PRICING DIGITAL MARKETING SERVICES? [Do It Right]

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Here's the truth about selling digital marketing services...

Knowing how to price your SMMA services is one of the most important parts of running an agency. Go a little bit over the right price and you can make it tough to get clients. Go a little bit under the right price and you’re going to start losing money.

But, if the price it just right, you’ll feel like you’re literally printing money. This is why a proper pricing table is vital.

Luckily, getting it right isn’t too difficult.

From knowing how to price email marketing to PPC pricing packages, you'll learn in this video how to price social media marketing services your agency might offer — along with a pricing table, pricing packages PDF, and model packages template.

What you’ll see me repeat through all of these articles is a simple formula: cost + markup = price. What this means is that the price you’re going to charge your client is the price that you’re going to pay plus the money that you want to make.

For most agencies, the markup part is simple. You’re going to charge a 20% to 50% markup on all of your services. This part can be difficult to get right, but this is the variable that’s easiest to tweak. The general rule is that your markup should be equivalent to the amount of value you’re providing in the deal.

The cost, really, is the difficult part. When you’re working with contractors, the number on the cost is right in front of you — it’s whatever they’re charging you — but that isn’t always the cost that you’re going to plug into this equation. You need to figure out your cost for the entire service you’re offering.

So, if you’re charging hourly for the service, you can leave the cost in the equation as hourly. However, if you’re charging weekly, monthly, or quarterly, for example, you’re going to have a more difficult time, because you have to figure out how many hours of work are going to go into that week, month, or campaign.

Your cost might also be more closely tied to the client than the contractor. For example, some services are best charged as a percentage of ad spend when compared to other variables.

In addition, your cost isn’t always tied to just one contractor. Consider how many hands are needed for a social media ad campaign. The Ads Manager is the first person that you need to think about, but potentially you’ll need more beyond that — a copywriter, a video editor, and a graphic designer, among others.

This can make your calculations pretty difficult. Then, you need to figure out how you’re going to charge for your services. Are you going to do it hourly? Are you going to do it by campaign? What’s best for you? What’s the standard?

In short, what is involved in selling digital marketing especially to small businesses? How do you create a social media marketing services plan?

These are the questions I’ll answer for you because it’s vital to get it right straight out of the gate. Watch this whole video as I walk you through this complete guide to pricing digital marketing services for your agency and the pricing table I use so you can get started right away.

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