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Interview With Paul Mycroft On The Erosion Of His Web Design Business

Interview With Paul Mycroft On The Erosion Of His Web Design Business

By Jeffro on September 26, 2010

During an email conversation one day, Paul Mycroft who operates his own web design firm told me something that I thought was interesting. In fact, he’s been the first one to say such a thing and that is that the commercial themes being produced in the WordPress community are eroding his web design business. When I asked on Twitter whether or not anyone else had experience such a problem, I received a few replies that agreed with Paul but they also stated that they evolved their business to take advantage of these new themes. Here is the interview with Paul and I look forward to your responses in the comments.

Who are you and what do you do for a living?

I am a 1-man web design shop who has been designing and building web standards websites from scratch for over 10 years. I have been working with WordPress for 2 or 3 years now, as well as a recent project or two using ExpressionEngine. I also offer SEO services, web traffic analysis and an email marketing tool. These services combine to not only help my clients get decent search engine traffic but develop and market their sites using email newsletters and blogs. I have been supporting 40-50 clients for over 10 years for one or more of these services.

In your line of work, has the evolution of commercial themes as they’ve become easier and easier for clients to use without the middle man harmed, or benefited your business?

I would say that it has harmed the design and maintenance aspects of my business. I used to update many sites for up to an hour a month, which provided regular income and a chance for me to constantly improve those sites. I have offered WordPress as a cheap solution for many clients with small budgets. However, the WP3 (as a CMS and blog) commercial theme industry is opening up new avenues for both clients and me, which I need to develop and become proficient in.

How much of your work these days is web design versus working with established products such as commercial WordPress themes?

Web design takes up 30% where before it was 50-60%.

You mentioned to me that the commercial theme business is starting to erode your core business, in what ways?

My core business is web design and web standards build. I work with clients and another designer to establish a specific “look and feel” then build the site to web standards, sometimes integrating a blog (if the client requested it).

WP3 as a CMS is allowing clients to have a website that doesn’t look like a blog and have a blog built-in.

With the world entering into a recession, people do not seem to have the budget they used to so are looking for cheaper ways to get what they need. They come to me with small budgets but still need websites so the premium theme market provides me with a way to still earn money (on install and adjustment of theme to match brand) and a provide a solution for my clients.

How are you changing the way in which you do business to compensate for the erosion?

For every potential new project and budget, I will now use WP3 as a base. I will offer either a custom-built solution (higher budgets) or a premium theme (lower budgets). For the premium themes, I can still earn money by spending a day or so installing and adapting it for the client’s brand then act as support when needed.

For those higher budgets, I may have someone who can take my designs and convert them into WP3-driven sites. We’ll see how it works out with a test design. I also have a business partner who may go in with me to start selling themes on Theme Forest. But that will take time and testing.

Final thoughts on the entire situation in general?

I feel that in the next few years more and more web hosting companies are going to offer “one-click-install websites” driven by WordPress, much like wordpress.com does. It will get easier and easier to have a website up and running in minutes from more and more companies.

We are rapidly turning into a “one-click” society as we get information in an easier and quicker way (e.g. Google, Apple software, iPhone apps, iPad, BlackBerry). Off-the-shelf software empowers people and turns them into “professionals” in their heads even though they aren’t. It’s dumbing down technology, which is actually a good thing.

In 10-20 years, essential business tools such as website, CRM, email will all be easier to set up online. Web design will be in the theme industry.

Posted in Themes | Tagged business, design, model, Themes | 4 Responses

Toni Schneider From The Freemium Summit

Toni Schneider From The Freemium Summit

By Jeffro on March 29, 2010


Back on March 11th, I mentioned that Toni Schneider would be one of the guest speakers at the Freemium Summit held in San Francisco on March 26th. The summit focused on the freemium business model. That is, offering a free service with the chance to upgrade and that upgrade costing money. While GigaOm has a nice overview of the Summit from the various panelists, WebNewser took a keen interest in Toni Schneider’s session.

The thing that is most interesting to me is that WordPress.com does not work on a tiered model. Instead, everything is individualized à la carte style so that users can pick and choose the features they want. This enables WordPress.com to routinely release new features that they can charge for. I also like their method of only charging for the hard stuff although some would argue that editing CSS is not that hard and should be a free feature. However, you only have to hang out in the WordPress IRC channel for awhile or browse around the WordPress.org forums to see that many people have difficulty editing CSS.

A little insight into the amount of revenue Automattic makes by charging for premium features on WordPress.com.

His company now makes 40 percent of its revenue from premium services like domain mapping, with the remainder from ad sales and enterprise products. But he said the problem with this approach is customers may not know of services they could receive, because it’s harder to market them individually.

I also think some of the points raised by the commenters on the GigaOm article are worth reading. The Freemium model doesn’t work for everyone but more and more companies are going down that road. As a customer, I like companies that use this model. Generally, I get a good enough feel for the product or service throughout the life of the free version that at some point if I need an additional feature or some other value add on, I won’t have to think so hard about giving them my money. Actually, this sounds a lot like Trialware. Would that make a good comparison between the two models or are they the same thing?

Posted in News | Tagged automattic, freemium, model, wordpress

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