Web Design in a Recession
Now that we are entering into a recession, potentially the worst economic crisis since the great depression (!!), web designers are probably wondering if their jobs are safe?
… This all comes down to whether or not companies will be spending money on web design? The answer:
- Short term: they will spend less.
- Medium term: they will spend more.
My reasoning is based on my 18 years experience as a business owner and on my observations of the current market.
The Short Term
People are nervous now. They hear all the negative news and so they pullback on spending and wait to see what will happen. The REALLY nervous people out there load up on gold, guns and dried fruit … while most of us just rent a movie at Blockbuster and cut back on trips to Vegas.
So what does this have to do with Web Design? Well, for the first several months of the recession, you will see a slowing down in the web design game. Companies are nervous too.
So what can a freelance web designer do?
Go cheap!
Instead of offering from-scratch $2000-$3000 web design jobs, offer more affordable $1000 packages.
You can easily provide this by using a blog as your base (Wordpress for example) and then leverage a pre-made theme that you would modify. With this type of package, you can offer clients the functionality found in a blog/CMS along with a great layout/theme for a fraction of the cost. You can do this because it will take you a lot less time to put out the web site to begin with.
Go for quantity and not quality!!
Now is the time to go for volume, rather than trying to be a snooty web designer. With many smaller clients calling on you to update their modest websites over time, you will find that this approach is not only profitable but also liberating: It is always better to have 20 small clients than 5 big clients!!
The Medium Term
I think that once the initial shock of the recession wears off, companies will start to look at inexpensive ways to get new clients and to cut cost. The Web is perfect for this and so the money will flow that way.
I think that for branding sites, web designers will need to be able to provide some Web Marketing skills so that the business will be able to more effectively leverage their web sites to help build business. Understanding how Google Adwords can be used with a well built website, is something worth looking into.
If instead, the company is using their website to cut cost (for example: to provide support for their clients) you will need to have a better handle on dynamic Web technology like PHP and AJAX.
Conclusion
The current recession does not spell disaster for the web design profession. What it does mean though, is that you will have to adapt to the current reality. And for those who do, this can be a very profitable time!
Remember what biologist say: ‘The most adaptable species are the most successful.’
Thanks,
Stefan Mischook
www.killersites.com
November 10th, 2008 at 6:21 pm
[...] wrote a quick article today on what to expect in the web design business now that we are in a [...]
November 10th, 2008 at 7:33 pm
Appreciate the post, thanks.
November 11th, 2008 at 12:21 am
Not just web design everything is in recession. Nice to learn how u plan to keep ur chin up.
November 11th, 2008 at 12:37 am
I agree. We have noticed a lot of businesses reacting to the economic downturn but many of these business are turning to web as part of this reaction. As a result, a new market is emerging which has had a very positive result for us so far. Very good post.
November 11th, 2008 at 1:29 am
Hi,
“Nice to learn how u plan to keep ur chin up.”
The article was not just some feel-good piece. It is actually what I know … as to what the case is.
Stefan
November 11th, 2008 at 5:05 pm
Dear Stefan,
Thank you very much for sharing the great advice. You must be a very kind person and dedicated Web designer to want to help other designers as you always do.
I am working on a Business Plan (ugh) hoping to get some funding to update my software (at least) and to help myself focus into a realistic direction. As (an educated) newbie in the field, I’ve been thinking about reducing my hourly fee to perhaps attract more clients and at the same time build my portfolio and knowledge base.
I like your idea of selling an affordable package, though. Hmm. Maybe a great gift certificate idea with the holidays coming up.
I’ve added a few modified templates, meanwhile, to my skimpy portfolio page (I will pay the designers when their templates sell).
Meanwhile, I will focus on learning how to work with WordPress and GoogleAdwords BEFORE reading those books nearing the top of the stack on my desk (PHP, Dreamweaver and Databases, mySQL, ActionScript, C#, more JavaScript, etc.) thanks to you and your advice on how to evolve with the economy. What perfect timing.
Thank you! You’re the best! I love your Web site and videos. When I can afford them I will buy some of the one’s I have already sampled. You know what, I’m going to include some of your lesson costs in my Business Plan as there is much there I have to learn.
