The web design business is still profitable. In fact, the Web Design Services industry in America has reached $42.2 billion in revenue for the year 2023 alone. This revenue grew 4% from the previous year. From 2020 to 2024, the web design industry has been steadily increasing for about 2.6% per year on average. This indicates that the web design industry is not dead.
But, you must be wondering why other web design businesses are not as profitable as the reports above. For example, not knowing design ethics and not utilizing Content Management Systems (CMS). If you ignore these factors, you can’t attract profit to your business.
Believe it or not, these challenges are normal. You need to know where to start and how to make profit for your website design business. As you read by, here are confident and proven reasons the web design industry is not dead. We will also share what mistakes you can avoid to make your business profitable.
1. Increased Demand on Specialized Services
First on the list, the demand for a web designer is increasing throughout the years. Bureau Labor statistics says the demand for web design will increase up to 13% within 10 years. The most in-demand regions now are:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East and Africa
With your specialized services, you can cater to different business industries. For example, someone you know is starting an ecommerce business. They’ll be needing a website with an inventory management system. They’ll also need a checkout process and a site optimized for SEO. As a startup, it will be usual that they don’t know how to create their own website. This is where your company comes in.
Specialization also allows you to narrow down your competition in the saturated market. Once you position yourself in a specific niche, you establish your authority. It will lead people to trust you. You can command higher rates and establish long-term relationships.
Now, start picking a niche and understand what your potential clients may need. Once you do, deliver the results and expect a steady stream of referrals and repeat business.
In Lee Blue’s YouTube Video, he mentioned that a niche increases revenue. By targeting outside the mainstream like local areas, you can attract clients more. You can create interesting designs leading to higher profits and consistent income.
2. Clients are Now Willing to Pay Big Bucks
Clients are more than willing to invest in quality web design and services. 43% of small businesses plan to invest in performing their website. With this said, businesses are now recognizing how important online presence is. One factor to boost online presence is a well-designed and optimized website. As a web design business, you can help them build their dream website. Now that people are recognizing how important a website is, they’re willing to pay a premium for it. With this said, you can elevate your craft and deliver exceptional results.
But, before setting a premium price, make sure you will deliver premium services, too. It goes both ways. You cannot achieve high-profit if your services are bad. If they’re on a budget, let your past projects show how worthy it is in investing in quality design.
Payton Clark Smith teaches us a way to let clients pay a premium for web design services. He says this can happen if we progress in skill and reputation. It’s okay to start with lower rates for initial projects, but you need to increase. The right time to increase is when you gain experience and deliver high-quality work. He also adds to offer complementary services and adopting an entrepreneurial mindset. You can attract high-paying clients and command higher rates.
Clients who will pay big bucks is proof that a web design business is still profitable. You can position yourself filled with success stories and approaching growth.
3. Increased Local Advantage
Say hello to the local businesses in your area and let them know you have a web design business. Google reports 46% of users are now searching locally for the services and products they need. This report suggests how users prefer working and availing services from someone near. Businesses may prefer local web design businesses to avoid potential issues. These issues concern the time zone or cultural backgrounds.
With this said, network locally. Hang out at your local shop and ask them if they want to collaborate with you. At first, these businesses will not be profitable but they can offer much stability. As soon as you build their website, there will be a streamline of income and that’s where you can charge more.
According to Pavlo, local businesses can boost profits. You need to provide ongoing services and solutions. Offer reputation management, automatic lead follow-up, and missed call text back. Web designers can get a good stream of income with this. He emphasized that companies need to know the specific needs of each local business. Then, start offering high ticket services like marketing through Facebook ads and SEO. This allows web designers to offer comprehensive solutions and command higher fees.
4. The World is Becoming More Inclusive
Most generations now appreciate those businesses who are inclusive in their businesses. What if we tell you that your web design business can help with that? Let businesses know that you can create websites accessible to all users. This is regardless of their abilities, backgrounds, or circumstances.
Businesses who are inclusive experience 2.3 times more cash flow. 67% of consumers think that being inclusive on your marketing is effective. With this said, you can generate more income for your clients and earn a profit for yourself.
Alternative text for images, keyboard navigation options, and high contrast color schemes are some features to incorporate on a website. These features cater to users with visual impairments or limited mobility. You can also provide multilingual support for those users from other countries. What do you get?
- Expanded Client Base: Creating inclusive websites open doors to broader audiences. Once others see your work, you can have potential clients booking your services. More chances of being profitable!
- Enhanced Reputation: Designing responsive websites enhances the credibility and trustworthiness in your industry.
- Increased Innovation: Because of incorporated design elements, you encourage creativity and innovation. It’s user-friendly and beneficial.
5. The Ecommerce World is Growing
If your niche is not profitable enough, there’s good news–the ecommerce world is growing! It presents enormous opportunities for web design businesses. E-commerce is a specific niche where you can create functional online storefronts.
