How To Price SMMA Services Correctly (Ad Spend + Service Charge)

right i know this isn't the most exciting  topic to cover on the first major video on   this new channel but it's a very important one  and i get questions all the time from people   asking how much should i charge for clients  should the client pay for ads or should i   just want to firstly start by saying the client  should always pay for the ads themselves but then   the next question is well how much should they pay  what should their budget be and all those things   i'm going to cover in today's video  but before we do i want to announce   the three winners from our first video on this  channel the three winners of our new affluent   merch line i'm gonna do that right now on my  phone so you can see these are randomly selected   we're gonna paste the link the video we're not  gonna allow duplicates we're gonna hit continue   so our first winner is ahmed tamer okay  cool i'm gonna send you a message give me   that affluent t-shirt you got it man you got it  okay fine and we're gonna pick another winner   marketing harry coomb dude i know harry you  you've been commenting on these videos for   a long time so it's about time that you won  something and let's do another one vassav cool   guys well done you've won some affiliate merch on  you're gonna get a t-shirt and a hat and a message   you and you can reach out to me in fact i'll stop  recording and you can let me know the size that   you need and the team will get those sent out to  you asap we're actually going to be hosting that   competition on every new video on this channel  for the foreseeable future it's not going to be   three people that win though it'll be one person  so one person out of everyone that comments within   the first 24 hours will be randomly selected using  a random comment selector to win a affluent merch   kit because it's going to be a t-shirt and a hat  those designs might change from time to time as   well so make sure you have your notification belt  turned on so you get notified when we bring out   new content because if not you're going to miss  the first 24 hours and we've already drawn the   winner by then so make sure your notification  bell's turned on drop a comment down below today   so pricing so it's really important we get this  right when we first start now and i know pricing   is something that causes a lot of anxiety for new  start agency owners and some instances mean they   don't even start their agency because they're  intimidated by the amount they're quoting for   businesses but i think it's really important to  understand that as an agency owner regardless of   whether your services ads or web design or email  marketing whatever that may be for whoever it may   be we're trying to help someone increase their  revenue we're trying to help someone increase   the amount of money they're making on a monthly  basis and therefore our service is very valuable   so it's value-based pricing and it's  not time-based now with the majority of   industries out there let's say we're working in  a full-time job we're working based on our time   we paid a salary based on the amount of time we  spend in the office right now gone are the days   when we'll charge people based on our time we'll  leave that in employment that's why we started a   company in the first place right because if we're  charging people based on our time the only thing   that we have control over is our hourly rate okay  we don't have control over how many hours we have   in the day once we're at max capacity the only  thing we can do to scale our agency is increase   our hourly rate so never charge people based  on the amount of time it's going to take you   to fulfill a task only charge people based on  the amount of value you're going to be bringing   to them now granted that's something that's pretty  hard to quantify as a new start agency for someone   who's never run ads before it's very daunting to  approach a business in their local city and quote   them upwards of a thousand dollars for a service  that they don't really understand themselves i   know that's how i felt right at the start when  i signed my first restaurant client i had a ton   of imposter syndrome but i still managed to get  them over the line and then i had to figure out   how to run ads i remember the quote that richard  branson said at the time which stuck with me was   if you ever get offered an opportunity that you  don't know how to fulfill say yes and then learn   later so i had to learn facebook ads after i  signed that first client and i actually managed   to get them some really great results sure it took  me a couple of weeks of learning how to get them   those results but the campaigns did really well  and i ended up working with them for almost a year   what i really think would help any of you  guys who are just starting out in your agency   to help you through that initial imposter syndrome  is understanding the value we can actually bring   to these companies so let's do a quick bit of  maps let me get this phone on record let's say   we're working with a dentist okay because the  majority of you guys are going to be working   with local businesses when you first start out i  wouldn't recommend going into ecommerce okay so   restaurants gyms dentists uh anybody with any kind  of lead generation or base service okay so real   estate any service builders contractors the list  really is endless it's not a niche video but let's   say we're working with a dentist and they offer  invisalign okay this is a brace system okay it's   internationally recognized it's around 4k for  this brace so let's say we're starting off on   a small budget of 500 now i'm going to give you  some averages on what to charge in a moment but   with this client we've got 500 ad spend per  month for this dentist okay now we can get   invisalign leads internationally a high average of  around 50 dollars per lead some agencies might be   able to get 20 or 30 dollars some might get 60  we're going to use 50 that's 10 leads 10 leads   on a 4 000 service okay so that's a potential 40  000 here if we closed everyone but realistically   we are just not going to do that the conversion  rate is probably going to look something like   25 on people that actually come in and are  sold to by the dentist so if we figure out 25   that's 2.5 people we can't have half people  so we'll round it down that's two people   for a four thousand dollar service that's eight  thousand dollars for this client take away our ad   spend the 7500 take away our service charge which  might be another 500 on top of that that's 7 000   operating profit now sure that business has to  take away their costs but it's still going to be   massively in profit from our service it's  an eight times return on investment for this   business that's where the value is and that is  why these clients will spend the amount of money   that we are quoting them for our service because  it's an extremely valuable service and once we've   got these results for them once we're not going to  spend 500 on the next month we're going to spend a   thousand dollars or maybe two thousand dollars or  five thousand dollars and we'll scale up over time   now granted realistically if you're winging it  with ads and you're self-taught you're not gonna   get results like that straight away it's a chicken  or the egg type situation and that's okay we have   to start somewhere someone asked me this morning  what's the best way for me to learn facebook ads   and test out facebook ads before i sign the first  client and i said well if you're already taking a   course and you already know what strategies you're  going to take the only