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Is your annual custom development spend proportional to revenue?



6:31 pm on Mar 11, 2013 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member

I was once told that your annual custom development/programming cost per year was x% of your revenue.

I forget what the person told me exactly, but regardless do you guys notice a trend that you end up spending x% of your revenue per year for custom development?


2:44 am on Mar 12, 2013 (gmt 0)

I don't think that is an accurate statement. It really depends on what you need to accomplish.

I dont have a set percentage of my revenue that I must meet. I do have an e-commerce web site that gets around 4000 unique visitors per day so I make sure the web sites have adequate servers, development, testing. etc.

The more sales I have, the more I can invest in development.

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