It seems that many people find themselves very puzzled when talking to advertising, marketing or web development agencies and the very common question of “Do you have a budget for your project?” is asked.
Why is it that many business owners are afraid of answering that question? In my opinion many think that if they tell the budget amount, then the agency is going to charge them more if the budget is high. Sure, that’s a possibility, just like in any industry there are unethical and greedy individuals, but any reputable agency will use that information in order to come up with a good plan/strategy that will fit the budget and deliver the expected results. Alternatively, if the budget it way too low (which happens in many cases), the agency can explain the costs and the client can decided to either increase the budget or reduce the goal requirements.
Why am I writing about this? Well… I have been in the web design, marketing and advertising industry for over 15 years and I have to say that it still surprises me when a client asks for a nationwide or global campaign and expects it done for just a few thousand dollars. Alternatively in the web development arena, I have seen many ask for sites with the same functionality of some of the major search engines or biggest sites, which most of the times can’t be achieved unless a reasonable budget is available to work with. No, Google, eBay, PayPal and many other large sites were not built overnight and for $500. It took years of development to get them to the point where they are now.
Again, why the budget information is kept so secret and why is it seen as a bad thing to ask for?
Wouln’t it make it much easier for both the agency and the client in creating an advertising or marketing campaign strategy that will fit within the client’s budget and set some clear limits on what can be achieved with the given budget? Wouln’t this provide all the details needed by the agency and client to see if the available budget will indeed be able to achieve the expected goals or if some additional funding might be needed? Isn’t it a big time saver for both parties since it can all be represented in black & white with required dollars & cents needed to achieve the goal?
Again, I don’t see why such a simple question gets avoided by most.
If the client is scared that the agency will charge more because they know the client’s budget, then why isn’t the client getting multiple quotes from different agencies?
I know I am just rambling on and on about this simple question, but it does have a huge impact in the relationship with a client, it can save time for both parties and it can certainly ensure that the project is planned with a strategy that will fit within the client’s expected budget and bring positive results, thus making the client happy.
My humble conclusion is that many small businesses don’t actually set aside a budget for web development, advertising or marketing, thus they find themselves struggling with the idea of someone asking what the budget is for the project.
No matter the size of the business, a budget should always be set. This will help control cashflow and it will provide the business with the needed information to determine if they are just day dreaming or if they can actually afford to proceed with they plan or project.
What do you think?