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.
So I've been beating myself mentally over this and can't come to a conclusion, would love to have your insight.
I run a well established web design & marketing agency (and no - I'm not a 13 year old who is making millions weekly with social media marketing ), and I'm looking for serious advice for those of you that work for an agency, own one or are currently using one for your business.
I'm looking to optimize our internal operations and part of this strategy is to establish a fixed bracket agency fee system to speed up the proposal process.
For example:
-
Campaigns between $0 - $3000/mo in ad spend is a $1,000 management fee
-
Campaigns between $3000/mo - $5000/mo in ad spend is a $2,000 management fee
-
Etc etc
I hope the example clarifies the idea. The setup fee & landing page cost will be separate for the example listed above. I believe we would have a complexity modifier (i.e an additional 15% of management fee if the project is complex) but this is a bit more advanced.
Currently we are wasting too much time trying to price a project when it should be a bit simpler.
What processes/systems do you have in place for the quoting process on paid search & paid social campaigns?
Any insight appreciated!
I have a number of questions to my fellow agency owners.
To preface - I am a the COO of a medium sized agency on the East Coast. We do good business, but with things tightening up economy wise, I think we need to make some adjustments to our pricing strategy.
Our model right now is a retainer, which works okay. We have a few levels of retainer. The problem is that sometimes clients are going above what is covered by the retainer, and then kicking up a fuss when we bill them additionally.
So I'd really like to hear from other agency pro's - what's the best pricing model for your agency? Hourly based pricing seems to common.
Thanks!
Hello,
I have been working in digital advertising for 5 years as an agency owner with a small team of 3 campaign managers.
Today I have the opportunity to land our first huge account with 3-5 millions USD for media buying on Google, Facebook, YouTube & Display.
This is another league and I have actually no idea how much I should charge for the campaign management (account setting, media buying, optimization, but no creation).
Should I charge my usual commission on ad spend (around 10%), especially given the fact that I will probably need to hire 2 additional team members? Any advice is welcome!
How much should I be paying for a marketing agency? Ideally I'd like someone that can do my SEO and generate content for me
I was doing some research and I heard from multiple sources that a marketing agency should charge its clients no more than 20% of its total marketing budget.
My question is how accurate is that? and also does the 20% come out of the total budget? or is that extra over the budget? So like for example If a company's marketing budget is $30,000/mo in META ads, does my retainer come from the $30,000 or would that be an $6,000 over the marketing budget?
I am connecting with a handful of marketing agencies for my SMB and wanted to see what is typically charged for services.
Is $7500/mo a good price for SEO/Social/Website Services? Agency has clear results and I see the value in their work
Im looking into opening my own digital marketing agency (in Europe, not other continents)
I will be offering
-
Complete Google Ads
-
Facebook Ads + Instagram (posts are extra)
-
E-mail marketing
-
copywriting / descriptions
-
in-house graphic designer (extra)
*by extra I mean it is outside the “main fee”
I was thinking somewhere along the lines of €199/ month for basic (monthly meeting with customer)
€399/ month for small business (bi-monthly meetings with customer)
€599/ month for big businesses (weekly meetings with customer)
-
customer has to deposit their budget for each.
I have little to no expenses. E-mail marketing and copywriting are my connection that will do it at first “freelancing” with a possibility of joining after a few months of growth.
I have already customers lined up, waiting for me to open my doors.
Is my pricing logical? Too much? How do i price myself in a manner that would respect the industry and myself and my organization?
Edit: so many helpful comments! Thank you everyone!
I was thinking of starting my own digital marketing agency. I have about two years experience generating leads for financial service niches.
My objective would be lead generation, helping local businesses generate phone calls, contact forms, and/or appointments through Facebook ads, Google ads, and SEO. I would be using High Level to help with the call forwarding, sending SMS, email, and automation. Clients would have access to subaccount.
My price would be $2,500 monthly retainer + 10% ad spend.
Service includes reporting, creating landing pages, campaign set up, ad copy, ad creative, retargeting, implementing SEO strategies such as GMB management, listings, link building, content writing, keyword research, updating meta descriptions, and titles.
Do you think there is a market for this type of service and is the price reasonable to the services provided?
Yes and yes.
The big thing is to sell the benefit/outcome not the features.
So instead of saying, "For $2,500 you'll get custom ads, landing pages, and SEO strategy."
Say: "For $2,500 I'll help you get 100 qualified leads a month for your business."
Also, on your sales calls make sure to fully understand their pains and needs before you pitch your service and say your price.
