This week on the Profitable Web Designer podcast I’m sharing a replay of a pricing workshop I hosted a few years ago where I walk you through not only how to set profitable, sustainable prices for your web design services, but also how to sell yourself on those prices.
Because you can go through this entire episode and land on the right number – but if you don’t truly believe in your own value as a web designer and what you bring to the table, it doesn’t matter what number you end up with at the end… you’re not going to change your prices and you’re not going to go out there and market yourself at those new prices.
So grab a pen and paper and your calculator, because we’re going to do some math together, and then we’re going to work on your pricing mindset so that by the end of this you stop holding yourself back from putting yourself out there and charging more.
🎧 Listen to Episode 216: Web Designer Pricing Workshop
What Sustainable Pricing Means for Your Web Design Business
When I say sustainable pricing, I mean your web design business is making enough to pay yourself your paycheck, pay for your business expenses (because when you run a business, there are expenses) and pay your taxes, and depending on where you live that number is going to be different for everybody.
If you’re in the United States you’ve got federal income tax, maybe state income tax and maybe local taxes depending on the city or town you live in, and these are all numbers we want to figure into how much we’re charging.
I like to start with our very first revenue goal being the smallest amount of money we need to make to cover all three of those things, and I call that your minimum baseline.
I share mine every month in my income reports, and my minimum baseline has shifted a lot since 2015 when I started my web design business and still had a day job, so I didn’t need to pay myself a paycheck yet, to when I quit my day job and was solely responsible for paying myself, to now when I have team members to pay too.
One of the things I see web designers do where they hold themselves back is decide they want a web design business that makes six figures, and I am here for it and I will support you every step of the way, but if that’s not where you need to start, it can be really overwhelming to think about everything you need to do to get there. So we start with a realistic number that’s doable, so you can see how this works and then how you can grow from there to your big goal.
How To Find Your Minimum Baseline as a Web Designer
There are four numbers you need to write down to find your minimum baseline.
Step 1: Your Minimum Monthly Income Requirement
You can figure this out one of two ways. If you have a day job and you don’t want to take a pay cut, figure out your take-home pay after taxes. When I went back in my time machine to 2014 and 2015, I was making about $60,000 a year at my day job, and what actually got deposited into my bank account after taxes and benefits came out was about $4,000 a month, so that’s what I’d put down. The other way is to do your household budget, Dave Ramsey style if you follow him… your mortgage, car payments, student loans, credit cards, groceries, what your partner makes if you have a partner, all of it, and then decide what you need to bring in every month. We want your basic needs met first, because it’s way easier to work on the big dream stuff when you’re not stressed about money all the time.
Step 2: Your Business Expenses
In my income reports I break my business expenses into three categories: tools, team and training. Tools are things like web hosting, email marketing and all the little software subscriptions I use to run the business, team is the people I pay every month (your team line is probably zero right now, mine was when I started), and training has become one of my biggest investments every single month because I used to go it alone and struggle and hustle and do it the hard way, and when I started setting aside money to invest in training and mentorship, everything changed. In our example, let’s say you have $650 a month set aside for tools and training and no team.
Step 3: What You Need To Set Aside for Taxes
Caveat… I am not a CPA or an attorney and this is not legal or tax advice, I’m just telling you what I do.
My rule of thumb is to set aside about twice what’s currently coming out of your paycheck, because when you’re self-employed you pay the full amount of your Social Security and Medicare taxes instead of splitting it with an employer (the IRS explains this on its self-employment tax page), or about 20 to 25% of your revenue minus your expenses.
Then you pay your estimated taxes every quarter on the days the IRS says they’re due, and please don’t get freaked out about this, because I know this is the stuff that makes so many people feel like they’re not qualified to run a business… and you are. You absolutely are.
If you want to go deeper on this, my conversation with Hannah Cole in Episode 190: What Every Web Designer Needs to Know About Taxes is a great place to start.
Step 4: How Many Hours You Actually Have To Work Every Week
This is such a critical number that most people don’t consider. Do you have a couple of hours in the morning before work, are you a night owl, can you do five hours on Saturday and five on Sunday? It doesn’t matter when, but add up the hours you truly have available every week and write it down. When I was side hustling, I probably had about 30 hours a week because I worked before and after my day job and I don’t have kids, and your number is going to be totally unique to you.
Putting Your Minimum Baseline Together
Once you know those four numbers you can do the math. In our example, $4,000 to pay yourself plus $650 for expenses plus about $1,350 set aside for taxes means you need to bring in about $6,000 of revenue every month to have a sustainable web design business, meaning it makes enough money to pay you, pay for itself and pay the IRS (or whatever country you live in).
