Paying your Web Design Company Tips

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What does a “Past Due” status with my web design firm mean?

What does a “Past Due” status with my web design firm mean?

Past Due means that invoices on your account with your web design firm have exceeded the payment terms allotted to your account and that your account has an outstanding balance that is due immediately. Past due accounts are also in danger of collection calls from the accounts receivable department of your web design firm, and/or, further collection activity including, but not limited to, having your account forwarded to a professional collection agency. The best way to avoid this from happening is always keep your account with your web design firm current.

   

How do “Statements” and “Invoices” from my web design firm differ?

An "Invoice" is another name for a bill. When you request services from your web design firm, and invoice is generated and sent to the address on file with th Accounting Office of your web design firm. You can receive multiple invoices per month, depending on the level of services requested by your web design firm.

A "Statement" is a list of your account activity for a predetermined range of time. Usually, statements are sent to a client and only reflect any "open" transactions on your account with your web design firm. These transactions can be in the form of invoices sent, payments received, or credits open on your account with your web design firm. This is not a bill, and is used to show you the activity within your account. Statements from your web design firm are usually sent only once per month.

   
If I move my Web site design to another provider, do I still have to p

If I move my Web site design to another provider, do I still have to pay my original Web design firm?

Yes, for the work the Web design firm completed -- and if you are in a term length contract with the Web design firm (for maintenance or hosting), you may be obligated to pay additional charges as well. Pay close attention to contract terms, because if you chose to not pay your bill, and moved your services elsewhere, your account with your Web design firm can and probably would be turned over to a professional collection agency. The agency, in turn, uses every legal method possible to collect this debt, including, but not limited to, phone calls, collection letters, background investigations, and reporting the delinquencies to the three major credit bureaus. Most Web design firms take providing their clients with top quality service very seriously, but the Web design firm also expects their clients to take the same seriousness in reviewing and living up to contract terms.

   

When my web design firm bills me, what are the “payment terms”?

Web design firms provide payment terms for their clients. Payment terms are the allotted time given to the client, to receive, process, and submit payment for their bill. All web design firms give their clients a standard "Net 10" payment term. This means that the client will have ten calendar days from the day the invoice was printed, not the day it was received, to send payment to their web design firm.Special payment terms are available on a case-by-case basis and usually are predetermined at the time of the contract signing. Check with your web design firm for more details.

   
What is a ballpark figure for the cost of Web site design from a professional Web site design company?

Cost of a Professional Web Site Design Company

The cost for a professional Web design company to create a Web site varies widely. A professional Web site design company may charge you as little as $2,000 or as much as $2 million for a project. Why is the range so large? The cost to create a Web site depends primarily on two factors – the hourly rate of the design team and the complexity of the project.
The design team to create your Web site might consist of an art director, a Web designer, and a Web programmer. Each design team member has a specific hourly rate based on skill and experience. You may have more or fewer members on working on your Web site depending on what your needs are. A project might also be as simple as a minor revamp to an existing Web site or as complex as a new Web site launch for a business entity. Thus, all those factors will come into play when determining the total pricing for a project.

   

Can I wait until my “due date” before mailing in a payment to my web design firm?

Your due date, as specified above, is the day that payment for your invoice should be received in the accounting office at your web design firm. This date does not mean that you should wait until that day to mail your payment to your web design firm. After the due date noted on your invoice, your account falls into a "Past Due" status, and, if this occurs, future services from your web design firm may be delayed, until your account has been paid and brought to a "Current" status.

   
What should I look for when reviewing the contract with a professional Web design company?

Reviewing the Contract of a Professional Web Design Company

Once you have made the decision to work with a professional Web design company, you will need to review and sign a contract agreement to protect yourself and the design firm from any financial disagreements or misunderstandings. There are a few main points you should consider when reviewing a contract with a professional Web design company.

• Has the scope of work been clearly defined in the contract agreement and is it correct?

• What will be the payment for the entire project and how will it be calculated?

• How will decisions be made concerning additional work or revisions and how will those costs be determined?

• Are miscellaneous costs such as travel, shipping, and photography included and have estimates been provided?

• Does the project have a reasonable timeline and deadline?

• What will be delivered as a finished product and when?

   
How can I find out what the current rates are to hire a professional Web design company?

Going Rates to Hire a Professional Web Design Company

The cost to hire a professional Web design company will vary widely based on the firm you hire and the scope of the work you would like to have done. You can expect to formulate your rate in one of two ways. In one method, you will pay an hourly rate to the Web designer or project team members. In the end, you will pay a total based on the number of hours spent. More commonly, a professional Web design company will estimate ahead of time, the number of hours the project will take, and give you a flat fee. You will also get a breakdown of the hourly fee you will be charged if additional Web design is agreed upon.

To get more information on average hourly rates and salaries of Web design staff, you can consult the current issue of the Graphic Artists Guild Handbook.

   

How can I ensure that my account with my web design firm stays “current”?

The best way to ensure that your account is always current with your web design firm, and that there are never any delays in future work, is to allow yourself three (3) days prior to the due date on your invoice to remit payment. Example: The due date on your invoice is September 4th. It is now August 28th and you know that it takes three days for the payment to get to your web design firm. In a case like that, you should mail your payment no later than August 31, so that your payment is received by your web design firm on September 3rd, one day before your due date, with ample amount of time for the payment to be processed and applied to your account with your web design firm.

   
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