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Merrin Muxlow
Merrin is a writer, yoga instructor, and law student based in San Diego, California. She writes extensively for Resource Nation, an online resource that provides expert advice on outsourcing and purchasing decisions.  Resource Nation matches business owners and entrepreneurs with business service providers in 100+ categories, from payroll processing to postage meters.  

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The Art of Negotiating: Web Design Contract Basics
By Merrin Muxlow | Published  07/2/2009
Business owners spend countless hours searching for the best deals on services and equipment in order to find what they need, and yet often overlook one of the most crucial aspects of any purchase: negotiation. 

The art of negotiation is one of the best tactics for cost savings, especially when it comes to a service like web or graphic design.  Even if you’ve already signed a contract, or even if design work has been completed, negotiation is still a viable option for maximizing your purchase.  Remember, though: Negotiation is all about compromise.  If you want the best deal, you may have to offer something on your end, as well.  Here are a few tips for negotiating with web designers:

Before the contract is formed:
Everything is negotiable when the contract is in formation stages.  Make sure you have a contract in place that specifies the responsibilities of both parties before any design work is completed.  Here are a few specifics you should clarify:

Billing structure.  Will you be charged for the total project cost, or an hourly rate?  Hourly rates can seem deceptively inexpensive, but they provide you with less control of the total cost.  If you’re being billed hourly, try to get a good approximation of the total hours the project will take to complete.

Services contracted.  It’s a good idea to break down the entire design process into smaller components- for example, a site plan, the design of a home page, or a plan for ecommerce web design- and then make the first contract just for this element.  This allows you to work with the designer essentially on a “per project” basis- if you like the work, you can move forward with future service agreements.

Timing.  Make sure you know how soon work will be completed.  Ask when you expect to get a “proof” of the layout or site plans, and how quickly you need to “sign off” on design changes.  This is especially important if you are on a tight deadline. 

Tracking tools.  These tools allow you to see how many users view your site, the pages they visit, and other user patterns.  Many businesses use free services, such as google analytics, but you can also ask your designer to provide a more sophisticated tracking mechanism.

Hosting.  You can host the site with your designer, or rely on a separate web host.  Either way, make sure you are able to make changes to the site on your own if you need to.

After you’ve agreed to terms:

Be honest.  Don’t play hardball or make threats.  It’s not a bad idea to tell your designer that you’re looking to cut expenses, either- they may even be sympathetic and offer to let you pay for services in lower installment amounts.

Ask for deals in return for favors.  You may also be able to earn discounts by referring customers or trading for other services. 

Suggest extending an existing contract.  Of course, you’ll ask for a discount on future services.  You can contract with your designer for hosting or maintenance services if they aren’t in your existing agreement, or for an extension of these services if they are.  All businesses- especially smaller contractors- like to have a certain amount of business “locked in-” extending terms gives the designer guaranteed business, and can give you a better price.
 
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