It is advisable to obtain and thoroughly examine several quotes before purchasing a website, database solution or software product. Unlike hardware or other physical equipment, such intangible products are usually provided under license, which can obscure hidden costs and headaches for the unwary buyer.

The following guidelines offer some general considerations, but trusted technical advice is key for any unique situation.

#1: Get the costs straight
When considering/comparing a quote, look past the total initial investment, and ensure that all costs and implications are spelt out. Using the example of a website, the following areas should be clearly outlined (as applicable):

• Site architecture
• Graphic design/integration
• Code/site development
• Content responsibilities
• Hosting costs
• Domain name costs
• Overage charges
• Domain services (eg. email account provision/configuration)
• Maintenance charges
• Support charges

Maintenance charges are perhaps the most common pitfall for small websites and applications. “Buying” a completed website for $1,500 is not such a great deal if a compulsory maintenance charge of $200/month is added. Like extended warranties, some companies push an optional maintenance charge as a “strongly advised” extra, using scare tactics to sell the additional product. Find out what is included under such a charge, and whether an hourly support rate is more appropriate for your situation.

If a company is unable to practice financial transparency in the initial quote, ask for clarification: but factor potential communication issues into your choice.

#2: Who owns what?
When buying a website, ideally the completed site should belong to the buyer. Some agreements use compulsory ongoing service charges to effectively lease the site to the company, with the potential for problems in the future. “Fully managed” websites are another common approach, in which the website company hosts and updates the website on the client’s behalf. For some companies, such models can work, but a full cost-benefit analysis should be carried out before taking the plunge.

Note that some hosting services offer template-type sites with content management systems and a minimal deployment cost. Because the initial investment and hosting cost is generally lower, these services carry less attendant risk: but it is still important to ensure that the client retains ownership of all information they place on the website.

When it comes to software, check what restrictions the license places on the use of the software: can it be installed on multiple computers, modified or redistributed?

#3: Process mapping
A simple list or flowchart outlining the roles and responsibilities of the client and provider, and ideally the impact on existing processes, can easily avoid future aggravation.

A clear understanding of the process can also assist in ensuring that all cost and ownership questions have been identified. If the process features obvious gaps or complications, it may be worth investigating alternative products/technologies/customisations, to better meet your specific needs.