Michael Temple of Temple Development in Sylvania, Ohio, gave this our first in a series of talks where we examine all the different phases a website goes through. His focus was on selling a website and his proven ways to help the project be profitable. Michael shared his approach to all negotiations, arriving at a price, and how payments can be structured.
Sales Vs Negotiation
He stressed that selling the project and negotiating all the aspects of the project go together right from the beginning. It can be different depending on the client or project.
On the topic of pricing he suggested that instead of one payment up front, monthly payments can be very appealing to the client and good for the developer too as it presents a steady money stream during the life of the project, which makes the project more affordable for both. He noted that often with Corporations they usually pay completely up front. Monthly payments also help due to the scope of the project as the customer might have a grand vision but can only describe one part of it. So, if it goes in phases both – in development and payments it can make more sense. Thus the scope of the project is also a negotiation, along with delivery date.
Delivery date is always
Warranty – how long after the site goes live are you responsible for it? This is a negotiation point also and Michael recommended 60 days with an offer of ongoing support that is completely spelled out; listing all that it includes. Then do a review where they can renew and/or add new services which results in more revenue for the seller or developer.
Mike stressed that upon selling the website you must ‘create value’ by explaining all of the features included with the site, for example: all the functions the site will have, any additional services (ex: email marketing or logo / graphic design), maintenance, SEO work, hosting, creating a backup plan, content creation, and more!
This brings in his important point about how the seller should create ‘options’ for the customer and how the physiology changes with options. In Mikes experience, if you create a tiered pricing package which includes more options built into each more expensive level, that they will always choose at least the ‘middle’ tier. For example: create pricing packages in bronze, silver, and gold levels, with bronze being the least amount of money needed to create the site. People will almost always choose the silver package.
Regarding a proposal, a seller or developer will usually include text which is ‘legal’ jargon that is designed for protection. The amount or depth of legal disclosure text is up to the comfort level of the seller. Michael added that you can get proposal templates online and then modify them to your needs.