How much to charge for your marketing services
Digital marketing is a way of advertising and communication on the internet. There are many types of digital marketing services, such as creating ads on Google or on social networks, writing content for a website or a blog, making a website appear in the first places of Google (SEO), etc.
Each digital marketing service has a different price, depending on the work required and the expected result. Making an ad for Facebook is not the same as writing an article for a blog. Nor is it the same to run a campaign to sell shoes than to sell cars.
To know how much to charge for your digital marketing services , you have to take into account several things:
- The market : What kind of customers do you want to serve ? What kind of services do they need? What prices are they willing to pay?
- The competition : What other people or companies offer digital marketing services similar to yours? What prices are they? What advantages or disadvantages do they have in front of you?
- The target audience : Who do you want to reach with your digital marketing services? What problems or needs do they have? What do they like or are interested in?
- The value proposition : What can you offer that is different or better than what the competition offers? What benefits or solutions can you give your customers?
- The objectives : What do you want to achieve with your digital marketing services? How many clients do you want to have? How much money do you want to earn?
- Costs : How much does it cost you to offer your digital marketing services? What resources do you need? What expenses do you have?
- Margins : How much money do you want to earn for each digital marketing service you offer? What percentage profit do you want to get?
With all this information, you can calculate the price of your digital marketing services . There are several ways to do it, but a very common one is the following:
Price = Cost + Margin
That is, you add the cost of offering the service (for example, the time you invest, the materials you use, the tools you pay for, etc.) and the margin you want to obtain (for example, 20% of the cost). .
For example, if you want to offer a content creation service for a blog, and it costs you 10 hours to write an article, and you charge 20 euros an hour, your cost would be:
Cost = 10 hours x $20 = $200
If you want to get a 20% margin, you would add 20% of the cost to the cost:
Margin = 20% x $200 = $40
Price = Cost + Margin = $200 + $40 = $240
Thus, you could charge $240 for each article you write for a blog.
But this is just an example. You can adapt your prices according to the type of client, the type of project and the type of result you are looking for. The important thing is that your prices are fair to you and your customers, and that they reflect the value and quality of your services.
Prices and digital marketing rates according to the type of service
Now that you know how to calculate the price of your digital marketing services in general, we are going to see some more specific examples according to the type of service.
Google Ads campaigns
Google Ads campaigns are ads that appear in Google search results when someone searches for something related to what you offer.
For example, if you sell shoes online, you can run a Google Ads campaign so that your ads appear when someone searches for "shoes online" or "buy shoes."
To run a Google Ads campaign, you have to pay Google for every click on your ads. The price per click depends on several factors, such as the competition, the relevance and the quality of your ads.
Also, you have to charge for the work involved in creating and managing the campaign. In general, a fixed amount per month is charged if the investment made to Google is very low (less than 500 dollars. But if it is high (more than 1,000 dollars), a percentage between 10% and 20 is charged. % from the investment.
You also have to charge for the content creation for your ads, such as text, images, calls to action, and landing pages. This work depends on the type of campaign and the time invested in it. Typically, it is charged between $800 and $2,000.
Inbound Marketing Strategy
Inbound Marketing is a way of doing digital marketing that consists of attracting potential customers with useful and interesting content, instead of interrupting them with ads.
For example, if you sell online courses, you can do Inbound Marketing by creating a blog with articles on the topics you teach, offering free ebooks or webinars, sending newsletters with tips or promotions, etc.
Plus, you have to charge for Inbound Marketing strategy, execution, and maintenance. The strategy is charged once a year and consists of making an action plan to define the objectives, the target audience, the value proposition, the conversion funnel, the editorial calendar, etc.
The execution is charged for each content or campaign that is made, such as articles, ebooks, webinars, newsletters, etc. Maintenance is charged per month and consists of monitoring and optimizing the results.
The price of each of these services depends on the work required and the expected result.
Social networks are online platforms where people and companies can share content, interact and create communities. For example, Facebook, Instagram, Twitter, LinkedIn, etc.
To do digital marketing on social networks , you have to create and manage profiles or pages where you publish content that interests your target audience, such as photos, videos, texts, surveys, etc.
You can also advertise on social networks to reach more people who may be interested in what you offer.
To do digital marketing on social networks, you have to charge for management, design and advertising. Management consists of creating and maintaining profiles or pages, publishing content, responding to comments and messages, etc.
The design consists of creating the visual content that accompanies the texts, such as images, videos, infographics, etc. Advertising consists of creating and managing ad campaigns that are displayed on social networks.
Tips for setting your prices and digital marketing rates
Prices can vary based on many factors, including the market, competition, target audience, value proposition, objectives, costs, and margins.
Therefore, we give you some tips so that you can set your prices and digital marketing rates appropriately:
- Analyze your market, your competition and your target audience : Investigate what kind of customers you want to serve, what kind of services they need, what prices they are willing to pay, what other people or companies offer services similar to yours, what prices they have, what advantages or disadvantages they have in front of you, who do you want to reach with your services, what problems or needs do they have, what do they like or are interested in.
- Define your value proposition and your differentiation : Think about what you can offer that is different or better than what the competition offers, what benefits or solutions you can give your customers, how you can demonstrate your experience and your quality.
- Establish your objectives, your costs and your margins : Decide what you want to achieve with your digital marketing services, how many clients you want to have, how much money you want to earn, how much it costs you to offer your services, what resources you need, what expenses you have, how much money you want to earn for each service you offer, what percentage of profit do you want to obtain.
- Adapt your prices according to the type of client, the project and the result : Not all clients are the same and not all projects are the same. You can adjust your prices according to the size of the client, the scope of the project, the duration of the contract, the level of difficulty or complexity, the level of urgency or priority, the level of satisfaction or loyalty. You can also offer discounts or incentives for volume, referral or results.
Written by Moises Hamui Abadi : I am an entrepreneur, founding partner of Viceversa and SoyMacho. After being in charge of several digital businesses and advising several other businesses; I decided to form MHA Consulting, a digital marketing consultancy dedicated to growing and empowering digital businesses in more than 7 countries and generating more than 1,500 million pesos.
If you want more information on this topic or you are looking for other options to profile your ideal client, at MHA you will find the solution you need. Schedule a call.