Why Charging by the Hour Doesn’t Work for Web Designers
The mistake most web designers make from this point is they take that $6,000, divide it by 20 hours a week times four weeks, decide their hourly rate is $75 an hour and figure they’re golden. And if you didn’t get sticker shock from that number because you grew up like I did and never made that much money in your life, you might think it all works out to $6,000 a month.
It doesn’t work that way, because there’s more time in your business than just billable client work… there’s marketing, there’s administrative stuff, there’s building your systems, and there’s scope creep if you don’t have a process in place for that. So either you never hit that $6,000 mark, or you do hit it but you’re working 40 hours a week outside of your day job because 20 hours went to client work and the other 20 went to everything else.
I bet a lot of you are charging by the hour right now and you’re not charging anywhere near what you’d need to hit your minimum baseline, and even if you were, you don’t have enough hours in the week to make it happen.
So you have to stop charging by the hour and start charging by the long-term value of the website for your client, and use your minimum baseline as the starting point for your pricing.
If you want to dig deeper into moving away from hourly pricing, Episode 212: Ditching Hourly: A Web Designer’s Guide to Value-Based Pricing with Jonathan Stark goes all in on it.
How To Turn Your Minimum Baseline Into Web Design Project Prices
On one hand, your pricing is all about the long-term value of the website for your client, and on the other hand, your pricing is about you, because if the business isn’t sustainable then you’re hurting yourself, you’re hurting your clients and the business isn’t going to be there for anybody.
So if you need to make $6,000 a month, you price by the project, and $6,000 a month equals X number of projects at Y price.
What I see people want to do is undercharge and say, “Okay, I’ll charge $1,200 per website and do five projects a month.” You can’t do five $1,200 projects a month unless your systems are dialed in and you have a really solid pipeline of leads coming in, because if you need to talk to 20 people a month to book five projects and then complete five websites every single month in about 20 hours a week, that’s a heavy, heavy lift.
What we do with our clients is help them position themselves to charge $6,000 for one project while working 20 hours a week. That gives them about 80 hours in a month, the project itself takes about 40 hours, and they still have time for the admin stuff, time to market and fill the pipeline, time to book the next client and time to work on and build their business. They could also do two $3,000 projects, and we help them figure out how to fit that in with their life.
Creating a full-time income on a side hustler schedule is absolutely possible, but it does not work if you’re undercharging.
The Rule of 10: How To Sell Yourself on Higher Web Design Prices
So how do we get to believing we could actually charge $6,000 for one website? That’s where the Rule of 10 comes in, which I heard from a coach I was in a mastermind with, Aisha Crumbine, and when she shared it in our Facebook group I was like, this is genius, so I’m passing it along and crediting her.
The first piece of the Rule of 10 is this question: could your client make 10x what they paid you over the lifetime of the website? Think of the lifetime of the site as one to three years. If I charge $6,000 for a website, could my client make $60,000 over the next three years?
So many of our clients build websites for coaches, so let’s think about a life coach.
Before working with a web designer, maybe she didn’t have a website she was proud of, so she held herself back from marketing. She didn’t have a way to capture email addresses so she could make offers, she didn’t have a scheduler so she was constantly going back and forth with clients on times, and she was manually sending PayPal links and chasing people down for payments. She was spending more time running the business than serving her clients, and she’d never be able to scale to a group program or a course because she couldn’t even get past one-on-one with her time.
Now she has a website and email system that handle a lot of that for her, she can focus on her marketing and onboarding new clients, she can run a group program and add an online course later. Could she 10x her income with the website you built her? Could she 20x it? That’s possible.
The second piece is this: could your client make back what they paid you within three to six months of launching? If they pay you $6,000, could they be making $1,000 or $2,000 a month in their business with what you built for them?
You can’t control whether your client actually does the marketing or runs a launch or a campaign once the site is live… no website can generate clients on demand, and managing your client’s expectations is part of the work.
But you can give them all the tools to make that possible, and when you understand that in your own mind, it becomes so much easier to believe in your prices and talk about them.
3 Pricing Beliefs That Keep Web Designers Undercharging
You might be thinking, “Logically, Shannon, that makes sense, but I still think…” and that’s where a lot of you get stuck, so let’s clean up the busted pricing beliefs I hear the most.
Busted Belief #1: “I Need More Experience First”
I was talking to a web designer who wanted to charge $5,000 but had only charged around $800 for one of her early clients, and she wasn’t going to raise her prices until she got a few more clients under her belt and got her process dialed in. Meanwhile she was having problems with that client, she wasn’t getting content, and she was feeling resentful and assuming the problem must be her and that if she just did a few more of these, everything would clear up.
