What is a healthy margin for a web agency?

For project-based work, a gross margin of 40-60% is healthy. Below 30%, you are trading time for very little profit. Above 60%, you risk being uncompetitive unless you deliver exceptional value. Most successful agencies aim for 45-50% as their sweet spot.

Should I charge my client per page or per project?

Per project is almost always better. Per-page pricing invites scope debates ("Does the contact form count as a page?") and makes clients try to cut pages to save money. A fixed project price lets you control the scope and sell value rather than quantity.

How do I handle clients who compare my price to Fiverr?

You are not competing with Fiverr. Your price includes project management, quality assurance, a local point of contact, ongoing support, and accountability. A 500 EUR Fiverr site with no support is not the same product as a 2,000 EUR agency-managed site with 3 months of included revisions.

Should I show my client the white-label cost breakdown?

Never. Your client is paying for a result, not a cost breakdown. You do not ask your restaurant to itemise the cost of each ingredient. Present a fixed price with clear deliverables and let the value speak for itself.

When should I increase my prices?

Three signals: (1) Your close rate is above 70% — you are too cheap. (2) Your margin has dropped below 40% due to rising costs. (3) You have more demand than capacity. Raise prices by 10-15% and monitor your close rate. If it stays above 50%, the increase was justified.

How to Calculate Your Margin on a White-Label Project

You outsource web development at wholesale rates and bill your clients at agency prices. The difference is your margin. But how much should you charge? What markup is standard? And how do you ensure every project stays profitable? Here are the formulas, benchmarks, and strategies that successful agencies use.

Margin fundamentals for agencies

Before we dive into formulas, let us clarify two terms that agencies often confuse. Markup is what you add on top of your cost. Margin is the percentage of your selling price that is profit. They are related but different, and mixing them up leads to pricing mistakes.

If you buy a website for 1,000 EUR and sell it for 1,500 EUR, your markup is 50% (you added 500 on top of 1,000). Your margin is 33% (500 profit out of 1,500 total). The distinction matters because a 50% markup sounds aggressive, but a 33% margin is modest by agency standards.

Successful white-label agencies target a gross margin of 40-60% on development projects. This covers your project management time, client communication, quality assurance, and leaves genuine profit.

The formulas you need

Three formulas cover every pricing scenario you will encounter. Memorise these or bookmark this page.

Markup percentage

((Selling Price - Cost) / Cost) x 100

Example: ((2,000 - 1,200) / 1,200) x 100 = 66.7% markup

Use this to check how much you are adding on top of your white-label cost. A markup of 50-100% is standard for web development projects.

Gross margin percentage

((Selling Price - Cost) / Selling Price) x 100

Example: ((2,000 - 1,200) / 2,000) x 100 = 40% margin

Use this to measure profitability. This is the number that matters for your business health. Target 40-60%.

Selling price from target margin

Cost / (1 - Target Margin)

Example: 1,200 / (1 - 0.50) = 2,400 EUR (for a 50% margin)

Use this when you know your cost and want to set a price that hits a specific margin target.

Industry benchmarks and markup tiers

Not every project deserves the same markup. Here is how experienced agencies tier their pricing based on project type and value delivered.

Standard brochure sites

Markup: 50-70%Marge: 33-41%

Simple 3-7 page sites for local businesses. The client values speed and reliability over complexity. Your markup covers project management and client communication.

Custom design + development

Markup: 70-100%Marge: 41-50%

Projects requiring custom design work, specific functionality, or strategic input from your side. Higher margin justified by the strategy and creative direction you provide.

Complex builds + ongoing retainers

Markup: 100-150%Marge: 50-60%

E-commerce, web applications, or projects bundled with SEO, content, or marketing services. You are selling a solution, not just development. Premium margin reflects premium value.

Real-world pricing examples

Let us walk through three concrete scenarios a Belgian agency might encounter.

Scenario 1: Local plumber website

White-label cost650 EUR

Your project management (2h)~150 EUR internal cost

Total cost to you800 EUR

Client price (70% markup)1,360 EUR

Gross profit560 EUR

Gross margin41%

For a straightforward project where you provide the content and manage client expectations. Two hours of your time, 560 EUR profit.

Scenario 2: Architect portfolio + SEO

White-label cost (custom design)1,800 EUR

Your project management (5h)~375 EUR internal cost

SEO setup (included in your package)~300 EUR internal cost

Total cost to you2,475 EUR

Client price (bundled package)4,500 EUR

Gross profit2,025 EUR

Gross margin45%

By bundling SEO with development, you justify a higher price and capture more value. The client sees a complete solution, not just a website.

Scenario 3: Marketing agency sub-contract

White-label cost (3 landing pages)1,200 EUR

Your project management (3h)~225 EUR internal cost

Total cost to you1,425 EUR

Client price (100% markup on dev)2,625 EUR

Gross profit1,200 EUR

Gross margin46%

Agency-to-agency work commands higher markups because you bring speed, reliability, and white-label discretion. The marketing agency marks up again to their end client.

How to maximise your margin without raising prices

Pricing is only half the equation. Here are five ways to improve profitability on every project.

Standardise your brief process

A clear brief eliminates revision rounds. Each avoided revision saves 1-2 hours of your time and your partner's time. Over 10 projects, that is 10-20 hours reclaimed.

Create package pricing

Instead of quoting per project, offer fixed packages (Starter, Business, Premium). Packages are faster to sell, easier for clients to compare, and let you control the scope tightly.

Negotiate volume discounts

If you send 3+ projects per month to your white-label partner, negotiate a 10-15% volume discount. A 10% cost reduction at 5 projects per month adds 6,000-12,000 EUR in annual profit.

Reduce your project management time

Use templates for client communication, create a shared asset delivery system, and establish clear handoff processes. Cutting PM time from 5 hours to 2 hours per project directly increases your effective margin.

Bundle services for higher total value

A 1,500 EUR website becomes a 3,500 EUR "digital launch package" when you add SEO setup, Google Business Profile optimisation, and 3 months of content. Your cost barely increases, but your revenue doubles.

How to calculate your margin on a white-label project