Archive for February, 2010

Why the Huge Range in Web Design & Development Pricing?

Tuesday, February 16th, 2010

When discussing a web design quote with a prospect recently, he said, “Faith, to be honest I have three quotes here ranging from a couple thousand to $20,000 and I have no idea why. I don’t know what to do.”

This has come up many times before, and here’s my thoughts on why:

Price ranges from freelancers to web specialty firms.

These different sized cupcakes represent the three levels of web developers

Higher prices seem to come from web development companies – specialists.

In the early days of websites, when it was a mysterious new skill, firms had to specialize in it. It was often done separately from branding or advertising as creative firms didn’t yet have the service in-house. These web development companies were in high demand and charged a lot of money. Web Development companies still have a very strong place as specialists in large complicated websites. Although everyone involved (web developers and creative) soon realized traditional creative and writing skills were still needed and incorporated, it’s often a minor add-on and therefore not a core competency. Believe me, when I have a very complicated back-end website project, I sub-contract to one of these companies myself.

Some clients think they still have to go to specialty web development companies – often by-passing their creative firm – who need to charge a lot to support their business infrastructure, which is just too much to spend for small or mid-sized clients.

Low prices are usually from freelancers.

On the other hand, there are a lot of freelancers out there, especially in developing countries, who can afford to build websites for much less. The downside in my experience is that they’re doing both design and development. Since these are two very different skill sets, they often are not doing one of them well. Plus, they may not have the resources needed to fulfill a robust website; like copywriting and photography. Freelancers are a great resource for start-ups, early-stage or very small businesses, but they often find their company outgrows the freelancers’ abilities. This is how my company grew – I could not meet the demands of my clients by myself.

How to Choose?

I wrote an article a while back that addresses this issue with graphic designers in general, but the same advice applies here.

Portfolio

Look at their portfolio and make sure the samples they show are up to the level of sophistication and standards your business requires to meet your goals, remembering we all show our best work in our portfolios. Look at similarities; with development specialists you often see templates used. This often means a strong back-end, but not necessarily tailored to your brand and strategy. Don’t get caught up in whether or not they’ve worked with your kind of business before, but do look for evidence of similar businesses.

Business StructureBusiness structure – does you web development company have the right team members to create a robust and compelling website to suit your needs and goals?

Don’t be sucked in by a low price or overly-impressed by a list of large, impressive projects. If they don’t have the experience range or manpower to match what your business needs, it can be a waste of money that doesn’t get you what you need, whether the bill is in the hundreds or thousands. Experience range and manpower means design, development, strategy, writing, photography, video, etc.

Natural Rapport

We’re all about rapport and I often tell prospects they should go with who they feel most comfortable with. Do they ask you questions about your business strategy? Do they make you feel you can discuss things openly? Good communication is essential in web projects because they can easily go out of scope. Does it feel like a good fit and you can trust them? Whether it’s your company or just your responsibility, rapport is essential.

Shop Around

We had a client come to us after having a $50,000 site built that they were not happy with (the look of). They asked us to consult and we made vast improvements with what seemed like basic design skill. The site had no special functionality at all, it was a static brochure site that we would have built for $5,000, plus copywriting. The truth is, based on the quality of what they originally got, they could have found someone on eLance to do it for $500. I have no idea who built it originally. We’ve helped rescue web projects from both ends of the spectrum. Not all freelancers are unable to fulfill, there are some excellent finds out there. Not all web developments overcharge and under-deliver. But, if you don’t get at least three quotes, you’ll never know.

Compare Apples to Apples

We all price out websites differently so it can be hard to tell if you’re comparing things fairly. A good firm will not just quote on what you ask them to, but make suggestions that will make your website more robust and useful to people, or add things you may not have thought of like team photography. Ideally this is shown separately and clearly communicated. Disparities arise in situations such as one has proprietary software they rent out, while another quotes the same functionality using open-source code.

Comparing apples of different colours is one thing, but If there is a huge price difference in the ‘same’ solution, they’re likely not both apples, so ask questions. It’s not ethical or legal to show the competition each others proposals with dollars, but you can copy and paste descriptions to request apples.

One final tip: never treat a website as a stand alone piece

Remember that a website should never be done in isolation from the rest of your brand and marketing materials. It is a very important stop in your marketing map and must be considered in relation to how people got there – is it consistent in the message and look, and encourage them to take the next step – which is often the very important pre-sale action step.

Good luck!

How To Make Your Blog Enticing to Robots and Humans Seminar Recap

Monday, February 8th, 2010

We had a great seminar Thursday February 4th with Rob Campbell of Smojoe. There was a lot of information to take in, which may have made it a little overwhelming for some.

