Website designing - lots of work and too little money?

[MrZeether]

What are the revenue models for web design companies? In my own experience, I encountered clients who expected me to create websites as complex as eBay, with unlimited revisions, all for a flat fee of $500. I find it frustrating when people expect unlimited work without considering the concept of 'scope creep'. However, I'm curious to know how some web design companies manage to acquire and maintain hundreds of clients, whereas I struggled to handle even one.

 

[AstaBoard]

What is the specific challenge that you are encountering? Are you struggling to attract clients, or did the one client you managed to secure demand an excessive amount of work without providing adequate compensation?

 

[ChiriMo]

Your client will be more demanding the less expensive you are... True, but ironic.

Maybe create a portfolio and climb the ladder?

 

[Chupara]

You dont have to code like before, there are many plugins with 500 prebuilt websites and so on, come on.

 

[Delingha]

There are two main advantages that established marketing and sales firms have over people who are trying to break into the field:

1. They have access to significant financial resources, allowing them to deploy a large sales team to target decision-makers in high-paying firms. Additionally, they may have an impressive physical office to facilitate signing lucrative contracts.
2. Established firms have a strong reputation that attracts more clients and gives them leverage to negotiate favorable terms.

 

[DubyaLawn]

The challenge for web design companies is that they face stiff competition from DIY site builders and store builders that are widely available and easy to use, even compared to WordPress page builders. These options are significantly cheaper than hiring a designer or an agency.

As a result, many web design companies struggle to maintain profitability. In fact, I believe that the market for web design services for small and medium-sized businesses may be shrinking and risks becoming unaffordable, let alone profitable.

Hosting giants are constantly developing new, innovative solutions that make website creation easier than ever, contributing to this trend.

 

[EditorProphecy]

Very nice thread about all eggs in one basket.

 

[Endurgy]

I attempted to sell web design services a few years ago and encountered similar issues. Most clients had a budget of $500 and expected me to provide extensive hand-holding throughout the entire process.

However, if you keep working hard, it is possible to attract high-budget clients. For instance, I know of a friend of a friend who started a health office and paid $12,000 for a basic 5-page WordPress site. Such clients do exist and are willing to pay premium rates for quality services.

 

[FrogPat]

If you're just starting out, it may be wise to focus your efforts on other areas that show signs of growth or opportunity, such as graphic design, animation, or AR. Automation and AI are disrupting industries that were once profitable, as can be seen in the content writing market, which has become a dead market and a catastrophe for talented writers.

In my opinion, it's possible that web design and related services may also face a similar fate due to the rise of DIY options and more affordable platforms. It's important to keep an eye on emerging trends and be prepared to adapt to changes in the industry.

 

[GeniusArticle]

If you're just starting out, it may be wise to focus your efforts on other areas that show signs of growth or opportunity, such as graphic design, animation, or AR. Automation and AI are disrupting industries that were once profitable, as can be seen in the content writing market, which has become a dead market and a catastrophe for talented writers.

In my opinion, it's possible that web design and related services may also face a similar fate due to the rise of DIY options and more affordable platforms. It's important to keep an eye on emerging trends and be prepared to adapt to changes in the industry.

The rise of AI that can mimic the skills and knowledge of experienced professionals across various fields is impressive and has disrupted many industries. As a result, the value of some services may have decreased or become negative.

It's important to recognize that clients may not want to pay for simple tasks that they can easily do themselves. If you specialize in simple tasks, it may be more profitable to focus on offering these services in bulk rather than trying to charge a premium for them.

 

[Hammerg]

Web design can be a challenging field within the internet marketing industry, as it's highly subjective and often difficult to price fairly. Many clients may not be willing to pay what is considered fair market pricing for these services.

 

[HanWhite]

A potential strategy for web designers is to focus on the local market within their own country. By compiling a list of businesses from local directories that have poorly designed websites but generate revenues of around 3-5 million Euro/Dollars, designers can target high-quality website redesigns to this audience. It's important to avoid offering low-cost options such as $500 websites and instead focus on premium services that include ongoing monthly maintenance.

 

[HeadChari]

A potential strategy for web designers is to focus on the local market within their own country. By compiling a list of businesses from local directories that have poorly designed websites but generate revenues of around 3-5 million Euro/Dollars, designers can target high-quality website redesigns to this audience. It's important to avoid offering low-cost options such as $500 websites and instead focus on premium services that include ongoing monthly maintenance.

