Perspective

How Much Should a New Website Cost?

How Much Should a New Website Cost?

Your organization’s website is vital tool for growth and engagement, not to mention is often the vehicle many of our clients deliver their services through.

So when it comes time to redesign it, update the content, or modernize the platform it runs on, the partner you choose, process they use, and platform they specialize in are some of most important decisions you can make. And one of the critical elements is – how much should it cost? If I spend too little, do I put my initiatives at risk? What if I overpay for something that doesn’t meet my needs?

To give some insight toward this, let’s look at cost vs value. This post won’t go deep into the different kinds of processes and platforms, but it will provide some insights into cost considerations and how they translate to long-term benefits.

Choosing a Platform

Open source or closed ecosystem?

There are many options out there, but you can think of them in two different buckets:

  • Open source platforms that let you do whatever you want.
  • Closed ecosystems that are controlled by the technology firm behind it.

Open Source

WORDPRESS, DRUPAL, JOOMLA

Pros (The Value)

  • No Licensing Fees: The core software is free; you pay for hosting and specialized labor.
  • Ultimate Ownership: You can move your site to any host at any time; you own 100% of the code.
  • Infinite Flexibility: Thousands of plugins and developers mean you can build literally anything.

Cons (The Hidden Costs)

  • Maintenance Burden: You are responsible for security updates, backups, and plugin compatibility.
  • Fragmented Support: There is no “customer service” number; you rely on community forums or paid agencies.
  • Technical Overhead: Requires more hands-on configuration or a developer retainer to keep it running smoothly.

Closed Ecosystem

WIX, SQUARESPACE, SHOPIFY, AEM

Pros (The Value)

  • All-in-One Simplicity: Hosting, security, and updates are handled by the provider (SaaS model).

  • Dedicated Support: Access to 24/7 customer service and documented help guides is included.

  • Lower Entry Barrier: Drag-and-drop interfaces allow non-technical users to launch quickly – within the limitations of the orginal design.

Cons (The Hidden Costs)

  • Recurring Subscriptions: You pay a monthly fee forever; if you stop paying, your site goes dark. These fees can be extremely expensive, into the tens of thousands per year.
  • Platform Lock-in: You cannot easily “export” your site to a new provider; you’re stuck in their garden.
  • Feature Ceilings: You are limited to the tools and integrations the provider chooses to allow.

Althought XO has built on a variety of platforms, it’s our opinion that WordPress is well suited for most client needs. It is flexible, cost effective, and can support any level of enterprise integration. That’s a big part of why W3Techs reports that WordPress powers over 40% of all websites, indicating its widespread acceptance and reliability. The platform is free, and the developer community is the largest of any platform.

In contrast, advanced platforms like AEM and Sitecore offer sophisticated features but at a significantly higher cost, both in terms of initial setup and ongoing maintenance. One of our preferred Sitecore partners states the approximate cost of a Sitecore project can span between 350k-800k, while the average XO Spark WordPress site comes in between 45-75k. Or down to 25k for a site with minimal deep content and integrations. That cost difference isn’t because the features are robust on one and sparse on the other, it comes down to the cost of licenses you don’t need to pay with WordPress, and the efficiencies in development that it affords.

The average XO Spark WordPress site comes in between 45k-75k. But can be more or less depending on integrations.

There isn’t a right or wrong answer on platforms generally, but there is a right answer for you. Closed ecosystem models are appropriate for some client needs, but you may be surprised what WordPress can replicate at a fraction of the cost. We can support building on any type of platform, but we want to make sure it’s the right platform for your needs.

Agency vs. Internal Development

Another cost is who does the work. Choosing between agency development and in-house creation is a strategic decision. Agencies, while potentially more expensive, bring specialized expertise. For instance, our XO Spark framework and design system is continuously refined with each project, meaning it’s best-in-class from the start. Simply starting from scratch or building on top of your existing site means you’ll be recreating work that’s already done. So in-house development may be easier to start, but may not save any money over the long run. Find a partner that specializes in the solution you need, and benefit from the efficiencies their experience offers.

Budgeting for Your Website over the Long Term

Balancing quality and budget is a common challenge especially for midsize companies. It’s not just about the initial cost but the total cost of ownership. The burden of maintaining the site often lands on the internal company team, not the agency. These are costs that continue perpetually, so finding an agency that designs the site with the marketer or the content editor in mind as one of the main users, not just visitors, is key to controlling long-term costs. Beware of hard-coded or template site approaches that do not offer the flexibility your organization needs.

TL;DR, but at the end

So what do I need to budget?

The following extremely simple table is the average of XO clients over the years. This assumes a few things – you go with WordPress. Avoid those massive fees and control by a company that’s not you. That makes your platform costs entirely the cost to add plugins, which are very cost effective.

Then ongoing maintenance. You own a technology system now – that requires action from time to time. Set aside a little budget to address needs that pop up.

Agency Design/Development

55k

Platform Costs

>1k

Ongoing Costs

>5k/year

Mentioned Links

XO Spark Framework

Learn how our product approach can be right for you.

Contact XO

Start your new website with XO today.

Wrap it up already

A company’s website is a crucial investment that can significantly impact market presence and operational efficiency. We believe there is a sweet spot of senior-level agency talent, a product-style approach, and with value pricing, that is achieved through the XO Spark framework. But there are many other approaches to building a site, so make sure when seeking an agency partner you’re getting the most value for your dollar, not just in the build, but over the long run of maintaining the site.

By Scott Donnell | Managing Director

Scott brings an inspired approach to design strategy as the Managing Director and Head of Design at XO Agency – unifying the strategic elements of the design process with the refined intuition of a veteran creative. His diverse leadership experience ranges from launching global enterprise digital experiences, to internal cultural storytelling, developing new brands, and creating omni-channel campaigns.