Let’s say a clothing store transitions to an online platform. Your business can create a website that showcases their products. You can help them smoothen the transactions for a smoother shopping experience. Their website can also include product galleries, intuitive navigation, and secure payment gateways. When users have a positive experience, it results in more sales. More sales means you have a share of it too!
Doing a job well done in the e-commerce business can help you grow as a web design business. Expect to reach more financial opportunities with this specialization. In the U.S, the ecommerce sales grew to about $1.119 trillion in 2023. It’s about 7.6% growth compared to 2022. Invest time to learn and master ecommerce platforms. Position yourself as an expert in the field.
Choosing e-commerce allows you to command higher project fees according to Adrian Twarog. He says that e-commerce has a potential for recurring revenue. Successful e-commerce projects can be something you can add to your portfolio. It also attracts more clients interested in similar solutions. It results in word-of-mouth referrals.
6. Growing Technology and Design Trends
Growing technology and design trends shape the digital landscape. As a web design business, it’s a must to adapt and stay updated. 80.8% of businesses desire to redesign their websites because of the latest trends. It’s a smart way for web design companies to show their skill in the latest tools, techniques, and trends.
Profitable Web Design Trends
1. Hero Sections
Say goodbye to the traditional layouts! Hero sections are more modern and attention-grabbing designs. You can attract higher-paying clients by seeking this innovative feature.
2. Dark Mode Websites
Dark mode websites are much readable and professional in some users’ point of view. This trend attracts more visitors and leads to conversions. The serious tone this mode has makes it more credible. Look at this website for instance:
3. Bento Grid Layouts
The organized and uniform appearance of these layouts can improve user experience. It makes the information easy to digest. This can lead to higher user engagement. It contributes to improved search engine rankings and increased traffic.
4. AI-generated Imagery
You save time and effort with this AI-generated imagery. Web designers create appealing websites without breaking the budget. This cost-effectiveness can cause higher profit margins for your business. You can offer competitive pricing while maintaining quality and creativity.
5. Massive Typography
With massive typography, you can deliver impactful messaging that resonates with users. Snapps.ai, for example, conveys brand identity because of their huge texts. Your web design company can save on production costs. You can still achieve a polished and professional look. Also, this trend is simple and clear. You can improve user engagement for your business.
By embracing this, you can position yourselves as industry leaders, attract high-value clients, and have steady income.
Why Is My Web Design Business Not Making Profit?
There are both internal and external factors why your business is not making profit. That’s why people assume that the web design industry has come to an end. But, it’s better to know what went wrong.
- Taxes: Businesses need to have an account for taxes, insurance, and other benefits. These fees are not a joke and it may cause you to lose money.
- Targeting Clients: You choose clients poorly. It results in them not paying you the right amount and belittling you.
- Wrong Platform: You must be on the wrong platform in getting your clients.
- Lack of Business Knowledge: A web design business is not being fluent in web design. It also involves marketing and managing client expectations. Your service quality may be poor, causing you to lose profit.
- Lack of Authority and Visibility: Building your online presence is a must. It doesn’t have to mean lowering your price. You need to be confident about the value you bring to the table.
- Failure to Build Relationships: It’s important to get web design clients and care for existing clients. Long-term relationships with clients result in a steady stream of work and referrals. Focus on the quality of your service.
- Lack of Reinvestment: You’re not allocating resources for improvement and innovation. Check your technologies if it’s up-to-date. Do your employees need more training? Remain competitive and stay relevant in the industry.
If one of these reasons checks your list for not making profit, reassess your strategies. With the demand for web design services, it’s not too late to become an in-demand, profitable business.
How to Generate Sales on your Web Design Business?
It needs motivation and hard work to pursue the web design business. After discovering what lacks, it’s time to plan and execute ways to become profitable. Here are ways to generate sales on your website:
- Offer Additional Services: Provide hosting, doing content, and SEO-related services. This gives a steady income, especially to your onetime projects.
- Scale Your Services: Package services to offer clients more value. Consider expanding into SEO or branding.
- Recurring Revenue Model: Implement ongoing service plans. Make sure you establish a goal on what your income should be at the end of the week, month, and year. Then look for ways to increase it through your most effective strategies.
- Portfolio Building: Focus on building a strong portfolio and reputation. Do you have past clients? Ask for testimonials and share it on your online platforms.
- Quality Delivery and Fixed Pricing: Be firm about your packaged services. Emphasize that they will see high-quality results with that price at just the right time.
- Client Retention and Upselling: keep clients by giving them a long-term value. Offer your hosting and other recurring services after your projects with them. This calls for steady income.
With these ways, you can focus on your clients while benefiting from the profit that you deserve. As a web design company, navigate the challenges of the industry to reach success.