Here’s a handy recap:

  • Blogs are a great tool to humanize your brand, share your brilliance with the world and capture key words that drive people to your website and therefore product or service.
  • B2B companies don’t really have a lot of competition out there for blogs, so it’s a great time to take advantage.
  • Rob prefers WordPress.org blog technology over any others because you can install it on your own site and it’s open source code, which means there are more 3rd party widgets etc more sidebar toys and options – and its always getting better

  • There are five places in a WordPress blog to plant key words.
  • Use Flickr or other photo sites to add photos to your blog so you can create links back as well as have an opportunity to add tags. It also helps people find you through image search.
  • Think of it like creating a tasty sandwich for Google, layering on the ingredients starting with Flickr as the first piece of bread, the blog post as the meat and then bookmarking the top piece of bread.
  • Create a group to Digg each others blog posts, upping the relevancy.
  • The best items to have on the right side of a blog are an RSS feed, twitter widget, the Roy Tanck Flickr widget, MyBlogLog’s recent readers and What’s New With Me?
  • A great way to build social capital (see past Rapport blog post with video from Scott Stratten) and also create links to your blog or website is to participate in forums, or comment on other blogs.

Tips from Rob and Faith:

  • One good blog post a week is a great goal.
  • Blog posts are usually personal, a point of view on something. When you’re inspired by something write it down so you don’t forget.
  • Remember to not delete negative comments, but reply to them.
  • A blog is for generating conversations, not just straight self-promotion.
  • Carry a camera or use your phone to add photos to Flickr and your blog.
  • Remember that your blog is not a stand alone piece but part of an all-inclusive marketing approach – make sure it fits your brand guidelines and marketing strategy.

Sounds complicated, but you’ll develop a ritual. Please contact Faith if you have any questions at all.

How to Set a Marketing Budget in a Mid-sized B2B Company

Thursday, February 4th, 2010

Setting a marketing budget is the best way to keep control of your marketing dollars and plan cash-flow for the upcoming year. However, it’s very common for mid-sized and even large companies not to have one at all, but it can really give your marketing lead, marketing company or graphic design firm the freedom to use it and use it wisely.

So how do you set one? This is often calculated as a percentage of revenue, but it would vary from industry to industry. Go-to-Market Strategies says that 33% of companies spend 3–5% of their annual revenue on marketing, followed by 28% spending 0-2%. That sounds about right.

Looking Back – at Marketing Budgets Past

As a B2B firm, that calculation may shock you, even at 1 or 2%. This leads to my favourite method of calculating your marketing budget – look at what you spent the last year, or three – you may be surprised. No two companies are alike, so use your own history. This would include all graphic design and web development services, copywriting, printing, electronic and print ad space, sponsorships, internal time writing blogs and the like, pens with your logo on it, domain registration and hosting, mailing services like MailChimp or Constant Contact, etc, etc. – probably more than you realize.

Plan for Marketing Budgets Going Forward

Next, decide what you intend to eliminate this year by reviewing your marketing toolbox. What worked and what didn’t work? Click here for some formulas that may help you determine ROI on past marketing efforts.

Traditional toolbox used to represent a marketing toolbox.

You need to know what your pre-sale action step is and roughly what it takes to get people there. For example, if you have X discovery meetings per week, history shows it leads to X sales. What marketing tools helped you get there?

ROI also depends on intention: like awareness versus direct sales. Remember that all companies are unique and expectations vary. We have a consulting company who spends a lot on SEO every month and is happy with one sale per year, because it’s a $60k sale.

Then, see how you can strengthen the ones that worked well or you intend to keep. See previous blog post Think of Your Marketing Tools Like a Journey to a Sale
for some tips on how to do that.

When you review all efforts this way you’ll spot some efforts you don’t intend to continue with. Even with good ROI, our most active B2B companies spend in waves as they wouldn’t be rebranding, revamping their website or doing entire new ad campaigns every year – which is where reviewing more than one year is handy. Calculate an average.

What New Tools Do You Plan to Incorporate?

Factor in what you want to add to the mix this year. Even forays into social media aren’t free, though they’re often touted as ‘free marketing’. You may not have to buy ad space but it takes man hours. What’s your strategy? Who would do it? Do you need outside help in executing or setting it up (like an editor or ghost writer for your blog). The ROI on this type of marketing is harder and slower to recognize as relationship building takes time.

Don’t hesitate to ask your design firm for rough estimates to help with budgeting – you aren’t committing to anything.

Plan for the Unexpected

Finally, build in a buffer for unexpected opportunities. Many clients decide to participate in a tradeshow or sponsor something and are surprised with an offer of ad space they need to now fill. Or, your professional association suggests you provide branded tchochkes for giveaways at a conference. Maybe you hire new people or plan to move and will need more stationery. If you set aside a little extra, it will give you the breathing room to do it well, which often means professionally.

Sidebar: Even when something is unexpected, use your Marketing Map and brand guidelines to make sure it’s not a wasted, or low ROI effort by rushing it.

How a Marketing Budget Helps Us

We often ask clients what their marketing budget is – not so we can figure out how to use all of it, but so we have a place to start from when making recommendations. With no budget, we could easily come up with a proposal way out of a client’s means that would make professional service seem completely unattainable, discouraging all sides. Meanwhile, if we know, we can make appropriate suggestions to help them reach their goals. We can also help our clients avoid surprises as our experience helps us foresee extra expenses they may not be anticipating, which would help them stay within budget.