Website Budgeting

When planning a budget for developing a website, there are a few items to think about. First, what kind of website are you planning on developing? Is it a brochure style, informational website? Or is it an e-commerce style website with an online shopping cart? Since most of the websites we develop are generally brochure style websites and because we plan to cover shopping carts in an upcoming blog, let’s assume for the rest of this conversation that we’re talking about a brochure style website.

A simple, effective brochure style website can be the most beneficial and cost effective piece of advertising in your business’ marketing plan. Websites are often the first impression of your business to prospective customers. It’s the greeter to your business. It either invites people to do business with you, or it turns them to your competition. It’s also a resource for your clients. A good website should provide clients with your contact information, information about your products and services, and information about your company.

Visiting your website can be seen as talking to a salesperson about your business, as well as the products and services you have to offer without being sold anything. Visitors can read the information at their own pace, research what you have to offer, and make a decision about whether or not to pursue doing business with you without an anxious salesperson, eager to make a sale, telling you what you want to hear so that you’ll make a purchase. A great website should be viewed as a non-obtrusive salesperson. What would you pay a great salesperson? How about a great salesperson who is available for clients 24 hours a day, 7 days a week, 365 days a year?

The second item that you should consider is the shelf life of your website. Do you plan to have your website serve your business for 1 year? 3 years? 5 years? More? We recommend that most businesses redevelop their websites at least once every 3-5 years depending on your business, your competition, and your industry. You should consider the development of a website as an investment over the period of time that you plan to have the website in place.

In some aspects, you can think of a website like a sign for your business. You can get a piece of cardboard and a Sharpie and make a sign for your business. This will require a small investment – maybe $10, but it will have a short life span and you’ll have to replace it every week. You can go the other route, and purchase a well-made, weather resistant sign that will last a decade or more. Maybe this sign costs $4000 which could be a large, upfront cost. But over 10 years, the $10 per week cardboard sign has cost more than $5000, not to mention your time remaking it every week. Plus, how many customers have you turned away by having a cardboard sign? There is a large difference between something being cheap and something being inexpensive. A $4000 sign that has a shelf life of 5-10 years is inexpensive. Many of the people and businesses we talk to want a cheap website. It’s ok to want an inexpensive website (or sign, or insurance policy, or rent), but it’s a bad idea to look for a cheap one.

The third item we ask you to consider is the expectations for your website. If you expect the website to generate thousands or millions of dollars in revenue, then you need to prepare yourself for a large quote. It takes money to make money, and if you truly believe that you have the next Google, Facebook, or Amazon idea, then you need to know that those websites required large investments of both time and money to become successful. And if you don’t have the knowledge or ability to develop the site on your own, then you’re going to have to compensate someone to develop the website for you. I might know where there is a large gold deposit deep within the Earth, but if I don’t have the money to invest in removing it from the ground, or the ability to do it myself, then the gold won’t generate millions of dollars for me.

At this point, you’re probably thinking the investment level for a great website is equivalent to what you might pay a great salesperson who works nonstop for 3 to 5 years. As much as I wish that were the case, it’s not. I hope that you see the value in a great website and have an open mind when talking to developers about your website. In all reality, once you take the items mentioned above into consideration, you need to decide what you’re willing to spend on a great website. What is it worth to you and your business?

Don’t be afraid to tell a web development company your budget. A reputable web development company will quickly let you know if you can or cannot reach your goals with your budget. If your budget isn’t large enough, make a plan to save the money necessary to develop your website correctly. A great website in six months is better than a cardboard & sharpie website right now.

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