How To Price SMMA Services Correctly (Ad Spend + Service Charge)
Updated: November 19, 2024
Summary
The video discusses the concept of value-based pricing for agency services, emphasizing quantifying the value provided to clients rather than focusing on time-based pricing. It illustrates the importance of showcasing results, case studies, and testimonials to highlight the value brought to clients. Additionally, pricing strategies for different types of businesses, such as local businesses and e-commerce, are shared, with a focus on prioritizing results over high initial pricing and balancing service charges with ad spends for optimal outcomes. The speaker advises starting agencies to prioritize delivering results for clients and warns against being driven by greed for cash.
Introduction and Channel Announcement
The speaker introduces the topic of client pricing and announces the winners of the merch line giveaway. The channel will continue to host competitions on each new video.
Value-Based Pricing
Explains the concept of value-based pricing for agency services rather than time-based pricing. Emphasizes the importance of quantifying the value provided to clients.
Example with Dentist Client
Uses an example with a dentist client offering Invisalign to illustrate potential returns for agency services. Highlights the value brought to clients and the importance of understanding the potential returns.
Getting Results for Clients
Emphasizes the importance of focusing on results, case studies, and testimonials rather than prioritizing high initial pricing. Shares personal experience and advises starting agencies to prioritize getting results for clients.
Pricing Strategies for Local Brick and Mortar Businesses
Provides pricing strategies for different types of local businesses, emphasizing the importance of case studies and results over high initial pricing. Recommends starting with lower prices and scaling up based on results.
Avoiding Greed and Focusing on Results
Warns against being greedy for cash and advises focusing on getting results for clients. Stresses the importance of balancing service charges and ad spends for optimal results.
E-commerce Pricing Strategies
Discusses pricing strategies for e-commerce businesses, highlighting the need for higher ad spend and service charges compared to brick-and-mortar businesses. Emphasizes the importance of setting minimum thresholds for e-commerce clients.
FAQ
Q: What is the difference between value-based pricing and time-based pricing for agency services?
A: Value-based pricing focuses on quantifying the value provided to clients and pricing services accordingly, while time-based pricing charges based on the amount of time spent on the services.
Q: Why is it important to focus on results, case studies, and testimonials rather than high initial pricing for agency services?
A: Focusing on results, case studies, and testimonials showcases the value brought to clients and helps in understanding potential returns, which is more appealing to clients than high initial pricing.
Q: What advice was given to starting agencies regarding pricing strategies?
A: Starting agencies were advised to prioritize getting results for clients, start with lower prices, and scale up based on results rather than focusing on high initial pricing.
Q: What warning was given against being greedy for cash in terms of agency pricing?
A: The warning was against being greedy for cash and advised focusing on getting results for clients, balancing service charges, and ad spends for optimal outcomes.
Q: What pricing strategies were recommended for e-commerce businesses compared to brick-and-mortar businesses?
A: For e-commerce businesses, higher ad spend and service charges were recommended compared to brick-and-mortar businesses, along with setting minimum thresholds for e-commerce clients.
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