I have been programming and managing websites since the early 2000s. Currently, I have a dedicated server running cloudlinux and cpanel, and I am proficient in coding PHP, MySQL, HTML, and CSS.

I am considering starting a new company similar to beatport.com, but with a significant twist. However, I do not want to be responsible for the security and maintenance of the website, as it will likely be used by thousands of people on a daily basis. I am also unfamiliar with modern CMS systems, so I plan to hire someone to write the application/add-on and manage the servers long-term. Although I have an idea of how much time the project will take, I cannot afford to pay a professional by the hour. Therefore, I would prefer to hire someone who can work by the month.

I live in Germany, and I know that the pricing will be similar to the Netherlands/EU or California/US if I hire someone from there. While I am willing to invest thousands of dollars into this project, I do not have a six-figure budget. I am looking for helpful answers on what my financial expectations should be.

This idea sounds interesting, but I don't think it's just two requests – web development and server management. Have you considered hiring remote help rather than local? You may find better rates.

It's not common for web hosting companies to manage servers outside of their own infrastructure, so have you looked at your current host to see if they offer management options? Many web hosts offer management for dedicated servers for around $100 USD per month with cPanel. For web development, have you considered using platforms like UpWork or Fiverr to find freelancers or agencies at reasonable rates?
Additionally, you may want to check out the website offers section, as there may be cost-effective options available. Is your server located in Germany as well?

While it is possible to find someone who can work on a monthly basis rather than hourly, you may not receive quality work. If a freelancer is capable of receiving hourly work, they may not be willing to accept a lower rate for monthly work.
It's important to consider that offering less pay than what is typically expected hourly can be perceived as an insult to the freelancer.

The cost of web design and development is a service that should directly depend on the time spent providing it. However, the specificity of creative activities means that it's challenging to accurately account for employee hours needed for each project. Despite this, many custom development projects are still based on a fixed price model.

This model results in excess or unneeded hours being included in project estimates, leading to a conflict of interest during implementation. Alternatively, experienced teams may add a risk premium to remain profitable, but this may be unethical. Another option is to create a comprehensive terms-of-reference document to regulate every development condition and change. Another option is the Time & Materials format, which is based on paying only for hours actually spent on a task.

The studio provides rough estimates, followed by monthly report sheets indicating how much time was used, and acts issued based on them. Additionally, it's better to follow the results achieved rather than strictly monitoring the number of hours worked. As for hourly rates, a specialist market salary /160 hours) × 2.5 is a good formula to use.

When starting a new company and considering hiring professionals for website development and server management, it's important to have realistic financial expectations. While the exact costs can vary depending on various factors, here are a few considerations that can help you understand the potential financial requirements.

1. Development Costs: Hiring a professional developer or a team to create the application/add-on can be a significant expense. Rates can vary based on expertise, location, and project complexity. Monthly rates usually range from a few thousand dollars to tens of thousands of dollars.

2. Server Management Costs: Managing servers is crucial for website security and maintenance. You may need to hire a system administrator or a DevOps engineer to handle this task. Again, monthly rates can vary depending on the level of support required, but a few thousand dollars per month is a reasonable expectation.

3. Ongoing Maintenance and Updates: Websites require continuous maintenance, updates, and bug fixes. You will need to allocate a budget for ongoing support, which could range from a few hundred to a few thousand dollars per month, depending on the complexity of the project.

4. Hosting and Infrastructure Costs: Consider the expenses associated with hosting your website on a dedicated server or cloud platform, as well as any additional infrastructure necessary to handle high traffic volumes. These costs can vary widely depending on the expected usage and platform chosen.

5. Other Expenses: Don't forget to factor in other costs such as licensing fees for software components, domain registration, SSL certificates, and any additional third-party services you might require.

considerations for your financial expectations:

1. Hiring Additional Team Members: Depending on the scope and complexity of your project, you may need to hire additional team members such as designers, testers, or project managers. These costs can add up and should be factored into your budget.

2. Marketing and Advertising: Launching a new company and website requires effective marketing and advertising strategies to attract users. This can involve expenses like digital ads, social media campaigns, content creation, SEO optimization, and more. Budgeting for marketing efforts is crucial for gaining visibility and attracting users to your platform.

3. Legal and Regulatory Compliance: It's important to ensure that your website complies with relevant laws and regulations, such as data protection and privacy policies. Working with legal professionals to ensure compliance may have associated costs.

4. Scalability and Growth: As your user base grows, you may need to invest in scaling your infrastructure to handle increased traffic and demand. This could involve additional servers, load balancers, CDN services, and other scalability measures. Anticipating these future costs can help with long-term financial planning.