The Offline Cash Cow - How Much Do You Charge?

Profile picture of the author naonline by naonline Posted: 05/11/2009
If your involved in offering internet marketing services to local businesses,
let's say you offer the following;

SEO
Web design/redesign
Hosting
Link Building
PPC
Email Marketing (setting up autoresponders etc)

What would you charge and would you charge a one-off payment or recurring?

Thanks
Nick
#>>the #cash #charge #charge<< #cow #offline

  • Profile picture of the author RecurringRevenue
    RecurringRevenue
    Hi Nick,

    I do a onetime fee + monthly.

    On average $5K to get started and an average of $1500 per month for basic web-marketing. (Local SEO, autoresponder, and initial web consulting and redesign).

    By targeting just the businesses that "qualify" for this payment range, it's been fairly successful. I work with 25 clients exclusively.

    Mark Robbins
    Recurring Revenue
  • Profile picture of the author naonline
    naonline
    Hi Mark,

    Can you explain what you mean by 'to get started' and 'qualify for that price range'?

    This seems quite a high price. How do you sell it to them/

    Thanks again
  • Profile picture of the author Mary Green
    Mary Green
    I have seen $197 for a 5 page website. Other than that everything would be different. If I was doing ppc for them it would be $197 plus costs of the campaign. Right there, they are looking at $400.

    Add in SEO, content, link building, hosting and email marketing. I would say an extra $97 for SEO, same for link building (plus content costs for using linkvana) hosting would be a yearly amount ($200) and email marketing I would charge per AR email, plus squeeze page setup.

    Hope some of that helps. Those are starter prices I would use. Good Luck.
  • Profile picture of the author naonline
    naonline
    Thanks Mary!
  • Profile picture of the author Jagged
    Jagged
    I'm thinking it depends a lot on your skill levels entering into offline marketing....are you a seasoned veteran at web design with a existing porfolio....or someone just starting, doing just your own sites basically...
    (This holds true for most services, not just web design)

    I've seen pricing for web design by some new to offline as low as 200.00 for a basic site....and as high as 10,000.00 by some of the advanced members.

    I believe you have to know your market & offer what the local market will bare...also you have to know your skill level...(can you walk the walk so to speak).

    There is always outsourcing for any service you personally do not have a full grasp on or are too busy to tend to...but still, you should have a basic knowledge of what you are offering to at least make an honest estimate or proposal & do not under value your tasks...

    Some basic pricing outline I use is:

    Secure, install, configure, autoresponder with 2 newsletter template designs & adding any existing customer data into the system, with 1 confirmation broadcast: $500.00 onetime payment
    *Note: I set-up accounts for each client separate, installed on their servers

    Newsletter / customer database management: $150.00 - $200.00 month

    SEO: Initial set-up: $800.00 - $1,200.00 onetime payment
    SEO Management: $150.00 - $250.00 per month

    Web design / Re-design: Basic 3 page web site:
    WP theme: $750.00 (add-ons extra)
    HTML template: $750.00 (add-ons extra) (avg price usually ends up around $1,200-$1,500)
    Custom HTML: $350.00 per page (avg)
    Flash: priced accordingly

    Re-designs: $200.00 per page +/- (add-ons extra)

    Blog Account: WP - $500.00 set-up onetime payment
    $100.00 monthly managment (4 submittals)

    Social Networking Accounts: $100.00 account set-up - onetime payment.
    $300.00 per month list / tweet management
    (Twitter - Facebook - Linkedin - Boomj)

    Video Marketing: quoted per project

    Article Marketing: $35.00 - $50.00 per article / press release

    SEM - Search Engine Marketing (PPC) - $200.00 account set-up + campaign costs
    Monthly management Varies per campaign, usually a % fee

    Hosting: $7.50 - $25.00 per month (depending on size needed - I offer 3 levels) - plus they use my affiliate links

    *Many time I will increase these numbers depending on the client & how I evaluate each situation...but these numbers are a basic outline I use...

    Hope this helps,

    Ken
  • Profile picture of the author naonline
    naonline
    Thanks a lot for that Ken. I plan to outsource most of the work. I know enough to be able to walk the walk, but i'd much rather be out getting business and speaking to clients than sitting in front of dreamweaver etc.

    Nick
  • Profile picture of the author Daniel Molano
    Daniel Molano
    1. $7,500 USD for online internet business consulting and training.
    2. $25,000 USD for individual consulting and training (1 month).
    3. $75,000 USD for company consulting and training (2 months).

    Never followed the cash cow, although it does seem pretty good. #1 is online, #2 and #3 are offline.

    I have an entire team of strategically positioned consultants, who I personally trained.

    To be honest, I don't make many sales for #2 and #3, but they have sold out due to availability limits and I'm not aiming for volume.

