Both the clients and the service providers are responsible for this.
Why the Clients are responsible for this?
I have worked with many clients working across various domains. I still meet many people who don’t take their branding, designing and website-related requirements seriously in India. They don’t even consider these activities in their budget requirements. According to them, branding assets and websites can be developed in a very nominal amount. These people look at it as a copy-paste job.
Because of their this attitude, many freelancers do this job at a very low cost. And the final output suffers from poor quality. But, in most of the cases, both clients and service providers seem to be happy with the output, so this is a win-win situation. And, I am not worried about it.
The problem starts when the cost at which the work is done starts becoming the industry standard.
For example, when I was using UrbanClap app in 2016 for getting leads for my website development services, some people used to bid Rs. 5000 for a project I was going to do in Rs. 15,000
In this case, you will never get a project when you are bidding 3 times more amount than others. Now the client starts thinking that the websites can be developed at just Rs. 5000. So wherever he goes, he looks for people who can do this work in such a low amount. Also, when his friends ask for a recommendation, he shares the same feedback with them and it continues.
Why the Service Providers are responsible for this?
There is no requirement of any university degree for providing services like graphic designing and website development. There are too many courses available online for learning these skills. Many free courses can be availed from Youtube also.
Due to this, there is a very huge number of Graphic Designers and Website Developers available in the market. This has created a huge competition. There is a big imbalance in the supply and demand in this field. Many businesses want to develop a website and there are much more website developers available in the market who are ready to develop those websites. Due to this competition, just to grab the client, service providers, especially freelancers quote very low prices.
The competition increases the bargaining power of the clients and the willingness of the service providers to do the work at such low amounts is affecting those who want to do a quality job.
My advice to Clients:
Branding, Websites, Social Media Channels, etc. are various touchpoints between your company and your customers. These are important assets of your company and you must get it developed from professionals who understand the art and science behind it.
- Find professionals online or from your network
- Ask for the past work and understand their work processes
- Actively participate in the process
- Don’t just build brand identities, develop brand experiences
My advice to Service Providers:
Always have long term goals. Grabbing clients by quoting low price will surely help in earning money in a short period, but won’t help in the long run.
You also know that you cannot provide all the services at such low costs. When you provide the first service at a very low cost, the client is going to expect all the other services at a similar cost. You will surely earn money, but you won’t be satisfied with it.
- Invest in yourself
- Learn different tools, technologies, methodologies
- Participate in many networking events and build your own network
- Understand the market requirements by joining various forums(Quora is one of them)
- Bring creativity to your work
- Provide professional services at a premium cost
- Don’t just do business with clients, build relationships that will give you financial stability in the long run.
The customer acquisition cost is always higher for any kind of business. Increasing the lifetime value of the customers helps in creating a profitable business.
Do you want to run profitable digital marketing campaigns for your business?
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