Reasonable Pricing Scheme for Local Business Advertising?

W Kamar · 05-02-2009, 05:11 PM

I am starting a new business applying internet marketing techniques(pretty much anything you can think of that might work) for local businesses, but the one thing I'm getting hung up on is my pricing scheme.

My plan is to charge a reduced monthly fee for one or two months, while basically throwing everything at the wall and seeing what sticks. After this period, I would then let the client see how well each service has done, and decide at that point which ones they want to pay for and which ones they do not. At which point they will begin paying a monthly fee for each service they want to keep, OR, alternatively, pay a single lump sum to purchase the various traffic driving sites, articles, videos, etc.

I suppose what I'm wondering here is what you Warriors think my baseline should be for the initial 'work in progress' charges, and for the lump sum.

I plan to be much more flexible with the other fees, working on more of a 'common sense' metric.

Unless the general consensus is that the entire system I'm suggesting is a mess, at which case I'd like to hear some alternative payment schemes.

Thanks in advance!

p2y · 05-02-2009, 05:18 PM

Well without knowing what you will be providing and in what markets it's very hard to give you an advice on your pricing model. In general I think the best route to go is to charge a setup fee ($500 - $2000) and then a fractional monthly fee. But again, it all depends on what you will actually be doing and what market they are in.

Instructor · 05-02-2009, 09:05 PM

Quote:

Originally Posted by Don Alm

With "Monthly" fee programs....I've used a, "One-Time SetUp Fee & per month, with the 1st month included with the SetUp....and....if they pay 6 months in advance (pay for 5 mos), they get 1 month free. Paying 12 mos in advance (pay for 10 mos), they get 2 mos FREE.

A good percentage will take the "12 Month" deal, paying for 10 mos in advance (saving 2 mos)

Don Alm

What services Don and at what price point would you recommend him?

artwebster · 05-03-2009, 12:13 AM

Before you start thinking about what to charge don't you think it would be a good idea to actually find out what the local businesses want?
For a very simple service that saved real cash for businesses I used to charge €250 and €29.95 per month maintenance. I had to stop working about five years ago but recently started teaching other people how to give businesses the money to pay for the services being offered - my star pupil started off charging more than I suggested and then went on to charge 30% of the monthly savings and €49.95 per month. I wish I had set up an overide, she is making a fortune!

SeanIM · 05-03-2009, 12:20 AM

I start clients with blueprints/competitive analysis for 1297...publishing platforms for 697...then for ongoing publishing around 380-480 a month and up. I outsource parts of this if I don't feel like 'grunting it out'

my 2c for the evening

05-02-2009, 05:11 PM	#1
W Kamar ADHD Warrior Join Date: Nov 2008 Location: Tennessee Posts: 5 Thanks: 2 Thanked 0 Times in 0 Posts	Reasonable Pricing Scheme for Local Business Advertising? I am starting a new business applying internet marketing techniques(pretty much anything you can think of that might work) for local businesses, but the one thing I'm getting hung up on is my pricing scheme. My plan is to charge a reduced monthly fee for one or two months, while basically throwing everything at the wall and seeing what sticks. After this period, I would then let the client see how well each service has done, and decide at that point which ones they want to pay for and which ones they do not. At which point they will begin paying a monthly fee for each service they want to keep, OR, alternatively, pay a single lump sum to purchase the various traffic driving sites, articles, videos, etc. I suppose what I'm wondering here is what you Warriors think my baseline should be for the initial 'work in progress' charges, and for the lump sum. I plan to be much more flexible with the other fees, working on more of a 'common sense' metric. Unless the general consensus is that the entire system I'm suggesting is a mess, at which case I'd like to hear some alternative payment schemes. Thanks in advance!

05-02-2009, 05:18 PM	#2
p2y Advanced Warrior War Room Member Join Date: Feb 2007 Posts: 508 Thanks: 9 Thanked 187 Times in 57 Posts	Re: Reasonable Pricing Scheme for Local Business Advertising? Well without knowing what you will be providing and in what markets it's very hard to give you an advice on your pricing model. In general I think the best route to go is to charge a setup fee ($500 - $2000) and then a fractional monthly fee. But again, it all depends on what you will actually be doing and what market they are in.
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05-03-2009, 12:13 AM	#4
artwebster Brutal honesty's me Join Date: Sep 2008 Location: Coín, Spain Posts: 1,032 Blog Entries: 4 Thanks: 33 Thanked 251 Times in 138 Posts Social Networking Contact Info	Re: Reasonable Pricing Scheme for Local Business Advertising? Before you start thinking about what to charge don't you think it would be a good idea to actually find out what the local businesses want? For a very simple service that saved real cash for businesses I used to charge €250 and €29.95 per month maintenance. I had to stop working about five years ago but recently started teaching other people how to give businesses the money to pay for the services being offered - my star pupil started off charging more than I suggested and then went on to charge 30% of the monthly savings and €49.95 per month. I wish I had set up an overide, she is making a fortune!
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05-03-2009, 12:20 AM	#5
SeanIM Don't think about rabbits War Room Member Join Date: Nov 2005 Location: ...between my left and right ear. Posts: 768 Blog Entries: 1 Thanks: 38 Thanked 69 Times in 53 Posts	Re: Reasonable Pricing Scheme for Local Business Advertising? I start clients with blueprints/competitive analysis for 1297...publishing platforms for 697...then for ongoing publishing around 380-480 a month and up. I outsource parts of this if I don't feel like 'grunting it out' my 2c for the evening
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