How to Price Your Web Design Services & Templates with Confidence
Have you been trying to figure out what to charge for your web design services or website templates? It can feel like a total guessing game. Charge too little, and you’re overworked. Charge too much, and you worry about scaring clients away. So… what’s the right number? 🤔
Maybe you started out designing for friends and family (or charging super low rates) to build your portfolio—which is a great way to get experience! But if you stay in that zone too long, making the jump to sustainable pricing can feel really overwhelming.
So, what are you actually supposed to charge? What should be included in that price? How should you be structuring payments?
We’ve been there! After years of pricing custom web design services and website templates, we’ve learned what works (and what really doesn’t). This guide will walk you through all the key questions and topics you should consider when creating your own pricing model. 💰💸
By the end, you should feel confident in determining exactly what to charge, the value you’re offering, and how to make the math, math—even if you’re not a numbers guru.
Let’s dive in!
Defining the Value of Web Design Services & Templates for Pricing
We talk all things pricing structures and numbers below, but before we get into that, we want to take a moment to help you understand what you offer and who you’ll be serving.
Each of these factors play a big role in determining what you should charge and why. When you’re confident in the foundation of your business and how you stack up against others in the same industry, pricing your services will come a lot more naturally.
Let’s start with the value of what you offer. This might seem like an obscure way to figure out pricing, but it’s actually a lot easier to analyze than you’d think and it’s a super helpful metric.
Here are some things to consider when determining the value of your products:
What’s included? A website that consists of 20 pages plus ongoing support is likely going to cost much more than a basic 3 page site. Consider factors like the amount of content you include on each page, extra resources you offer, trainings, etc. All of these things add to your overall value!
Custom vs. Semi-Custom. Creating and customizing a website from nothing is super valuable to a client, because it means that they are the only person who will ever have that design. A semi-custom site is also a great choice, but it’s not one-of-a-kind and it doesn’t require as much work.
Experience and Trust. If you’ve been building websites for 10 years, have taken classes to expand upon your knowledge, and have a list of clients who can back the work you provide, then you better believe that your services are going to be more expensive than a brand new, beginner designer.
At the end of the day, the value of your products is all about the level of service and resources you’re able to provide. Things that definitely shouldn’t be ignored when coming up with your specific prices!
Who is Your Target Audience or Ideal Customer?
The next step is figuring out who you’re designing for. Understanding your target audience plays a huge role in determining your prices.
For example, working with a brand new business owner might require a different approach (and a different price) than working with a well-established company. The type of client you attract—whether it’s a tech startup or a lifestyle blogger—will give you clues on where to position your pricing.
Here are some things to consider when identifying your ideal customer:
Budget
How much can your target audience realistically spend? If you're targeting small businesses or solopreneurs, their budgets might be tighter compared to larger corporations or tech-based clients who can likely afford more complex (and more expensive) designs.
Industry or Niche
Certain industries require specialized services. For instance, a financial advisor might need a custom tax calculator on their site, which requires extra time and coding expertise. That’s an example of a situation where your pricing would need to reflect the extra work involved.
Full-Time vs. Side Hustle
Consider whether your ideal clients are full-time business owners or part-time hustlers. Full-time entrepreneurs are likely to invest more in professional website design because they’re all-in on their business. On the other hand, someone juggling multiple side projects might not have the same budget for design work.
When you know exactly who you want to serve, you’ll have a clearer understanding of what pricing will make sense for both you and your clients.
Which Pricing Structure Should I Pick for My Web Design Services?
Okay, now that you know the value you’re offering and your target audience, let’s dive into the juicy stuff!
When it comes to pricing your website design services, there are several pricing models to consider. We'll break down the most popular ones: hourly rate and project-based pricing.
Each pricing model has its pros and cons, so it’s important to choose the one that aligns best with your business goals and the type of web design services you offer!
👉 How to Start Making Money Online as a Web Designer: A Beginner's Guide
Hourly Rate for Website Design Services
Charging based on a set hourly rate is the most straightforward pricing model, as it allows you to simply charge your clients based on the number of hours you work on their project.
This model works well for projects that involve various aspects or could take an extended period of time. However, one downside is that it can be tricky to give an upfront estimate of the project’s timeline and cost.
If you decide to charge by the hour, it’s important to feel confident in estimating how many hours it will take to complete the project. Most clients want to know an approximate cost upfront, so being able to provide an estimate (or having clients that are flexible with their budget) is key.
