Deciding on your pricing strategy can determine what type of clientele your agency attracts as well as your competitive standing in the industry. When you charge too little for your digital marketing and design services, you are limiting your cash flow. Charging too much, on the other hand, can price you out of business.
As digital marketing resellers, we have rubbed shoulders with many agencies across the globe. If you’re wondering what to charge as a digital agency, read on to discover our tips and tricks that will help you streamline your pricing process and deliberations.
Determine Expenses
The first step to determining or changing your pricing strategy is to establish your operating expenses. You will need to charge more than the expenses you incur through manpower, subscriptions, office rent, and more in order to turn a profit. As a digital agency, a large chunk of your expenses will be composed of design software, CRM and project management tools, and automation software. The more clients you have and the more premium your service offering is, the higher these costs will be.
Another large component of your agency’s expenses will be made up of employee salaries, bonuses, benefits, and UIF. Hiring reliable talent that specialises in the services you provide can be costly, which is why choosing to hire us—a digital marketing reseller—to carry out your deliverables is a great way to increase profits.
Choose Your Pricing Model
Different pricing models have different pros and cons, and the best one for your agency will depend on the niche you operate in as well as the type of services you specialise in. Your agency can charge hourly or issue a flat fee for a project to be done. You could also use a performance-based pricing strategy and take a percentage of the profits your client makes on the sales your strategies incite. You may even decide to vary your pricing strategy from service to service, with your social media marketing packages charged monthly and your website maintenance charged hourly.
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Define Scope
As an agency, you can decide whether to bill hourly or per package. For certain larger projects, you may want to move away from charging hourly and instead charge a retainer. This way, you can earn more for the work you do and you can build a long-term relationship with the client while enjoying monthly income security.
You can offer high-end services that justify higher prices with our quality white label services. As your SEO reseller of choice, we will ensure that the services and assets we provide you with are result-oriented and dependable.
Contact us to find out how we can work together to increase the profitability of your digital agency with our digital marketing reseller business services.
