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Web Site Total Cost of Ownership
Phaoro
#1 Posted : Wednesday, November 25, 2009 5:00:00 PM
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Joined: 10/6/2009
Posts: 164
Hello,

What would be the Total Cost of Ownership for a Web site such as SK In terms of design,development and maintenance? Just interested in Knowing TCO for such models.

Marriages are made in heaven. But so are thunder and lightning.
anasazi
#2 Posted : Thursday, December 03, 2009 1:40:58 PM
Rank: Veteran

Joined: 6/8/2007
Posts: 675
There are many factors influencing cost of ownership:

- Web Development costs (depends on what you want to come up with, level of functionality, the price of the company/ person you contract)
- Web Hosting costs (depends on traffic on the website. The more the traffic, the bigger your budget)
- Other overheads (are you subscribing to any data feeds, content sourcing etc)
- Maintenance (if you're not a web developer, then you need someone to tweak the site for you every once in a while!)
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Phaoro
#3 Posted : Thursday, December 03, 2009 1:57:54 PM
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Joined: 10/6/2009
Posts: 164
@ anasazi

Can you put up some numbers, ballpark figures. I am well aware that functionality, web hosting, traffic etc contribute to the cost. But if I was to ask what are the cost for a low to high end site what numbers would I be looking at?
anasazi
#4 Posted : Thursday, December 03, 2009 2:34:11 PM
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Joined: 6/8/2007
Posts: 675
Figures are tricky, reason being it depends on who you contract. You can get a website for 20,000 KShs or 2,000,000 KShs! Of course the cheaper the guy is, the more likely it is that you'll get a shoddy job.

For an acceptable level website, you should budget about 100K for development (if you scout hard enough for a good independent contractor. for a company, at least 2.5 times more). If you want a load of features, double that at least. Web hosting can vary from 500 KShs a month to 5,000 a month or more depending on the package (offshore hosting). Local hosting is much more expensive. Most websites can survive on a budget of 1,000 KShs per month.
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Phaoro
#5 Posted : Thursday, December 03, 2009 3:31:21 PM
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Joined: 10/6/2009
Posts: 164
I think 2M is way over the top. So say I want a website that has an online catalog, shopping cart etc are the following estimates reasonable?

Design, development and implementation - 250 K (one time cost)
Web hosting (domain name and web hosting renewable charges) - 5K
Maintenance and other cost - ?

Anyone else out there with knowledge/skill/experience in this area share your thoughts
anasazi
#6 Posted : Friday, December 04, 2009 6:36:40 AM
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Posts: 675
As I mentioned, depends on who you use... For some people, 2M is a standard fee. However your budget looks good. You should get something good for that, or even half of that. When you get the site done, make sure it has a content management system that will ensure you need maintenance only for minor issues.
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alma
#7 Posted : Friday, December 04, 2009 7:07:50 AM
Rank: Elder

Joined: 7/20/2007
Posts: 4,432
Please note: I am extremely biased on this topic. Take what I say with a pinch of salt.


2 million?

Facebook was started with a $50 script.

2million? You are talking about a $30,000 website.Kweli what is being started here? CNN? Or your website also deliver icecream straight from the computer screen.

Websites can be free if you wish. The problem is not the website. The problem is the therein after.

So you build a website, then what?


Building a site is the easy part....You should be more concerned with whether it is making any difference in your business.

How many Kenyans have opened up travel websites. Guess who gets all the free traffic? Some guys in UK in their bedroom who know about marketing their web property.

My advice is stop thinking about a ONE time payment then you have a website.

Think a long term commitment in an investment that will change your life if you do it the right way.

Heck, I can build you a free website if you find me on a good day....But will it make you any money?

Costs

1. Web Developer - consider them the architect of the site. Comes up with the structure...from $500 up
2. Web Designer - between $500 to $2000 - please note that this is not the same as a web developer. A web designer is like your interior designer or painter.
3. Programmer - If you need fancy stuff on your site( not flash)...between $500 to unlimited

Most important

4. SEO Expert - Monthly costs ranging from $1 to unlimited
5. Internet Marketer - Pay per lead or monthly fee.. depends a lot on your niche competition and the amount of work needed for your site

Of Course you can do it the easy way

Build a website - cost ksh.20k

Then don't wonder why you never get buying visitors and you never ever make a sale on your site. Then you run around Nairobi telling people that there is no money in the internet.

Do it the right way and consider web marketing as a running investment that pays 10 times more than buying shares in any market.


Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
anasazi
#8 Posted : Friday, December 04, 2009 7:12:40 AM
Rank: Veteran

Joined: 6/8/2007
Posts: 675
I know of websites (done by Kenyan companies) that cost 7M. oh yes. Of course, whether it was value for money is neither here nor there. I'm sure it could have been done in India for 1000 USD through online outsourcing sites. However, realise that if you're into detail, cheap may be expensive.

However alma you have a good breakdown of expected costs and things to consider. Yes, you can get a website for 20K. But I wonder if good developers/ designers are willing to accept that amount...
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alma
#9 Posted : Friday, December 04, 2009 7:43:13 AM
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Joined: 7/20/2007
Posts: 4,432
Anasazi

Can you explain to me how you build a site for 7m and make no sale and this site grizzly makes $10,000 a month. second site used exactly $0 to build. Trust me..I know

I hate saying it but there is a bunch of kenyan web designers who go around selling sites for 1 million that do absolutely nothing for the buyer.

When you are saying 7 million, you are talking about a website that costs $100,000. You just have got to be kidding me.Liar

Tell me one Kenyan site that is worth $2000 to build..By the way, I am extremely serious.Show me one and I will show you a conman who built it..Only Mashada...and probably this one wazua.

I know of one company in particular that is notorius for building the worst websites the world has ever seen. They then get a newspaper guy to say how wonderful it is. Their minimum charge is 400k.

Very shameful I might say.Shame on you

But Hey, I am biased....Please take my advice with a pinch of salt.

We have been building travel websites in Kenya for the first 5 yrs. Google kenya safari. 70% of the sites not owned by Kenyans. 90% of seo work done by indian web companies I work with...

by the way, do the google on google.com us servers not google.co.ke. Your clients are coming from the us and uk anyway.

There is hope but not with overcharging small businessmen who wish to start making the internet part of their marketing strategy.
Jose: If I make it through this thug life, I'll see you one day. The Lord is the only way to stop the hurt.
anasazi
#10 Posted : Friday, December 04, 2009 8:29:49 AM
Rank: Veteran

Joined: 6/8/2007
Posts: 675
Well, I agree with your point that whether a website will make you money has much more to it than just spending the dough on it. However, for the web developers, if you can charge 7M for your product.... well... i hope you can back it up with your work, but if the client accepts... why not?

The likes of eBay spend millions of dollars on technical work, ie web development. So again nailing a figure is difficult. The key thing is, what is the strategy?
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