How much should my small business website cost?

One of the most common questions small businesses ask is: how much should a website actually cost? In the United Kingdom, we tend to be conservative with our money... of course we will be thinking "why on earth would I need to invest thousands of pounds into a website that never actually does anything?". Well, the answer is quite simple - it is time to breakdown the differences between both models.

What is the "Lump Sum Model"?

Web Designers in Milton Keynes tend to do this option the most. It drives them quick profit, you pay for your website (typically £3,000+) and get ownership of it. However, they may get you to sign on with additional monthly maintenance plans to help support the website with quick edits and fixes, adding new pages, etc.

The Advantages and Disadvantages of Lump Sum

Advantages of Lump Sum

1. Lump Sum is a single cost so you know how much you're paying the developer right off the bat with typically two deposits. It is easier to allocate budget for your business while still making an investment without any monthly or additional fees (unless you sign up for maintenance).
2. You own your website outright with all the content, designs and code so you can do whatever you want with it. You aren't restricted to the developer's choice of hosting or their way of editing the code, it would become officially yours to play around with or to hire a team.
3. No long-term commitment as you are not contracted into a subscription. This allows you to switch developers without any issues.
4. As you are paying developers a large sum of money, they may be quicker at delivering the website.

Disadvantages of Lump Sum

1. Large Upfront Cost is an issue for many small businesses, particularly as we are still in a cost of living crisis, as you simply cannot afford to even dedicate £3,000 of those funds towards a website which may not even get you customers, there is always going to be that financial risk.
2. Limited Support is an issue because after getting this website commissioned, they're now wanting you to pay for support. If you decline, you're left with something you have to spend days after work learning and testing around with, and to mention, you'd be missing out on those vital updates for plugins, version installs or even services like SEO consistently. One wrong action and your website could implode or be hacked in a fraction of a second.
3. Hosting is typically included for free in the first year or month and that's it - the developer expect you to pay for it onwards.

What is the "Monthly Model"?

The Monthly Model is typically where you pay zero upfront, then a monthly price. Although this can differ across different agencies and companies, as some do have an upfront charge.

The Advantages and Disadvantages of the Monthly Model

Advantages of the Monthly Model

1. No upfront cost is required which saves money for small businesses because there isn't that financial risk as there is with £3,000. That barrier of entry is removed while you're still getting the same quality. Some contracts may offer a buyout clause should you want to stop working with the developer so you can choose if you want to transition to inhouse development.
2. Everything that you will need is included in the monthly package. Including Hosting, Edits, Support, Security Updates, SEO, the lot. It removes that hassle and additional cost to you as a business owner when you need to sign up to different maintenance packages if you was on lump sum.
3. You get all the maintenance you need and newest practices and updates as you are paying the developer actively to take care of your website. This creates a peace of mind to you as a business owner as instead of you possibly messing something up on the website, you have a professional developer.
4. There are no surprises in the price, as it is the same each month.
5. You invest in a long-term relationship with a developer to take complete care of your website and to help it flourish. Trust builds over time as they became your 'IT Guy' as you can easily submit requests for changes, or fixing bugs, without paying any additional fees.

Disadvantages of the Monthly Model

1. The cost can become higher than lump sum overtime for a similar result. This isn't unnecessarily a bad thing, especially if the website provides its value back, but it can be more costly long-term.
2. You don't typically own the website unless a buyout clause is present. You are locked in with the developer and if you end the contract, it may just be disconnected. However, it shouldn't be too much of an issue because if the site is working and you're happy with it, why cancel it in the first-place?
3. You're under contract for 6, 12 or 24 months depending on the agency or company.
4. There is a risk of hidden services that could be vital, such as full-on SEO services, but are labelled as "SEO" on the website pricing page. For us, we offer "foundational SEO and copywriting" to get you started and running, and that is pretty much all you need unless you want our full-on SEO package.

Conclusion

Overall, it depends on the business and what your requirements are at the end of the day. If you're someone who wants ownership of the website and full future maintenance like edits, go with lump sum, or, if you are someone who doesn't want to deal with the headache of maintaining the website and wants a professional developer to handle it all, go with the monthly option. Want to see exactly what's included in each package? See our pricing here - starting at just £150/month with £0 upfront.