How Much Should a Website Cost?

Submitted by marissa on Fri, 09/18/2009 - 11:03

At a recent panel, I was asked "How much should a website cost?" The quick--although unsatisfying--answer is "it depends." We describe four different pricing levels to potential clients. Note that we are not necessarily endorsing any of the solutions mentioned below. This blog simply lays out some of the options. Your actual budget mileage may vary. Note that these prices are based on a US market with US salaries. To determine your specific needs, you may need to speak with a web design firm (like us!)

This blog breaks down price ranges into the following categories:

Remember that these examples are only that--examples. Actual prices depend on many factors including customizations, depth and breadth of functionality, number of reviews, etc.

Do It Yourself (<$500-$1000)

If you have very little to spend and want to have some type of web presence such as a 3- to 5-page marketing website that tells a little something about what you do and where to find you or how to contact you for services, you can try any of the self-serve types of web hosting services. These come in different forms and each one caters to different types of customers. When comparing sites be sure to understand what aspects are free and what will cost a monthly fee. With this option, you can also spend some of your budget dollars to buy the rights to a photograph or two or a few graphic images. Remember that using images from other websites beyond what the website builder offers constitutes copyright infringement, so be careful.

Work breakdown: 90-100% Do-It Yourself

Pros: The tools are typically easy to use, and you need not know HTML (the language that describes the page content and layout), CSS (the files that describe fonts, colors, and other styles used in the site), or any other web acronyms. There are numerous templates offered for various layout choices. You can be up and running very quickly, sometimes the same day. You have direct access to update the content as needed. These providers offer websites that are free or nearly free. Many offer additional commerce options via PayPal.

Cons: There is a limited set of functionality available. Your website will look very similar to all the other websites using the same template. You may have a small ad of the hosting company on your website footer and additional ads in your email unless you pay a monthly fee to be ad-free. The free level frequently provides limited storage, a limited number of webpages, a URL that is attached to the provider, and limited email accounts. For some providers, additional features require an additional monthly fee. Most of these sites will not allow you to add custom functionality as your business grows and website needs change. Some providers make it difficult to move your content to another hosting solution.

Here are a few self-serve options to consider.

Google Sites

The big benefit of Google Sites is that you can integrate all the other Google tools you are already using such as mail and calendar. They tout "powerful enough for a company intranet, yet simple enough for a family website."
Get Started:http://google.com/sites

Intuit's Homestead

Intuit, maker of the popular Quick Books used by many small businesses, acquired Homestead at the end of 2007, expanding their suite offerings to include websites.
Get Started:http://www.homestead.com/

Microsoft's Office Live Small Business

Microsoft has been offering free sites for quite some time as part of their small business strategy. The biggest drawback to this option is that you can edit, manage, and log into your site only if you are using Microsoft Internet Explorer.
Get Started:http://smallbusiness.officelive.com

WordPress and Blogger

Both of these sites target a blogger versus a small business, but both sites now offer the option of adding pages, meaning you can build a website around a core blog. Of the two, Blogger had as its original target user a non-technical audience, so the interface is somewhat easier to manage for the non-technical type.
Get Started:http://en.wordpress.com or http://www.blogger.com

GoDaddy, Network Solutions, and other domain purchasing sites

All the domain purchase and hosting sites offer a simple web builder option including shopping carts. Make sure you compare which options are really free versus ad-supported.

Some Design, a Lot of Do-It-Yourself ($1000-$2500)

Once you want any customization not offered by the previous category of solutions, your price will jump slightly to accommodate not only the custom work, but also the need to install and host a content management system (CMS).

A content management system is the same web builder tool offered by the big online sites mentioned above, but your website team has more access to apply custom features. There are a number of content management system that do not require a software purchase price, called open source. Some names you may hear include Drupal, Joomla, and WordPress.

In this price range, you can apply some budget dollars to the overall design. If you have a strong business and marketing background in products, have already done your homework about target market and marketing channels, expect to have a fairly simple website with minimal customizations on the home page, and are fairly adept with software application, this option could work for you.

This option will require you to write your own website copy and to keep your website up-to-date yourself. Typically, knowledge of HTML and CSS is not required, but could be if you request features that do not have good administrative management tools available.

With this option, you may have access to much more functionality provided by your CMS that your website does not initially use. While your website team may allow you access to this wealth of functionality, make sure you know what you're doing, or simple changes to the configuration can bring down your site or make it inaccessible. Talk with your service provider to have them set up a content manager account with permissions that will avoid website catastrophes as you add new content to your website.

