This is a question often asked by companies trying to price companies for web design and development. Before I get started, I want to point out that there is a difference between website design, website development, and web marketing. The differences are listed below:

• Web-page design – create the overall design, layout/look and feel of a website. Develop the flow of what a page will look like or where site content will be placed.
• website development – Take website design and bring it to life through HTML/CSS and/or other programming/web scripting languages. Also, website development is the process of adding additional functionality to an existing website, such as e-commerce, content management systems, etc.
• web marketing – take the website designed and developed and promote it through the web. Use of means such as social networks, search engine optimization (SEO), pay per click, etc.

These services are usually intertwined when a company or individual explains that they need web work done. With that out of the way, let’s look at the reasons web companies/freelancers charge what they do and how they calculate the price.

How is the price determined?

There are many aspects to consider when pricing a project, but the main one is timing. A freelancer/web company will listen to you (the prospective client) explain your dream website and from there base the price on what was discussed.

Some things that will increase the price are the time frame in which the project will be completed, support, consultation, or deviation from the original scope of work.

Other factors that go into creating a price quote for web services are the amount of resources, experience, and knowledge of the professionals. The more value you can offer, the higher the listing price. For example, freelancers are often only equipped to perform one or two services, while a team of web professionals is prepared to deliver in all areas.

Solutions like templates, website builders, or other out-of-the-box services can be quite cheaply priced due to lack of customization. Also, keep in mind that some of these services have recurring monthly or annual fees.

How will I be billed?

There are a couple of common ways to bill; one is to demand half in advance and the other half at the time of delivery of the project. Let’s say your grand total for your project is $2000.00 before any work can start, you will be required to pay 50%. The other 50% is due after the agreed scope of work is completed. Other variations can be 50% up front, 25% on the first set of deliverables, and 25% final at the end of the project.

Another way is to be billed by the hour. Being billed by the hour seems to be the least popular way to go when developing a website. Most of the time, hourly billing comes into play when giving advice or after a project takes longer than expected. Monthly fees usually occur with web hosting packages or if you agree to some kind of maintenance plan.

What does the standard website package include?

This will depend on what you have explained to the professional and what they can offer you. If you express that you need a website redesign, you will get a website design. If you say you need to rank higher on Google or Yahoo, then web marketing will be the main focus.

As said before, each scenario and each company or freelancer is limited by the skills they have acquired. Generally speaking, if you don’t have a website at the very least, you should be offered a domain and hosting package (to keep your files and make them visible to visitors). Although the company you choose to take care of your web project may not have in-house servers, they usually know of or work closely with a web host.

Should I budget my web project?

The answer is yes, however, if you’ve never built a site before, you might want to ask other website owners how much they spent on your website. Ask others how the process went and what items/materials you need before calling every web company in town. Please note that websites must be built with room to scale with the growth of your business, unless otherwise specified. Today your need may just be to have an online location to display information about your products or services and tomorrow you may need to provide a way for your customers to order online. A well thought out website will be able to handle this transition.

Determine what you need your site to do for you: do you need to tell others about the services or types of products you sell? Do you need to sell items online? Do you need to create an online community around a topic or set of topics? Write about how a website will help boost your business, or if you’re doing business solely on the web, explain in more detail the process of how you’ll make money or see a return. It’s always good to give a brief explanation to a web specialist so they can get some guidance and understanding on what’s valuable to you, it will also allow them to make suggestions based on what has worked for previous clients.

Show me the numbers… What can I expect to pay?

If you’re like me, you want a general idea of ​​how much something costs so you don’t have to waste time calling and finding out you’re not prepared. So I’ve put together some generic numbers to help illustrate how much you should expect to spend. Please note that these prices are not in relation to any company, they are just the ranges of what I have seen or heard. Also, remember that each company / freelancer charges differently, you may have to pay everything up front, half, 25% or make some kind of deposit to start working.

We with the prices!

Simplistic brochure website (next to no functionality/no dynamic content)

This is a great place to start if you’ve never built a website before. Typically included services are custom web design and HTML/CSS coding to bring the design to life. If there is something like a contact form, animations or anything else outside the scope of the design and development, you will be charged an additional fee. Remember these are the lowest prices I have ever seen or heard of, I am not claiming that you will receive a superior craft at these prices but it will certainly get you a website.

Autonomous price: $200.00 +

Firm web price: $1000.00 +

Expert tips: Always strive for the work to be carried out by the most professional and courteous people in the service. The highest price does not always reflect the skill or, more importantly, the skill of the people. Many of my clients are the ones who have switched from a company that never answers the phone or doesn’t do what it’s supposed to do. Dig deeper than the portfolio, don’t ignore it, just dig a little deeper and see how it runs the business.

e-commerce website (add/edit/delete products or information)

Ecommerce websites can and should be used in addition to your physical store. The only difference is that the physical location will most likely close at night and the online location will most likely be open day and night, all year long. When looking to build an eCommerce website, you should consider ease of use (add/remove/edit items in inventory), stability, and how well it integrates with your current site (assuming you have one).

Autonomous price: $750.00 +

Web company price: $4000.00 +

Expert tips: If you don’t have a budget of more than $4000.00, I suggest you go with a freelancer or a student. Start small and upgrade! There is no point in investing tons of money in something that you have no idea where it will take you. If you are a new business, focus on generating revenue first and go back and get the bells and whistles. However, make sure you end up with a professional and presentable site; no one will buy if the site doesn’t look legitimate. Remember, money does not automatically go into your bank account if you spend $4,000.00 on a website. Assess where your business is now and think about where you would like your website to help take you in the near future.

interactive website (add/edit/remove content, post articles, visitor engagement)

Interactive websites are websites that hold your attention and keep you coming back every hour, day, week, month, etc. These sites are the ones that show off your favorite celebrity gossip, catch up on sports scores, or watch funny videos online. These sites are database-driven and have a lot of dynamic content. Because these sites are linked to a database and require extensive back-end programming, prices skyrocket. Also, these sites are often found by search engines and have a way of promoting themselves based on their content.

Autonomous price: N/A

Web Signature Price: $10,000.00 +

Expert tips: If you have never created a website before, I suggest you look for free or low-priced alternatives. There are plenty of out-of-the-box solutions that will get the ball rolling, you can always update later. Also, if you’re just starting out on the web, creating or finding new content can be overwhelming at first. Sites like these tend to snowball and become a frequently visited site unless you have tons of marketing dollars to back it up.

No matter which direction you plan to go, always think ahead and prepare for the amount of time and money you will have to invest to take your business to the next step, or to serve your customers better and faster. As I said earlier in this article, take stock of where your business is now and think about where you would like your website to help take it in the near future. Set your goals up front and make sure you don’t overshoot or undershoot and if you’re unsure, always get a second opinion.