How to Create Packages for Your Marketing Agency
All you need to know to learn how to create marketing packages is some basic math and an idea of what you’re going to be doing. If you know how much money you’re going to spend and how much you want to make, you can easily package your services. Of course, you’ll also need to know what work is going to get done.
In this article, I’ll break down how to package marketing services, and also why I think you shouldn’t. Packages are great for giving your customer’s an idea of how much they’ll be spending, but you very rarely want to stick to them. Different businesses have different budgets and needs, and you – and your packages – need to lean into that when offering quotes.
Packages do serve a purpose, though, which is why you should know how to create marketing packages even if you don’t use them. Pricing is an important part of business because it’s where you make your profit, and where you set the tone for the relationship with the client. I don’t know how much money you want to make, so I can’t tell you what your margin should be, but I can tell you how to make those margins appear.
Setting your prices correctly and fairly is the key to closing your clients, and closing your clients is how you make your business successful. As with every other step of the sales process, you need to focus on what your client needs and where they’re coming from to get this done. So, let me tell you what you need to know to create marketing packages and the basic formula that you can use.
How to Create Marketing Packages
The basic theory behind creating packages is this: figure out what the client needs, figure out how much they can pay for that work, and figure out if you can do the work for that price. This is going to vary a lot. It will change not only from client to client but also from marketing agency to marketing agency.
Understand Your Client
A big part of knowing how to create marketing agency packages is understanding the pain points of the clients you’re selling to. If they’re coming to you and engaging with you at all, that means that they are aware of some of these pain points already. So, by the time they’ve gotten to you, they have expectations about how you can help fix those pain points.
Above all, you should be trying to figure out what a client is expecting regarding results and payment. What sort of ROI are they looking for? Are they concerned with engagement metrics? What is their budget? You can typically infer most of these things just by the type of business – a high-end restaurant should be willing to spend more money than a dollar store. Once you’ve got an idea of that, consider what you’ll need to meet those expectations.
The next step is to ask questions of the client. If you don’t have a “typical client” you can go to, you’ll either need to find one or start making some assumptions. But you want to know about their pain points on a deeper level. If they don’t have a website or a blog, if they need their pages set up, if they don’t have a strategy in place, you’ll need to fix that – this is where the packages will start to deviate.
Finally, you need to know what sort of timeline you’ll be working on. How quickly do your clients expect you to work? What is their sales cycle like? You should also consider how quickly you can get results and what sales cycle you want to work on. Monthly, weekly, per project?
These questions are hard to answer, right? We’ll talk more about that when I tell you why you shouldn’t package marketing services.
The Basic Formula
Once you’ve been through the discovery process with a client, you only need a few more numbers to get your package price. I hate to sound like your math teacher, but I’m going to run through the formula, so you understand why everything is there. Before that, though, here’s the basic formula for how to package marketing services:
Price = (cost of work x time) + desired profit
So, as a quick example, let’s say that you’re offering web development. You outsource to a developer who charges $18/hr, and you decide to raise that price for profit and to cover other work that might need doing. At the end of the day, you charge $50/hr for web development. A typical website might take you 60 hours. You can then plug it into the formula as: (18 * 60) = 1,080 cost of work + 1,920 profit= $3,000 price
There are some nuances and other things you might want to add here, like the other work that I just mentioned. While you can get by just saying “other possible expenses” for some stuff, you will eventually need to break it down. If you know you need a designer to make Instagram and Facebook posts, you need to add those as additional work in the formula. You should always consider who you will need to get the job done when pricing: designers, videographers, copywriters, schedulers, strategists, analytics managers, and ads managers.
Sometimes you’ll want to start with price, as well. If you know that a client has a certain budget, you have to figure out how to get the work done – or how much work you can get done – within that budget. You can also figure out how much the desired profit should be with another formula to get rid of that variable.
The profit formula is simple: figure out how much money you want to make, and divide it by the amount of work you can do or expect. So, if you want to make $10,000 a week, and you can expect 4 projects a week, you need $2,500 profit on each of those projects.
Examples of Marketing Packages Using The Formula
So, now that you know the formula for how to create packages for marketing services, let me give you a few examples of marketing packages for each service. I’ll also talk a bit about the different services you can consider packaging below. Here are a few of the examples using estimate numbers:
|Service||Cost of Work||Profit||Price|
|Website Optimization||$2,000 for developer, design, copywriter, assets||$1,600||$3600|
|Social Content – 1 platform, 4 posts/week||$1,800 for content strategy, designers, copywriters, ad costs||$1,700||$3,500 a month|
|Social Content, 2 platforms, 10 posts/week||$3,200 for content strategy, designers, copywriters, ad costs||$2,800||$6,000 a month|
|Email Sequences – 6 emails||$950 for copywriter, tagging and integration, service costs||$1,000||$1950|
|Blogs – 3 a week||$180 for content writing||$70||$250|
|Automated Campaign Updates||$50 for service, gathering report||$49||$99|
|Lead Gen Account Set Up Retainer||$5k first month for audience building, ad copy and creative, funnel building, revisions, tracking, reporting||$5k||$10k 1rst month|
As far as what you need to consider for each service:
- PPC considerations are keyword research and long tail keyword research, location targeting, and remarketing.
- SEO options are on-page SEO, off-page SEO, keyword research, and local search optimization.
- Website work includes, landing page development, web development, upgrades, maintenance, and optimization.
- Social media options are platforms, ads, content, content frequency, and advertising.
- Design work includes content creation and logo design. In addition to this, you might offer video design.
- Email marketing includes newsletters, one-off campaigns, and launch sequences.
- With blog content you have to consider the number of posts, content ideas, and SEO drivers.
- And lead gen options are full management and launching a sales funnel.
Why You Shouldn’t Package Marketing Services
So, that’s how you package marketing services. Simply add the cost of the work in total to the amount of money you’re willing to spend, and you’ve arrived at a package. Change this up based on common asks, and you’re ready to go.
However, I don’t think you should do this. Even if you work with multiple clients in the same niche, no 2 clients have the same budgets and the same needs. If you decide to offer packages, I would use it more as a rough guideline than anything else.
But I think that they’re better kept in your head than anywhere else. You can wait until you’re on the phone with a client to give them a price, and you should wait until you know exactly what they need. Quotes need to be tailored in a way packages can’t be.
“One size fits all” does not work in marketing.