How much does it cost to make a custom website?
Estimating the cost of a tech project can be difficult because it depends on so many factors, but it's still worth talking about the different costs that go into creating a website / tech project.
For the last 10 years I've worked on a range of projects like automating business workflows, to creating SaaS platforms, or modernizing the UX/UI of a websites, but this article will specifically deal with a custom SaaS website and/or custom ecommerce store build-out.
Below I've included a table of hours and rates taken from real SOWs provided by agencies for a custom built website.
| Development Task | withgu.dev | Outsourced Agency | U.S. Based Agency |
|---|---|---|---|
| Initial Project Consultation | Free | Free | 32 hours |
| Admin Panel for Database Management | Included Free | 90 hours | Not Included |
| Backend Development | 90 hours | 180 hours | 230 hours |
| Quality Assurance / UAT | Done by Client | 120 hours | 106 hours |
| Deployment to Production / Live Site | Included Free | 10 hours | 10 hours |
| Project Management / Meetings / Stand-ups | Included Free, max 1 weekly meeting, message as needed | 50 hours | 67 hours |
| Frontend Development | <200 hours | 260 hours | 287 hours |
| Total Cost | 290 hours @ $40/hr = $11,600 | 710 hours @ $30/hr = $21,300 | 732 hrs @ $150/hr = $109,800 |
| Total Project Time | 1-2 months | 2-3 months | 15 weeks |
Unfortunately costs can be high, but these are the least of the problems with custom website builds. Most “completed” projects will run into 1 of these 3 (or all of these) issues.
- Project goes past deadline, budget, is buggy and no reimbursement / refunds are given since the work has already been paid for.
- The project is completed, but any issues that appear after 1-2 months will require another contract or hire to help with
- The project doesn’t have the essential business tools like seo, analytics, paid ads, etc. added to it at all.
As a result, I’ve changed the payment structure to favor the client (over the agency), added a required support plan, that includes all the essential administrative / business tool setup, training for it, and continued maintenance and support that is needed as a part of running your custom website. We believe in longer-term work relationships rather than a quick project completions that leads to no further engagement, and this model helps support that ideal.
| withgu.dev | Outsourced Agency | U.S. Based Agency | |
|---|---|---|---|
| Payment Structure | $1000 deposit, $4000 when backend development is finished (deposit is applied towards this). Rest based on milestones which will be provided based on designs given. | 30% upfront, 40% at mid-way, 30% on completion | Hourly Billing, bi-weekly |
| Additional Costs from Services Used | <$500/mo (as low as $75/mo) for servers, database, and external APIs if company revenue totals less than 5 million annually, otherwise please let us know. | Not mentioned | $50,000 / year for composable ecommerce solution |
| Support After Project Completion | $1100/mo, 3 month term (required, includes 1 weekly consultation meeting and any/all small revisions/adjustments that need to be made) | 1 month free, bug fixes only | N/A |
| SEO Setup / Connection | Included as a part of 3 month support package | Not Included | ~30 hours allocated from frontend development time |
| Integration with Paid Ads / Tracking Snippets | Included as a part of 3 month support package | Not Included | Not Included |
| Integration with Analytics | Included as a part of 3 month support package | Not Included | Not Included |
| CMS Integration (build your own marketing pages) | Optional, one-time fee ($500) to setup | Not included | Not included |
| Other Integrations | Let us know! | Not Included | Not Included |
This covers the standard agency costs of building a website, but what if you don’t want to go with an agency for your project build?
Looking for a full-time hire / contractor is another way that I would generally recommend over agencies, but has other complications.
- Highly dependent on the talent of the hire
- Any costs for HR services and time scouting for talent must be factored in
- Some projects may require multiple hires to successfully complete the project
- High variance in cost
Of course the benefits of having a talented full-time hire can be great, but the cost can be just as much as going with an agency. With software developers going from anywhere between $30 - $200/hr, that’s an annual cost of $60,000 - $400,000. For a 3 month project, that would equal a spend of $15,000 - $100,000.
| Cost Analysis | withgu.dev | Contractor | Full Time Hire |
| Payment Structure | Initial Project Rate, then 3 month minimum subscription to support package. Additional work quotable as project rates. | Hourly | Monthly, Annualized |
| Weekly consultations available? | Yes | No | No |
| Expedited work available? | Yes | No | No |
| Invoiced after work is completed and approved? | Yes | No | No |
| Response Time | Within 16 hours | Varies | 9-5 work hours |
| Emergency Response Time | Within 8 hours | Varies | Overtime Pay Applied |
| Hourly Cost | N/A | $25 - $150 | $30 - $200 |
| Estimated Total Project Cost for 10 weeks of work | $14,900 | $10,000 - $60,000 | $12,000 - $80,000 |
| Estimated Total Project Cost for 3 months of work | $14,900 | $12,000 - $72,000 | $15,000 - $100,000 |
| Estimated Total project Cost for 4 months of work | $14,900 | $16,000 - $96,000 | $19,200 - $128,000 |
| Estimated Annual Cost | $28,100 + any additional project rate quotes | $52,000 - $312,000 | $60,000 - $400,000 |
Even with these costs, I've seen that the biggest costs to a project are still inefficiencies or miscommunication between developers and non-technical founders that lead to missed deadlines, over-budget projects, or buggy and nonfunctional websites. I've seen companies and individuals lose hundreds of thousands of dollars choosing the wrong hires or agencies for their project build and not getting the results they want.
If you're starting a tech project, it's vital that you set it off in the right direction since changing the technical foundation of a project is always time-consuming and expensive, sometimes even nearly impossible.
With over a decade of experience, I have the ability to work with you to launch your tech project efficiently, with quality, and provide lasting value. Take a look at some of the projects I’ve worked on.
Think someone can do it cheaper and with better quality? Let me know —I’d love to give you a second opinion and also see if there’s ways for me to improve my own project builds.
Ready to move your project forward? Schedule a free consultation.