I'm hoping someone who works in the industry can give me an answer. We would be spending about 5-10K per month on ads.
How do digital marketing agencies make money?
Realistically a digital marketing agency won’t have 10 employees unless it’s taking in millions of revenue- this is the case with most businesses. The top earning agencies tend to focus on a few marketing niches, whether that is SEO, google ads etc and they expertise in those fields so it’s common to find them charging £15k+ per client, so it’s actually fairly common for those ones to be taking in £50K+ in revenue. The other thing is a lot of marketing agencies outsource web development, mostly outside of the UK. So they also turn big profits on those depending on the size of the project. Tbh from my experience, the agencies earning lower than £50k/ per month tend to be even smaller agencies with approx 3-4 employees where those contracts are enough to cover the business owners salary as well as a few other fulltime staff and then freelancer fees.
More on reddit.comTo those with a successful marketing agency, how do you price your services?
Marketing Agency Fees - How much are we looking at?
PPC agency costs - How much are we looking at?
The best pricing is one that is simple to understand and clients know what they are getting charged. Pricing is a strategic endeavour as it can signal what type of agency you are and who you want as clients. There is no right way to price as an agency.
A lot of our clients are USA, UK or EU based and thus they think our pricing is fair. It's usually fellow Canadian clients who don't get what it costs to manage or run an agency. Or they hired some smooth talking big agency with cheap rates and saw no results.... but now don't want to pay even more.
Our agency charges a monthly fee + 10% of ad spend and it works well for us. We also turn down or have potential clients say no because they think we are expensive. You get what you pay for in the end and we don't want cheap clients who will want daily calls and give us no time to work on accounts.
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