Pricing for Digital marketing services
Money can’t buy happiness but it definitely gives you the reason for your lucrative survival.
It is the primary concern of every marketer, agency owner, or freelancer to make sure about the pricing for digital marketing services to get accurately charged according to the value they are providing.
But it’s not an easy task to survive in the digital marketing agency pricing model with your quoted prices.
The competition is too high & fierce and so the demand and you can’t afford an opportunity to be missed out.
It’s very crucial to stay ready with digital marketing pricing packages that you are going to demand with the strong valid reason to turn it into a healthy profit incentive that almost every business is required to thrive and grow.
How much should you charge?
That’s the most conflicting question in everyone’s mind and no one has the state formula for this.
In the digital marketing agency pricing model people charge according to their work and I think that is the valid point to differentiate & consider when you are pitching to your client.
But you must need to have the basic calculation to evaluate your work and then to quote your price accordingly.
1. Cost-based pricing
This is a very accurate way of judging your pricing for digital marketing services with the fixed profit figure included in the cost.
But you can’t forget the fact of generating consistent profit for the company as well.
This method gives you full leverage to quote your price with actual data and according to the quality of your work.
If you are doing a social media marketing project for a company and you are making a content calendar for 1 month then you can calculate accordingly:
if you are making 16 creative with 16 sales copies and per creative you are charging 500 rupees with per word charge let’s say 1 rupee that means it cost you 600 hundred per copy then your cost for one month will be 16*600 plus 20% your profit including your direct and indirect cost.
2. Market-based price
This is the most common practice that people do to evaluate and decide their work price according to the market price.
But this is the most incorrect method of quoting the worth of your product because there is a big demerit of this method.
You enter a market with a vision of your product quality, revenue gain, or a definite customer base.
Hence, it is never advisable to go with the market price as it will never going to serve you the exact price of your value.
3. Customer value pricing
Customer value pricing is based on the digital marketing pricing that you brings out according to your customer’s requirement and paying capacity
Without understanding the paying capacity of your client you can’t go and quote them a price, it might lead you to lose your customer.
Marketing investment and budgets vary from different companies so it’s crucial to know their budget and investment goal before pitching them.
Also checking their profiles and company website is a good way of taking a rough idea about that customer’s intent, status, and budget to close a deal with a high ticket client at the end of the day.
- It helps you quote the best price according to your digital marketing pricing packages
- Help you understand your customer keenly
- Easy to close the deal by knowing precisely about your customer’s requirements
4. Retainer model
This is the secured model you can say among all Where you work as a contractual employee which pays you fixed salary at the end of the month.
In this, you need to make a quarterly package in which you can give them a digital marketing pricing package of multiple things.
If you are giving a package of content marketing charging 1.5 lakh quarterly then it can consist of 4 E-books, 2 white papers, 3-4 Infographics, and 8-10 blogs with a clear deal of quarterly delivery of the project.
5. Time investment pricing
This is the ideal approach for anyone who is just starting and unsure about the pricing.
It’s the simplest way to bill your clients according to your working hours.
All you need to do is to look for the market price of what companies are paying for your work on the different online platforms and then calculate accordingly.
Let’s understand it in a better way
Suppose the market price of your work is 20k for 200 hrs/month then per hour cost is 100
Market price = 20k
Working hours = 200hrs
Cost per hour = 20k/200hrs i.e. 100 rupees
Accordingly, if you are working on a project for 2hr daily i.e. 60hrs in a month
Working hours = 60hrs
Cost per hour(according to market price) = 100rs/ hr
So your market price = 60*100 i.e. 6000rs/month
You can quote a little higher according to the price you get maybe 8k or 10k on whatever you and your customer agree
- Easy way to quote your price
- You can manipulate your market price accordingly
- Give a better idea about how to charge different products and services
- No one can fool you with their price
6. Pay per performance
In this people only charge when there is an action.
You can generate their leads and can charge accordingly for your services.
In this, you can also make digital marketing pricing packages for your services.
If you are running Facebook Ads for your customer then you can ask them for making creative and sales copy along with specific leads generation for them.
7. Pay per outcome
This works better for those who are well familiar with the digital marketing industry they are working on and can easily pick out the pain point and convert them into target strategies for companies.
You charge them when you generate qualified leads for their companies.
In this, you take over the entire digital marketing department of your customers company and act as a digital marketing head
- Guiding the company’s team if they have
- Help them to recruit the right team if they don’t have
- Manage complete budget, strategies, method of the company
- Help them generate leads and close their clients
- You can go on a weekly call for the management process
8. Value-based pricing
This is based on how your digital marketing pricing services are generating value at your client’s end with your strategies and working model.
Your services should be in a position to be flexible enough to be directly proportional to the value you generate.
That is when you have a higher chance of getting recurring clients and income from them.
If you are giving social media marketing services to an IT industry to generate leads for their products worth rupees 12k on a subscription basis then also from converting 5 leads you are generating a value of 60k for them.
Choosing the right digital marketing agency model can be overwhelming and trouble-making sometimes.
So, if you’re still not sure which one to implement for your business or agency or already have the model in place which fails to give your desire results then there are no such rules that you can’t change.
Taking the time to revise all the pricing models can help you achieve your goals quicker and will land your digital marketing agency to the next level.
But You need to fix your pricing model first if you want your business to be streamlined.
And if you still fail to do so then you can always count on us for guiding you out from your troubles.