Many businesses will eventually feel compelled to outsource a professional consultant to help them with their digital marketing strategies. There are numerous digital marketing consultants available out there. However, many small businesses must first and primarily address pricing.
So, what a digital marketing consultant provides you for your money, and what goes in the process of selecting the pricing model by a Digital Marketing Consultant.
Let’s find out!
The Pricing Model for a Digital Marketing Consultant Agency
These are some pricing models of a digital marketing agency.
Hourly Bases Pricing
This is a great strategy for agencies that are just getting started and aren’t sure how long projects will take. It’s also the simplest approach to charge your clients, particularly those who request numerous adjustments or revisions.
The key thing to note here is that your hourly price must be sufficient to cover the agency’s expenses. But, always ensure to notify your clients about how long the project might take, and leave yourself a few extra hours to spare. More crucially, if you wish to expand, you may have to increase digital agency rates or change your pricing plan.
Value Base Pricing
Value-based pricing is determined by the added value you deliver to your client’s business and the output you give to their ongoing challenges.
Offering a flat price for any job is a straightforward approach to operating digital marketing services, particularly if you have the necessary expertise and resources.
So, rather than charging for the time you spend, you bill for your knowledge. Have an idea of how long your project will take to effectively price it, irrespective of running ads campaign on social media or a brand image building.
What are the deciding factors for the pricing model?
These are some factors for the pricing model.
Role of Services
The main role here is of services that we take. What type of services is the digital marketing consultant is providing. Whatever is the pricing model but the services will be specific as per your need.
So here we have to see what the service is and how much it will be charged per hour, project base, or value base?
For example, we take Search Engine Optimization Services, and their pricing will be different from SEM, PPC, and email marketing.
So from the above-stated digital marketing services the pricing model needs to be decided first. If you are taking SEO services, then you will be charged for it accordingly whether it is on an hourly basis, value basis, or project basis.
Understanding the Client’s Needs
You need to understand what is your client’s requirement is. Every client is not the same. A real estate client is different from a restaurant owner. So you need to set pricing according to the clients. Every business wants to do digital marketing but you cannot charge the same pricing from them.
A small business generally does not have a big budget and the other one is a large-scale company where budget is not a constraint and pays enormously for its product or service marketing. So in that way also you need to set your pricing model.
An MNC will not get its work done on an hourly basis as they don’t time much time to go for each and everything on an hourly basis. So, it will generally source their project on a project basis or a value basis.
Hourly basis works for small companies which are tight on their budget.
Next comes the expertise in digital marketing. The more you are an expert, the more you can charge from the client. The more you have the expertise, the more you will the case studies as you have worked for a wide domain of clients. Suppose a consultant is working for a real estate client, then it will have an idea of what is to be done and how it is to be done and that too in a strategic way. In this way, you can charge a good amount from a similar type of client.
So pricing varies as your expertise grows. And therefore a newly established digital marketing consultancy cannot charge what an expert Digital Marketing Consultancy charges from you. So in that way, it will have to work at a low price for its client.
Keep on Experimenting
Keep on trying different things and strategies. See the results and outcomes after each strategy and action you took. Keep the record and see the pattern and analyze your results. After all this, you will get to know which strategies have worked for you and your clients. And considering all this you can set final pricing for your clients.
At the initial stage, the pricing set by the digital marketing agency is kept taking profit & loss into consideration. So calculating the cost and expenses for services you provide matters a lot in deciding your pricing model. Counting on each small expense also plays an important role in deciding prices.
So we hope this information is relevant to you in setting and finding the cost for a digital marketing consultant whether you are a client or an agency. This works for both we guess!