A few years ago, I collaborated with another person on a joint venture using a similar approach. We focused on a specific niche, starting with transport and logistics companies that operate fleets of 18-wheelers, as it's a lucrative market.

We scraped Google for websites using footprints such as "made by Yahoo site designer" to identify potential clients. My partner then made cold calls to these companies, using a pitch that included mentioning a website that was already done for their competitor but was now available for a discounted price. We had one good WordPress/HTML template for each niche and spent around 30 minutes creating a mock-up to show them over the phone.

We sold each website for around $2,000, which included a hosting contract. The actual website building process was relatively quick, as they were all simple, skinny five-page sites.

At the end of the day, our success was more attributable to our sales skills than our web design expertise.

 

[Heallyon]

The rise of AI that can mimic the skills and knowledge of experienced professionals across various fields is impressive and has disrupted many industries. As a result, the value of some services may have decreased or become negative.

It's important to recognize that clients may not want to pay for simple tasks that they can easily do themselves. If you specialize in simple tasks, it may be more profitable to focus on offering these services in bulk rather than trying to charge a premium for them.

It's important to think ahead when considering the future of web design and related industries, especially given the pace of technological development.

For large tech companies, the focus may be on offering simple, user-friendly solutions that enable clients to do things themselves. This trend applies not only to web design but also to mobile and dynamic app building.

However, graphic design and animation may be less susceptible to automation and AI due to technical and legislative factors, making them more likely to remain relevant in the future.

 

[IzSound]

What are the revenue models for web design companies? In my own experience, I encountered clients who expected me to create websites as complex as eBay, with unlimited revisions, all for a flat fee of $500. I find it frustrating when people expect unlimited work without considering the concept of 'scope creep'. However, I'm curious to know how some web design companies manage to acquire and maintain hundreds of clients, whereas I struggled to handle even one.

In the world of web design, the role of account managers, teams, and other professionals can be crucial. If you're doing the design work, then you're likely not managing the client, which is the responsibility of an account manager.

In my experience, hiring a design agency can cost upwards of $300,000, while the two agencies I consult for only take on web design projects that are bundled into larger monthly deals worth no less than $20,000. Business development teams are responsible for bringing in new partnerships, which in turn provide a steady flow of deals, while the designers work around the clock to build sites. Account managers ensure that clients are happy with the services they receive.

These agencies are real companies, with talented employees, connections to venture capitalists, and impressive accomplishments. It's a well-oiled system that operates differently from the smaller scale approach you may have experienced.

 

[KinSilver]

Consider a B2B approach rather than B2C. Entrepreneurs who start a business as a "side hustle" or "hobby" without proper planning are unlikely to pay for services. Instead, target established businesses and offer to redesign their website if their current one is unprofessional or unappealing. This strategy can attract clients with larger budgets. Alternatively, search for businesses without websites on Google My Business (GMB) and reach out to them. Additionally, you can scrape a large number of GMB leads and contact them for potential business opportunities.

 

[KlugTeen]

It seems like you might need to adjust your approach to find clients. Here are some suggestions:

1. Start by building up your portfolio.
2. Check out Alex Berman's videos on YouTube to learn how to effectively pitch with cold emails.
3. Consider watching The Futur on YouTube to gain insights into pricing your work.

As others have mentioned, if you're working on a low-budget project, be prepared for potential issues and revisions. However, if you can create a website that generates $50k per month for your client, it's reasonable to quote them $10k or more for the site. You might find a lot of value in The Futur, particularly from the bald guy who shares plenty of useful tips.

 

[Leinet]

Setting up an affiliate network can be just as expensive as starting a successful software development or web design company. I know some people who invest over $50k per year for two years to see a positive return on investment, and even then, their profits are only in the low six figures annually.

Personally, I spent three years in software development but didn't see much financial success from it. While I do know someone who is self-taught and has been coding for 10 years with some success, I believe that coding is just a profession and not a guaranteed goldmine.

However, the coding profession is not going away anytime soon because it requires a lot of perseverance and dedication to see any financial rewards. In contrast, I made my first money in internet marketing just two months after starting.

As for AI in web design, it can be a helpful pair programming partner, but someone still needs to operate it.