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Developing a website: How much does it cost?

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Developing a website: How much does it cost?

Unless you are purchasing a fixed price solution, prices can range depending on the calibre of designer you have chosen, and the type and size of solution you are after.

A typical small business website can range from between $2000 for a basic site including hosting and domain name, to over $40,000 for an integrated e-commerce and business resource planning tool. Larger projects usually begin at around $20,000, and quite easily push to 6 or 7 figures, given these projects are quite often integrated to existing (legacy) IT systems or core marketing activities.

If your project has the potential to increase revenues or reduce costs, then work on a return on investment (ROI) basis. A site that costs you $40,000 to produce, but produces more than $40000 in ‘value’ to the business over the course of a year is entirely viable for ANY business. Work with your developer early to discuss the ROI potential for your project.

Some developers offer convenient payment options to further support the ROI argument. If you are comfortable with a partnership, then why not suggest a Contra or revenue share arrangement to share both the risk and reward? This is a perfectly legitimate arrangement for online developments and is more common than most would think.

Other activities, such as online advertising, email campaigns, competition websites etc can cost between $2000 and $10,000 to implement.

When dealing with potential developers or a chosen partner, provide a definitive brief and request an itemised breakdown of hours and rates. Industry standard rates are anywhere between $80 and $200 per hour depending on the designer/developer. Remember, you do get what you pay for, but without fully understanding both your requirements and the process to be undertaken, mistakes can be made if the fit between developer and client is sorely inadequate.

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