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Site Flip: Buying and Selling Websites for Profit

Friday, September 01, 2006

Design Appraisal

Designs cost a fair bit of money for the small to medium business owner, so it only makes sense that site flippers need to understand design appraisals. [If you enjoy the read, consider my free newsletter.]

My friend Ben Bleikamp has a good post on pricing your services over at Yopos, which we also chatted about.

Ben situates himself as a mid-level designer, so he charges mid-level prices. He calculates a bid based on how many hours he estimates the work will take, and multiplies that by his hourly rate. The rate increases or decreases from its baseline depending on the size of the client, and the difficulty of the work involved.

So there's a simple formula for design appraisals:

Difficulty Factor x Hourly rate x Hours of work. Difficulty of the work increases or decreases the hourly rate by up to half. So the possible values for DF range from 0.75 to 1.25, whereby 0.75 is the easiest work possible that results in a reduction by a quarter of the hourly rate. 1.25 is the toughest (Ben's loathed Moveable Type, for instance) resulting in an increase by 25% of the hourly rate.

Simple appraisal, no?

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