    The respective fees include all the software, tools, resources, material etc... website installation and optimization, plus supervised internet marketing campaign launch.

    Offline fees cover our consultant's stay, food, tickets and all that also.

    Then again, I offer something that no one else does, page 1 Google organic rankings for any keyword, regardless of competition. 100% white hat.

    If you have something unique to offer and if you think you have what it takes, don't be afraid to charge those amounts.

    Individuals, and especially companies will purchase.
  • Profile picture of the author BlueStar
    BlueStar
    Originally Posted by RecurringRevenue View Post
    Hi Nick,

    I do a onetime fee + monthly.

    On average $5K to get started and an average of $1500 per month for basic web-marketing. (Local SEO, autoresponder, and initial web consulting and redesign).

    By targeting just the businesses that "qualify" for this payment range, it's been fairly successful. I work with 25 clients exclusively.

    Mark Robbins
    Recurring Revenue
    Wow, we have very similar business models.

    I work a very specific Niche and I charge between $5k and 20K for the Initial setup. My monthly fee ranges between 2k and 8k.

    I also provide Offline consulting for Direct mail campaigns, etc...

    I provide 100% of their marketing advice. I also offer a Guarantee that I will lower their existing budget and increase their sales. I see so many so-called Gurus here that have no clue what they are talking about. It's the Blind leading the Blind.

    I would say 99% of these so-called Gurus are Undercharging. They get excited over the smallest sales. Normally I wouldn't care, but that would be like Frank Kern saying his newest launch did $10,000.

    I pre-qualify my clients with a Questionnaire before we do any business together. I turn down 90% of the co's that ask me to handle their marketing. I use their EXISTING monthly budget to determine MY fees.

    If they are spending 10k month, you can be sure my fees are going to come in between 8-10k. Remember, I offer a Guarantee that I will lower their cost and increase their sales.

    I Guarantee results so I need to be selective.

    I allow each client 30 minutes per month (no rollover) personal Phone consultation. Each additional 15 minutes is billed at $150.

    In addition I do Teleseminars to the group as a whole.


  • Profile picture of the author snakez0r
    snakez0r
    BlueStar,

    You've mentioned this questionnaire before. It would be great if you could share it with us, or a brief outline of the kind of questions you use to determine your clients

    I'm very interested and I'm sure a lot of others are too.
  • Profile picture of the author BlueStar
    BlueStar
    Originally Posted by snakez0r View Post
    BlueStar,

    You've mentioned this questionnaire before. It would be great if you could share it with us, or a brief outline of the kind of questions you use to determine your clients

    I'm very interested and I'm sure a lot of others are too.
    Send me a PM if interested.

    Thanks
  • Profile picture of the author TK6863
    TK6863
    What specifically is your guarantee ... an is it a money back guarantee?

    With a specific time guarantee?

    In other words is it a real guarantee?

    I never hear anybody mention the specificm results they get with cliesnts.
  • Profile picture of the author Barry Walls
    Barry Walls
    I also think it depends on the client too.

    The guy who did SEO for party poker in 2002 and 2003 was getting $150k a month...I heard.
  • Profile picture of the author Market1
    Market1
    Originally Posted by Daniel Molano View Post
    1. $5,000 USD for online internet business consulting and training.
    2. $25,000 USD for individual consulting and training (1 month).
    3. $75,000 USD for company consulting and training (2 months).
    Never followed the cash cow, although it does seem pretty good. #1 is online, #2 and #3 are offline.

    I have an entire team of strategically positioned consultants, who I personally trained.

    To be honest, I don't make many sales for #2 and #3, but they have sold out due to availability limits and I'm not aiming for volume.

    The respective fees include all the software, tools, resources, material etc... website installation and optimization, plus supervised internet marketing campaign launch.

    Offline fees cover our consultant's stay, food, tickets and all that also.

    Then again, I offer something that no one else does, page 1 Google organic rankings for any keyword, regardless of competition. 100% white hat.

    If you have something unique to offer and if you think you have what it takes, don't be afraid to charge those amounts.

    Individuals, and especially companies will purchase.
    Would you WSO that for us?

    J/K, those are pretty steep fees, I'm just wondering what sort of an ROI are your clients getting out of that?
  • Profile picture of the author NewbiesDiary
    NewbiesDiary
    Originally Posted by billyboy View Post
    Man....that's expensive.....basically aren't you ripping of the ignorant?
    NO!

    I spoke to a local guy who does SEO (badly) and he charges $3000 up front to optimise an existing site - and from what I see he only works on one keyword - not much else.
  • Profile picture of the author Jagged
    Jagged
    Originally Posted by billyboy View Post
    Man....that's expensive.....basically aren't you ripping of the ignorant?

