If you're about to start a web project, you might be considering different approaches on how web designers can bill you. There are three ways on how developers charge. Depending on your budget, timetable and expertise, these are your options:
- By the hour
- On monthly retainer
- Per project/flat-fee
Each setup has its own pros and cons. After reading this article, you'll be able to name the best deal that works for you and your developer.
By the hour
Professionals generally prefer this billing plan over others. Name it: attorneys, accountants, writers, consultants and designers. You pay them by dollars per hour spent rendering services to you. In per hour billing arrangement, you work with your developer "by the meter." It's straightforward and you can see how much time was spent on each item. Flexibility is your main benefit with per hour billing. You can change midway through a project without paying an extra fee to your developer.
In working with your designer, ask for weekly time logs to align your budget with current activities. Such strategies enable you to anticipate any hang ups during the development phase. Weekly activity reports allows you to check progress versus costs to help you decide whether to continue or not. The last thing you want is overspending for a project that's been dragging for months. As protection, decide beforehand the estimated timeline for each output. The operative word here is "estimated". Since each project has its own nuances and variations, allot enough buffer to accommodate any delays or costs associated with your project.
One of my clients occasionally asks for assistance on tasks that don't take long to accomplish. For convenience, I schedule them a week ahead. I charge hourly for them because they don't have a steady need for my time; they just give me a heads up when tasks need to be done.
On monthly retainer
This billing plan guarantees a set number of hours at an agreed rate for a specific duration. A monthly retainer is ideal if you're looking for continual support and ongoing upgrades on your site. Typically, you pay a retainer for projects greater than six months.
During this period, your developer might need to do ad hoc tasks such as: bug fixes, malware protection and uptime monitoring. Another good example of a monthly retainer service is a backup and testing. During this activity, your web developer might need to test a plugin without bringing down your site. Your developer sends a backup copy to a staging environment, run updates, install patches and if successful, upload it to live production.
Go for a monthly retainer if your company has little to no IT professional to work with. Most professional web designers can offer packages to fit your budget. They might also offer consulting in order to come up with a better strategy for the future. Be sure that your package of choice includes an on-call assistance. This service guarantees protection in case your site goes haywire.
Here’s how I typically work on a retainer setup:
One client is a marketing agency and need my services for different sets of customers. So what I did is sign them to a monthly retainer. This setup allows them to manage schedules for their projects; some of which can pop up at any time. A monthly retainer works for both of us. For me, I can avoid having to squeeze in last minute requests by blocking out allotted time. For them, professional assistance is available anytime.
Per project/Flat-fee
A per project billing plan works well if you have a detailed list of tasks to fulfill during development. Expect your developer to stick with your agreement – to the letter. So be careful. Out-of-scope tasks can hurt your budget; thus, increasing project cost.
A per project setup is ideal for companies who have a competent workforce ready to take over after initial training. The plan suits well with campaigns that are less than six months to develop. These types of projects are usually one-time needs without additional work afterwards.
Professional web developers have a set menu of services you can choose from. You can mix and match your desired services depending on your budget and timeline. Of course, a shorter timeline warrants a premium price.
There are times when per project makes sense. Take a look at my example:
One-off projects, or major projects for a recurring customer need a flat fee. This means I know the full scope of the project and can estimate how long it will take me; thus how much I'll charge. I ask for an up-front deposit to get going and measure my time against my budget. This method of billing puts the client and me on agreement with the invoice’s amount and due date. Usually, this plan works for a new website or website redesign projects – not for smaller modifications.
Ideally, you can combine these three billing setups to come up with a hybrid system ideal for your business model. For example, you can pay for one time web development. Later, you can hire the same developer on a retainer to look after your site monthly. Alternatively, you can go for per hour services if you're in need of smaller tasks you can't handle in-house.
If you think your project needs continual modification or if you're unclear when you need assistance, go for per hour service. If you think you need a regular check-up and site maintenance, go for monthly retainer. If it’s a one time activity or major project, choose a flat fee.
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