, add websites to your stack of monthly services. Increase MRR, help clients pay for their websites in a more affordable way and help them to keep it updated on a continual basis.
Overview of findings:
1.
Research from other MSPs suggested an average sales price of £997.25
2.
Your ideal client has an avg. marketing spend of £2500 + a month
3.
You DO NOT provide a lower tier service. You should match prices being offered by marketing agencies.
4.
Grow your MSP by increasing monthly recurring revenue. Offer websites as a service, not as a one-off price.
Our expert advice
With your position in the market, a fair and competitive price to charge your clients would be £99 – £149 a month for a 5 page website.
If you use our Profit Booster white label website package, your clients will get:
- A fully customised 5 page templated website
- Powered by WordPress
- Device responsive
- SEO set up
- WC3 compliant (built in a way Google likes)
- Hosting and backups
- 30 minutes maintenance a month
Cost to you: £49 per month
If you’d like to have a chat about our white label website packages then please get in touch. We can also provide you with an entire hub of marketing materials so you can start selling websites today.