Project-Based Pricing for Website Design
Charging based on the project means that each project you take on will have one flat fee, regardless of how little or much time it takes to complete.
This model works best for projects that have a well-defined scope and set of deliverables, as you’re able to estimate the total cost based on the work you’ll be doing and present a fixed price to your clients.
Utilizing project-based pricing can provide more certainty for your clients and help you better manage your time and resources, however, it’s still important to note that following this model does reduce the amount of flexibility you have while working on a project. This means that it might be difficult to adjust the price or add anything on once you’ve gotten started!
If you want to try charging per project, it’s a good idea to have things like late fees and add-on fees built into your contract to cover you in case a client wants to shift direction mid project or ends up dragging on communication.
You can also always use a combo of both hourly and project-based pricing! For example, if you’ve charged a flat fee for a project and the client wants to go further with customizations, you can add services on at an hourly rate as needed.
Subscription or Retainer Based Pricing for Web Design
A subscription or retainer-based pricing model involves charging clients a recurring fee for ongoing website design services, often for a set number of hours or deliverables each month.
This model is great because it provides you with steady, predictable income while offering your clients continued support and convenience. Over time, it builds a long-term relationship with clients, giving you reliable work as they continue to trust you with their web design needs.
Business Tip: It’s easier to maintain a current client than constantly find new ones. So even if this is just one pricing and package option you offer, it’s a great way to generate steady income while focusing on the relationships you’ve already built.
For example, you might do the initial website design as a one-time project fee and then upsell them to a monthly retainer where you can help with revisions, maintenance, and updates. This can be a win-win for both you and the client!
👉 What I offer in my brand design packages
How to Structure the Pricing of Your Website Templates
If you’re selling website design templates or plugins, you’ll typically opt for a fixed pricing model. This approach helps you offer consistent pricing and predictability.
A common structure is charging a flat fee per template (for example, $200 for one template). This allows you to build a portfolio of products that customers can count on while ensuring that you earn a specific amount per sale.
You could also consider a subscription model where customers pay a recurring fee (monthly or yearly) for access to all of your templates or web design products. This is ideal if you offer a large collection of products and want to provide ongoing value to your customers.
Whether you choose a one-time fee or a subscription, ensure that you have clear terms and conditions for your templates. This should cover:
What’s included in the price (e.g., limited or unlimited use of the product)
Refund policies
Support options
Copyright information
Other relevant legal information (we love YourLegalBFF and The ContractShop for template contracts).
So, How Much Should I Actually Charge for Website Design Services?
Setting the right price for your website design services can be tricky, especially if you're just starting out. While it's tempting to base your pricing on what others are charging, this method can be flawed because it doesn't account for your unique business expenses, income goals, or personal situation. Here's why you should focus on pricing strategy tailored to your individual needs rather than simply copying competitors.
Why You Shouldn’t Just Charge What Others Are Charging
Many freelance web designers make the mistake of pricing based on what others charge, but this approach often leaves out important factors. You can't see the financials behind another designer’s business, such as:
Their overhead costs
Personal living expenses
Business-related taxes and fees
If you charge the same as another designer without considering your own circumstances, you could find yourself struggling to meet your financial goals.
Another common piece of advice is to "charge what you’re worth." While it’s well-intentioned, we believe pricing should be based more on math and strategy, with a bit of market research thrown in, that way your able to make your business sustainable and profitable.
Step 1: Determine Your Yearly Income Goal
To find your ideal web design pricing, you need to start by setting a clear yearly income goal. Here’s how to break it down:
Calculate your yearly expenses
Start by listing all of your expenses, including:
Business costs (website hosting, software, marketing)
Personal expenses (rent, bills, food, leisure activities, new clothes, travel...you know all the things)
Savings (emergency fund, retirement savings, etc)
Add everything up to estimate your yearly expenses. For example, let’s say your total annual expenses come to $40,000.
Step 2: How to add tax to Your Pricing as an Independent Contractor
This next step is so important!
As a solopreneur or independent contractor, you need to consider tax, otherwise your yearly projections will be way off.
Calculate your taxes
First, you’ll need to figure out what your tax rate. It’s common practice to have a tax rate around 25-30% (but speak to a professional as this can change based on where you live and how much you make!). Then, you’ll want to add that rate to your yearly income goal.
Continuing with the example from above - if our yearly income goal is $40,000, and our tax rate is 25%, then we’ll actually need to make around $53,500 in order to hit our $40,000 goal ($53,500 - 25% = $40,125)
Now, we’ll say that our total yearly income goal (including tax) is $53,500.
