How to earn on offshore web design

Why offshore web design and development

Offshore web site design and development help to keep prices at least 3-5 times less, for example, average hourly rate of web development services in USA is $35-75; in UK – $25-50, in Ukraine – $5-20.

How it works?

Typical plan:
·You find a client who needs a web site, ask his/her requirements for the project and send to your offshore partner company.
·The partner makes a proposal and gives you the project estimation basing on his hourly rate, for example, $10.
·You mark up the rate $10/hour as high as you wish (and can – taking into consideration competition in your region, level of demand for web design services, and other marketing factors), for example to $30/hour, and sends the proposal to the client. So if the web design project is estimated on 50 man-hours of work, you charge the customer $1500, from which $500 you pay to your offshore partner company, and $1000 is your profit.
·The partner company works on the project and delivers it to you along with copyright for the work.
·You deliver the site to the customer.

Result – you have a satisfied client and good profit from the marked up price.

How to start?

The first and most important step is to analyze market in your region and decide if it's worth to start this business.

If you already have your own web design company it is easier for you because you already know situation in the market, gain certain reputation, have clients list, etc.
But don't be afraid if you are new to web design business. Believe in yourself and work hard and finally you will be rewarded for all your efforts. As in any type of business, starting the one in web design area, you must ask yourself general marketing questions:

1.Who will be your customers?
2.Why they will order the web design services exactly form you?
3.Where and how they will get to know about you?

Without having clear answers to these questions you shouldn't try to start anything.

The second step is to find trustful and reliable partner – offshore web design company – that will work as "development center" for your business. This company must have good experience in web design and development area, good reputation, top level of customer care and communication. There are many resources in the Internet where you can find necessary information – search engines, web design directories, outsourcing portals.

For example, you can try searching in search engines for appropriate key phrases "offshore web design", "offshore web site design", "offshore web development" and analyze sites of your potential partners.

Also here are several sites where you can find lists of offshore web design companies sorted by country.

http://web-designers.bluegeckonetwork.com/
http://www.theoutsourceguide.com/
http://www.1234-find-web-designers.org/

How to choose the right offshore web design partner company?

There are 2 main factors that determine your choice – cost and quality of web design work.
Cost
Basing on the average web design prices in your local market and your competitive abilities you set prices that you will charge to your customers. There are several methods of web design price calculation, most used are flat price for fixed web site packages, and price based on man-hour rate. Most web design companies operate with both and choose one depending on each project type and requirements.

Then you decide which profit you want to have and narrow down your search choosing companies with appropriate price range.

Quality
Consider the company reputation, portfolio of previous works, testimonials of previous customers, level of communication. Pay attention to payment policy and method, conditions of ready projects delivery, warranties, post-development support and maintenance.

If all details are agreed you may start partnership. Sometimes the first project is quite simple to test abilities of both parties and if everything is going well the partnership will bring mutual benefits.