Work breakdown: 20-25% Design and technology, 75-80% Do-It-Yourself

Pros: This is a good starter package with options for growth later. You can control costs if you are on a budget. You still get a nice-looking website that doesn't have to look like all other sites.

Cons: Not a lot of functionality options, custom pieces, or fancy Web 2.0 effects. Still, your customers primarily come to the website for information.

Custom Website and Self-Promotion ($2500-$8000)

To take advantage of your website as a marketing tool, you need to think in terms of using it as a way to demonstrate your expertise to your customers. This approach involves adding, at regular intervals, content to your site that your customers find valuable. This value differs for every business. If you already use an email marketing tool, you may already be doing some of this.

This price range allows more flexibility in website design and custom functionality but still places the long-term website management requirement on you. At this level you can think about not only the needs of your customers but also how to use the technology to simplify your work flows. Some examples to help your customers might be a decision-tree tool that helps them decide which of your products best serves their needs or a self test that suggests options for them to try. Examples for improving your work flow include an online calendar to request meeting times or custom forms that direct email to different departments depending on the nature of the request.

At this level, you may still be providing much of the marketing copy for the pages, but you may have more custom pages, a more custom design, and a slightly more complex site. You still have budget for image licensing and a few custom graphics. It's worthwhile to spend a few hundred on your logo and brand if you haven't already.

Work breakdown: 65% business and technology design and 35% self promotion

Pros: A deeper, more engaging site experience for your visitors. You still have full control of the website content. You can add functionality as your resources allow.

Cons: Requires you to create good marketing copy that appeals to your customers and encourages them to take action. Your website is a reflection of you and your business, so you'll need to understand the impact poor content or badly managed page layouts have on your customer experience. Make sure you understand how to use the CMS effectively.

Custom Website and Marketing Consulting ($8000-$15,000+)

At this level, you are relying heavily on your design team as business consultants or are including lots of custom work in the website such as extensive shopping cart functionality or integrated customer relationship management solutions. This budget level includes options for brand and logo development, as well as high level design that gives the site that extra wow factor.

This option can include having a good marketing copy editor develop the text for many of the static pages on your website. These include the pages describing you, your business, and your products or services.

This is a good option for businesses who are already operating and have some system in places. Typically websites at this price level are trying to solve some specific customer or business issues.

Work breakdown: 95% technology, marketing, and copy writing and 5% self promotion

Pros: The budget allows broader and more complex functionality. There is lot of maneuverability for fine-tuning the features during the development process. Most of the content development is provided by the design team.

Cons: The site requirements may be more than what you need to start. Make sure the service provider works with you to understand your business strategy (or help you develop one) and keep your website development effort in line with your needs. For example, if you want to have an affiliate program for resellers of your product but have not set up the internal processes to handle that, then it may be too early to invest in technology to support those options.

Some Notes About Work for Hire Sites

There are a number of sites that offer work for hire options, such as Freelancer.com and 99Designs.com. We have heard mixed reviews from customers who have used these sites. Here are a few things to think about when considering this route:

  • Hiring a graphic designer, website developer, and copywriter separately is much the same as signing up to be a general contractor for a house renovation or construction project. Make sure you have the skills and time to manage effectively.
  • Be sure that all materials you receive or use on your website or in marketing materials provide the appropriate copyright licensing. Don't get into legal difficulties later when you find out your bargain $250 logo design will cost you $12,000 in legal fines for copyright infringement. Insist on signed releases and carefully read the usage clauses.
  • Communicating only by email requires much more precision and a background knowledge of the entire project. The more detailed the specification, the more likely you'll get what you want, or more importantly what you need for your business. Using the analogy of a plumber, make sure you get a plumber who knows how to design an overall pipe system that lasts for year without problems rather than an apprentice who will put the pipes where you indicate but not be available if those pipes freeze and crack in the winter.
  • Consider checking references by talking to actual previous customers. Yes, they will only provide contacts for customers who are happy with their services, but you can still get a sense of how they work with clients and whether that style will work for you.

Summary

There is a web solution for every price range. Increased costs for website development come from design work, larger sites, increased functionality, and custom work. Value increases for more budget investment can include higher customer appeal, preserving your time, and improved operational efficiencies. Just be realistic in how much you want to spend in both dollars and time.

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