Step 3: What Should You Charge Per Hour?
Using the numbers we just calculated, let’s come up with the perfect hourly rate for you to charge your clients.
Calculate Billable Hours
Estimate the number of hours you plan to work for the year. For example:
If you want to work 20 hours per week for 52 weeks, that’s 1,040 billable hours per year.
Figure out, as accurately as you can, how many hours you plan to work for the year!
Once you have both your yearly income goal (after tax) AND you know how many billable hours you want to work, divide your yearly goal by the amount of hours.
For example
Yearly income goal is $53,500
Desired amount of hours worked is 1,040 (20 hours per week x 52 weeks)
$53,500/1,040 = $51 per hour
This gives you a great starting point for what you need to be making per hour in order to hit your total yearly income goal. Now, you just need to focus on securing enough clients to meet your weekly and yearly billable hours!
Step 4: What should You Charge per Project?
Now let’s see what would be an appropriate per-project amount!
The most essential part of determining this number is to figure out about how long each of your projects will take.
When setting up project or package based pricing, you need to be specific about what clients will be receiving, how many revisions they’ll get, how many pages you’re creating, etc. If all of this is clear, then you can calculate roughly how long a project will take and, subsequently, how many projects you’re willing to fit in during the year.
Let’s say that each of your custom website design packages takes 30 hours to complete. How many of those projects are you willing to take on during the year? Can you work on multiple projects at once? Do you need time in between projects to regroup and plan? Will you be taking any major holidays during the year?
All of these things matter when trying to plan out your prices!
For example, let's say you are willing to take on 12 projects per year (so one custom web design project per month).
You would want to take your yearly income goal from earlier ($53,500) and divide that by the total amount of projects you're willing to do that year (12):
$53,500/12 projects = $4,459 per project
With this example, you would need to charge $4,459 per project, and secure 12 clients in order to meet your income goal of $53,500 ($40,000 after tax).
Step 5: Adjust Your Pricing Strategy Based on Your Business Needs
Keep in mind that your pricing might change as you gain more experience or offer additional services. As your business grows, you can increase your rates or adjust your service offerings to meet the evolving needs of your website design business.
To help you adjust your rates, here’s a custom ChatGPT prompt that you can use to calculate your baseline hourly rate (from the previous section) and adjust your pricing dependening on your target audience and needs:
"Help me calculate my pricing for web design services. Here’s the information I have for you:
My monthly business expenses (list all tools, subscriptions, software, etc.): [Insert total monthly expenses]
The number of billable hours I plan to work each month: [Insert expected hours]
My desired monthly income (after taxes): [Insert desired monthly income]
My tax rate (for example, 25%): [Insert tax rate]
My ideal client (briefly describe: for example, 'small business owners in the fitness industry,' 'entrepreneurs looking for simple, affordable websites,' etc.): [Insert ideal client description]
Based on this information:
Calculate my ideal hourly rate.
Calculate a project-based fee based on an estimated number of hours for a typical project (e.g., designing a website).
Suggest a subscription model fee (if applicable) for ongoing access to my website templates or services.
Give me strategic pricing recommendations based on my ideal client, like how to adjust pricing based on their budget and needs.
Additionally, provide any advice on whether my current expenses and desired income seem reasonable for my target market and if I should adjust anything to better fit industry standards or client expectations."
Key Takeaways for Web Design Pricing
Avoid pricing based solely on competitors: Every business has different expenses and goals. Develop your pricing strategy based on your unique circumstances.
Factor in taxes: As an independent contractor, be sure to add tax considerations into your pricing calculations.
Consider your ideal hourly rate or project fee: Calculate how much you need to earn each year and divide that by your billable hours or the number of projects you can handle.
Adjust over time: As your experience grows, don't be afraid to raise your prices or refine your services.
How Much to Charge for Your Website Templates
Pricing your website templates can be a bit tricky, but it’s all about finding that sweet spot where you’re offering great value without underpricing yourself. Many people buying templates are on a budget and want a high-quality design that’s more affordable than a custom one.
To start, take a look at what other designers are charging for similar templates (you’ll see we price around $200+ for our templates). Typically, you’ll find budget-friendly templates priced anywhere from $20 to $50, while more advanced templates with extra features might go for $100 or more.
Once you have a sense of the market, think about the costs involved in creating your templates. How much time do you spend designing? What tools or software do you use (and how much do they cost)?
