My Digital Marketing Agency Pricing Model That Made Me $43,000

My Digital Marketing Agency Pricing Model That Made Me $43,000



hey everyone this is Ron and in today's video we're going to talk about pricing for digital marketing agency services now look I'm up to explain to you what took me about a year to learn because when I started out I had no idea how I was gonna price my services and it took me of year a trial and error to figure this shit out so you should be very grateful for the video that you're about to watch now before we start the video I want to launch a free 30-minute consultation for the best comment down below on pricing leave a comment down below tell me about your experiences with better pricing with how you price your services and I'm gonna pick somebody from the comments section to actually do a 30 minute consultation so with that being said let's get right into the content so I can explain to you what took me a year to learn about digital marketing pricing now before we begin this video I want to make it very clear that pricing really all depends on experience I think a lot of people they come into the market and they're listening to all of the advertisements online of how easy it is to start a social media marketing business this and this you can easily get clients for $3,000 that's all bullshit it's really not that easy I'm gonna be very upfront with you it's actually pretty fucking difficult but if you listen to this video and if you really implement the steps in this video and you create an ideal pricing structure a legitimate pricing structure that makes sense to your clients you're never gonna have issues with pricing out your clients now a lot of people they don't get clients because they literally tell clients give me a thousand dollars a month and the clients no idea what the fuck you're going to be doing onto their website the client has no idea why you're pricing that thousand dollars you're not logically placing time into that money so in this video I'm going to explain all of this and I'm going to show you really two exceptionally practical ways on how to logically price your services to get the conversion a lot of the times when people are selling this is including me when I was beginning out I was placing my services and I wasn't really tying it back to anything I was kind of just saying okay it's gonna be a thousand dollars a month that you're gonna get leads and that's probably the worst way to do it because if you're doing it that way what's gonna happen is your client is gonna have expectations that you're just gonna get them leads they don't really know what you're doing they don't know how many hours you're working what you're implementing all they know is that they're throwing $1,000 into a really dark bucket of water and they're hoping to get it back well let me tell you that if you're not pricing logically if you're not pricing strategically you're not going to get clients it's very simple now today I'm going to show you two ways to solid ways on how to get your first client how does priced out your first client and it's really going to be really logical it's gonna make sense it's like solving a puzzle game now let's get into the content right now so depending on the service that you're offering whether that be Facebook advertising sto Google PPC I'm going to show you how to price all of this out today so let's go into this handy-dandy whiteboard and let's talk about the first pricing structure and this is probably my favorite pricing structure because it's the pricing structure that I'm using now but the next one I'm gonna show you also makes a lot of sense but this pricing structure it took me a while to figure this out I want to tell you a little story about a long time ago when I started out internet marketing I actually went to a digital marketing agency when I started this stuff out I just was like middle of the middle of 2017 I went to a digital marketing agency and the guy told me to charge per hour and I was like that doesn't really make sense how am I going to charge per hour I don't really know how to calculate how long I'm gonna be working on an account how could I possibly charge per hour and it really took me so long and of course at the time I was really naive I didn't want to listen to anybody I didn't really want to hear anybody out I kind of just wanted to do whatever the fuck I want and that really cost me a ton of money a ton of time you know some bad business relationships etc because I really wasn't placing the right expectations for the client and really understanding yourself after a year of doing this I understood now what he was trying to tell me when I first started out that in order for you to deliver services at a professional level such as a lawyer such as an attorney such as a digital marketing service it doesn't really matter to what it is you know a professional service always bills per hour because many times you really can't build based on a project basis because people are going to feel like they're being ripped off so you got to let them know like the expected amount of hours you're going to be working on a campaign now don't worry I'm gonna hold your hand through this process and I'm going to show you how you can implement this in your business starting tomorrow but basically what you really need to get here is every single digital marketing agency has a per hour cost let's just say for example ours is $100 per hour if you are 15 hours in below okay but if you go 15 hours and above you are now at $75 an hour right let's just say that's $75 an hours and with this right here now you can tell your clients look we charge $100 per hour we're gonna work in your account for 15 hours and that cost is gonna be $1,500 per month and that really makes much more sense than whatever it is you're doing right now this right here is the baseline of it but I'm gonna get a way more in-depth into this stuff because this is kind