That’s a process problem, and there is no amount of taking on cheap clients that is going to fix your busted processes. You know how to build an awesome website… that’s the skill you bring to the table. What you don’t know yet is how to plan for all the variables of a client going rogue or ghosting you or not paying you on time or not getting you content on time.
You can take on client after client and go through all of that pain and develop your own processes after working with 10 cheapskate clients over the next year, or you can raise your prices now and get some help being proactive about it. Either way, the price is based on the long-term value of the website to your client, so you don’t have to wait to charge more. What you need is a solid process and support.
Busted Belief #2: “I Can’t Charge as Much Because I’m Self-Taught”
I can promise you your client does not care how you learned, they care that you can deliver the outcome. And being self-taught is probably an asset, because you’re going to work on a client project where something happens that you don’t already know how to do, and if you taught yourself, you can teach yourself the answer to that problem. The outcome is no different for your client whether you’re self-taught, took a class, got a certification or went to college for it.
Busted Belief #3: “My Clients Can’t Afford To Pay More”
I hear this one so often, especially from web designers who work with nonprofits.
Nonprofits have money, they just don’t take profits out of the organization, and the more money a nonprofit can bring in, the more it can serve its mission. So a nonprofit would actually want to invest in a website that’s going to bring in 10x more donations or volunteers or reach than it could get without it, because that money grows. And yes, some nonprofits really are operating on a shoestring, and when you’re charging sustainably for the ones that can afford it, you can create pro bono programs, trainings or lower-priced offers for the ones that can’t.
There are people who see a website as an expense that’s never going to make the money back, and no matter what you say, they’re not going to spend the money on it, and that’s okay.
But there are just as many people out there who can afford to pay more, and those are your clients. You have to stop pricing with your own pocketbook, because if you think your clients can’t afford things, I’m guessing you often think you can’t afford things and you see things as expenses rather than investments. I’m only saying that because that used to be me, and I’ve done so much work on my money mindset to stop charging based on my own fear and worry and scarcity.
My conversation with Pam Jordan in Episode 205: Why More Web Design Clients Won’t Fix Your Money Problems goes deep on the money side of this.
So I want to ask you… do you believe your clients could make 10x your minimum baseline over the lifetime of the website? Can you deliver something that would enable them to get that result if they use it?
The 3 Business Breakdowns That Leak Money Out of Your Web Design Business
Raising your prices is just one piece of the puzzle, because there are three places where your web design business will break down and leak money even after you put a higher price on your package.
Breakdown #1 is not booking the clients. If you’re not doing your marketing, not getting consultations and not turning those consultations into clients, it doesn’t matter what number you wrote on the package on your website. And when you raise your prices without really believing in the long-term value, you’ll be afraid to market yourself and afraid to follow up because you feel like an imposter.
Breakdown #2 is projects that drag on. If your client isn’t cooperating and the project stretches past your timeline, you end up booking projects on top of projects, and now you’ve got four clients going at the same time, you’re burnt out and overwhelmed and you’re not getting paid on time. Your process should spell out exactly what happens, when the content is due, how the project is going to go and what happens if it doesn’t go that way, with your exit strategy already laid out in your contract. If you’ve got a project that’s been hanging around forever, my 7 tips for finishing neverending web design projects will help.
Breakdown #3 is scope creep. If you’re anything like me and you hate confrontation, you’d rather just do the work and not get paid for it than ask to get paid for it. Your process should prevent that by making sure your client knows from day one what they didn’t buy from you, and making sure you know how to say no, or how to give them options for what you will do for them, in a way that feels authentic and natural to you.
If you don’t have these pieces in place and you’re charging $6,000, that $6,000 is going to get stretched super thin across a few months and you’re going to be working like crazy.
This is one of the things we work on so much inside the Web Designer Academy, helping you build a process with boundaries built in from day one, from how you market and have consultations and follow up all the way through leading your client through a crystal clear project process.
When you have sustainable pricing, the Rule of 10 mindset and boundaries built into your process, you’re going to hit your minimum baseline every month and grow beyond it, and that’s where profit comes in, because profit means you’re paying yourself, paying your taxes and paying your business expenses and there’s some left over.
Web Designer Pricing Q&A
Can a Design Audit or Consultation Help Clients See Your Value?
A thousand percent yes. When you have a clear process for talking to a client where you learn about their pain points, translate what they’re telling you into solutions and explain what’s possible for them and their business when that problem is solved, and you can frame that in terms of revenue or opportunity, it becomes so much easier to charge more.
How Do You Stand Out When Leads Are Comparing You to Cheaper Web Designers?
