Introduction to the Marketing Lyfe Podcast Ep. 101
Episode one Oh one of the marketing life podcast. This is Taylor Timothy, your host. And today guys we are in talking about how much you should charge for your services when it comes to online marketing. Now back on episode 59 I talked about different pay structures for online marketing in different agencies out there.
So you guys can go back and check out that. But this one I’m going to dive a little bit deeper on how much you should actually be charging for your services. So it’s always [inaudible] spending more time guys in diversity, right?
How Much Value Are You Bringing To The Table?
And so the first thing you guys need to ask yourself, when you’re charging different clients, you know, for S for your services, the first thing you need to ask is how much value are you actually bringing to the table? You know, how much are you actually bringing? So a perfect example of this that I want to talk about is, let’s say you’re running Facebook ads for this particular company, but the truth is most of their cells come in just from their sales guy, cold calling all day long.
How Much Value Are You Bringing in Running Facebook Ads?
Now the question is, well, how much value are you actually bringing to the table just by running Facebook ads?
How Much Value Are You Bringing Into Their Website?
Another scenario or another situation is, well, okay, you just manage their website. Again, how much value are you actually bringing? You need to take that into consideration and that’s one thing that you need to figure out for yourself. A sit down and have a come to Jesus with yourself and ask yourself how much value you are actually bringing.
What Are You Actually Doing For Them?
The next thing I want to talk about is what are you actually doing for them? So I offer a lot of different services when it comes to online marketing ranges from websites to Facebook ads to Google paid ads, to YouTube ads, to content creation. When it comes to video and photography and email marketing, those are kind of like the things that I offer.
Now, if a client comes to me and just wants one of them will, then usually I have a flat rate for one of them of how much I charge for that particular service. Now if the client comes to me and they want all of it, we’ll then again, I’m going to have to decide how much is my time worth at that point as well. So for all of those services, I’m going to charge a larger retainer and a flat rate there. So again, you have to decipher what you’re actually doing for them.
How Much Are They Spending?
The third thing is how much are they spending? How much are they willing to spend on line is what I’m talking about.
I want to give you guys a little scenario here. Let’s say a little mom pop shop comes to you and says, Hey, I want you to some paid advertising for me. And let’s say this little mom and pop shop is in a small town of 50,000 people that they want you to run ads for. Well, in my opinion, how much are they spending? Well, they’re probably not going to be spending that much money if they’re in a local area geo-targeted 15 mile radius, they aren’t going to be spending that much. The question you have to ask yourself is like, well, is this even worth my time at this point?
Flat Rate For Services
How I deal with these different types of situations is I personally just have a flat rate no matter what. That’s what I charge for that service, whether they’re spending five to $10 a day. Now some people might say, well, they’re going to be spending more on you than the advertisement. I say, yeah, probably. But the truth comes, what it comes back to is like, well, what’s my time worth? Is it even worth my time at that point?
That’s where you have to meet in the middle. That’s where you say, well, if I’m doing X and they’re willing to pay me X, then I can, I can do these services for them.
How Much Are They Spending?
So that’s one thing that I want to bring up there is how much are they spending?
Facebook Ad Example
Another side of the story is, well now let’s say I have my flat rate and a company comes to me and they say, well, I want to spend $100,000 just to do Facebook ads. I want to spend $100,000 a month on Facebook ads and we want to just pay you for your retainer. Now, in my opinion, at that point, I’m dumb to say yes to that. You can just all just do my retainer because what’s going to happen,
what I have found is there’s a certain breaking point in number when it comes to online advertising that when they spend big budgets such as $100,000 a month, your workload increases dramatically because you’re going to have to be building tons of ads, tons of ad sets, tons of campaigns, and you’re going to be inside that campaign all the time making adjustments to produce the results. So that’s something else.
How Much Should You Charge For Your Services?
Then another consideration that you can look into is how much are they spending.
Flat Retainers For Your Services
What I recommend to you guys, what I’m finding as far as how much you should charge for your services is you should have flat retainers no matter what for certain services that you offer. And then what hap will you implement is if you implement an if statement, if the ad spend surpasses a percentage.
If you, let’s just say they’re spending $100,000 and you charge 15% of ad spend, well now you’re making $15,000 a month. So if that number surpasses my retainer, then you pick the one that’s the highest. So hopefully that makes sense for you guys. So basically just to another quick scenario, it’s like K, let’s see fee charge $500 to run Facebook ads, but they say we want to spend $20,000 a month.
If you took 15% of the 20,000 it would surpass the 500 so you’d get paid that over the retainer. So that’s what I recommend that you would implement as an online marketer, um, retainer with an if then statement essentially. And yeah, that’s basically what I would recommend for you guys for on how to, how much you should charge for your services.
Conclusion to the Marketing Lyfe Podcast Ep. 101
So thanks guys for listening to episode one Oh, one of the marketing life podcast. If you guys have questions, feel free to reach out to me, I’m here to help. Last but not least, guys, go over and check out the all my marketing master course, where you guys can learn all my knowledge, tips and tricks. My process that you can implement into your business and generate thanks guys for listening, and peace.