Would you pay someone $2.25 for an “authentic” Rolex watch that typically costs $100,000+?
Then why do we do this very thing in business? We work with vendors and expect to get a $5,000 product for $800. I understand; money is always tight in small businesses. To survive, we typically look for the best deals we can find. But there are some areas that are worth our investment; we get what we pay for.
Disclaimer: Before I blog about spending money, it might be helpful to understand my fiscal philosophy. In our personal finances, my husband and I follow Dave Ramsey’s plan for debt free living. I hate debt and seeing business owners spend money frivolously makes me go into spasm. 
(Have you seen the landscapers driving ridiculous, tricked out trucks?) I follow Dave’s plan in my business as well. Sanera is debt free and always will be; if I can’t pay for it, I don’t build it or buy it; I save for it. This philosophy carries over into how I coach small business owners. I regularly encourage my clients not to spend money. We will often look at their profit & loss statements, analyze the ROI of each expense line and figure out what to reduce or eliminate. That said…
Do not cheap out on a website. This is one of the areas that taking the “cheap” way out will cost you much more in the long-run.
Having a conservative or small site is fine, in fact it’s a great way for most small business owners to establish a presence online. The mistake comes when you have a $2,000 – $5,000 complex, e-commerce, SEO optimized, mobile compatible website in mind and try to find someone to do it for $800. It doesn’t work. You will have the scars of a big bite mark on your bum to show for it. I’m emphatically saying this to you because when I talk to small business owners about their challenges, websites are a theme that come up every time:
- The web designer who promised a website in 6 weeks and a year later has not delivered. (Unfortunately, this is my story. He stole close to $2,000 from me.)
- The web designer who “developed” a custom logo that was stolen from an obscure business in South America.
- The business owner who spent $950 with one designer who did not finish the site, who paid a second designer $1,800 to finish it in the style she wants, who now has no website because she’s angry and out of money.
- The web designer who only answered his phone between midnight & 3:00 am.
- The business owner who just found out that while her website is beautiful, it is all flash and therefore unsearchable by Google.
If someone is proposing a lower price than your other bids, there is a reason – which is typically related to their lack of skills or lack of business. If you are receiving a substantial discount from a company, beware! If that person is paid much less than normal, they are going to be less motivated to give your site the time and attention you need.
Web Site To-Dos
When you’re ready to make the move from a simple site to a complex one, do these things before you start designing your site:
1. Understand your branding message. It stinks to work a year on a website, get ready to launch it and realize that your business model and niche have changed. Work with a coach or marketing expert to nail down your target market, your distinctions and your brand. Only after that is solidified should you take the plunge to invest in a professional site.
2. Speak with an SEO expert. This person will educate you about SEO optimization and keywords. In some cases, what this expert discovers for you may even change your branding message.
3. Research the company or individual on the Better Business Bureau website. If I had done this simple thing, I would have saved myself a lot of money.
4. Research the company or individual online. What are people saying about their experiences with this person? What do you think of the websites you’ve created.
Have you had a nightmare website experience? What did you learn from it? What advice do you have for small business owners?
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Its true, and not only about web sites. But its a good example. The really hard part is the other way around. to get what you payed for. To know that what you have is a genuine talent worth paying that little extra for, and not just someone good ad getting your money.
And as a 5th advice, check references. Its true in recruiting, and its true when purchasing any talent out there. If they cant proviode references it mostly mean 1 of 2 things. Either they are bad, or they dont have any yet (and then you can get a really good price and promise to BE a reference).
You are so right Christian. As service providers we often undervalue ourselves and do not charge enough for what we provide. It’s comes up all the time as an issue with my clients. Thank you for adding a 5th piece of advice. It is spot on. Thank you for your comment and welcome to the Sanera family!
With technology being so important to our businesses we want to get out there and make a “splash” with a kickin’ website. I personally took the inexpensive road. It’s not what I wanted, but it’s what I needed at the time. My business model, niche and target market are completely different then when I first set out a year ago! As I’m honing in on my niche I can now envision investing in the right person to create an effective website.
I like to interview the company/individual as if I am hiring them for my full-time staff. You are making an investment in them, and you need to know what to expect. Don’t be afraid to ask “tough” questions.
- Can you tell me how you handled your toughest customer? (specific)
- Show me a website that did not go as planned. What would you do differently on my project?
- When was the last time you did a site demo, and the customer wanted to throw all/most of it out? How did you handle them.
I try to look not so much for “perfect” records, but for those who handle difficult situations with grace and integrity. Good luck!
Good for you Michelle! There is a lot to be said for starting inexpensively and small. As your business grows, there is plenty of time to grow your website. I was speaking with Chris Brogan about this very thing a year ago. He said, “Alicia, people are going to do business with you, not your website.” Welcome to the Sanera blogging family!
Brad, that is fantastic advice! You’re right, interviewing them will give you a clearer picture of how invested they are in helping you succeed. Thanks for you comment. Welcome to the Sanera family!
Every time I sit down with a client, I am an SEO myself, I often hear about how they “had a guy” and how the guy didn’t follow through, much as has been echoed above. The client is then invested in a site and the site doesn’t convert.
So let me add that as a virtual #6 on the tail of what Christian said; Does it convert?! If they come to your site, what is it you wanted them to DO?! How do they go from visitor to lead to customer?
If your web designer can’t answer that, run for the hills!