How to Establish a Pricing Structure for a Social Media Marketing Agency

A social media marketing agency can provide businesses with a wide variety of services, including consulting, strategy development, content creation, social media advertising and performance reporting. The goal of a social media marketing agency is to help clients create and execute effective campaigns that will grow their audience, increase traffic, leads and sales.

Before starting your own social media marketing agency, it’s important to determine the type of work you want to do and who your ideal client is. Then, you can develop a pricing structure that is both competitive and profitable. This includes your business expenses, like setup costs and overhead, as well as the cost of labor.

Another factor to consider when establishing your pricing structure is how much you want to earn each year. For example, if your goal is $50,000 per year, then you can begin by setting an hourly rate of $50 or a flat monthly fee. Whether you choose to charge by the hour or a flat fee, make sure that your goals are realistic and based on historic values and a baseline. For instance, a client might ask you for a million new impressions but if this is their first time working with you then that might be a very unrealistic goal.

A social media marketing agency will be able to assist with your advertising efforts by providing expertise and resources that you might not have, such as analytics tools and ad platforms. You can also benefit from their specialized industry knowledge, as some agencies focus on niche industries like eCommerce, nonprofit organizations, fitness and healthcare.