of just like the tipping point okay so now you really understand that you know all of this stuff comes in per hour now how can you scale this how can you really explain this to a customer so it looks good I want to explain something to you right now okay if you're pricing your services like this if you're saying that your services are gonna be $1,000 per month your client is going to look at your services as an expense okay but if you're telling your client that it's going to be $15,000 for the campaign what's gonna happen is they're gonna see it as an investment okay when you say per month when you tell a customer per month when you say hey look you know we're gonna be $1,000 per month but the rest of your fucking life they're gonna get scared they're not gonna know what the hell to do there's a big oh my god this guy wants a thousand dollars every single month or you're going to think you're nuts okay now if you if you if you put it like this if you say look mr. client it's gonna be a fifteen thousand dollar campaign and you're gonna have scheduled monthly payments of six months right so whatever that monthly cost is schedules the schedule monthly payments of six months okay and in those six months basically what we're gonna do is we're gonna provide services a B and C and in this video I'm going to tell you what services to provide in any campaign for marketing that you're gonna do but let's just say we're at $15,000 you know divided by six that gives us $2,500 per month now once you divide that by 75 you can tell the customer look we're gonna be working 33 hours per month on your account okay and inside of those 33 hours we are going to be doing on-page optimization we are going to be doing backlinks we are going to be doing content we are going to be doing technical SEO okay we are gonna be doing some time some some hours are going to go into web you know some hours are gonna be going to graphic design whatever it is that your agency is servicing this is a really solid way to go about it because I know that a lot of people watching these videos want to start out with a digital marketing agency but they don't really get how to price this stuff well this right here is what took me a year to learn and the next pricing structure I'm going to show you is really going to excite you because it's an easy way to get clients because it's so damn competitive but with that being said with a pricing structure like this it makes more sense because as a marketing owner as a digital agency owner you probably found yourself playing a few hats within a client's account you've probably found yourself creating graphics for the client you've probably found yourself doing you know you know content copywriting you've probably found yourself doing grammar mistakes you've probably found yourself doing some WordPress stuff all of that must fall into your package all of that must fall into here so that's why when you say 33 hours you're not just mentioning the SEO you may be throwing in the web dev you may be throwing in the graphic design you may be throwing in the content that you're creating for that web site inside of a 33 hours a day buffet of $100 a month or $100 an hour or $35 an hour whatever it may be by doing this you are going to seriously strategically place it into your customers brain that this is not a monthly expense rather this is a one-time investment and with that being said this is why I love SEO so much because after they paid us $15,000 their results are gonna continue to grow and grow and grow unlike paid advertising you know once you spend the $15,000 yeah you may have people onto your email lists but the traffic's not sustainable because you can only monetize that little email list with the sdo traffic we're longside with paid traffic however you're selling your services it's going to beat that up for longevity so not only are going to get that mishel bulk of email addresses they're going to get that bulk of email addresses for the rest of their term under under on under campaign so this right here is my favorite way to price out services now keep in mind I learned this from a seven million dollar a year agency in the state of Connecticut he's a competitor we know we're good friends but if it's just good to know because as an agency you may be offered some buffet style services just like myself you know I'll find myself doing whiteboard animation videos stop doing you know copywriting I'll find myself doing SEO all the stuff that I'm not really an expert at but I'll outsource it and put it under the agency and say that we do everything right and this is why the sole reason why most agency websites even taking a look at mine most of digital marketing agency websites they'll have a bunch of services listed even though they all specialize in one product or service so let's say you're a Facebook ad agency let's say you're a PR agency well you may list SEO in there because you can outsource it in part of your agency retainer so if you go over to our website and you go over to services you're going to see right here that there's SEO there's web design there's PPC there's social media there's a video production graphic design animations public relations really we'll take on anything and just throw it into our hourly rate and find a good partner to deliver on those services while we deliver the website and the SEO so I hope that really makes sense in that portion that most digital marketing agencies they operate like this because simply simply put it's just the best way to operate if you're going to be a digital marketing agency now if you're a freelancer if you're a freelancer you should be doing the same thing but many times freelancers aren't going to run complete digital marketing campaigns they work on what's called a project basis right so they're not running campaigns rather what they're doing is they're running projects and in your projects you need to figure out your hourly rate or you