Introduction To Different Pay Structures For Online Marketing Agencies
What’s up guys? Guess what? I bought a dog. Isn’t she cute? So guys, it’s Taylor Timothy, and today we’re going to be talking about online marketing pay structures. So there’s a bunch of different ways out there that you guys can charge people, make money doing all my marketing. So let’s not waste any more time and dive right in.
What Is A Retainer?
the first one we’re gonna be talking about is a retainer. So what is a retainer? No, it’s not that thing you put in your mouth to keep your teeth straight, but retainer is basically a monthly payment that the client pays you for doing your services.
So whether you’re running Facebook ads, youtube ads, SEO, the list goes on and on or what you’re doing for him. But that’s one of the common ones is a retainer.
Retainer Pros And Cons
Now, the pros to retainer is obviously you’re going to be getting a monthly income coming in. So you’re going to sign a contract. Basically they’re going to pay you x amount of dollars per month and you’re going to make money doing those services.
Now one of the cons to the retainer, which it doesn’t sound like there is a lot of cons, but one of the things that I have found talking with other marketers as well is if you don’t set proper expectations, a lot of times this causes conflict when you are set up on a retainer. So just make sure guys, when you guys are setting up retainers to set up proper expectations with your clients.
Cost Per Result
The second one we’re going to talk about is cost per result. So one of the more competitive ways if you guys want to make a lot of money, is proving that you can actually generate leads and sells and back it up with your results. Sometimes people will set up their contract basically stating that I don’t make money if you don’t make money.
Cost Per Result Pros And Cons
So a lot of times people will set these up and a lot of times you can make a lot of money doing this right up front. So cost per result is one of the ways that I’ve found that people do all my marketing pay structures. So obviously one of the big pros is you can make a lot of money.
But one of the cons to this is if you’re not good online marketing, guess what? You don’t make any money. That’s the reality too. The cost per result, it’s high risk, high reward. So go out there and realize that that cost per result is going to be a high risk, but it can potentially make you a lot of money.
Percentage Of Ad Spend
The next thing I want to talk about is percentage of ad spend. So basically what how percentage of ad spin works is if a company comes to you and says, Hey, I want to spend $100,000 basically you can say, well, I charge 10 to 15% on ad spend, so you’ll make up 10,000 to $15,000 a month according to their budget.
Percentage Of Ad Spend Pros And Cons
So now one of the big pros is if have big budgets, you can make a lot of money right up front with this client. So the bigger the budget, the more money you make.
Now, one of the cons is if they come to you and they say, Hey, I only have 1000 bucks a month, well now you’re only gonna make like a hundred to 150 bucks a month.
Not that lucrative. So guys, that’s gonna wrap up this video. Those are the three things, basically a recap, retainer cost per result and percentage of ad spend. Just so you guys know, I’ve also heard of other people doing that and mixing and matching. So they’ll do a small retainer with a cost per result tied in, or they’ll do a retainer with the ad spend amount tied in.
Conclusion To Different Pay Structures For Online Marketing Agencies
So go out there, figure out what works best for you guys and don’t forget to hit that subscribe button. If you guys want to hear more about online marketing and things like that, or if I miss something in this video post in the comments below. Other than that, guys, don’t forget to go over and check out my online marketing course. Basically, it’s going to teach you guys from start to finish, how to do online marketing, how to run Facebook ads, Youtube ads, and better yet how to scale your business through paid advertising. Other than that piece.