In the beginning:
-
Ask questions and follow up questions
-
Restate what they said so they feel heard
-
THEN make your pitch + price
-
Use stories and analogies to explain concepts
Hope this helps! :)
What are the deliverables for 2500 a month?
I don't really know anything about this space so I'm wondering what to expect in terms of pricing.
I’ve got 15 years experience as a writer and creative director in New York, and would one day like to open my own shop. The biggest problem I can think of though is I’ve never once seen the financial side of things. I have ZERO idea what an hour of someone’s time should cost. I can ballpark how much a project would cost, but only if I’ve worked on something similar in the past.
Anyone have any suggestions or resources for learning that side of the business?
Digital Marketing Agencies - what services do you provide and what do you charge for these services? Interested in seeing if my own prices and services are comparable. I know this ranges from what is specialized in, I’m just curious what everyone charges to stay competitive.
Thanks! :)
Here: https://www.dropbox.com/s/ec013nkbuzqfbr8/Agency-Pricing-Guide-2022.pdf?dl=0
And here: https://www.dropbox.com/scl/fi/vq6h8ybvwevw9xfu7trc8/The-5-Most-Common-Agency-Pricing-Model.pdf?rlkey=3giugo0njkcron21rcewcrw6q&dl=0
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So I keep seeing these twitter posts about indie hackers doing $10k months, $20k months from posting on reddit and i am honestly getting frustrated. I KNOW it works, i see the success stories almost every week but i cant crack the code.
We are at $4k MRR now, solid product market fit, good retention. but we've maxed out our current channels. Twitter and SEO have been good to us, but growth is plateauing.
Me and my co-founder spent 2 solid weeks trying to figure reddit out. posting in relevant subs, testing different approaches, timing our posts but nothing worked our posts got removed or we got banned.
What I need: A legit reddit marketing agency that actually understands the platform and can help us scale.
What my product is: An AI financial tracker that helps you understand and control your spending intelligently. We are past the MVP stage
Budget: Willing to pay for good results that wont cost us a hefty amount
Really want to crack this nut because I believe it can convert crazy if executed well
Edit: Appreciate all the suggestions and DMs. I tried vetting a bunch of them, but most don't even do reddit marketing just general marketers trying to close a deal. However, I’ve got discovery calls booked this week with M81 and two other consultants from the thread and DMs. I'll update you guys in a few weeks if we get some traction.
My current agency charges me $3000 a month for just meta ad management (no email marketing, no creative creation). They drive good sales for my business, but the monthly fee is seriously eating into profits ( $6K a month vs $9k).Am I getting scammed, or is this reasonable for account management?
How much do digital marketing agencies cost per month? These fake digital marketing gurus claim they can charge 4k - 10k per month for their services… however the average retainer fee of a digital marketing agency costs £978 a month? How does this work?
So I've been beating myself mentally over this and can't come to a conclusion, would love to have your insight.
I run a well established web design & marketing agency (and no - I'm not a 13 year old who is making millions weekly with social media marketing ), and I'm looking for serious advice for those of you that work for an agency, own one or are currently using one for your business.
I'm looking to optimize our internal operations and part of this strategy is to establish a fixed bracket agency fee system to speed up the proposal process.
For example:
-
Campaigns between $0 - $3000/mo in ad spend is a $1,000 management fee
-
Campaigns between $3000/mo - $5000/mo in ad spend is a $2,000 management fee
-
Etc etc
I hope the example clarifies the idea. The setup fee & landing page cost will be separate for the example listed above. I believe we would have a complexity modifier (i.e an additional 15% of management fee if the project is complex) but this is a bit more advanced.
Currently we are wasting too much time trying to price a project when it should be a bit simpler.
What processes/systems do you have in place for the quoting process on paid search & paid social campaigns?
Any insight appreciated!
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.
It mainly depends on what makes sense for you and/or client (company /business size, etc.).
You could do something or a combination of the below:
-
Minimum fee for up to certain budget thresholds (like the ones you mentioned)
-
% of the client's ad spend (the higher the budget the smaller the percentage you'd charge)
-
Hourly rate (depends on the size of the client mostly) this is pretty straight forward.
-
Value-based rate or success fee (for clients focusing more on the performance side) while these can be tricky, if you are able to deliver results then the more they make, the more you make.
Unfortunately, the concrete pricing structure (i.e. amounts you should ask for) are dependent on your size and successes as an agency and it might take a lot of tweaking especially at the beginning.