can work off of project costs now a lot of the times I'm just gonna tell you right now after working with dozens and dozens and dozens of freelancers I never hire somebody based on project cost simply because I always end up getting a rake that way people always want to charge what they want even though it's not taking them enough time now what I'll do is I'll have people log into timesheet and I'll make sure that they're clocking in their time so I know exactly what they're doing and how long they're doing it for as a digital agency you're not going to have a lot of margin to mess around with so that's why I highly highly highly recommend that somebody gets in an hourly rate you know we've recently had designers that were freelancing to telling us about a project basis and at that point you just got to say no because when you're getting the project base you're losing money because that person is pricing it based on how much money they want to make not how much money they want to work so you need to ask your freelancer or if you are a freelancer you need to set an hourly rate and tell pee how many hours their project is gonna cost after they submit it and by doing this you're going to literally handle so many objections I can tell you this right now that if you're a freelancer and you're watching this video and you're not getting projects is because you're charging like this and it makes no fucking sense so make sure that you're charging for hourly rate regardless if you're an agency or a freelancer if you're a freelancer though your cost may either go up or down and here's why here's why many people are surprised saying what if your freelancer you can charge more well that's right because if you're a specialized freelancer right and let's say you go down right let's say you're a specialized freelancer and now you're at let's say 250 an hour right let's just say someone wanted to somebody wanted to hire me personally not my team you know we want Moreno personality or SEO and I was like okay well you know what it's 300 $50 an hour well the average agency is 150 an hour so why can I charge more well because I have a specialized skill and this would be the only thing I would offer as a freelancer so that's how much I would charge and that's kind of like the benefit of being a freelancer when you're an agency you can pick your hourly rates you can definitely do that but it's hard because a lot of people are competitive with lower hourly rates even though they're large you're a lot of the larger companies such as marketing 360 a lot of these larger companies what they're doing is is they're trying to be competitive in terms of price because not a lot of people want to pay a digital marketing agency to do their services because they know it's so damn expensive so these companies such as marketing through 60 and all of those other big guys what they figured out is how to get effective pricing in place so they can get the conversion and you know they don't have to worry about growing their client base they're just getting a ton of clients so with that being said there is also a con of being a freelancer if you're a freelancer there's a possibility that your prices could go down why do you say this well because you don't have a team you don't have a team and you can only do one thing and a lot of the times when you're working with digital marketing clients I'm telling you right now it's usually better to just be the complete solution for that client rather than them having to go and search for six or seven different people if you can just be that one-stop-shop solution for the agency or to the client they're gonna choose you over anybody else all the time a lot of people don't want to have multiple accounts in there from multiple contacts that they have to call back every single day for different things on their the rest yo their social media they want an agency in-house that can handle it all because they don't have time to be on the phone all of the time this is simply of the reason why agencies exist freelancers would dominate if agencies didn't exist but they real answers don't have the communication abilities and they don't have the buffet-style services that can actually you know deliver massive results for an agency so this is really the number one way that you should be pricing your services you know I think this is how the world's gonna move you know project base is great and everything like that but a lot of people want to know exactly how long you're working for and what your hourly rate is so they can compare you to the different options that they're searching for it because when you get into a digital marketing agency when you start figuring out how to do this stuff what you're gonna see is that a lot of people go price shopping you know you may think it's all about results but a lot of people are looking at price as well and it just naturally happens because even though we have a cash crunch digital agencies have payroll we have you know benefits we have all this crap going on what's gonna happen is is your clients also have this stuff going on so it's very very difficult to have a high high high price especially when you're starting out which I highly don't recommend so let's talk about the second pricing option not so we first talked about the hourly rate this one we're gonna call let me just make this a little bigger this one we're gonna call paper performance okay now you guys are probably wondering what is that why would you do that that's risky right paper performance is basically working on milestones now this is a very very ruthless belief the lethal deadly way to get clients to pay you every single month very quickly if you're out doing digital marketing services you need to understand this paper performance model okay because I want to get you to really understand this how powerful this is for your client because everybody thinks that SEO digital marketing is all scam it's not Rios