Our rates are so high because *this* guy goes through bananas like you wouldn’t believe!!

There is an old adage that goes something like “if you pay peanuts, you get monkeys”… and this one … “You get what you pay for!”.  Ah, the cliches are endless.

Seriously though, we get this question a lot.  There are a lot of ways to answer the question, and a lot of theories around what a website is worth. After being in the industry for about 12 years now, I believe you get what you pay for (well that’s not true if you deal with a really big over-priced agency that can demand any price they like) … AND also believe that some businesses don’t need to spend a fortune on their website!

If your business is very small, doesn’t have a huge marketing budget, or doesn’t see the web as a strategic part of the business growth, and is a strong offline business (accounting firms are a good example of this), then it’s not likely you need to invest heavily in a web presence, and can get away with having it built by a freelancer or a small agency, however be warned…

I’ve compared digital agencies and freelancers in another post.

As the owner of a mid-tier agency, I can tell you categorically that we charge what we do, to survive.  If we charged less, we’d have to provide a less superior service (and compete with the commodity end of the market), or disappear.  Here is why:

1. Experience - what a surprise huh? Building websites isn’t just about slapping together a design and crunching out a few pages of code.  Anyone that’s had a bad website built knows that there are endless amounts of pain associated with a site that has been built poorly: It doesn’t render properly in the browsers it should; hosted in an unreliable environment; CMS wasn’t setup correctly so you can’t edit all the things you should be able to; the site doesn’t appear in the search engines; it looks unprofessional; usability is poor!  We’ve learnt all these lessons the only way – the hard way!

2. Staff – you’re buying a service, not a product.  The quality of the service you receive depends solely on the quality of the staff that are providing the service.  It’s all about the people you’re dealing with.  The larger, and more professional the agency, the more talented and expensive their staff will be.  There’s a reason more experienced staff are more expensive!  It’s like choosing an accountant – if you go to an inexperienced accountant straight out of school, they’ll be cheaper, and you’ll most likely get poorer advice than from an Accountant that has been working in the field for years.  Probably not a great idea considering the difference that could make to your tax return – why make the same mistake on your website?

3. Infrastructure – Salsa has a dedicated Program Manager who’s sole responsibility is to ensure projects are run to schedule, and to the highest standards.  Our support team is dedicated purely to helping customers maintain their sites after they go live (as opposed to trying to get our developers to support client sites while they’re busy on building new ones). We also ensure the staff are well looked after – we have someone that manages the office, the beer fridge is stocked, the coffee machine is ready for our next client meeting, organises team events, & client xmas parties.  Happy staff make great websites, which makes happy customers.

4. Quality assurance – about 3 years ago we heard a story from a client of ours that had a website built by another agency, which was lost about 90% way through the build cycle.  They had a server problem, and the site that had been worked on for 3 months, disappeared over night – no backup, no copy on a local machine. Nothing. They had to start from scratch.  More professional agencies have backup systems, version control mechanisms, project management tools, development-production synchronisation processes, testing infrastructures… the list goes on.

5. ROI – a site that doesn’t return any customers isn’t a lot of value.  There is a LOT to learn about creating websites that work.  From design (read Blog posts from our Creative Director to appreciate how important good design is – yet another example of amazing staff) to prominence in the search engines, to integration with back-end sales systems – they’re all important aspects of creating websites that work.  It’s not too hard to do the math on what a good website will return for you when compared with other marketing medium, but it’s futile if the site isn’t built with ROI in mind.

6. Your professionalism online – this may sound pretentious, but have you ever driven a BMW, then gotten into a Hyundai?  Not that Hyundai’s are bad cars – I actually think they’re exceptional value for money, but you’d obviously notice the difference in quality and experience if you had the M3?.   If your potential clients look at your Hyundai website, and your competitors BMW website, who do you think they’ll choose?  We’ve found that making a BMW quality website, while more expensive, ends up returning far more to customers in leads, inquiries and sales, and so we focus on delivering quality websites that sell.

BUT I JUST WANT A WEBSITE – WHAT’S THE DIFFERENCE?!

Here is how you can decide – checkout the portfolio of the providers. Are they of the quality you would like?  Are they BMW’s or Hyundai’s?  Are their customers of a similar size/level of professionalism to you?  Maybe even call a couple of the customers – get some honest feedback.

Bottom line, if you get a price that is considerably lower, you should expect a compromise on some or all of the above.  That doesn’t mean you can’t get a cheaper website, but (wait for the Cleche) “You get what you pay for!”.  When ever we compete against agencies of a similar size to us, the prices are always comparable.

When we compete against smaller agencies, they’re always cheaper.  The clients that understand the difference, are the ones that we love to work with.

