Pricing your digital marketing services can be challenging, especially when you’re starting your agency.
Most digital marketing owners are salespersons; they are great at selling their services to prospects. However, they struggle with pricing, and in most cases, the problem comes from charging too much. As a starter company, you should think about how much money you want to make per client.
It’s time you start thinking as a CEO and not as the salesperson. A CEO will think about long-term value over the present. Especially when you’re still small, your top priority should be figuring out how to keep clients satisfied as long as possible. Besides giving quality services, you have to think about how you’re pricing your services.
Here are some things to keep in mind when deciding prices.
1. Understand the context and digital marketing landscape
Investigate the digital marketing market, check what others are charging, how they are doing it, and what they are offering. Taking all of these into consideration will help you set your rates while staying competitive compared to what others are providing.
2. Don’t charge “what you’re worth.”
Don’t start by charging what you think you’re worth, but also don’t underprice yourself. Price your services to an amount enough to let you operate and that your clients will be able to pay. Later down the road, it will be easier to increase your prices once you have proved the quality of your services and have shown excellent results to your customers.
3. Create services packages
Create packages; you can offer a starter package and increase prices with add-ons. This will also allow your customers to mix and match the services they are interested in at a better price.
4. Scale to 10 or 20 clients
Price low at least until you have 10 or 20 clients, entirely managed by you if you know how to. Otherwise, outsourcing is always an option. But having 20 clients will provide you with the stability to start thinking about additional benefits that will let you keep your clients for a very long time.
While you’re in the process of acquiring clients, also try to reduce the number of barriers. You want to have the least amount of obstacles, so it’s easier for prospects to say yes.
5. Work on recurring revenue models
Work in different recurring revenue models, with various features. Although the add-ons may work, some clients prefer to see what they’re getting as a whole. You could even add discounts or retainers to attract clients.
Get Your Prices Right & Start Scaling Your Agency
Once you have priced right, you can start thinking about how to scale your agency. To give you an idea, on average, some agencies we work with are getting between $800 and $1k after fulfillment, but before reaching the 20 clients mark.
You’re not on this journey alone. Like many other agency owners wishing to scale or start their agency, they all can struggle with pricing their services. We invite you to join our Facebook group to share your doubt, experience, and expectations.