how to price digital marketing services

​COMPLETE GUIDE to Pricing Digital Marketing Services for Your Agency

January 25, 2018

COMPLETE GUIDE to Pricing Digital Marketing Services for Your Agency

When starting out with a digital marketing agency or social media management agency, one of the most important decisions you will make is deciding on pricing. You want to make sure you are valuing your time and skills, while also working with your client to work within their budget and needs.

One good pricing strategy that I use is to offer base packages that can then be customized. I usually use base packages starting at $1,000, $2,500, and $5,000 per month for my monthly management services.

These figures are used more as a guide and to provide something a little more visual for my prospective clients so that they don’t think they need to walk into an initial meeting or consultation with a blank check. Once I’m able to sit down with my client, I customize the marketing plan to fit a budget that I think they can afford. This budget comes from meeting with them and asking questions to determine their budget.

With that in mind, here is a guide to what you should reasonably be charging your clients for your digital marketing services:

1. Social Media Management

Some degree of social media management should be included in every package you offer as it is one of the most effective ways to increase engagement and sales, on top of being one of the cheapest.

The amount you charge will vary by the number of social media platforms (i.e. just Facebook and Instagram, or Facebook, Instagram, Twitter, and YouTube) you will be managing, the frequency or posting, and the level of customization desired.

A good starting point for social media would be $500 for 2 or 3 platforms posting a few posts a week, with the price increases along with the number of platforms and services performed on each platform, with the pricing increasing to the $1,000-$1,500 range.

Social Media Ads

If part of the social media strategy you customize for your client includes advertising through social media, the industry standard for ad management budgets is typically anywhere from 20% to 30% of the ad spend.

Additionally, ad spend is usually added ON TOP of the monthly management fee. This means if your client is already spending $500 for management, and decided to add $300 for ad spend, you would take an extra $60 to $90 for your business and spend $240 to $210 on the ads.

2. Email Marketing

Email marketing is an easy, cheap, and effective service to offer. Many automation or email marketing software are not only cheap to use but offer discounts for managing multiple accounts on one platform.

In my base package, I will usually offer email marketing consulting, with the price increasing with added management services and automation in the more expensive packages. For basic email marketing management and automation, I start at around $500 a month, then increase the cost with increased emails, automation, segmentation, etc.

3. SEO

Basic SEO should start at no less than $500 a month. To properly provide this service you will need to look into software or app to manage review and listing sites, and this should factor into the price you set.

For instance, I sometimes use Vendasta to manage this for my clients, which costs $249 a month. As this is a white label service, I charge double what I pay per one customer, charging $500 a month per customer.

Once you start charging over $500 a month for SEO, creating and distributing blog/vlog content and engaging with community pages and posts will have to be part of the services you offer.

4. PPC (Search Engine Ads)

Running a PPC campaign is typically more expensive, and I usually won’t even suggest this as an option for clients who wouldn’t be able to spend less than $1,000 a month on PPC.

The standard for PPC, or search engine ads, is the same as what I discussed for social media ads.

5. Web Development

Web development is one of the trickiest services to price for and will depend heavily on the industry the client is in and what will be necessary on their website. A basic 4-8 page build should range anywhere from $1,000 to $5,000. However, this kind of basic build is NOT suitable for websites that include:

  • · Payment gateways
  • · Anything drug or alcohol related
  • · Financial institutions
  • · Insurance businesses

These, along with many other businesses, require specialization in their web development. It is important to understand the scope of the project before settling on a price, and it may be worth hiring someone to price and manage the project for you.

Websites for businesses that involve any kind of e-commerce, large product inventory, online banking, or anything related to drugs or anything else that is heavily regulated could cost anywhere between $8,000 to $75,000+, so if you are new to web development, hiring a Web Development Project Manager may be the right choice for you.

Building Landing Pages/Lead Magnets

Building landing pages and lead magnets should be taken into consideration when you are giving your clients a quote for a website build. These elements are very effective and would place a website into the higher price range of a basic build. Landing Pages can go from $500 up to $50,000 depending on the complexity and client requesting the page.

6. Creating Content

The cost of creating content will depend on the type of content, be it blogs, website copy, and content, or long-form posts, as well as the frequency of creation. Your pricing could range anywhere from $50 to $1500 depending on whether it’s a one-off piece of content for a website or weekly blog posts.

When figuring out the price, take into consideration the amount of time you will be spending to complete each piece of content and how much research or specification will need to go into the content.

Creating Videos

Video content will continue to be integral to any good digital marketing strategy, and you should charge more if this will be part of the strategy you come up with for your client. Video content requires more experience and skill, not to mention more expensive equipment than written content, and that should be taken into consideration when coming up with content creation costs. You should check things like average hourly rates for videographers and editors.

Though I’ve set out these guidelines for pricing, remember that your digital marketing approach should be specific to each new client you bring on board, and your pricing should reflect this. Additionally, as you grow your business and gain more experience, you will be able to charge more.

Do you have any more questions about pricing? Let me know in the comments!

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