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TechBiz

Economies of Scale

When I used to consult, I could work for a few websites, and barely get by. Maybe I didn’t charge enough, or maybe how I worked for these sites didn’t allow me to invest in the site.

What do I mean? If you work for just a few clients, you run the risk of one project backing your work up. This is true of any professional service company. A great example of this is ICon, a company that works to keep the IRS off other companies’ backs. Because the IRS fails to leverage the advantages of networked computing, ICon cannot work as efficiently, and therefore doesn’t make us much money as it could.

Many web consultants shy away from hosting responsibilities because it isn’t what they do, or because they’re afraid of the potential financial risks of hosting, but anyone who wants to make serious cash should seriously consider hosting. It’s one of the few areas, where increased charges to clients are easily justified, once a client’s site starts becoming a hit.

Do web firms that takeover hosting responsibilities make more money than web firms that don’t?

Share your thoughts.

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