Can other people or companies really sell my services at a higher price to others?

15 replies
I was on a different site and one guy was explaining how he found out that a company used him as a 3rd party to build a site for them. They paid him only a few thousand dollars, but sold it for over 10K to *their own* client!

I was just curious, why didn't they have to tell him they were having him build a site for someone else and selling it for way more? I want to get into freelancing but I don't want that to happen to me...
#companies #higher #people #price #sell #services
  • Profile picture of the author Sid Hale
    Originally Posted by twinklingstars View Post

    I was on a different site and one guy was explaining how he found out that a company used him as a 3rd party to build a site for them. They paid him only a few thousand dollars, but sold it for over 10K to *their own* client!
    Why the surprise?
    Essentially a "provider" sub-contracted the services of a "developer" and was given all rights to the resulting deliverables of the project (the web site). The "provider" then fulfilled their initial contract with the customer.

    Originally Posted by twinklingstars View Post

    I was just curious, why didn't they have to tell him they were having him build a site for someone else and selling it for way more? I want to get into freelancing but I don't want that to happen to me...
    I'm curious... why would you think for a minute that the "provider" is/was under any obligation to tell the "developer" what their plans were?

    The "provider" in this instance, is very much a free-lancer just like you. The difference is that they are outsourcing the actual development work.

    If you don't want this to happen to you, advertise your services at 10K.
    Don't take a development contract for $7 (or even 3K).

    Of course, if you don't have the skills to market your site development services at that price, you may have to settle for selling your site designs for 3K, knowing that you are essentially giving a marketer the ability to mark up the final selling price of your work.

    He advertises, finds the higher paying clients, and takes on the final responsibility to the client. For that, he gets to make a profit of 7K.
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  • Profile picture of the author discrat
    Originally Posted by twinklingstars View Post

    I was on a different site and one guy was explaining how he found out that a company used him as a 3rd party to build a site for them. They paid him only a few thousand dollars, but sold it for over 10K to *their own* client!

    I was just curious, why didn't they have to tell him they were having him build a site for someone else and selling it for way more? I want to get into freelancing but I don't want that to happen to me...


    If I'm Walmart why do I have to tell Coco Cola where and how I sell the bottles of soda I buy from them??

    Pure capitalism at its best


    - Robert Andrew
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  • Profile picture of the author Hippos
    I charged my first client $300 for an online application. She earned $500/day with it for years. Of course it hurts, but like others have said... you set your own price, and that's the price that works for you. Set the price and live with it.
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  • Profile picture of the author agmccall
    Originally Posted by twinklingstars View Post

    They paid him only a few thousand dollars
    .
    They paid him/her the price they set.

    al
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  • Profile picture of the author art72
    As discrat stated; Coca Cola became huge by way of a store clerk buying a formula for like $300 (way back when, lol) from someone else, and look at it now... it outsells 'crack' and they even took the cocaine out, lol!

    Not to keep borrowing info from Napoleon Hill's - "Laws of Success in 16 Lessons" - as it was the first book I had ever picked up of his... He also spoke of how the McDonald's bros sold the franchising rights... and who made McDonald's so huge (hint-hint) it wasn't the McDonald's bros who became billionaires!

    I agree with sid... charge more! (and if someone can still mark it up, so be it!)

    Art

    PS - for anyone who has their 'eyes open' there's a blueprint for success in just these few posts!
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  • Profile picture of the author twinklingstars
    Thanks for all the replies! I guess it does make sense now, I was just really surprised.

    And, I still wonder how they used his site, mockups, or any images he gave them? Like if the company showed any of his example work to their client, then how could they do that when they hadn't paid the developer yet? They didn't own it yet right?
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    • Profile picture of the author Sid Hale
      Originally Posted by twinklingstars View Post

      Thanks for all the replies! I guess it does make sense now, I was just really surprised.

      And, I still wonder how they used his site, mockups, or any images he gave them? Like if the company showed any of his example work to their client, then how could they do that when they hadn't paid the developer yet? They didn't own it yet right?
      Showing that developer's example work to the client isn't necessary, but if it is posted on the web, it's simply a matter of providing the client a URL.

      That said, they probably did not show any of the developer's example work, as they probably hadn't even put the job out for bid yet. In other words, the "developer" hadn't been selected during the period when the "provider" was negotiating with the client.

      The "provider" can negotiate with their client using any examples available to them (either their own, or published publicly on the web by others) to arrive at an agreement of what is desired, and when charging 10K for a site design they are not selling a replication, but unique design with original graphics, etc.
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  • Profile picture of the author twinklingstars
    Thanks for all the replies! I guess it does make sense now, I was just really surprised.

    And, I still wonder how they used his site, mockups, or any images he gave them? Like if the company showed any of his example work to their client (before the project was finished), then how could they do that when they hadn't paid the developer yet? They didn't own it yet right?
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  • Profile picture of the author ChrisBa
    Originally Posted by twinklingstars View Post

    I was on a different site and one guy was explaining how he found out that a company used him as a 3rd party to build a site for them. They paid him only a few thousand dollars, but sold it for over 10K to *their own* client!

    I was just curious, why didn't they have to tell him they were having him build a site for someone else and selling it for way more? I want to get into freelancing but I don't want that to happen to me...
    This happens all the time.. If you set your own price and get paid, why does it matter?
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  • Profile picture of the author superowid
    It's happening all time on fiverr.com. $5 creation can be re-sold for 100x or more, and left just $4 (minus paypal fee) for the real provider.
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  • Profile picture of the author themikerogers
    The American way... Buy Low, Sell High. And yeah, it happens everyday on Fiverr
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  • Profile picture of the author wolfmmiii
    Originally Posted by twinklingstars View Post

    I was on a different site and one guy was explaining how he found out that a company used him as a 3rd party to build a site for them. They paid him only a few thousand dollars, but sold it for over 10K to *their own* client!

    I was just curious, why didn't they have to tell him they were having him build a site for someone else and selling it for way more? I want to get into freelancing but I don't want that to happen to me...
    I don't see the problem. Guy "A" offers a service for $3000. Guy "B" pays Guy "A" the agreed-upon $3000 for services rendered.

    Where is the problem?
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  • Profile picture of the author LouisMcknight
    Their is no problem this is nothing new. I saw a product that actually showed you how to make tons of cash being a service broker. More less all they were doing is just doubling the prices and you keep half and pay the other person. Nothing is wrong with that both parties got paid and the customer got service.
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  • Profile picture of the author Sean DeSilva
    This right here is the value differential between production and sales.
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  • Profile picture of the author David Beroff
    Originally Posted by twinklingstars View Post

    I want to get into freelancing but I don't want that to happen to me...
    Actually, you do. If it wasn't for the salesperson/broker, you wouldn't have made that particular sale at all. (Same reason people set up affiliate programs.)
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