Web Studio - business "for the soul." There are easier ways to make money online!
I have been running my own commercial web development company for more than 8 years. Over the years we have grown significantly both quantitatively and qualitatively. We have enough customers and work is always enough. But every day I’m more and more convinced that if we look at web development from a business point of view, then “the game isn’t worth it”.
Let me explain why I made such conclusions.
In the summer of 2009, in the midst of the crisis, there was not so much work, and I created a small additional business — a specialized online store. It was not too difficult for us to make the site better than that of all competitors, and quickly promote it to the first positions in the search results.
I actively used all those useful things that are very hard to sell to customers. Marketing texts, analysis of traffic sources, competitor analysis, assortment analysis, page conversion analysis. I did not waste time on something that was not really necessary. I made the site the way the business demanded it. I tried and analyzed. And all this brought very good results.
')
After 3 months, this business began to bring more net profit than web development. And this is despite the fact that by that time my web studio was already 5 years old, and I, in principle, considered it quite successful.
A year later, my online store brought already 5 times more than web development. We already had not one site, but several, designed for different categories of buyers. Of course, the development and promotion of their own, were a key advantage over competitors.
It is worth noting that my chosen narrow subject was relatively new and there were no strong competitors in it. Maybe the main reason for this and I just got lucky? And what if you try to "climb" into the long-occupied areas?
No sooner said than done ... A similar theme was chosen, where there were several serious competitors successfully operating in the market for several years. It all turned out to be much more complicated. We are faced with dumping, and with monopoly prices of suppliers, and with difficulties in promotion. But all these problems turned out to be quite solvable! Due to lack of time, we have not yet done and 10% of what is planned. But despite this, a year later this business also became more profitable than web development.
3 months ago, we completely "insolent" and opened another 1 online store, this time in an even more complex and competitive furniture theme. So far we are at a loss, but it seems to me that we are moving in the right direction. Time will tell.
At the moment I understand that it is much more profitable for us to do and promote our own websites. To get the same financial return from web development to order, I have to raise prices by 3-5 times. Unfortunately, I doubt that I can REGULARLY find customers willing to pay that kind of money for our services.
If you make high-quality websites and promote them, then the simplest way to make money is to create a related business. Making money on the web studio is possible, but it is much more difficult.
BUT
There are several good reasons why I don’t want to stop commercial web development for customers.
We do not advertise ourselves in any way, but on recommendations, new clients constantly contact me. Unfortunately, now almost all of them have to refuse, because working at the old prices is not profitable for us, and they do not agree to “adequate” prices. And quickly “rivet” cheap sites of poor quality, we are not interested.
My time is not enough to manage client projects.
We need to hire a commercial director for a web studio, but what's the point of doing this if web development is not very profitable right now? Can an employee to raise a web-studio to a new level (even if you make it a partner and offer a share of the final profit)?
Or simply refuse all orders and limit development and development of their own sites?
Maybe the HF community will help me in answering these questions. At least I hope so.
Update: If someone has ideas for optimizing the business of a web studio and a desire to try yourself as a business director (or art director) in our company - write in a personal!
Let me explain why I made such conclusions.
The first pancake ... not a lump
In the summer of 2009, in the midst of the crisis, there was not so much work, and I created a small additional business — a specialized online store. It was not too difficult for us to make the site better than that of all competitors, and quickly promote it to the first positions in the search results.
I actively used all those useful things that are very hard to sell to customers. Marketing texts, analysis of traffic sources, competitor analysis, assortment analysis, page conversion analysis. I did not waste time on something that was not really necessary. I made the site the way the business demanded it. I tried and analyzed. And all this brought very good results.
')
After 3 months, this business began to bring more net profit than web development. And this is despite the fact that by that time my web studio was already 5 years old, and I, in principle, considered it quite successful.
A year later, my online store brought already 5 times more than web development. We already had not one site, but several, designed for different categories of buyers. Of course, the development and promotion of their own, were a key advantage over competitors.
Pancakes â„–2 and â„–3
It is worth noting that my chosen narrow subject was relatively new and there were no strong competitors in it. Maybe the main reason for this and I just got lucky? And what if you try to "climb" into the long-occupied areas?
No sooner said than done ... A similar theme was chosen, where there were several serious competitors successfully operating in the market for several years. It all turned out to be much more complicated. We are faced with dumping, and with monopoly prices of suppliers, and with difficulties in promotion. But all these problems turned out to be quite solvable! Due to lack of time, we have not yet done and 10% of what is planned. But despite this, a year later this business also became more profitable than web development.
3 months ago, we completely "insolent" and opened another 1 online store, this time in an even more complex and competitive furniture theme. So far we are at a loss, but it seems to me that we are moving in the right direction. Time will tell.
Prompting conclusions
At the moment I understand that it is much more profitable for us to do and promote our own websites. To get the same financial return from web development to order, I have to raise prices by 3-5 times. Unfortunately, I doubt that I can REGULARLY find customers willing to pay that kind of money for our services.
If you make high-quality websites and promote them, then the simplest way to make money is to create a related business. Making money on the web studio is possible, but it is much more difficult.
BUT
There are several good reasons why I don’t want to stop commercial web development for customers.
- It is interesting!
This allows you to constantly learn a lot about the most different types of business and communicate with interesting people. - This contributes to the development of the team!
Each new project is a new ideas, knowledge and skills. But the main thing is - a new portion of enthusiasm. It is precisely what is lacking when over the years one has to develop one and the same site (or a group of sites on the same subject). - This is useful dating!
Bankers, marketers, lawyers, private detectives, builders, dentists - this is not all professions of those with whom we managed to establish good relations thanks to web development.
We do not advertise ourselves in any way, but on recommendations, new clients constantly contact me. Unfortunately, now almost all of them have to refuse, because working at the old prices is not profitable for us, and they do not agree to “adequate” prices. And quickly “rivet” cheap sites of poor quality, we are not interested.
What is the result?
My time is not enough to manage client projects.
We need to hire a commercial director for a web studio, but what's the point of doing this if web development is not very profitable right now? Can an employee to raise a web-studio to a new level (even if you make it a partner and offer a share of the final profit)?
Or simply refuse all orders and limit development and development of their own sites?
Maybe the HF community will help me in answering these questions. At least I hope so.
Update: If someone has ideas for optimizing the business of a web studio and a desire to try yourself as a business director (or art director) in our company - write in a personal!
Source: https://habr.com/ru/post/137043/
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