Hi all,

I recently started a small business. The business is essentially a website design business called Webnexus. Link:http://www.webnexus.co.za/.

As part of a SWOT analysis I realize that one of the threats of the industry my business operates in is that it is highly competitive. With this in mind I tried to do two things.

1-Find a niche': The first niche I'm focusing on is weddings websites. So basically if you are getting married you can use the website to manage RSVP, share photos and your stories, etc. A link can be found here: http://www.saweddingwebsites.co.za/

2-The second is the pricing of packages. From the research I did I found that many website designers offer their services as a large lump-sum cost. I.e they charge a large up-front fee. So to try and do things a bit differently I offer a low upfront cost and then charge a relatively low monthly servicing fee.

The idea behind this is that even thou the initial income from a single website will be low and the monthly fee is low, if I continue to work at getting clients over the long term the business will be a sustainable business due to the recurring revenue.

I would like everyone's opinion on the viability of this pricing model and if you have any suggestions or advice please share it with me.

Thanks is advance!