I am a long time lurker here in the forum and finally decided to engage with the community. I have launched a web design company targeting small business in a specific niche. I am a top level sales person and in my day job I sell SaaS solutions inside a specific industry.
I have several customers for my web design company but most were leads generated from my site. I did spend about 30 minutes cold calling one morning to test the waters and got one customer from that. I had to be careful not to overload myself but now my wife has agreed to quit her job so that she can focus on spawning the sites that I sell. I am a pro on the phone so generating new sales is not an issue for me.
I notice many web companies just charge a one time fee and maybe a fee for each update. I was thinking of using a subscription model and charging a monthly low and a very low design/setup fee. I am drawn to this model because it allows for recurring billing and will let give me a nice base to build on.
My questions are:
Why do many web designers charge a one time fee as opposed to a monthly fee? Is there something I'm missing here? Would it be better to have 200 accounts paying you $129.99 per month and have the constant revenue stream rather than charging the customer one time which forces you to constantly have to sell more and more? I'm very eager to hear your thoughts about this.
I look forward to hearing the responses and I have found this forum very valuable thus far. Thanks!