Peace,
Mary in Kingman, Arizon, USA
P.S. One of many Americans who cannot contain her joy with our last presidential election!!! (although there are not too many of us in this gun toten wild west tumbleweed town of Kingman, Arizona) The American experiment is also evolving. Woo hoo! As the late George Harrison once sung.
November 14th, 2008 at 12:05 am
I’m just starting my own business, Future Wave Systems, in the Colorado Springs Area and your advice is greatly appreciated. I’ve been thinking that providing quality websites for under $1,000 would be ideal to get people in the door. It’s a small price to pay. I resort to using templates and modifying them to save my time versus a more elaborate and custom website, but heck, like you said, it’s better to have 20 small clients than 5 big ones.
November 29th, 2008 at 7:32 am
Thanks for sharing your views about web designers. Well, I agree with your concept and also thankful about motivating and showing your kindness for designers.
December 2nd, 2008 at 12:54 am
I’ve begun offering sites at a much discounted rate.
Another approach is to learn as much as you can about social media and start offering social media packages to companies. Get as acquainted with Facebook, LinkedIn, Twitter, MySpace, etc. as you can and train people how to establish a blog, then keep connected via these social platforms.
December 11th, 2008 at 5:48 pm
Good way of putting things into perspective. Recession did not happen over a night; it is strange how now that government has admitted burning away our money that people are reacting as if it is an epidemic. Things were just as bad 5yrs ago.
I do have to disagree on ‘lowering your rates’ though, what will happen when the same client comes back ‘when the recessions is over’ (read when the bigs say it is over) and you now have to triple the cost.
Client: “But you built my whole WP site for $500.00 and now it is going to cost me $250.00 for an single html page?”
Developer: “You see, the recession is over and I have to charge the ’standard’ rate. ”
In my mind, service is a service and cost is what it is. I have not seen my office rent cost go down because we are in recession. Don’t under sell yourself.
“social media packages”
-what is that? I will make an account for you type of service? There is still a lot of companies (if not the most med. sized) that do NOT want/need/have time to blog. They just want the web presence…a business card in form a few web pages.
December 11th, 2008 at 6:27 pm
Hi,
I am not saying that you should charge less for your time. What I am saying is that you should offer web design packages that cost the client a lot less.
By using things like blogs, css frameworks and other open source packages, you can save yourself a lot of time and provide great service for less .. while still making good money. The fact of the matter is, that you should have been doing this when times where good – you would have made good money anyway.
Stefan
December 14th, 2008 at 3:31 pm
I think that recessions are generally good for freelancers… Many companies will say, why am I paying several thousand dollars to some big shot web development company when I can seek out a freelancer or smaller company. Many freelancers that I know have seen recent increases in the number of their clients, all without offering ’specials’.
December 15th, 2008 at 3:28 pm
A trend towards online is def. growing. Companies just can’t seem to keep up with offline at the moment so we are going to see an almost boom in online spending.
December 18th, 2008 at 2:57 am
@lebisol,
hi there
“social media packages”—- Social Media Optimization is another thing which is attracting the attention of many companies irrespective of the industry, and this is due to the fact that there is a very high probability of calling the visitors to your web site. Companies are finding social networking site a new venue where they can spread a word about themselves and get a very cheap advertisement( cheap in monetary terms)
December 19th, 2008 at 9:41 am
Hi there,
A really interesting post as me and my business partner had only been discussing the matter recently.
We’ve always tended to come under the “too busy building other peoples’ websites to have time to update our own”.
However, we used the slight downturn in demand for web services as an ideal opportunity to re-evaluate our own branding and business model. Our approach involved updating our own site, and investing some time in marketing our services.
All to good effect, we picked up several new clients our of tens of new enquiries within a couple of weeks of the ‘new’ site going live.
Being flexible certainly helps, but as a business should you really undervalue your services by offering a ‘cheaper’ alternative? I would agree businesses did go through a panic stage but things have returned to normallity somewhat.
Food for thought anyway!
December 19th, 2008 at 12:26 pm
“Being flexible certainly helps, but as a business should you really undervalue your services by offering a ‘cheaper’ alternative?”
That, I will have to leave to you to decide.
In the end, you need to evaluate the state of your business and make changes to your business model … if need be. I was just offering a strategy you could use if business really started to drop off.
Stefan
December 30th, 2008 at 12:45 pm
In the long run, online marketing is cheaper than print, tv and radio advertising. Companies and retailers still need to advertise and the internet is the way they will go. Developing a niche as a web design or developer will set you apart from the rest.
