Tuesday, April 27, 2010

How much should a website cost you?

Design Services
Determining how much a web site should cost is one of the most frequently asked but rarely answered questions in the web design world. Even now, with millions of web sites online, there exists no magic formula for calculating either the cost of a new web site or the cost of a redesign.

For this article, the team of professional web designers, developers, and SEO marketing specialists have worked together to examine some of the most important factors when considering web site costs. These include historical web site development costs and web design costs for different components as well as current web site features and design costs.

Historical Perspective: How Much Should a Web Site Cost you?

Like other goods and services, the cost associated with designing, developing and building a web site has changed over time. The following chart provides a timeline of historical dates compared to web site cost.

The basis for the chart was a small business (under 25 employees) located in a small city that wanted a professional web site having 15 pages, Web hosting and email, a domain name, and a aesthetic quality level of around 7/10.

Time Period    Expected Cost
1995 – 1997    $7,500 to $12,000
1998 – 2000    $6,000 to $10,000
2000 – 2004    $2,500 to $4,500
2004 – 2009    $2,000 to $7,500
As website costs have become increasingly disparate, with freelancers charging as little as $500 and web aganices charging tens of thouands of dollars for a website. We developed a website cost calculator to help website visitors attempt to put a price tag to their website project.

Cost Calculator- Find out how much your web project would cost!

Based upon client surveys and our team's research, the above data demonstrates a significant decrease in the base cost of a web site over the last decade. We believe that the reason for this drop in web site cost is driven by two factors.

First, there exist substantially more competitors in the web design market today, perhaps as many as ten times more than a decade ago. Second, modern tools have made it easier for Web designers to create great looking web sites.

These factors have also led to some unforeseen results. Most notably, in the last five years, the cost of web sites has become more disparate. After further analysis, we believe these trends can be explained through the increasing demand for cost effective web sites along with the drive for higher-end, interactive Web designs.

In other words, as web sites become standard for all businesses, the competition grows to produce higher-quality, low-cost Web designs. By the same token, with more Internet competition, a company now needs to work harder to differentiate its web site from those of its competitors. Often this involves adding better content, Flash designs, online videos, and interactive applications.

Web Site Components and Costs

With a historical perspective in place, it is important to examine each of the components that go into determining how much a web site should cost. On average, the following figures can be applied to estimating the cost of a web site:

Domain Name
$9/year
Hosting
$75 to $200 a year (depending on traffic & website features)
Web design and graphics development time
60 to 150 hours (based on our experience for a 15 page Website)
Web site Maintenance
$500 to $1250 a year (depending on number of updates required)
To completely answer the question "How much should a web site cost" it is also useful to review specific Web design and web site development projects.

Informational or Small Business Web Site Cost::
8 to 16 Web pages
Custom graphics
Stock photos
Little or no flash
Web forms sending to email accounts
Project duration: 30 to 75 days (not assuming a consistent 8 hour a day)

Web site cost range: $2,000 to $6,000

Corporate (100 or more employees) Web Site Cost:
25 to 75 Web pages
Heavy use of flash
High quality design work on all Web pages
Content management system
Extra components: Intranet, calendars, web site search
Project duration: 60 to 90 days

Web site cost range: $10,000 to $25,000

Ecommerce Web Site Cost:
100 to 1000 products
Shopping cart
Payment gateway integration
Product descriptions and images
Sales tax and shipping calculation
Customer and administrative control panel
Project duration: 60 to 120 days

Web site cost range: $5,000 to $15,000

Database Driven Web Site or Web Application:
Dynamic Web pages 20 to 2,000
Administrative control panel for web site management
Advanced programming skill sets required
Interactivity with web site visitor
Enterprise database (MS SQL Server or MySQL)
Project duration: 90 to 180 days

Web site cost range: $6,000 to $35,000

How Much Should a Web Site Cost? Our Findings

In conclusion, the cost of a web site can vary greatly depending upon the site's features, needed Internet marketing services, aesthetic qualities, and the design firm, advertising agency, or freelancer creating the Web design. While the cost of a basic web site has dropped, the need for more interactivity has helped hold steady the price of a high-end, competitive Web design.