Introduction To The Marketing Lyfe Podcast Ep. 59
Episode 59 of the marketing live podcast. This is Taylor, Timothy, your host. And today guys, we’re gonna be talking about different pay structures for online marketers and agencies. So over the years that I’ve been working in this industry. I’ve heard of so many different ways that people actually make money doing all my marketing. So these are the three most popular that I found. So let’s dive in.
What Is A Retainer?
The very first thing I want to talk about is a retainer. So no, it’s not the thing you put in your mouth to keep your teeth straight. It’s a retainer guys. So basically what is a retainer? Our retainer is a monthly payment that they pay you for your services.
How Does It Work?
So you go to them and say, I will do x, Y, Z for you and you pay me 500 bucks a month. So it’s like. or maybe you go to them and say, we’ll build your website, we’ll do all your paid traffic. we’ll do your email marketing and Dah, Dah, Dah, Dah, Dah. we’re going to charge you a $10,000 a month and we’re going to do everything for you. So that’s kind of how the retainer works.
Pro: Monthly Payment
Now, the pro to this is obviously you’re going to be getting a monthly consistent paycheck. as long as you’re working with this company. So your, you basically make a deal with them and they start paying you every month.
Con: Doing A Lot Of Work
So the con, what I’ve found for a lot of marketers is a lot of times on a retainer. they want you to do a lot of work. So they look at it as, okay, will, if I’m paying you a retainer, then what are you doing for me? You said you would do these things, but I want you to do more now. I still want to pay the same amount.
So a lot of times with marketers, they get in a flip flop with that and it starts to run into. they start to run into some issues here. So just, uh, a misalignment of expectations that I have found when people set up retainers with their clients.
What Is Cost Per Result?
The next one we’re gonna talk about is the cost per result. So what is the cost per result? So I’ve heard of marketers going out there and making deals with people saying for every lead we get you. you have to give us 25 bucks or five bucks, whatever lead you get, we get you. You have to pay us in return.
Pro: Make A Ton Of Money
So there’s pros and cons here. The pro to this is obviously you can make a ton of money because it’s a high risk, high reward situation. So if they come to you and say, Hey, I’m going to give you $10 a lead and you start generating thousands of leads for these people. you can make a crap ton of money really fast.
Con: You Can Make Zero
Now the con is if you work out this deal and you never make drive them any leads, well then you’re making zero and you might’ve put a ton of work up front to get stuff set up for them and you get zero back in return. So that’s kind of the cost per result thing. High risk, high reward situation. So that’s one thing you guys can look into doing as well.
What Is Percentage Of Ad Spend?
So the percentage of ad spend is the next one that I hear a lot about. So what is percentage of ad spend? So if a company comes to you and says, hey, we want to spend $1,000 a month on Facebook and return, you say, will we take 10 to 15% of ad spend? So you’re, they pay you a hundred to 150 bucks a month depending on how much they’re spending.
Pro: Massive Budgets To Make Money
So some of the pros to this, obviously if these guys have massive budgets. you can make a ton of money. Imagine if a company comes to you and says, Hey, we have a million a month we want to spend on ads. We’ll talk about your paycheck. Now you’re making a ton of money from this. So that’s a huge pro. If they have big budgets, you’re making a ton of money.
Con: Small Budgets Instantly
A con is if you’re working with small businesses and they come to you and say, we only have 500 bucks a month. then obviously you’re making like 50 to $75 a month on running Facebook ads. And it’s like, is it really worth it at that point? I mean for me, no, it would. take too much time to set up everything and I wouldn’t even be making money at that point.
So just to wrap up this episode, other things I’ve heard. I’m not going to dive deep into these are pros and cons. but you guys can think about this as well is I’ve heard of people mixing and matching these as well. So they’ll do our retainer, but if their, you know, their ad spin surpasses the retainer and their percent. their percentage of spend passes that then you start making, then it goes to that. I’ve heard of a container plus cost per results. So the Rye K we’ll take a small retainer cut up front. But if we start, you know, Scaling Your Business, then you have to give us a cut of the percentage that was there.
There’s a lot of different things that you guys can do out there. You can mix and match these as well. Um, but all in all, what I have found, um, works the best is the retainer and the cost per result. So I have a lot of buddies that do a lot of cost per result. I have a lot of buddies that do retainer as well. those seem to be best fit for a lot of people out there. So thanks guys for listening to this episode. Retainers.
Conclusion Ep. 59 Different Pay Structures For Online Marketers/ Agencies
Thanks guys for listening to this episode. Episode 59 different pay structures for online marketers and agencies. If you guys have any questions for me, feel free to reach out. I’m here to help. Other than that, don’t forget to go check out my online course. They’ll teach you guys from start to finish. how to build a website. how to freaking scale your business through paid ads strategies. So thanks guys for listening and peace.