As part of an ongoing annual survey for the social media industry, Mark Collier offers this year’s “How Much Does Social Media Cost Companies in 2012?” report on our industry.
This is a significant survey and mostly matches the ones coming out of the WordPress 2011 State of the Word survey from self-employed respondents, WooTheme’s Infographic on WordPress in 2012 for designers and developers, and similar studies and reports.
As I travel the world talking to designers, developers, and coders wanting to base their business on WordPress, I’m often asked how much they should charge to which I respond “less than I do but more than you are currently.” Too many under-charge, making it harder for professionals to keep their rates reasonable.
According to Collier’s research, most designers are charging for blog design and core development USD $1,000 to $3,000 when the going rate is $1,000 to $5,000. This is an appropriate but high figure compared to what I’m hearing in conferences and workshops. They tell me that they are charging $25 to $500 for a full WordPress website, including installation and setup.
Writing and editing content for the blog (which usually includes training in-house staff) is $500 to $4,000 a month (two posts a week). When I started publishing and selling my writing in the 1980s, the minimum I got was $100 an article. The range was $100 – $1000 and my goal was to reach the top level by 1990-95. Then the web happened and the value of professional writing and photography went down the drain. The average web post gets $10-25 and that includes the photographs and artwork. Like most things, you get what you pay for and expert technical and social media content writers need to get paid the higher prices accordingly.
Ghostwriting blog posts for their owners are charged by the post at $50-$500, though some work on a monthly rate. Ghostwriting is blogging as the person you, not yourself. This is an underrated skill and ghostwriters should be making closer to the higher rate. You have to get into the person’s head a little, write like them, and make readers believe you are them. This is a talent and skill!
To manage a Twitter and/or Facebook account (and provide training) is $500 – $3,000 depending upon needs. A long term campaign or contest ranges from $1,500 to $20,000 for a short term one, and $25,000 to $75,000 for a long-term (typically 3-6 months) campaign. These figures have stayed basically the same or increasing over the past few years. Having done this for clients and my own companies, it is hard work to keep the social web fed, to meet the needs of the client as well as their customers. I specialize in training companies on how to develop a strong voice online whether one or ten people are representing them. It takes a lot of planning, training, and character building to create such personas and keep them going.
Video figures were fascinating. We live in an age where there is a camera and video recorder in every pocket, sometimes two. We accept poor quality video without question, and praise and share it often. Yet, to do it right is an art form and costs. I’ve heard this before and Collier repeats it: Expert videographers charge $1,000 per minute of finished product. Audio and video take an enormous time to prep for publishing. It’s hard work, long hours, and a lot of technical expertise, which justifies the high price.
Like many long time social media and web publishers, I’m hired for my social media and web publishing expertise. Collier’s survey shows me that I need to increase my own prices though I’m still in range. His survey reports basic social media setups run $500 to $5,000 with ongoing reports $500 to $7,500 a month. Much of this work must be done manually as there still are not many programs available to fine tune a solid social media and publishing report covering the wide spectrum of outreach and exposure, analysis, and reviews. Prices for more indepth review, strategies, and audits are higher.
Social media training and consulting ranges from $50 to $500 an hour with monthly rates prorated appropriately. This hasn’t changed much over the past few years. What has changed is that companies are smarter and eager to get their employees trained rather than rely upon outside contractors to manage their social web exposure. The demand for training is very high and I can barely keep up with the demand for training workshops.
A fascinating figure was the price of hiring a social media speaker. For 60-90 minutes, $1,000 to $5,000 to give you a range you need to consider when booking your next gig. Keynotes charge $1,000 to $15,000, giving you an idea what social media experts like Chris Brogan and Liz Strauss may charge for professional appearances.
Me, I’m cheap. Especially when it comes to WordPress and WordCamps, though I’ve started charging for travel and lodging now for all of these. The costs are just too high to continue to do these for free.
Educate Thyself: Know what You are Getting and Getting Into
Collier’s article ends on some well-deserved advice for choosing a social media consultant, which applies to all web development and design projects.
It boils down to you knowing what you want and need before you approach the consultant, which means you, as the client, must educate yourself on your business, its social media and marketing needs, content strategies, and goals, as well as have a good understanding of your industry within the social web. This puts a lot of responsibility (and learning curve time) on you, the client.
For web designers and developers, this puts a greater burden on you as you need to spend additional time educating your potential clients before they become clients. You need to help them understand that there is a scam under every virtual rock and not everyone who titles themselves one of the new web dev/design/SEO titles means they really know what they are talking about. Another reason for my Prove It Campaign this year.