Great short term and mid-term goals listed.
January 19th, 2009 at 2:50 am
I appreciate this article so much. Its information is honest and validates my experience as an entrepreneur. Volume has always been my vision in creating a sustainable and profitable company. Having a firm foundation, an efficient system of process and patience truly pays off in the end.
January 30th, 2009 at 10:57 pm
Good article, but I do differ on a couple things…. Just to put my 2 cents in.
First, I don’t believe that now is the time to go cheap. You should never go cheap. Instead, I rather like the part where you mention to add more features using PHP etc. Currently we are adding more tools and more CMS to our clients sites and letting them know this will save them money in the long run when it comes to keeping their website up to date. – And we do charge for training them! OUR TIME IS WORTH SOMETHING, ALL THE TIME. – AND YOURS IS TOO!
Second, I believe you should always do Quality, instead of Quantity. The old saying is true “20% of your clients will be in charge of 80% of your income” – So you should focus on those clients, and grow those relationships. Find out who they know and if they could recommend you to their peers.
Personally, my firm has not lowered prices, quality, or even workload. We’re actually growing… How? I’m glad you asked…. We’ve set up a Partner Network and started to look for alternate markets to work with and grow our client base. So far, it’s been awesome. We’ve actually been very choosy and very effective!
In closing, keep doing quality, differentiate yourself, offer something more that doesn’t take a lot of extra work (Google annalytics installed for free etc), and most importantly – learn, learn learn. Don’t ever stop and think that you’re good.
Good luck, and keep building sites!
April 6th, 2009 at 9:24 pm
I like what your saying, gives me hope, my web design business is about 7 months old and I have a few clients, however advertising online (ie Yellow pages) is not being effective, do you have any advice as to where and how to advertise?
April 6th, 2009 at 9:58 pm
Hi,
You could buy leads or adds on popular sites. But the best way to go is word of mouth. The first clients are the hardest to get. So you may want to do a free job or two just to get your name out there.
Stefan
June 8th, 2009 at 4:52 pm
Hi Stefan, love your website and this is a very interesting article… lots of debate which of course makes blogs interesting… Your advice on offering themes is great, perfect solution for these times. You have to give people what they want.
However, on the general debate over going for volume over fewer larger, quality clients I have to differ and I have to say im pleased a lot of people disagree with the advice “It is always better to have 20 small clients than 5 big clients!!” – let me give my reasons why the reverse should be true.
1/. If you had 20 clients (15 small and 5 big) the best thing you could prob do is drop the 15 and focus on the 5 big clients if they are trustworthy and pay well. Then focus on gaining more quality clients. This is due to the 80/20 rule (80% profit from 20% of clients) I noticed Jonathon Hinshaw beat me to this point tho! – Must be reading the same business books.. Brian Tracy?!
2/. The problem with going cheap is these people really do call you all the time and expect small “freebies”. When a big client who pays you well does this at least your getting well compensated for this and can factor it into your pricing. Using themes is fine as long as you make it really clear what the boundaries are in terms of how long you will spend on it, if you don’t you will have problems.
3/. Chances are the cheap clients are the ones who are a pain in the bum, so would it really be so bad to lose them?
4/. Going cheap devalues your profession.
Otherwise, great advice!
June 8th, 2009 at 5:23 pm
You’re right the cheap-ass clients tend to be the most demanding – strangely. But, it comes down to client management, where it is up to you to set the working parameters.
With regards to having a few large clients; I’m going to hold my ground on that one. I’ve personally seen it myself and with my friend’s business how having big clients is really bad news.
Stefan
June 17th, 2009 at 12:25 pm
Interesting, can you elaborate on why having big clients is bad news? I’d be interested to hear the problems you/your friend came up against (without naming names obviously!) and maybe can save me some heartache in the future! I was having a debate with a friend the other day on the few big clients vs many smaller clients so am always interested to hear other points of view or experiences…
June 17th, 2009 at 8:53 pm
“Interesting, can you elaborate on why having big clients is bad news?”
That’s easy: big clients = big control over you.
Typically, big clients know they are and will throw their weight around. Also, you will usually find that big clients are clients that are too big to loose.
… A very bad scenario because that amplifies my first point.
Stefan