In this episode, I’m going to provide a proven path that you can follow to consistently make 100k per year (or more) for your web design business. This is based off of my experience with my web design business (apart from what I’m doing here at joshhall.co) and is also what many of my students and colleagues are doing in their businesses to hit the 6-figure mark consistently.
First things first though, we need to cover a few important, foundational things to help develop a 6-figure per year plan:
- Starts with your mindset – Are you worth that? Are you ready? If not yet, that’s ok. But focus and plan to get there faster than you think. Solidify your services, level up with learning and a proven path (like my courses) and SPEAK IT OUT LOUD. Trying saying “I plan to make 100k this year.” Not I WANT to make…I PLAN to make. See how you feel and get comfortable with that mindset.
- Set a higher goal – Aim for $130-150k. Keep in mind there will be money for expenses, taxes, etc. Luckily with this plan in place, it doesn’t take too much more effort and focus to hit an additional 30k or so per year with your clients.
- Focus on your “A” clients – Build high level, value packed relationships and services with your best clients. Don’t get in the cycle of having to find new clients every week.
- Plan for it – Plan your service offerings, set goals in revenue and number of clients, your processes, etc.
- Raise your rates – RIGHT NOW! Even if you don’t think you’re worth it. You are. Do it in the same “price bucket” to start. If you charge 1k on average, bump it up to $1,447. If $1,500 on average, bump up to $1,997, etc.
Here’s why your average is so important:
If you’re charging $1,000 for your average site and you’re not offering hosting, maintenance or recurring income (like I did for my early days) it’s going to take 100 clients a year (8 clients a month, 2 a week) to hit 100k. That’s not a sustainable or realistic pace. Especially if you expect to do things quality and make A clients.
You want to average $3,500 for projects to make that more realistic. Then, you’d only need 2 new clients a month. Then as you’ll find, adding additional revenue sources will help limit the number of new clients you need. And you’ll get faster you get with your designs, processes, quoting, etc, the more profitable you’ll be, the more projects you can take on, etc
The practical example:
So let’s say you level up with my courses, your value and charge an average of $3,500 per site. Some sites may be $1,500-$2,500 and others might be 4 to 5k, if you do 15-20 projects a year, that’s 70k. (may be less if you have some bigger projects) That means we only need an additional 30k in other income.
Depending on what recurring or ongoing income strategy you want to employ, let’s say you get your maintenance plan up to 2k/mo, that’s 24k so we only need an additional 5k This could be supplemented with ongoing SEO work, content strategies, revamps or ongoing work for clients.
Now again, we need to factor that it’s GROSS income, it’s not NET which is what we’ll take home. But with this plan and path in place, it just takes a little “emph” to add another 20-30k which should cover taxes and expenses which are nothing compared to most other industries.
So in that case, work value based pricing in with some bigger projects, grow your maintenance and SEO (or other recurring services) and you can easily GROSS $130k which will put you at a 6-figure/yr income!
3 practical options for 100k/yr:
- Option 1: Just Web Design – Average of $3,500 per project/client = 29 clients a year to hit $101,500.
- Option 2: Web Design + Maintenance Plan – Average of $3,500 per project/client + maintenance plan at $2,000/mo with 20 clients on that, you’d only need 21 clients for web design. $24k with the monthly plan, $76k with web design.
- Option 3: Web Design, Maintenance + One Recurring Service (like SEO) – Average of $3,500 per project/client, maintenance plan at $24k/yr, you could do 15 clients/projects a year and only have to have an additional $23,500/yr which would be less than 2k/mo of recurring work like SEO plans, content, consulting, etc.
And as your maintenance plan grows to 3-4k per month, it’ll help take the need down for projects and additional work so you can have more time and focus on your BEST clients Again, I can’t emphasize enough to focus on your good “A” clients. Circle back around them and become their “web person” handling multiple services. That’ll bring your annual or lifetime value of a client from $3,500 one time to $5-10k (or more) per year.
So there’s a practical example based off of my business on how I’ve kept it at 6-figures for several years and a few options to show you how you can get your business there too!