I’ve been in the public relations and advertising industry since 1976, and helped develop the social web as we know it from the earliest days (pre-web), so forgive my callous disregard of those with six months experience getting paid $5,000 a pop for what they really know little about. We have to educate our clients to protect them, whether or not they choose our bid, and we need to educate ourselves.
It is essential you have a “buyer beware” attitude. Too many people are fresh out of school with little real world or timely experience or technical ability in web technology. Hire them. They need the experience, but they might not be right for your company. Know what you are getting. Too many people are hired because they are friends, family, or neighbors, not because they have certifications and training. Your online identity for yourself and your business is no different from the hard work and money you put into your business cards, yellow pages ad, magazine ads, television ads, and billboards – all your marketing and advertising strategies. Choose someone with the expertise, education, and experience to help you.
As part of the preparation for teaching WordPress and web development at Clark College and other educational institutions, I’ve put together a list of web design and development resource links on my teaching blog. On Web Design and Development, I’ve put together a reference list of articles on web design theory and research, web design tips and checklists, etc., and on Web Practitioner is a resource list for working with clients, professional standards, policies, and skills, questions to ask clients, and client checklists to help you become a better professional.
The numbers didn’t surprise me. Do they surprise you? Are you undercharging clients? Or overcharging?
There are no current industry standards for this, no union, so we have to work together so we all charge fair rates and customers learn to trust us.
Subscribe 
Via Feedburner 
Subscribe by Email
17 Comments
After reading all this article, I can only class myself as fortunate that Lorelle has spent so much time on giving me feedback for no cost. Thus I have to class her as an expert and generous – perhaps to a fault
Perhaps she will get her reward in the hereafter – if one exists. Since she travels the world, I wonder if she ever gets to Australia. If she gets to Melbourne, I can show her the sights and give her a meal – or even two.
@Bill: LOL! One of my business partners lives in Melbourne. I’ll be talking about him in an upcoming article. I’ll be there soon. And thank you for the kind words and support.
I feel like I’m probably still undercharging somewhat for my web design ($500-1500 for a WordPress site), but I have long learnt the lesson of seriously undercharging. It’s not worth it. If you advertise yourself as cheap, you’ll get the dregs of clients and they’re the worst to deal with.
@Dave: Bad clients are horrible no matter what your business. The same applies to quick fix and vague promises for cheap. It’s a two way street.
Does Melbourne know of the honour that you have bestowed? I hope that the Mayor will arrange to give you the keys of the city and a decent reception.
If you have any time my offer of sights and a meal or two still stands.
How long will you stay? Will you give any lectures> If so, when and where?
In what suburb does your partner live?
LOL! No plans yet, just a lot of talk. No clue where exactly Kym lives. You can find more about him on Kym Huynh. I’m sure he will alert the mayor to start shining the keys. Hee hee.
I find that many companies here seriously underestimate the cost of hiring someone to produce an integrated web presence and are completely put off when they find out how much those rates are. My daughter, who has been working in Germany for the past 5 years, says that compared to what companies there charge for similar work, Israeli companies grossly undercharge. What I’m trying to say is that, in spite of the Web having a global reach, each local market seems to have it’s own tolerances.
@Jennifer, you are exactly right. These are numbers from within the United States and Canada and not representative of the world. I should have mentioned that. Thanks!
I found this extremely enlightening. I don’t offer web development services to the general public anymore, but I will build sites for friends who have very minimal needs and the ability to handle upkeep on their own. In most cases, I’ll do it on trade.
Last summer, a good friend was quoted $8k for a website by the folks who designed his logo. True that they have talented designers and would have created a more visually appealing final product, but he didn’t NEED an $8K website. I knocked off a decent WordPress-based site in about 20 hours and let him pay me what he thought it was worth. I’m still drinking the 8-1/2 CASES of wine he gave me. (Did I mention he was an award-winning winemaker?) Since his wine retails for $16-$22/bottle, I was actually paid more than I expected. (I was hoping for 4 cases.)
I do realize, however, that it’s pretty much impossible to make a living doing business on trade. Until recently, I made most of my living as a writer. As you so astutely pointed out, the going rate for professional writing is falling throughg the floor. This has forced me to reconsider my stand on developing websites. Although my winemaker friend can always pay me with his excellent wine, I will be looking for real money from future clients — even the winemakers. Now I know how much I should be asking for. Thanks!
@Maria: As I watched my writing and photography income fall faster than a meteoroid as web publishing shot upward without the income to support those careers, I had to switch things around, too. Luckily, I adored the code behind a web page from day one.
