Web hosting is no longer an expensive complicated process that it once used to be 10 years ago. Some web designing companies will try to fool you and charge you more by quoting complicated technical terminology but you should be sure about the current market rate.
If your website design is a basic one with no added databases, no audio/video streaming facilities and no payment gateways then the going rate is just 25$ per month. Don’t pay anything more than this though if you begin incorporating extra features in your website then the price is going to go up.
Going for a verbal contract
This is the most dangerous mistake you can commit. A verbal contract is not legally valid in a court of law. If the web designing company does not stick to their side of the bargain there is nothing you can do to help yourself legally.
Make a documented contract with all payment terms, project completion date, contractual terms, cancellation terms, ownership rights and non disclosure policy.
Not documenting project milestones
If you do not have project milestones you do not know the percentage of task completed until the final delivery date. It’s always wise to have a phased delivery schedule with various project milestones. These milestones will reveal the activities of different people engaged in your website design project and their processes. You should ideally make your payment according to the project milestones achieved.