When running a business it is easy to get overwhelmed with expenses. We know them all to well. Overhead is another term for it. However, it is also easy to confuse your expense with an investment. This is precisely why a lot of businesses miss their opportunities to scale their company using technology! In this article i hope to shed some light to a pressing issue. Is my web project an expense or an investment?
Pricing structure for web development:
Although there are tons of resources that will allow you to build out a website yourself, If you are a company or person that has a big goal or a mission that requires quick expansion, you would want to find an agency that can take you there. The problem comes when the quote is sent and you get to see how big of a price tag it is to build out your dream using technology. Most agencies charge around 150 an hour and most projects range from $3k to $100,000k. To most business owners, this is a stretch. You already have employee expenses, rent, materials etc.. that you have to pay out. So when an agency sends you a quote for $5k to build you a website, you are in shock.
Lets put that into perspective. If you go to an agency and you just need a basic website ( most agencies don’t create basic sites) with about 15 web pages, video capabilities, client interaction and a beautifully laid out strategy and user experience, then to you that is not much. Here is what that looks like for an agency. The average time spent building each page is about 3 hours per page. If you take that and multiply it by the number of pages that you need then your total hours should be 45 hours. If you take the average hourly rate of $150 and multiply it by the time, your project is right around $5265. Believe it or not, this is actually a low price.
You may find an inexperienced designer or a company that caters to cookie cutter design that can do it for right around $1k. The problem here is typically that your website will act as a internet billboard and nothing more. Agencies try their hardest to may your website an investment and not an expense. They do this by creating a strategic user experience backed by call to actions and a beautiful design. The design will be custom in most cases and will allow complete flexibility. Agencies usually have the ability to help you scale internally as well but more importantly, it has been proven that most agencies drive results with what they create.
Over time however, there has been an increase in non experienced freelancers trying to charge ridiculous prices for websites with no strategies, no experiences and very watered down designs.
Back to pricing though, $5k to spend on a website is still steep right? Wrong. Heck even $10k is a fair price. The fact that the average cost of a nice vacation is right around $5000 should tell you that to invest in your business by creating a web tool that drives traffic is a good idea. Think about it,$5k on a site or $5k on a vacation. If you are serious about growing your company, the last option is a good choice. Besides, if you invest that money back into your company and the tool drives traffic, then you can take better vacations! Not to mention a strategic web tool can fit perfectly into your current marketing efforts.
Strategic website/web tool= Investment – Do it yourself website/ bad site= Exspense
Author: Ethan Evans
Passionate entrepreneur, self taught web developer and marketing consultant. I have been collaborating, marketing, and developing with companies for over 7 years now! Lets grow together!