"We need a chatbot." This is one of the most common requests we receive at CODERCOPS. The follow-up question is always the same: "Should we build it ourselves or hire someone to build it?"
The answer depends on your budget, technical team, timeline, and what you actually need the chatbot to do. This guide breaks down every option with real cost data so you can make an informed decision.
The Four Options
Option 1: Off-the-Shelf Platform (Dialogflow, Botpress, Intercom)
| Factor | Details |
|---|---|
| Setup time | 1-2 weeks |
| Upfront cost | $0-500 |
| Monthly cost | $50-500 (platform fees) |
| Customization | Limited to platform features |
| AI quality | Good for FAQ, weak for complex conversations |
| Best for | Simple support chatbots, FAQ automation |
Platforms like Dialogflow, Botpress, and Intercom offer drag-and-drop chatbot builders. You define intents, responses, and flows through a visual interface.
Year 1 TCO: $600-6,000 Year 2 TCO: $600-6,000
Option 2: DIY with Open Source (Rasa, Botpress OSS)
| Factor | Details |
|---|---|
| Setup time | 4-8 weeks |
| Upfront cost | $0 (open source) |
| Monthly cost | $100-500 (hosting + maintenance) |
| Customization | Full control |
| AI quality | Depends on your ML expertise |
| Best for | Teams with ML engineers on staff |
| Hidden cost | Engineering time (40-80 hours setup, 10-20 hours/month maintenance) |
Rasa is the leading open-source chatbot framework. It is powerful but requires ML expertise to train, tune, and maintain.
Year 1 TCO: $15,000-40,000 (including engineering time at $50-100/hour) Year 2 TCO: $8,000-20,000 (maintenance only)
Option 3: Custom Build with LLM APIs (OpenAI, Anthropic)
| Factor | Details |
|---|---|
| Setup time | 2-6 weeks |
| Upfront cost | $2,000-10,000 (development) |
| Monthly cost | $100-2,000 (API costs + hosting) |
| Customization | Full control |
| AI quality | Excellent (GPT-4, Claude) |
| Best for | Teams with web developers (not ML experts) |
| Hidden cost | API costs scale with usage |
Build a custom chatbot using LLM APIs. No ML training required — you provide context through prompts and RAG.
Year 1 TCO: $4,000-35,000 Year 2 TCO: $1,200-24,000
Option 4: Agency-Built Custom Chatbot
| Factor | Details |
|---|---|
| Setup time | 2-4 weeks |
| Upfront cost | $2,000-8,000 |
| Monthly cost | $100-1,000 (hosting + API costs) |
| Customization | Full control, professionally built |
| AI quality | Excellent |
| Best for | Businesses without technical teams |
| Includes | Design, development, testing, deployment, documentation |
At CODERCOPS, our chatbot development starts at $2,000 for a standard LLM-powered chatbot with knowledge base integration, conversation history, and analytics dashboard.
Year 1 TCO: $3,200-20,000 Year 2 TCO: $1,200-12,000
Side-by-Side Cost Comparison
| Cost Factor | Off-the-Shelf | DIY Open Source | Custom LLM | Agency-Built |
|---|---|---|---|---|
| Upfront development | $0-500 | $0 (but 40-80 hrs) | $2,000-10,000 | $2,000-8,000 |
| Monthly platform fee | $50-500 | $0 | $0 | $0 |
| Monthly hosting | $0 (included) | $50-200 | $50-200 | $50-200 |
| Monthly API costs | Included | $0-100 | $50-1,500 | $50-1,000 |
| Monthly maintenance | $0 | 10-20 hrs ($500-2,000) | 5-10 hrs ($250-1,000) | Optional retainer |
| Year 1 total | $600-6,000 | $15,000-40,000 | $4,000-35,000 | $3,200-20,000 |
| Year 2 total | $600-6,000 | $8,000-20,000 | $1,200-24,000 | $1,200-12,000 |
Decision Framework
Do you need a chatbot?
├── Is it mostly FAQ/support?
│ ├── Yes → Off-the-shelf platform (cheapest, fastest)
│ └── No ↓
├── Does it need to take actions (book appointments, process orders)?
│ ├── No → Custom LLM build (simpler, cost-effective)
│ └── Yes ↓
├── Do you have developers on your team?
│ ├── Yes → Custom LLM build (you maintain it)
│ └── No → Agency-built (we handle everything)
└── Do you need full control over the AI model?
├── Yes → DIY open source (requires ML expertise)
└── No → Agency-built or custom LLMWhat You Get at Each Price Point
$2,000 — Standard Chatbot
- LLM-powered conversational AI
- Knowledge base from your documents (up to 50 pages)
- Conversation history and context
- Web widget or API integration
- Basic analytics (conversations, resolution rate)
- 2-week delivery
$4,000 — Advanced Chatbot
- Everything in Standard
- Multi-channel (website, WhatsApp, Slack)
- Action capabilities (book appointments, submit forms)
- Custom training on your data (RAG pipeline)
- Advanced analytics dashboard
- 3-week delivery
$8,000 — Enterprise Chatbot
- Everything in Advanced
- Multi-language support
- Human handoff with full context
- CRM integration (Salesforce, HubSpot)
- Custom AI persona and tone
- A/B testing for responses
- 4-week delivery
The Hidden Costs Nobody Mentions
- API cost growth. Your chatbot handles 100 conversations in month 1 and 5,000 in month 6. API costs scale accordingly.
- Knowledge base updates. Your product changes, your chatbot's answers become stale. Someone needs to update the training data.
- Edge case handling. Users will ask things you never anticipated. Regular prompt tuning is required.
- Monitoring. Someone needs to review conversation logs, identify failure patterns, and improve the system.
Budget 2-4 hours per month for ongoing maintenance regardless of which option you choose.
Our Recommendation
For most businesses in 2026, the custom LLM approach (Option 3 or 4) offers the best value. Foundation models like GPT-4 and Claude are good enough that you do not need to train your own model. The build cost is reasonable, the quality is excellent, and the ongoing costs are predictable.
Off-the-shelf platforms make sense if your needs are genuinely simple (FAQ only, no custom actions). Open-source frameworks make sense if you have ML engineers on staff and need full model control.
If you do not have a technical team and want a chatbot that just works, an agency build is the fastest path to production.
Ready to add an AI chatbot to your product? Our chatbot development starts at $2,000 with 2-week delivery. Get in touch.
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