    Hi Billy,

    Expensive? Not at all. If anything the pricing is too low....specially for the SEO services. I deliberitely kept it lower to start off with & attract a solid customer base. Other SEO businesses are easily charging 3x-5x more.....and they get it...
    I plan to raise my pricing, still lower than most but more in line with other local SEO firms.

    Take into account the amount of work involved. It's not something that can be done in a few hours...it's on on-going process to keep a website on top of the search engines.

    Then again you have to take into account your geo-graphic location & what your market can bear....
    $2500.00 might be too low for larger cities like NYC, LA, Chicago.....but too high for smaller cities like Buffalo, NY...Williamsburg, VA or Canton, Ohio.
    Research your local market, go in higher with pricing...you can always negotiate.

    Good Luck,
    Ken
  • Profile picture of the author Market1
    Market1
    Hi Ken,

    How would you go about testing your prices?

    It sounds like I have to start high and keep losing customers until I gain some

    Did you guys figure out other metrics such median Yellow Pages or radio ads or someting to that effect?

    Thanks for clarifying that, I'm starting myself offline and this is probably my number #1 concern.
  • Profile picture of the author JohnMcCabe
    JohnMcCabe
    I won't go into specifics here, as it depends on the individual client.

    For a basic, 3-5 page static website, domain name plus 12 months hosting/maintenance, typical setup is $500 plus expenses (custom graphics, theme, etc.). Monthly fee runs about $30, including minor maintenance, if I host the site.

    Autoresponder service varies, depending on whether they have an existing database, etc. Again, typical is about $500. Monthly fee runs about $20, plus $.02 per email sent.

    That's for the folks that want a stable, flat fee. I base the fees quoted on an hourly rate of $125/hr, which seems to hit the right range in my area. That's also the rate I charge for consulting, where I'm not providing the actual services.

    If the business is right for it, I much prefer to charge based on performance. I like to get a big enough advance to cover the overhead of setting up the campaign and getting it going, but not so big it's a deal killer. Then I'll get paid a royalty, either per qualified lead or percentage of sales generated, for a set period of time (usually 2-3 years). The advance is non-refundable.

    For example, if the business nets out at 5% profit, I'll charge 1-2% of sales. That way, the client is paying me out of profits, and by the time he pays me, he's already made 2-4 times what he's paying me. If, for some weird reason, I don't produce, the risk is limited to the advance.
  • Profile picture of the author AndrewCavanagh
    AndrewCavanagh
    The amount you charge should really be linked to value.

    In fact establising an approximate dollar value of the service you're going to provide by getting your prospect to estimate step by step the results he's likely to get...that's one of the biggest keys both to getting hired and charging premium fees.

    The other secret is to extend the time period.

    An internet marketing strategy that helps a business make an extra $100 in profits a week is actually:

    $100 a week value
    $400 a month value
    $1,200 over 3 months
    $2,500 over 6 months
    $5,000 over 1 year
    $10,000 over 2 years
    $15,000 over 3 years
    $25,000 over 5 years


    Since many internet marketing strategies keep performing year after year the value is genuine.

    Now if you help a business make an extra $500 a week in profits (which is quite possible especially with businesses that have high transaction values) those numbers get quite huge...

    $500 a week value
    $2,000 a month value
    $4,800 over 3 months
    $10,00 over 6 months
    $20,000 over 1 year
    $40,000 over 2 years
    $60,000 over 3 years
    $100,000 over 5 years


    When you start thinking in numbers like that it becomes fairly easy to justify premium prices.

    Most people selling their services are charging between $1,500 and $6,000+ initial fee (usually 50% upfront and 50% on completion) plus some kind of monthly fee varying quite a lot from $50 a month to $1,000+ a month.

    Every job is different so every price should be different.

    But any fee can be undercharging if you're making serious profits for a business and even the tiniest fee can be a ripoff if you're not genuinely helping a business make more sales and profits.

    Kindest regards,
    Andrew Cavanagh
  • Profile picture of the author AndrewCavanagh
    AndrewCavanagh
    Originally Posted by Katie Byrd View Post
    took me less than an hour and cost me $50 for some backlinks. My fee was $1K.

    Within the first week, they had 2 new clients (who found them online) who signed up for 1 year contracts for a total of $1800.

    This is a GREAT example of how you can provide genuine value to a business even with some quite simple internet marketing skills.

    If you're making a business a profit over what they pay you then your fee is more than worth it (obviously).

    Kindest regards,
    Andrew Cavanagh
  • Profile picture of the author Mark Brian
    Mark Brian
    I think it's very important that you know how much is their marketing budget before you start presenting your services. So not only can you price them and offer services accordingly within their budget, you also don't waste time together, coz right away they will know whether they can afford you or not.

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