Launching a website is easier than ever, but growing it into a profitable business? That requires a clear grasp of your unit economics.
Unit economics looks at the revenue and costs associated with a single unit of your business—typically one customer, subscriber, or transaction. For a website, understanding unit economics is key to making smart decisions, especially when it comes to spending, scaling, and sustainability.
Why Unit Economics Matter for a Website
Without clear unit economics, you may spend more on building and maintaining your site than you earn from your users. Whether you run an e-commerce store, SaaS platform, content blog, or marketplace, you need to know:
“How much does each user cost me, and how much do they bring in?”
Only when this equation is positive can your website scale profitably.
Cost Components: What Goes Into Running a Website?
Before we jump into metrics like CAC and LTV, let’s break down the actual costs involved in running a website, which directly affect your unit economics.
Here’s a breakdown of major costs:
1. Hosting Costs
This is the cost of keeping your website live and accessible online. Depending on traffic and performance needs, this can range from $5/month (shared hosting) to hundreds for cloud hosting like AWS, Azure, or Google Cloud.
2. Domain Registration
Typically renewed annually, domain names usually cost between $10–$50/year, depending on availability and domain extensions.
3. Developer Costs
If you’re not using DIY platforms like WordPress or Shopify, you’ll likely hire developers to build or customize your site. Rates vary widely:
- Freelancers: $20–$100/hour
- Agencies: $2,000–$20,000+ for a complete site
4. Designer Costs
A compelling design boosts conversions. This includes UI/UX work, branding, and responsive design. Costs range from:
- Freelancers: $15–$75/hour
- Project-based: $500–$10,000+
5. Content Creation
This includes all the written content (home page copy, blog posts, product descriptions, etc.). You might need:
- Copywriters: $50–$500 per page
- Blog content: $100–$500 per post
6. Images & Media
Stock images, custom graphics, or product photography have costs:
- Stock sites: $10–$50 per image
- Custom photography: $200–$1,000+ per session
- Graphic design: $100–$1,000+ depending on complexity
7. Tester/QA Costs
Before going live, thorough testing is essential to find bugs and ensure smooth user experience. QA testers typically charge:
- Freelancers: $15–$40/hour
- Agencies: $500–$5,000 per project
8. Website Maintenance
Ongoing updates, backups, bug fixes, and performance monitoring add to your monthly costs.
Emergency fixes or upgrades: $100–$1,000+
Maintenance plans: $50–$500/month
Conclusion
Your website isn’t just a digital business card—it’s a core engine of revenue. But to make it a profitable one, you need to treat it like any other product with real costs and real returns.
Unit economics gives you the framework to evaluate the true financial health of your website, helping you make smarter, more scalable decisions.
✅ Key Takeaway:
A beautiful website is good. A profitable website is better.
Understand your unit economics—and build for growth that lasts.