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thinkingman
07-28-2011, 09:02 AM
Hello All,

Please help me test an idea that I think will give you an extra hour a day.

I am a web designer who has a lot of clients who email me small changes and trust that they are done. This results in some quite hefty hourly rates for basic work.

I am considering shifting to a flat fee for clients so they can get better value. This service would include site development, all future updates and even hosting of your site.

The benefit to the small business owner is

- no big upfront cost for site development
- ondemand changes just an email away to be completed within 48 hours and
- easily add other services (e.g. email marketing that you don't have time for)
- take your site with you when you are ready to move on

Would this be of interest to you?

If not how could the offer be changed to appeal more to your needs?

Any other ideas?

Thanks

Thinking Man

thebizinator
07-28-2011, 06:35 PM
Welcome to the forum Thinking Man.

I'd suggest charging a flat fee for the initial design and then switch to a monthly rate that gives your client a certain predetermined amount of updates every month in terms of your work-hours. What do you think?

thinkingman
07-29-2011, 03:31 AM
Thanks Biz,

I want to remove as many blocks out of the signup process so an upfront fee would not be suitable. I am looking for long term relationships here so need to make the acquisition as easy as possible.

At the most i would take the initial design out of their first months hours as its not likely they will need too many updates in that period anyway.

Cheers

MyITGuy
07-29-2011, 12:33 PM
If you want to remove the upfront fees to prevent a block, then I would recommend that you implement a minimum term commitment, or a cancellation fee so you can recoup your expected revenue for your time/services before the they "take your site with you when you are ready to move on".

DeniseTaylor
08-01-2011, 05:24 PM
Hi thinkingman

I think it sounds great, but you may run into people who take advantage and that could be a problem for your business.

What I would do is set limits and sell things in packages. For example: You could have a basic package that includes x number of services, then an ala carte menu for things they want over and above.

Your basic package could be very affordable but you won't be shooting yourself in the foot. People would then work to stay within the limits and if they didn't, you would be compensated.

Good luck to you!

jimr451
08-02-2011, 07:09 AM
I think you have to put a limit on the updates - otherwise you will get eaten up by some clients. What many companies do is offer a "maintenance plan" - let's say $100 / month gets you hosting and 3 hours of updates. That way you can put the brakes on a client who wants big changes to the site, by charging more once they run out of time.

In my business, I've just stuck with an hourly fee, billed in 15 minute increments. Some clients only have a few hours of changes to their site all year, others more frequently. So everyone pays accordingly.

My advice would be to "be careful" what you lock into - consider what happens when you have 5 clients request changes on the same day - can you meet your "48 hour" turnaround? Can you find reliable subcontractors if necessary? Most importantly, do the numbers work? You also could end up resenting the clients who "take advantage" of you with frequent updates. Just a lot of things to consider.

One last thing - just a general business observation. When I think I have a "great idea" - a new business model, product or service, I ask myself "Is anyone else doing this? If not, why not?" Usually, the established business models work for a reason - yes, new models come along from time-to-time, but realize that there's usually a reason the successful businesses have gravitated to specific models over time.

Good luck with your ideas and business!

-Jim

randall
08-29-2011, 01:03 AM
My advice to you is to find a price at which you enjoy doing the work they ask you to do. It sounds like you're being distracted with lots of simple changes that are making you not like doing them. If you charge appropriately, then you won't feel like it's a chore, but a viable revenue stream. For example, if your client calls and says, "Hey can you update the text on this page with ..." You can do that, it takes 5 minutes, but it's a big distraction and if they keep doing it, it gets old really fast.

Now, if you say a website update is $50/hour with a $75 minimum, then you get paid $75 to do one update, even if it takes 5 minutes. I know that sounds like you are gouging your clients, but what it really does is encourage them to package their updates into a list you can do in one setting, rather than 5 minutes here and there, which is much more difficult to manage.

scottish
09-22-2011, 02:17 PM
"I am a web designer who has a lot of clients who email me small changes and trust that they are done. This results in some quite hefty hourly rates for basic work."

why does this result is hefty hourly rates???