The "No Mark Up" Business Model
Sunday, September 20, 2009
This keeps coming up with our incredulous customers, so it's worth repeating here: NO part of our business model includes charging you a mark-up for hosting, e-mail, images, copy-writing or e-mail marketing. If you receive a bill for these at all, then these costs are simply pas-through expenses that you have asked us to bill you. Normally though, we ask you to pay for these services directly, and we'll set them up for you.
All the above-mentioned are mission-critical functionalities that ALL websites -- including yours -- will need. We just don't charge you for them. YES, we'll make recommendations, and YES we will set these things up for you (these are mission-critical to you, after all!), but NO, you won't (unless you request it) get a bill from us for these things.
Why not?
It's just not part of our "keep you independent" philosophy. You see, the other guy charges less on the development side, but sticks it to you by forcing you to sign an on-going contract for hosting and e-mail. For years. For ever. You know, competent hosting just shouldn't cost more than about $15/mos. So they're not really in the marketing business, they are in the boutique hosting business (they're charging you more than $15/mos., aren't they?). So what happens if you want to move your web business to another firm? You're contractually bound to the hosting guy. Get sideways with him and everything falls apart. Now you're stuck. And probably your URL is stuck, because he put it in his name, not yours, and now things get sloppy. We want no part of that. We are NOT in the hosting business, and never want to be. You need to be in charge. So we'll make a recommendation to you -- odds are we'll recommend GoDaddy since we think they are perfect for small businesses -- we'll help set you up but you'll pay for their service directly, and you'll "own" the relationship with them. Not us.
And we have the same philosophy for images, e-mail marketing (we recommend Constant Contact), and copy-writing (we can refer some great talent your way). We take the view that these are all sub-vendors to YOU, not us, so why would we mark them up?
Ah, and one more thought: we take our "Made in America" pledge seriously. We don't recommend sub-vendors to you that source to overseas talent. And if we find out they do, we stop recommending them. Weren't aware of our Made in America policy? Find out more here.
All the above-mentioned are mission-critical functionalities that ALL websites -- including yours -- will need. We just don't charge you for them. YES, we'll make recommendations, and YES we will set these things up for you (these are mission-critical to you, after all!), but NO, you won't (unless you request it) get a bill from us for these things.
Why not?
It's just not part of our "keep you independent" philosophy. You see, the other guy charges less on the development side, but sticks it to you by forcing you to sign an on-going contract for hosting and e-mail. For years. For ever. You know, competent hosting just shouldn't cost more than about $15/mos. So they're not really in the marketing business, they are in the boutique hosting business (they're charging you more than $15/mos., aren't they?). So what happens if you want to move your web business to another firm? You're contractually bound to the hosting guy. Get sideways with him and everything falls apart. Now you're stuck. And probably your URL is stuck, because he put it in his name, not yours, and now things get sloppy. We want no part of that. We are NOT in the hosting business, and never want to be. You need to be in charge. So we'll make a recommendation to you -- odds are we'll recommend GoDaddy since we think they are perfect for small businesses -- we'll help set you up but you'll pay for their service directly, and you'll "own" the relationship with them. Not us.
And we have the same philosophy for images, e-mail marketing (we recommend Constant Contact), and copy-writing (we can refer some great talent your way). We take the view that these are all sub-vendors to YOU, not us, so why would we mark them up?
Ah, and one more thought: we take our "Made in America" pledge seriously. We don't recommend sub-vendors to you that source to overseas talent. And if we find out they do, we stop recommending them. Weren't aware of our Made in America policy? Find out more here.
posted by Express Small Business at
6:56 PM
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