I also had expectations before I read Collier’s article. From my perspective, there is a glut in the market of “amateur” (using the true definition of the word) web designers, especially for WordPress. The surveys I’ve seen targeted “professionals” but I bet the average site design price is closer to your wine barter (though not in award-winning prestige). As I enter the world of academia, it’s more important than ever to get these students thinking about changing their rates so I can eat and pay my mortgage in our shared industry so web design and development doesn’t go the way of writing and photography. It’s going to take a lot of education around the world to increase the level of proficiency (Design by the School of Google Search ain’t it) and appropriate rates.
I can tell you that my friend’s designers were very upset to learn that he’d farmed the work out to a friend. They warned him that it would probably look pretty bad — most sites created by amateurs (in the real sense of the word) are gawdawful. But I’ve been around the block a few times — been building Web sites since 1994 (not a typo) — and I can throw together something respectable. WordPress makes it easy. In the end, what I delivered works now at a price he can afford. If the winery really takes off and he wants to upgrade his Web image, he can always call them. BTW, you can find the site here, if you’re interested: http://www.beaumontcellars.com/.
My writing career has been devastated by the rise of the web. I went from a healthy six figures down to a decent five in the span of three years. Ouch. There are multiple reasons: (1) there are fewer and fewer beginning to intermediate computer users (my typical audience), (2) anyone on the Web can Google an answer faster and easier than looking it up in a book, (3) new writers are willing to write for little or nothing to break into the field, (4) publishers are publishing fewer books, etc. The list goes on and on. There’s no way around it other than to diversify.
Oddly, I got my very best complement as I was finishing up my most recent book. My editor of many years, who has been working with a lot of new writers as the publisher attempts to cut costs by using inexperienced authors, told me that it was a pleasure and a relief to work with someone who actually knew what she was doing. Okay, well if that’s the case, why not give more of us old timers more of the work? If they want quality, they know where to get it — and what it costs.
I’m with you all the way. There’s a point where the “breaking into the field” portion of a career should end and, with it, the low compensation rates. We need to stand firm and be compensated properly.
I have sent the Mayor a cloth to help him shine the keys. Further my wife (a wildlife carer) has about a dozen birds in cages in my house that every day she releases them to fly around the house screeching – what I assume amounts to obscenities. When You visit me she has promised to keep them in their cages. Please do not fall over with anticipated excitement about the many honours that will come your way.
@bill, you are just too funny! You’ve made my week! Thanks.
This article is a fantastic resource for me. It’s been very difficult to find pricing information for what I do. Others I know who do it are shy about sharing their rates for the usual reasons, I think. They don’t know if they are charging enough or they don’t want others undercutting their prices. I’ve been basing my rates on my skill level and the complexity of what I am customizing for a client. Usually $300-$500 per WordPress install including a custom theme design. No serious coding.. mostly CSS and maybe some custom ‘loops’ for content display. I can see I have a lot of reading to do and I need to branch out with my skill set. I need to offer a broader service to my clients that fulfills business needs beyond having a website. I need to focus on WordPress as an advertising nexus for social media outlets and newsletters that the client can manage on their own once set up properly. You have given me so many ideas for expanding what I do from the mere technical to more towards providing a business service.
I have lots to learn though before I move in that direction. I don’t believe in the “fake it ’til you make it” mantra I’ve heard before. You can make more money that way sooner.. but you can easily get in over your head as well and be unable to deliver what the client is paying for.
-Matthew
@Matthew: Pricing projects like this is complicated indeed. The information from this survey is generalized information, I’m sure. A simple WordPress install with a free Theme shouldn’t be a big deal nor a time consumer, and working with a knowledgeable and trustworthy client may shave 20 hours off a project where you might need to add another 40 hours to a project if a client is picky and a micro-manager. Lots of compromise in the negotiation of a project.
I’m glad you don’t support the “fake it til you make it” as that is what gives our industry a bad name. Good for you!
Good day, Lorelle:
Even in today’s economy where there’s more down than up, we need reminders like your well written article that charging fair rates for fair value is a good thing.
Thank you for taking the time to remind all of us of the value we can add for our clients.
I find that many companies here seriously underestimate the cost of hiring someone to produce an integrated web presence and are completely put off when they find out how much those rates are. My daughter, who has been working in Germany for the past 5 years, says that compared to what companies there charge for similar work, Israeli companies grossly undercharge. What I’m trying to say is that, in spite of the Web having a global reach, each local market seems to have it’s own tolerances.
One Trackback/Pingback
[...] http://lorelle.wordpress.com/2012/01/03/how-much-do-you-charge-for-web-devdesign-services/ [...]