How much does it cost to develop a website from scratch in 2024? / Hebrew
We at We Wizards develop sites and web services of varying complexity, and today we will talk about how the prices for our services are formed. Business services can vary greatly in cost: you can order a site for 100,000 rubles or several tens of millions. Let’s figure out what is the difference between a cheap site and an expensive one, and what the cost of development from scratch consists of today.
The cost of any service consists of the price of human time and associated costs. Therefore, the hourly rate of specialists who will work on your project is a key indicator when calculating the total cost of website development.
We can easily decompose a site, the development of which costs 100,000 rubles: most likely, it is a business card site, assembled on a low-code or zero-code constructor like Tilda with several sections (“Main”, “About the company”, “Services “, “Contacts”). A self-employed freelancer can handle such work alone in 5-15 working days, taking into account presale and intermediate approvals.
The cost can be several million if you need a large site or service that requires a systematic approach to development with subsequent scaling and support. For example, there is a corporation that needs to implement and automate business processes. But large companies already have some kind of warehouse accounting system, their own CRM, a network of departments and several thousand employees. It is very difficult to determine the boundaries of such a system, so development companies conduct work on such projects in iterations, and before the start of all operations, they conduct detailed analysis (the so-called PPO is a pre-project survey that determines where we will start and how we will build the system).
For the development cost analysis in this article, we will take an online store site because it is a popular area that can be easily standardized. It can also be assembled from ready-made blocks on Tilda for 100,000 r., or you can order development from scratch from agencies.
Why is it profitable to make a site from scratch or order the services of an agency?
1. Responsibility for the final result is documented. We all know the disadvantages of working with freelancers: uncertainty, disruption of deadlines, communication problems, etc. When concluding a contract with an agency, you remove all risks related to the human factor.
2. It is beneficial for the company to make a good case. By working on your project, she increases her reputation and importance in the market.
3. The agency that developed the project from scratch is interested in continuing to support it. In the case of an online store, this is inevitable business scaling, regular updates and integration with external services. Let’s state the obvious: most of the developer company’s revenue comes from the further maintenance and development of its clients’ projects.
How much does development cost?
To answer this question, let’s determine the minimum team composition for developing a site from scratch:
This is the person who helps define business requirements, approve terms of reference, form CJMs and write User Stories. The purpose of this stage is to create documentation and provide prototypes of the future site with functionality that will be included in the first iteration*.
*At the presale stage, we form a preliminary commercial offer based on the basic functional requirements that come from our experience in developing similar projects. That is, we can estimate the scope of work in advance and show the client the preliminary cost, which will slightly change to a greater or lesser extent during the approval process. For convenience, we conclude a framework agreement, and to it 2 orders: for business analytics and for development.
It is the heart of development, it is responsible for communication between team members and the client, sets tasks, identifies risks, forms deadlines and monitors all timelines. The manager is responsible for the progress of the project at each stage.
The art director defines the visual concept and is responsible for the final production. He analyzes the market and the client’s product, forms a single visual concept. The UI designer draws the interface based on the prototypes that were created at the analytics stage, creates layouts in Figma (UI-Kit, mobile version and a set of components that will later be used, including when scaling the site) and makes it into a beautiful presentation.
Based on the conducted analysis, the team leader selects the technologies that will be used in development, decomposes and sets tasks, is responsible for the entire environment system and for the final production of the code. The frontend developer prepares and writes the logic of the client part, the backend developer writes the server logic, deals with the configuration of the CMS (if we develop on it).
This person tests CJM, the functionality of each element of the site (feedback form, payment forms and all user scenarios), checks blocks for compliance with layouts, finds bugs.
As a rule, online stores ask to upload goods to a ready-made site from their systems, for example, 1C. Usually, this is a basic nomenclature with the number of remaining items, prices and some kind of description, but in 90% of cases this content is not suitable for the storefront of the site. The content manager uploads photos of the right size, distributes product characteristics and adjusts customer data to the approved design. The customer can provide his content manager, but it is easier to hire a person from the agency, at least at the start, because knowing the specifics of the system and the design concept, he will do this work faster and better.
Many people forget to include the administrative part of the production shop in the estimate, but this is an important point that ensures the efficiency of the entire system. This is an accountant (a person who deals with document management and financial operations), a project manager (in small companies, this role can be performed by a SEO), office expenses (rent and provision), presale (initial calls, briefing, formation of a commercial proposal).
How is the rate of each team member calculated?
For rough calculations, you can derive the formula:
The internal rate of the employee (ZP on hands)
+ VAT 13%
+ EUS 25%
+ Indirect costs (all indirect costs divided by the number of production units, let’s say 5%)
+ margin for the company (in our case 30%)
It turns out that a developer who receives 150,000 rubles per month costs the company about 280,000 rubles, which means that it is profitable to sell his services for about 364,000 rubles, hence the rate is 2,200 per hour, if we do not take into account vacations and days off (in our company, on average, it is 7-8 days a year).
Standard estimate of the online store website project
For convenience, we provide a table with the average hourly rates of each specialist, then divide all the work on the site into blocks and calculate the cost and completion time at each stage.
Website design development
Backend site development
Frontend site development
Publication of the site
This estimate can be disputed (each agency sets the rates and the required number of hours, based on the average market value and their experience of similar projects). We believe that the numbers we mentioned will remain relevant in 2024 for customers with already established businesses who need a reliable, fast, and most importantly, scalable online store site.
When developing a site from scratch, we can easily administer it, add new functionality, screw integrations with other services and constantly update it to meet business needs. By supporting such development with well-configured analytics (we wrote about the specificity and importance of this stage in one of the articles), you will receive an online tool that will help not only demonstrate and sell your product, but also increase its sales.