Ivan was getting leads in Discord, Figma and Webflow channels from people looking specifically for Webflow skills, and those people are probably also looking at a lot of other people selling that same skill time-for-dollars. When you show up selling the same skill at a higher price, they’re going to ask why they’d pay you more. So you have to change the conversation, get really clear on what kind of clients you want to work with and position your website as the solution to their problem, because when you market based on the solution to the problem, that’s when the value goes up.
Is It Crazy To Charge More Than the Well-Known Web Designers in Your Space?
Amanda and her business partner specialize in Kajabi and eventually want to charge more than the well-known names in that space. That could absolutely mean getting clear on who your clients are, figuring out what the Rule of 10 looks like for them and going after people who are already making money and can afford to pay you more. Eventually you’ll probably max out on your package price, and that’s where we teach our students to add scalable offers so they can serve one-to-many without adding to their time. So yes, you can charge more than them, and how you get there depends on how you want to structure your business.
What If Your Target Clients Are New Solopreneurs Without Much Money?
Grace’s target audience is new solopreneurs, and I want you to ask yourself whether it’s true 100% of the time that new solopreneurs don’t have money. When I was a brand new side-hustling solopreneur, I had a paycheck coming in and I could reinvest what I made back into my business, and there are people out there thinking, “I believe in this business and I’m willing to invest in the right people and the right tools to make it a success.”
My coach Mariah Coz always told me to stay out of my clients’ wallets, because you don’t know until you make the offer. And when I used to teach people how to DIY their websites for free, people would still come to me and say, “Can I just pay you to do it for me?”
Because after working with over 15,000 DIYers, I’ve learned that a lot of people are terrified of the tech and afraid to push a button wrong, and they would value not having to deal with that part.
How Do You Find Agencies To Work With?
It doesn’t matter whether your ideal client is an agency or a person, the marketing strategy is the same. Figure out how you can connect with them, what their struggles and problems are and how you can present what you do as the solution. If it’s agencies, I’d make a list of agencies, reach out and have conversations about their biggest struggles working with the designers they hire, then position yourself as the solution to those problems. And when you put yourself out there as the solution to what’s holding your client back from where they want to go, it becomes so much easier, because your clients need you to be able to solve their problem, and you have to believe you’re willing to figure out how to solve any problem that comes along.
Your Next Steps for Pricing Your Web Design Services
- Write down your four numbers (minimum monthly income, business expenses, taxes and available hours) and add up your minimum baseline.
- Translate your baseline into projects instead of an hourly rate, and be realistic about how many leads and projects you can handle in the hours you actually have.
- Run the Rule of 10 on your current offer. Could your ideal client make 10x what they pay you over the lifetime of the site, and make it back in three to six months?
- Look at where your process is leaking money, whether that’s booking, projects dragging on or scope creep, and make sure you’re charging for any additional work and value you’re delivering.
So go listen to the full workshop replay, do the math, and raise your prices. And if anything in this episode resonates with you and you want to find out more about working together in our next 6-month cohort of the Web Designer Academy, go get all the program details and get on the waitlist to be the first to know when enrollment opens up again.
🎧 Listen to Episode 216: Web Designer Pricing Workshop
Related Episodes
- Episode 212: Ditching Hourly: A Web Designer’s Guide to Value-Based Pricing with Jonathan Stark
- Episode 205: Why More Web Design Clients Won’t Fix Your Money Problems with Pam Jordan of Pivot To Profit
- Episode 190: What Every Web Designer Needs to Know About Taxes with Hannah Cole
For service providers, consultants and agency owners outside of web design, check out my other podcast, Anchor High: Pricing Strategy for Consultants & Service Providers.
About Shannon Mattern
Shannon Mattern is a Pricing Strategist, creator of the Package Matrix™ Method, and the founder of the Web Designer Academy, where she helps experienced women web designers book higher-paying projects, charge more with confidence, run projects without overworking and burnout, and break through to their next level of income and freedom.
Websites: https://webdesigneracademy.com | https://shannonmattern.com IG: @profitablewebdesigner YouTube: @profitablewebdesigner LinkedIn: https://linkedin.com/in/shannonmattern
Who is Shannon Mattern?
Shannon Mattern is a pricing strategist, creator of the Package Matrix™ Method, and the founder of the Web Designer Academy, where she's spent the last decade helping women web designers stop undercharging and overdelivering. Learn more about Shannon
What is the Web Designer Academy?
The Web Designer Academy is Shannon Mattern's business coaching program for women web designers, walking members through a 6-month cohort that covers building a client pipeline, resetting pricing, and running a web design business without overworking and overdelivering. Learn more about the Web Designer Academy
What is the Package Matrix™ Method?
It's Shannon Mattern's pricing framework, originally built for web designers and now being expanded to service providers more broadly, with a beta cohort currently underway and a certification in development. Learn more about the Package Matrix™ Method