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web design business model
Old 04-06-2010, 05:14 AM web design business model
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I want to start building small-business websites next year. However, none of the small-businesses in my area seem to be willing to invest in 800-1000€ for a customised, bespoke site.

They understand that the cost comes from 40 hours work, which itself comes from the unique customisation of the site, and also from making the website more useful than a simple brochure site (eg. databasing functions, community building, e-commerce, CRM, advertising, or whatever the focus is). They don't begrudge that. It's just that they don't think they'll get good Return On Investment. However, they generally *are* still interested in having an online presence (isn't everyone?).

Now I could just ignore these people and just cater to the much smaller number of businesses who have less qualms about the initial investment. However, it seems to me like ignoring a *lot* of people.

Using the right tools, I could provide these people with a cookie-cutter Drupal site for 200€ (about 5 hours work). It will look nice, but not nearly as nice as a properly designed bespoke site. It will be a simple brochure site, but they can add content themselves. They won't have full access to their Drupal backend (ie. can't add modules or customise it) or have their own cpanel or ftp. I can run about 20 sites off of one codebase on one VPS so that updating/maintaining them all is easier.

Now, obviously putting these businesses online so cheaply means I will have to tie them into hosting with me (and/or some other value added service) for 10€ a month, and I'd make that a mandatory part of the package. I'd include the first year, so the total price they'd pay for getting their business online for the first year would be 300€, and 120€ after that.

Since they're hosted with me I would have constant contact with them, and I could help them with directing people to the site and increasing their SERP and ranking. A percentage of them might then think about expanding their site's capabilities and paying for extra functionality/features/design work later on.

Note that the idea is not to undercut designers. The idea is to provide a cheap initial cost for small business in my local area to get online, then making that initial loss back over time, and eventually encouraging them to spend the money on a more bespoke design anyway, once they've got a feel for how a website would help their business.

I'd like to build up over five years to having 100-200 such sites hosted.
I have evenings and a three-day weekend free at the moment.
If necessary, I can go down to a three-day week in my main job.

Comments please!

I'd especially like to hear from lone website designers who also initially thought they'd never get enough work from 800-1000€ websites (I'd need about 20 of these per year to make it worthwhile, and at the moment I have a skills deficit with regard to the kind of features/customisation these kinds of customers would demand, so I'd need to sub-contract a lot).

I'd also like to hear from small, lone reseller webhosts - how do you provide 24/7 support? How much support time would 100 hosted customers need?

Thanks everyone!
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Old 04-06-2010, 07:08 AM Re: web design business model
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Quote:
I'd also like to hear from small, lone reseller webhosts - how do you provide 24/7 support? How much support time would 100 hosted customers need?
We don't. We have a couple of hundred hosted clients and we provide real person phone answering from around 8 AM to 10 - 11 PM. Which oddly enough matches their business hours.

You only need "24-7 support" if you are selling to all and sundry from anywhere in the world.

Quote:
I want to start building small-business websites next year. However, none of the small-businesses in my area seem to be willing to invest in 800-1000€ for a customised, bespoke site.
Been there, bashed my head against that particular brick wall.
You are far better off preaching to the converted rather than trying to be a missionary and saving the unbelievers from their self inflicted state
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Old 04-06-2010, 07:38 AM Re: web design business model
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> You are far better off preaching to the converted rather than trying to be a
> missionary and saving the unbelievers from their self inflicted state

Really. It just seems such a shame to not be able to get these kind of people 'onto the first rung' so to speak, considering they seem to represent about 80% of small-business owners.

What were the main kinds of problems you experienced? Was it getting enough clients to outlay even a couple of hundred dollars in the first place? Or payment issues after delivering the site? Unrealistic expectations about what they would get for $200?

> We have a couple of hundred hosted clients and we provide real person phone
> answering from around 8 AM to 10 - 11 PM

I take it you're reselling? So after a phone call, you'd typically try to solve the problem in WHM/Cpanel, and after that contact the host's tech support?

What's it like having people scream at you because their site's down, but you're helpless because the matter is in the hands of the hosting support?

With a hundred hosted clients, how many phonecalls can you expect per day?
How many phone operators would you need for that?

Thanks for your input.

Last edited by Chianti; 04-06-2010 at 07:48 AM..
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Old 04-06-2010, 08:09 AM Re: web design business model
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Quote:
Originally Posted by Chianti View Post
Really. It just seems such a shame to not be able to get these kind of people 'onto the first rung' so to speak, considering they seem to represent about 80% of small-business owners.
They often come around eventually, the only thing to do is to plant the idea in their mind and let them decide. If you keep pushing it looks like you are just trying to get work. Not everybody is cut out for the "hard sell" tactics. I have a friend who could sell hair spray to Duncan Goodhew who would struggle to push a web "prescence" to businesses but they would happily sign up for double glazing.
AND even when they have agreed to a website, they are too "busy" to look at the samples, too "busy" to send images and copy and obviously far, far too busy to actually pay you.

Quote:
Originally Posted by Chianti View Post
What were the main kinds of problems you experienced? Was it getting enough clients to outlay even a couple of hundred dollars in the first place? Or payment issues after delivering the site? Unrealistic expectations about what they would get for $200?
ALL of the above

Get people who actually WANT a website and more importantly know WHY they want or need one.
You will only get frustrated and disillusioned with the;
"Well everybody else has a website, so I'd better have one"
or the
"Tell me again why I need a website"
type of "clients"
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Old 04-06-2010, 08:25 AM Re: web design business model
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ok... thanks very much for that wisdom.

I guessed there has to be a reason why most bespoke websites start off at about 800€. It must act as a kind of a filter so you don't get nutters and loonies asking you to give them a huge website virtually for free.

Last edited by Chianti; 04-06-2010 at 08:29 AM..
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Old 04-06-2010, 08:42 AM Re: web design business model
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Ah yes, the "tyre kickers" as they are known in the motor trade
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Old 04-06-2010, 05:14 PM Re: web design business model
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I got some advice on this elsewhere too. What do you think....

This person agreed that these business owners aren't interested in a website as such, but that they *are* interested in the possible effects that an 'online presence' might have to their brick-n-mortar business.

So the suggestion was to focus the package on their ROI. In other words, the services which I would have described as periphery when I was focusing on the website design, would become the central service for these people.

A package might include something like:
- one 'landing page'
- a dynamic sidebar containing widgets which aggregate social network content to the page.
- an inline google map
- newsletter subscription for email marketing.
- 1 year SEO monitoring/campaign/reports to build good SERP for the page.
- add business to google maps, with photo, description, and link to the page.
- facebook and twitter accounts created, with aggregation to the page's sidebar.
- entry into any free online local-business directories I can find.
- entry into my own free directory (but my clients get stickied at the top of lists).
- etc

Again, payment would be a low one-off amount of 200-300€, and 10-20€ monthly after that for the page hosting, newsletter management and anything else I can think of that doesn't require too much work.

If I could get 100 packages like that hosted and nicely ticking over, it would double my income when added to the income from my day job.

Thoughts?

Last edited by Chianti; 04-06-2010 at 07:12 PM..
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