The good news here is that a template is a product you can sell again and again—so one sale doesn’t need to cover all your costs. This means that as you sell more templates, you’re maximizing the return on your time and effort. It’s important, though, to price it in a way that makes sense for the value you're offering. You’re saving clients time and providing them with a polished, professional design, which is a big win for them. But it should still be priced fairly for the work and tools you’ve put in.
A good pricing strategy is to start with an affordable rate that feels comfortable for your target audience but also allows you to cover your time, tools, and other costs. As you build your portfolio and reputation, you can start increasing your prices.
Also, remember to offer a variety of options—maybe some budget-friendly templates and others with more advanced features at a higher price (you’ll notice with our shop we have Squarespace website templates, Social Media templates, and Add-ons which all cater to different price points and needs). This way, you can appeal to different budgets and needs.
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How to Understand Your Competitors’ Pricing (Without Copying it!)
When you're setting prices for your web design services or products, it’s tempting to peek at what other designers are charging and just replicate that price. But while copying isn’t the answer, understanding the competitive landscape is super helpful. Here’s how you can gather insights from competitors without simply mimicking them:
Identify Your Competitors: Start by researching designers in your niche. Instead of just searching “website designers,” try something specific like “website designers who sell templates” or “designers working with photographers.” This gives you a more accurate picture of what’s out there and who your real competition is.
Analyze Their Services and Products: Take a closer look at what other designers offer. Are their services more comprehensive than yours? This can help you adjust your offerings or pricing to be more competitive. Understanding what others do will give you a clearer picture of where you stand in the market.
Take Note of Their Pricing: Price is important, but don’t let it be the only factor you consider. Compare their pricing with the services and value they provide. It’s about the whole package—not just the price tag.
Check Client Testimonials: It’s one thing to see what someone is charging; it’s another to see how clients are reacting. Dive into testimonials and social media to see how well their services are being received. Positive reviews and happy clients (or lack thereof!) can give you confidence in your own pricing decisions.
After you’ve done your research, use the information you’ve gathered to help you decide on your own pricing. You’re not copying others—you’re learning from them to make informed decisions for your business!
How to Overcome Imposter Syndrome if You’re Uncomfortable Charging That Much?
So, you've done all of the calculations and maybe you're feeling a little bit uncomfortable with how much you need to charge to actually make a living.
This is totally normal! Imposter syndrome is a common feeling among new web designers, where you doubt your abilities and feel like you’re not good enough to charge full price for your services. This can hold you back from charging what you actually need to charge and ultimately, negatively impact your life and your business.
Here are a couple tips for overcoming imposter syndrome when pricing your web design services:
Focus on your skills and value: Remind yourself of the skills and knowledge that you bring to the table, and that you are offering valuable services to your clients. Even if you don't think you're super skilled just yet, you are still always more skilled than your client, so you WILL be bringing value to them!
Don't skip the competitor analysis: When you research what others in your industry are charging, you'll probably see that so many others are charging similar prices and it might make you feel more at ease with your pricing.
Remember, as you grow and develop your skills, your confidence and pricing will naturally increase. Don't be afraid to start small and adjust your prices as you gain more experience and expertise!
Don't let your feelings of being "unqualified" influence the decision about how much you charge.
In the wise words of Jenna Kutcher, base your pricing on an equation not an emotion.
Pricing your custom web design services and templates can seem daunting, especially when you're just starting out. However, when you take the time to consider your target audience, competitors, and the value that you offer, in addition to calculating what you actually need to earn, you should be able to confidently come up with pricing for your website design business!
Don't be afraid to charge what your products are worth, and always be open to adjusting your prices as your business grows and evolves (after all, it's your business, you can do what you want!).
👉 Top 5 Challenges New Web Designers Face & How to Overcome Them
If you're interested in learning more about what it takes to have a successful web design or template biz, Paige Brunton, a true web design guru (& one of our biz besties) is offering a completely free, "Profitable & Productive Bootcamp” March 31st to April 2nd! It's basically a roadmap for web designers to follow if they want a successful business without the stress of having to figure it all out on their own. It'll be a jam-packed 3 days–you seriously don't want to miss it! Save your seat here!
Want more web designer tips? Check out the posts below👇
Where you can sell Squarespace Templates to reach more customers
Biggest Business Lessons I Learned in 2024 (& tips on how to avoid my mistakes!)
4 ways to make more money as a Web Designer
How to create a Live Demo Squarespace Template (and what to do when the trial expires!)
How to send Squarespace Templates to customers after they purchase
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