and this whatever bullshit people want to say online but in reality they just want to get results so let's talk about paper performance how does this work well if I were to draw a line here and actually I'm gonna make that green I'm not gonna make that red because that makes no sense this is gonna be for money so let me go ahead and erase this if I just go ahead and draw a line here and this right here this line right here talks about you know this is your this is a this is revenue okay this is revenue and down here you have search rankings okay search rankings alright and inside of your contract that you work with your client you're going to work based on a paper performance model so for example search rankings we're going to have position one or position let's just say five through nine here right this is pages five through nine the keywords that we're targeting they're on pages five through nine well here they're on pages you know four or we'll say three to four and at first tier their pages one to two okay so what's gonna happen here is you're going to work on very specific set of keywords for your client and here's what you're going to do so when you start out at pages five through nine meaning the keywords that you're targeting are still on pages five through nine you are going to get the lowest to pay out so let's say your payout is five fifty per month and until you reach pages three to four for those target phrases your pay goes up does this make sense so now instead of getting though that five fifty now that you've reached those milestones for your actual pages you're now going to go up to twelve fifty because now your clients should be getting results once again once they reach pages one to two now your client is going to be paying fifteen hundred dollars per month because now they're definitely getting results and how this works and how you structure this is you start off by doing a contract and you say look our estimated month one through three you're going to be on pages five through nine but as time progresses and we go through month through four through let's say seven you're going to be on pages three to four and by the time the campaigns over between month through twelve you're going to be on pages 1 to 2 for your target keywords and what this is going to do is it's gonna cause the client a peace of mind now why would you imagine that a customer would have peace of mind with this business model with this pay model here well the simple fact is a lot of people don't trust SEO companies they don't so when you have a paper performance model inside of your business what it's doing for you is it's creating confidence that your client can now see and really start to experience because if you're charging a lot of money from the get-go you're charging 3 a month from the get-go and the clients never done business with you and they don't trust you and they don't even have friends that have done business with you you're kind of just charging it because you fucking feel like it they're gonna be like well no like I'm not gonna sign on with that that's ridiculous that's why you proposed this model and depending on confident you are you can go crazy with these prices because I'm gonna tell you right now 550 is plenty for most local phrases to get a decent amount of results in terms of outsourcing to work and having the work done by somebody else now what 1250 this is where you become profitable and at 1500 you are just raking in cash so I really hope you understand these two simple pricing models and right now I'm gonna explain to you how to build for this stuff because a lot of people don't get this right now that you have your pricing model in place what services are you gonna perform and how are you gonna build for this stuff okay this is exactly why you need an SEO roadmap or you need a social media roadmap and you need anything along those lines because you want to create a mini business plan when you're closing deals you want to create something that's like little little business plans so inside of here inside of these three months we're gonna be doing technical SEO we're gonna set up a PPC campaign right let's just say we're setting up a PPC campaign and we're also gonna do some we're also gonna do some Google my business and some local stuff okay so that's what we're gonna do here now once we get on to you know higher page rankings well here we're gonna start creating content for the website we're gonna start doing news releases okay news releases and we're also gonna build some backlinks okay very simple to do and then back here we're just gonna continue what we were doing month one month three to four by creating an SEO roadmap that looks like this it's going to give your clients such a good peace of mind I recommend that you do this on a PDF document or you do this on a contract of some sort where you can really template eyes it if you're in the underground secrets you actually have access to the templatized contract that you can use but with that being said you can use this right here to start getting clients immediately because a lot of the competition they are not doing this they're kind of just coming out and charging a lot of money and just expecting a client to get results and I'll tell you right now clients hate paying you they would rather pay google adwords they would rather pay facebook ads but somebody's got to manage this shit and they get that so when you present a milestone pay pay by performance model what you're going to do is you're going to quickly gaile and you were going to get a ton of customers because nobody else is doing this and this makes so much fucking sense so if you've enjoyed this video please leave a comment down below to enter to win the 30 minute consultation session and if you want to see more videos like this on the sales process of digital marketing agencies etc I'd love to share more but I'll see you guys in the next video and happy Monday

