Agency Pricing structure

10 replies
Over the last 4 months, I have been working on starting my own SEO agency. We have invested a significant amount into our branding and website and we have established a skilled team.

Our plan is to charge 40 p/h, then increase the price as we expand. This makes sense but as we all know, for some clients we may have to buy links for big results. Sponsored posts, guest blogs, local blogs, etc - most high DA/PA sites require a small payment for a follow link.

How do you handle this? Do you take the cash out of the budget and inform the client? Or would you ask the client for an additional payment?

How would you handle this? Id highly appreciate any advice.
#agency #pricing #structure
  • Profile picture of the author salegurus
    Is that $40 p/h?
    As far as final price, you give the client a quote upfront and stick to it.
    Customers won't appreciate being told they need to pay more money half way through a job...
    Signature
    Think of how stupid the average person is, and realize half of them are stupider than that.

    ― George Carlin
    {{ DiscussionBoard.errors[11058754].message }}
    • Profile picture of the author UK1Quest
      Agreed, what do you think to the idea of explaining that we may do less hours, but this will result in us sourcing paid links.

      I know its very convoluted but it would be great to be able to do this for the clients site.
      {{ DiscussionBoard.errors[11058759].message }}
      • Profile picture of the author quadagon
        Originally Posted by UK1Quest View Post

        Agreed, what do you think to the idea of explaining that we may do less hours, but this will result in us sourcing paid links.

        I know its very convoluted but it would be great to be able to do this for the clients site.
        I can't imagine you will get much business with this approach.

        Its far too complicated to explain to a prospect and hope that they will understand and agree to it. I don't believe you meant it this way but that approach sounds really scammy

        'hi I'd like to charge you for more hours than I work so I can pay someone else to do the job that you are paying me for'

        Selling SEO is hard enough as many business' still look at is as the emperors new clothes, you don't really want to be putting any additional barriers up.

        I honestly wouldn't go for the per hour approach as it leads to unnecessarily complicated accountability. This is just me but if you bill me for 10 hours work a week you can be sure I want to see proof of 10 hours work - if you can't prove it I ain't paying.

        I'd look at costing each job on a flat fee per month and include all your costs in the flat fee.
        Signature
        I've got 99 problems but a niche ain't one
        {{ DiscussionBoard.errors[11058843].message }}
  • Profile picture of the author agmccall
    Quote the job not hourly rate
    Quote upgrades I.e. paid links separately, or have different packages
    Personally I would never pay per hour for seo

    al
    Signature

    "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

    {{ DiscussionBoard.errors[11058826].message }}
  • Profile picture of the author goindeep
    Why would you raise your price? Unless there is a reason to you don't just raise price because you feel like it, especially for existing customers.
    {{ DiscussionBoard.errors[11058880].message }}
  • Profile picture of the author Frank Donovan
    Originally Posted by UK1Quest View Post

    Our plan is to charge 40 p/h, then increase the price as we expand. This makes sense but as we all know, for some clients we may have to buy links for big results. Sponsored posts, guest blogs, local blogs, etc - most high DA/PA sites require a small payment for a follow link.
    Charging a set hourly rate for such a service leaves little or no room for flexibility. From what you describe, a better pricing structure would be to offer a range of packages, starting with your basic service, and going up from there, depending on the size and the requirements of the client.

    However, you don't want to overwhelm prospects with too many options - three should be enough (e.g. gold, silver, bronze) - and I would charge a set monthly fee for each package.

    It's up to you if you want to hold them to a minimum contract period, but you should make it clear exactly what the clients can expect from each package.
    Signature


    {{ DiscussionBoard.errors[11058920].message }}
  • Profile picture of the author mfried41
    I would consider charging a setup fee up front. You might also want to break the budget up by charging a split between fees for service and then marked up cost of media.
    {{ DiscussionBoard.errors[11058957].message }}
    • Profile picture of the author agmccall
      Originally Posted by mfried41 View Post

      I would consider charging a setup fee up front. You might also want to break the budget up by charging a split between fees for service and then marked up cost of media.
      Set up fee for What?

      al
      Signature

      "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

      {{ DiscussionBoard.errors[11060136].message }}
      • Profile picture of the author mfried41
        You are providing a service that is based on performance. There are many reasons why the service may not workout everytime with every client in the long run. An up front cost can bring help level the playing field.
        {{ DiscussionBoard.errors[11060872].message }}
    • Profile picture of the author Ben Friedman
      Originally Posted by mfried41 View Post

      I would consider charging a setup fee up front. You might also want to break the budget up by charging a split between fees for service and then marked up cost of media.
      There is nothing to set up... This doesn't make any sense.

      Quote each client depending on their needs and sell it as a bespoke package. Every business like to feel that they are special so if you tell them that you will tailor make the package for their needs then they will be more likely to be interested, even if you offer the same thing to everyone!

      Make the client feel like you understand their individual business model and what is required for them to succeed. This is the key to getting business. You could even charge more to some clients that will be more demanding etc.
      {{ DiscussionBoard.errors[11060223].message }}
  • Profile picture of the author Brent Stangel
    [DELETED]
    {{ DiscussionBoard.errors[11060912].message }}

Trending Topics