I'm starting my first-ever website for clients who specialize in video editing, graphic design and music composition. How much should I charge them?
I'm thinking of charging my clients on a monthly basis, like $10 a month to stay on my website, and a $5 start up fee for signing up. However, since I'm going to start completely fresh with this business, I've been thinking of recruit some people who specialize in these fields - should I charge them, initially? My website is new, and I don't know if they would trust me. Should I offer them a 30-day free service and see how it goes? I just don't know where to begin.
I would suggest having a marketable product that the consumer wants and possibly needs. You should not put the cart before the horse.
My suggestions / tips would be as below:
1. Keep it FREE for a year.
2. You will anyway have some Marketing / advertisement budget. Don't spend to much on Marketing now. Get the clients attracted through free offer fora year. Lost income ( due to free offer) can be offset by the unspent marketing budget. But you got a lots of clients visiting / registering your website.
3. Earn the money, to maintain your website ( server / hosting fee, salary for the recruits etc ), through letting your home page for advertisements at competitive rates to local restaurants, film schools, concert halls etc.
Local vendors pay for the ads mainly for the clients you got through your FREE offer. A win-win-win proposal for you - your clients - vendors.
4.After a year, you will have lots of clients and paid ads as well. Now, make the membership chargeable. They won't and can't go away.
5. Have a plan to Continuously Improve your website offerings / features/ services.
Happy to help you. Enjoy your new business.
P.S: I won't advice any new recruits / techie now..Keep your overheads as low as possible. OPO is the best for virtual / website businesses. If at all tech. help is required, have them hired on assignment basis / hours-basis initially.
If you're interested in charging for creative services, I would recommend this book - The Graphic Artists Guild Handbook: Pricing & Ethical Guidelines. I purchased it not too long ago, and it has been extremely informative - hope this helps!
I, like many of the other people here, are having difficulty with understanding what your site or service does for people like me. I think you need to figure out what you're doing for such creative service providers. Are you going to hunt for new clients? Are you providing us with a portfolio site or "space"? It's hard for us to help you when you haven't really gone into detail about what your site does or the services you provide. Is the site up for us to see?
It's important to consider your brand acquisition (what makes your brand unique) before going into any sort of venture such as this. You want to make sure that your services will, in fact, solve a problem for your target audience. From there, you can assess how you'll begin to capitalize on it. It's all about the business plan before the actual business itself!
I would agree with Dave in that there are are so many directories and "liaison" type sites (you're on one right now!) that it's hard to really come in as a new competitor. These sorts of companies take an absolutely substantial amount of planning and trial and error. I'd highly suggest looking at your current brand from an outsider's point of view and see what you can tweak and change about it. Best of luck!
Hi Armin, Without knowing your business this is a hard question to answer. Pricing is very important and paramount to a successful business. Contact me for advice on this subject. Regards Nigel
You have asked an excellent question and I can surely help. First, you have to remember in any business is that you must make enough money to offset the costs you will incur. So whether free now or free later - it does not matter as long as total, in a definite period, normally in one financial year - you can show that you have made some profit in any assignment.
So where do you start. Fortunately, I think it is quiet simple.
1. First assess ALL costs that you will incur. Normally you will pay people you recruit and depending on your life-style, you need to know how much you need to make a living. This is your baseline costs to charge your clients. Anything less then this will not help.
2. Do effort estimation. Start from requirements to design to development and testing. Identify effort in days. It is easiest denomination to calculate the cost of services.
3. Identify all other direct costs. Licenses. Graphics. Third party services. Include them.
4. Identify all indirect costs. Your premises. Your phone. Your bills. Consider them.
5. Then do some research. What your competition is charging and whether you are less or more. This can be tricky but spend some good time ton google and you will begin to appreciate the price range.
Since you are a startup, you can compromise on amount of money you can make initially but you have to make some to sustain. I leave the decision to you.
Now, whether to charge upfront or subscription - this is again a simple math. Ultimately, you have to make what you need to make to make your business successful. If you go subscription route, please ensure you consider the event if your client cancels the contract and then how will you recover your costs.
Happy to discuss. You can mail me.
First of all you have to learn that it is very important to do research.then make the contact keep it brief and don't try to promote them let them do the talking, then tell them that you have other appointments and you will get back.I take it a step further I can get people free leads, free hardware, and a lot more.
You have a basic Sales 101 issue. Price is the result of value but here's an only semi-facetious guide...and if it doesn't make sense to you I'd suggest you learn how to sell with a process so this is not an issue.
Rules for how to price New Product/Service:
1) Fake it until you make it
2) What the customer is willing to pay
3) As much as you can
What value are you bringing to your target audience? What are they charging their clients? Show your target audience the value you bring and if you can deliver they will pay whatever your charge.
First word of advice, never give away anything that would cost you time to produce. If you were working at this full time without a traditional job then would you give it away for nothing? To me, doing that won't give you credibility. It will make you look like someone who is desperate to get the work and I speak from experience on this one. Lesson learned.. We all are somewhat desperate when we start out or get our first client but never sell yourself short. It's exciting to know that someone has put good faith in us to provide them with a website or service.
Credibility cannot be bought but comes with time and making sure that every client, including this one as your first is given everything you promise them for the price you quoted. For me, I worked out an hourly rate based on what I would have to charge per hour if I was working at the project as a full time job. If you are currently employed and get paid say, $15 per hour and the project will take you 10 hours per month then a reasonable fee is $150. It's easy to think we will scare customers away but in all honesty and from my own experience I have found those that want the project to cost $20 bring with them a whole heap of grief.
This is business. It has be treated as so. I agree with Dave that you maybe have not thought about this much other than the excitement and chance of making some extra cash. People use their hard earned money to pay you for a service. What are you going to give them back for your fee?
Good luck with it all! It can be very rewarding!