Author:

46 thoughts on “My Digital Marketing Agency Pricing Model That Made Me $43,000”

  • It's a good point but if you can base your prices around the problem you solve and value you give it's allot better if you can. If not just do this.

  • Excellent video, Ruan! You have provided some real gems and I know that this business is legit for I follow other sources that support and validate the legitimacy of this niche- great stuff! See you at the top!

  • Excellent Gamer says:

    Dude. Love your content. You're so straight forward with no BS. I don't have a comment about pricing because I haven't started an agency yet!

  • Timothy Olofson says:

    This was amazing! I regret not having enough to join the underground earlier in January, but I've learned so much form you, Chase & even the Futur that my first client is letting me brand, optimize and help strategize their PPC in exchange for testimonials leaving me with case studies to use with acquiring paying clients next!

    Thank you & God bless you, Ruan M.!

    T.O.

    DMA(DigitalMarket.Agency, underdevelopment) C.E.O.

  • Hi There
    Very Nice video
    Guys you can visit here to know more
    Digital marketing agency Noida
    https://www.indidigital.in/product/digital-marketing-agency-bangalore-mumbai-delhi-noida-india/

  • Kasra Moghaddam says:

    People pay you for value and results not how much time it takes you to do things maybe you're just slow why should they care?

  • Hamza Chaudhry says:

    Dear Ruan, I am really new in digital Marketing. You teach really good and your channel is really helpful. Kindly share me consultation. I am hungry to learn from yourself. My email is [email protected]

  • Awesome video Ruan.Quick question.Do you charge for a monthly retainer or do you do month to month.,and if you do retainers are 6 month retainers the way to go? Thanks

  • How can you gaurantee results on page 3-4? Imagine a local law firm or something like that, will they really see results from page 3?

  • Jakub Skupień says:

    Don't you consider it to be a potential, big threat when using the hourly rate to charge your clients – when you are charing for hours worked, you would tend to spread that work over long stretches of time, just to get more money?

  • Thanks for sharing your knowledge in digital marketing in details and also to know more about digital marketing in details then the full tutorial is here:-
    https://boxfinity.com/services/digital-marketing.php

  • Thanks for sharing. Digital marketing & SEO work. Most people don't have the patience or take the time to learn it, let alone wait for the results. It's like planting seeds and farming.

  • Great video! Like it! We also publish videos about agency! Could you give me some feedback? Thank you! 😀 Don't forget to subscribe if you like it!!😀

    Xavier‍🚀

  • Hey I was watching the video and wondering you divided the $2500/per month by 75 to get the hourly. Why 75? and this video is CRUCIAL AND HELPFUL!

  • Sampson Everdean says:

    Been watching your videos and as always this video was informative and incredibly helpful. Looking to start a digital marketing agency and pricing was a big concern. Thanks Ruan!

  • Patrick Sipperly says:

    Excellent, useful information, Ruan. Thanks! You've helped me to better present my services to future clients.

  • You are wrong, project cost is not how much a freelancer wants to make, it is based on value delivered. If a freelancer has a certain process and system developed and is highly skilled he can deliver better quality and faster, and by your words he should be paid less for being more professional. Smh…

  • Matthew Manguinao says:

    Ruan, great insight! – Curious to know if the audo was shotty for anyone else? – It sounded blown out while you were speaking. – Nonetheless, looking forward to more content !

