It happens several times, without knowing any details about the web design company besides looking at their portfolio we spend a big amount to that company and just imagine everything will go well, but often ending up disappointed.  Traditional business and e-business are completely different.  When hiring a web Design Company to work for you, there are some precautions that need to be considered.

Do you know where your web design company is located and who its owner is.  These are questions that you may not think are important at first, but you need to consider them.  What if your website design company is located in another country and defaults on the contract?  Can you really go to that country to pursue a lawsuit?  If you paid with a credit card you can always dispute the charge but there are many companies that exist under different names after bad experiences.

We've seen the online testimonials posted all over the website.  The truth is there's no telling whether those feedbacks are real or completely fiction.  If the website development company has posted the feedback, then really they should have permission from the client and therefore have no problem telling you about the project.  Also, it's only correct to ask for references.  This is very important.  How are the people that wrote this feedback being treated now? Are you sure if the references the website design company gave you are the same people on the site?  Find out as much as you can about the design firm from sources outside of their website.

It is true that there are web design companies that make false claims about their portfolio.  It is found certain firms claiming some other’s work as their own.  Take time to visit the website that is posted on the portfolio.  If you have any doubts contact the owner of the website.

This is something to keep in mind with the mushrooming of many new companies.  The internet is still very new so a company that has only been in business a year or two isn't always bad. 

Would you hire a graphic design company for your programming tasks? How about hiring a professional marketing firm to create your logo?  This doesn't make sense, but many people don't realize that there are specialty companies out there claiming to be website development professionals. Confirm if it really a one-stop-shop for your entire internet needs or they are simply farming out all the work they cannot do.

Do you really want to pay 100% up front to a company that you've never worked with before?  In some cases it's right, but you should proceed with caution when a web design firm wants all the money.  What about a guarantee?  Are there any benchmarks set?  If your website isn't developed on time that can hurt you financially. There need to be some guarantees and deadlines set in place.  This along with any other details that matter should be put in writing and signed by both parties.  Don't make the mistake of signing the first copy and sending it in without getting a signature from them.  A contract signed by you only will probably not hold up.