Eventually, the goal or concern of every business is to make enough money. One business model that has rapidly seen growth is that of digital marketing services. Similar to every other field, digital marketing has also transitioned into being an aggressively competitive industry.
It is these situations that make one consider the costs and prices that they charge. Let’s face it, nobody wants to charge less for the quality they bring to the table or the efforts they are determined to put in. It is often a task for an individual to compete with the pricing models of their competitors while maintaining an acceptable profit margin. Nothing beats a good profit margin when it comes to healthy incentives to work towards the progress of the business.
There are a plethora of factors that play a critical role in determining the right price for the services that you are offering. When it comes to digital marketing, you are capable of to base your pricing model on the services that you intend to offer to your clients. Make sure you have your long-term goals in mind before hiring an employee or pitching to your clients. Your work should always justify what you are charging.
To make this task a little less complicated for you, we have a short guide to help you price your digital marketing services in this article.
A comprehensive guide to pricing your digital marketing services
Identify your expenses
The first step to pricing your digital marketing services will always be identifying the expenses that you incur in order to run your business. These expenses act as a base or the minimal pricing value that you can charge from your clients.
Quite often, business expenses include the costs of your office, production expenses, salaries, licenses, and more. Identify the price that you pay for your office rent, maintenance, and other utilities.
Make sure you add your additional software and tools that you will be using to successfully run a campaign for your client. Bonuses and extra expenses that you spend on your employees can also be a part of the cost of running an agency. These are a few expenses that you should define and assess well in advance.
Choose a pricing model
Next comes finding the right pricing model. For a digital marketer, there are plenty of pricing models available. You have to choose the best one that aligns well with your organizational goals, both short-term and long-term. Top pricing models that you can pick from are hourly-based, project-based, retainer-based, or performance-based. Each of these models come with their own pros and cons.
For instance, the hourly based pricing model is ideal for those who don’t have any set timeline or duration for the project. This model is simple and easy for clients to understand. It also helps them stay in the budget that they assign. To further make things more accurate, you can use an enterprise time capture software that allows you to clock in and clock out and create a proper record of the hours that you have worked. This helps to build trust with your client.
Establish the services you are planning to offer
Digital marketing is a vast field of interest. There are plenty of marketing services that you can consider offering to your client in order to work towards the growth of your organization. A few common marketing services include social media management, search engine optimization, and PPC.
Each of these marketing services has a varied role associated with themselves and hence, is often charged differently. For instance, while social media management is about building a tribe for a brand, improving the brand image, and increasing sales, the SEO focuses majorly on optimizing your website for ranking and bringing the traffic.
Conclusion
Pricing your digital marketing services correctly and in line with the competitors as well as your business goals can often get overwhelming. Make sure you analyze the pros and cons of various pricing models, establish the services that you plan on providing, and identify your objectives before setting up the prices of your services.
