The verdict in three sentences
Under-pricing kills the margin; structuring by tier protects it. In Lagos in 2026, a showcase site is produced for an order of magnitude of 150,000 FCFA and sells for 500,000 FCFA, i.e. a 70% gross margin. With a 50% deposit, a maintenance retainer and a break-even around 6 projects/month, an agency stands on two legs.
Breaking down the real cost of a project
The advertised price hides a real production cost: dev time, design, integration, testing, client back-and-forth. Many freelancers price by feel and discover too late that they work at a loss as soon as the project overruns.
| Item (showcase, Lagos 2026) | Estimated cost |
|---|---|
| Design / mockup | 45,000 FCFA |
| Development / integration | 70,000 FCFA |
| Content & testing | 20,000 FCFA |
| Project management & client rounds | 15,000 FCFA |
| Total production cost | ~150,000 FCFA |
| Selling price | 500,000 FCFA |
| Gross margin | ~350,000 FCFA (70%) |
Gross margin is not profit: it must cover unpaid invoices, fixed costs (tools, hosting, prospecting) and your pay. Hence the importance of structuring it.
Structuring by tier to protect the margin
A three-level grid avoids case-by-case negotiation and pushes the client upmarket. Each tier has a controlled production cost and a target margin.
| Tier | Selling price | Production cost | Gross margin | Recurring |
|---|---|---|---|---|
| Starter | 250,000 FCFA | 90,000 FCFA | 64% | 25,000/month |
| Growth | 500,000 FCFA | 150,000 FCFA | 70% | 50,000/month |
| Premium | 1,200,000 FCFA | 400,000 FCFA | 67% | 100,000/month |
Survival rules: 50% deposit at signature, unpaid rate kept under 8%, a maintenance retainer of 50,000 FCFA/month that smooths cash flow, and a clear break-even — in Lagos, about 6 Growth projects/month cover fixed costs and produce a net profit.
Mini case study
Fatou, a freelancer turned micro-agency in Lagos, sells 6 Growth sites at 500,000 FCFA in the month, i.e. 3,000,000 FCFA revenue. Production cost: 6 x 150,000 = 900,000 FCFA. Gross margin: 2,100,000 FCFA. She suffers an 8% unpaid loss, i.e. 240,000 FCFA lost. After fixed costs (tools, hosting, prospecting ~600,000 FCFA), she has 1,260,000 FCFA net, not counting the maintenance retainer of 6 x 50,000 = 300,000 FCFA/month that accumulates. Structuring turns the business into a predictable machine.
Become a Kolonell referral partner
Are you well placed to recommend web projects but don't want to produce them? The Kolonell referral partner (apporteur d'affaires) program pays you on every signature, without you managing production or margin.
Need a professional website?
Kolonell builds websites that attract clients, optimized for the Sénégalese market. Free quote in 2 minutes.
| Division | Referral commission | Recurring |
|---|---|---|
| Showcase | 15% | + 5% recurring |
| E-commerce | 12% | — |
| Marketplace | 10% | — |
| Institutional | 8% | — |
On a Growth showcase site at 500,000 FCFA, the referrer earns 75,000 FCFA plus 5% of the maintenance retainer. You capture a share of the margin without bearing its costs.
FAQ
What gross margin should I target on a showcase site?
A healthy order of magnitude is 65 to 70%: production cost ~150,000 FCFA for a 500,000 FCFA price. Below 50%, the business doesn't fund its risks.
Why require a 50% deposit?
The deposit covers the production cost committed and halves the unpaid risk. Without a deposit, a single bad payer wipes out the margin of two projects.
How do I set break-even?
Divide your monthly fixed costs by the gross margin per project. In Lagos, that's around 6 Growth projects/month for a micro-agency.
Is the maintenance retainer worth it?
Yes: 50,000 FCFA/month per client smooths cash flow and creates predictable income that, cumulated, quickly exceeds a one-off project.
Should I lower prices to win clients?
No: lower the tier offered (Starter) rather than the tier's price. Slashing prices destroys margin and locks you into low-cost positioning.
Let's talk about your project. We help you build a profitable pricing grid and structure your tiers. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