  • You are very insightful and straight to the point. How do you know how many hours you will need to dedicate to a campaign per month? We're striving for maximum results, but how do you know how many hours it would take to get those results for the client? The amount of time it takes to get results might get blurred when outsourcing work.

  • RKF Search Results says:

    Very Cool Ruan, The pay per performance, is great. As you said no one else does that. Great for giving the client as you say peace of mind since you're making clear you're holding yourself accountable toward their results. They don't really have anything, or very little anyway to lose!!

    Question, I've been gathering GMB accounts that are unclaimed. Emailed them and called one about the email. She called me and i missed. I called back. The prospect was very annoyed about me calling to share that she had one account claimed, and another unclaimed.. She said there was nothing wrong with her Google account. She said, "take me off your call list". I could follow-up with the email again, though my inclination is to say……next…. What's your thought, same or……

  • Kosta Kondratenko says:

    Hey dude, I liked your content. You mentioned a pricing per result model – I think that's a great idea. However how would that work in practice in terms of – would you say that a certain amount of keywords have to hit that result before the rate goes up – or just one target keyword? I guess it depends on the package they choose right?

    You also mentioned that the contract is available in 'Underground Secrets' or something? Can you elaborate on that? I was trying to find out the URL for your course but I could only find your site – https://develomark.com/new-york-seo/

    Also I have sent you a message on Twitter regarding your site.

  • Appreciate all the videos – learning a lot. Question: Have you seen any differences on SEO performance by adding UTM tags to your links?

  • DeQuawn DeBerry says:

    Incredible content, have never seen someone introduce pay per performance and that seems like an incredible way for the sale and instilling confidence in the prospective client

  • Hey, Ruan Killer video thanks for everything that you do. I started doing SEO 6 months ago and finally got a client and would love to talk to you thank again keep killing it.

  • Jake Goss-Kuehn says:

    Just got paid per Ruan's model today. Asked him how he was doing for feedback, said 10/10. I asked him why he didn't refer others, he just sent me three names.

    Ruan, your work is LEEEEEEGGGGGGGEEEEENNNNNNDDDDDAAAAAAARRRRRRRYYYYYYYY.

    Keep it going bruddah.

  • Christopher Coaloa Ojeda says:

    My partner and I have been presenting digital marketing with branding proposals to clients for the past 9 weeks. It takes a while to put together the proposal, and when we present it most clients see that it has value and appreciate the insights on their brand and their marketing strategy. We usually break out the services (Brand Management, SEO, Paid Ads, Content, etc) and we’re offering appx 2.5k per month. We had one presentation where the owner raised their eyes at the price. We realized that they were the wrong client.
    For another client, we saw that she liked the vision that we laid out for her, but she was scared of committing every month, so we sold her a one-time website redesign and rebranding. One client was impressed with the vision that we had for her brand, and she signed on for 2.5k per month. I believe she signed purely for the artistic vision that we gave her, because I have not yet been able to tie our pitch well to dollars and cents. I tried a few things in each of the presentations, but it didn’t land as well as our design. That’s the next step for me.

    It seems like some owners really want to see everything broken down, and others just want to trust you and give the responsibility of marketing to a specific person.

    As a side, there were at least 3 presentations where we got out realized we didn’t want to with the owner. I need to thank Ruan for the “Why I say No” video because we are new and we really need the cash, but I was about to sign with a woman who presented multiple warning signs of not being a good client (late to the meetings, rescheduling, interrupting, disorganization, trying to bargain on the price), and the day I saw that video I sent her a ‘thank you for your time’ email, despite having gotten to the very end of the deal with her.

  • Andriy Haydash says:

    Hey Ruan, thanks for great content.

    A quick question about SEO. If I want to rank for these keywords: web design company, web development company is it ok to have a title and h1 tag on my website say web design and development company or I should not split the keywords that I am trying to rank?

    Thanks a lot 🙂

  • Victor Cabrera says:

    Hi! i have a question, what could you say if you have a differents clients but in the same industry? , for example, if you are working with two business that repairs iphones in the same city, you will say both that youll position their business. isnt there a problem?

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