I had a discussion about this with a client last week – he’s a marketing manager for a large IT services mob in Melbourne.

We spoke about whether the basics of marketing have really changed.  BRW said in an article recently “the underlying theme for good marketing is knowledge: know your business, know your products and services, know your customers and know what your objectives are.” Amen.

Here is the definition of marketing from http://en.wikipedia.org/wiki/Marketing:

“Marketing is the process by which companies create customer interest in products or services. It generates the strategy that underlies sales techniques, business communication, and business development. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.”

It also goes on to explain the trends in marketing over recent history – and suggests the marketing orientation from “1970 to present day” is still the same!

If I was to read this 6 months ago, I’d have thought it was ridiculous – with the introduction of the Internet (on a side note – ever wondered what we did with our time before the internet? Anyway…), surely marketing fundamentals are now completely different compared to 40 years ago?  I’m certainly no marketing expert (far from it), but have learnt something about it over the years of helping run & grow Salsa – I sometimes wondered whether the fundamentals of marketing have changed at all?  I recently decided they haven’t. Even though the tools are different, all marketers are still trying to achieve the same result.

Here’s why:

If you’re a marketing manager, for example, don’t you need to still adhere to the same rules? Here are some simplistic examples of how the principles haven’t really changed.

Communicate clearly – the same goal applies today as it has in recent history.  If you can’t clearly communicate what you do, you’ll quickly turn prospects away to someone who can.  We used to use radio, tv & newspapers.  We now also use websites.

Build relationships - a marketers goal is often to get a sales person in front of a prospect to start to build rapport.  The call to action of most marketing media (whether it’s radio, tv, websites, or whatever) is to have someone call, or visit a showroom, or a website (which often then sends them to a phone call!!).  Get in front of someone, build a relationship, sell them something – still the same.

Create value for customers – facebook, Twitter, Blogs, Websites, whatever – the most successful are designed to actually serve a purpose.  Educate the prospect, allow them to gain value from reading what you have to say.

The list goes on – the fundamentals of marketing haven’t changed.  There are a load more tools to use to drive traffic to your marketing material (Google Adwords is a revolutionary tool for generating traffic), but the basics haven’t changed.  Marketers don’t need to intimately understand how Google Analytics works – they need to pay an Adwords professional to run a campaign for them that gets them loads of relevant traffic.

The marketer then needs to worry about what happens when the client finds their website, and makes the phone call – how well is the prospect communicated to, how good is the person on the phone at building instant rapport, and what value can they add right away?

So don’t obsess on learning every detail on how online marketing works.  I say leave that to “online marketers” and worry about the marketing basics of your own business – for a maximising outcome.

I had a meeting today with a potential new customer, and they were just getting out of a bad relationship with their previous developer.  They mentioned that he’d “oversold” them on the capabilities of his organisation.  In fact, he didn’t even have an organisation – it was only 1 person.  His website, and the way he presented his business, made it appear as though it was a more substantial business.  Anyway, it turns out he’s going on a long holiday, and their site is supposed to have gone live in 2 weeks, and is not near ready… needless to say, they’re now looking for a new developer!

I  guess the point I’m making in a round about way, is that your site can be used to allow people to see who you are (in the above example he was lying, but let’s assume you won’t do that!).  It’s not only my opinion, but I’ve seen it time and time again – if your website visitors can see who you are, what your team is like, and get a feeling of comfort that they’re dealing with real, honest, people, your enquiries will go through the roof.  Not only that, the quality of the enquiries will be considerably better.

E.g. We run a marketing site using another brand name (email me if you want to know what it is).  This particular site is a brand that only generates leads for Salsa – there is no real business behind it.  The site itself ranks its butt off in the search engines – gets twice as much traffic as the Salsa site, however the leads are generally very bad in comparison.  There are about the same number of leads (in fact maybe even more) but they are much, much lower quality, and equate to about 5% of our sales, while the Salsa site generated about 40%.  I butted my head against the wall for years trying to work out why, and one day a client actually told me – after mentioning they’d actually come across the other site, but decided not to enquire; I asked why they did choose to enquire with us?

Their response was “because I felt like I was dealing with real people.  The other website didn’t look real”.  The site itself is as well designed as the Salsa site, however it does not contain any people – no staff page, no photo’s of clients, not even a stock photo of one of those ladies you see on every 2nd website!  Nothing that gives the user the feeling they’re dealing with real people, and so they don’t have any confidence, and don’t waste their time enquiring.

Get your staff onto your website, and watch your enquiries improve.

Here is our staff page: http://www.salsainternet.com.au/about-salsa-staff.html