practice you're going to   get is signing up that first client you can't set  up a dummy facebook account and start running ads   to make believe numbers in a make-believe store  because it's not real and you don't have real-life   factors coming into play there so you have to sign  up your first client and learn on the job like i   did and like 99 of agencies out there do and i'm  gonna cut the [ __ ] and air out the elephant in   the room ninety percent of agencies out there  the first one or two clients they're probably   not getting any good results for and that's okay  because they're learning and as long as they've   done their research they're not just going in  completely blind and they're following a strategy   that's been proven to work for the niche that  they're working with before them then they're   gonna improve and they're gonna get better  they have to start somewhere and that's just   the reality of it now i'm going off tangent here  let's go back to pricing you guys want to know   exactly how much you should be charging clients  so i'm gonna give you some figures to go away with   an action but it's really important to note that  there are so many variables that come into play   when quoting a client i'm going to give you the  averages of what you should charge when you're   first starting out but we want to consider how  busy this business is how much money they're   making how much they actually can afford and what  service we're offering i'm talking specifically   about ads okay if we're offering facebook ads  or youtube ads or google ads whatever ad service   you're offering how much we should charge in that  instance when we're first starting out so on the   basis of local brick and mortar businesses because  that's where we're going to be starting initially   we need that common ground with people you want  to charge a maximum of 1 000 or pounds per month   for your service charge okay but you can go down  as little as 250 dollars i wouldn't go below that   because you really are devaluing yourself but the  key when you're first starting is to not be greedy   you just need that first client what is more  valuable than money when you're first starting   as an agency it's case studies it's results  it's testimonials because those are the things   we can use and leverage to sign up new clients  a testimonial one good testimonial is worth more   than six months on a 1 000 retainer i would take  that all day long if i was starting my agency from   scratch so the focus is just getting that business  over the line i'm fed up of seeing people out   there being like oh you need to charge a thousand  dollars on every single client when you're first   starting it is complete bs the most valuable  thing when you're first starting an agency   is testimonials is case studies and results  okay prioritize them over money because if   you prioritize money when you're first starting  you are going to fail just get results for people   have them shouting about you and that's  what's gonna help your business grow   i got to ten thousand dollars a month pretty much  all on referrals i got my first few clients and i   was getting referral after referral after referral  i didn't have to do outbound sales and so that's   what you want to be able to do as well and the  only way we can do that is without being greedy   so a thousand dollars a month maximum but charge  as little as 250 get that person over the line   don't just go in with a really cheap price try  and go in at the higher level to start off with   and engage the conversation okay let's break that  down a little bit further so companies with a high   ticket service or product like dentists they can  afford a thousand dollars a month all day long   restaurants on the other side might only be able  to afford five 500 small gyms will only be able to   afford 500 okay a chiropractor maybe 500 as well  but a hair transplant clinic or an aesthetics   clinic they can afford a thousand dollars so you  need to think about how high ticket the services   okay and make sure your pricing that you quote is  relative to that now the ad spend that you charge   needs to be the equivalent of at least 100 of  your service charge do not fall into the trap   of quoting less for ad budget than service charge  because if you quoted a thousand dollar service   charge don't quote 500 ad spend because you need  to free x your money before the client even makes   a profit it makes no sense and i'm talking from  experience i did this myself my first couple   of clients i was greedy for cash high service  charge low ad spend and it was this uphill battle   constantly and i see so many agencies make the  same fundamental mistake they are greedy for cash   instead of being greedy for results so if you've  got a client on a thousand dollar service charge   500 ad spend my recommendation to you would  be take 250 of your own money at that service   charge and put it in the ad spend so you're  on 750 750. the ad spend ideally needs to be   a minimum of a hundred percent of the service  charge if you can get them to spend more on ads   than your service charge then we're already  winning because it's so much easier to get results   because we're dwarfing the service charge so much  quicker so just follow that rule for christ's sake   now that's local brick and mortar we also have  e-commerce as well which are online businesses   for more established agencies i'll touch on this  very briefly but if you want me to create more   in-depth video on e-commerce charging because  there's different beasts drop it down uh comment   down below and i can create that in the future  with e-commerce the same rule applies for 100 ad   spend equivalent that applies for any industry  regardless of where they are or what they're   selling um always make sure it's a minimum 100  equivalent with e-commerce you need way more ad   budget an absolute minimum of a thousand dollars  a month don't even entertain anything lower than   that same for your service charge don't entertain  anyone who doesn't want to pay a minimum thousand   dollars per month in the ideal world it needs  to be 2 000 plus on ad spend starting off with   an e-commerce business though we won't even  entertain a conversation with an econ business   unless they're prepared to spend a minimum of two  thousand dollars a month in their first month and   then we'll scale them very aggressively after that  but econ businesses are for established agencies   once you've got results through local brick and  mortar first start there before you even think   about ecom companies if you want me to create  a video around ecom charging then i can do so   because we do some pretty amazing things like  charging percentages as well so we charge them   a percentage of the amount of money we're actually  making them we've had clients pay upwards of fifty   thousand dollars for one single month's commission  as an econ client for our established agency the   affluent agency but that's a conversation for  another time you want me to talk more about that   drop a comment down below and i will do but for  now i just want to finish off with this one point   do not be greedy with your service charge that is  the most important thing that's the most important   factor when you're quoting anybody when you're  first starting out because testimonials case   studies and results are way more valuable than  money when you're first starting out sweet cheers

Channel: Jordan Platten Extra

Views: 111,288

Keywords: how much should you charge smma clients, smma, smma clients, smma 2022, social media marketing, social media marketing agency, jordan platten, jordan platten smma, jordan platten social media marketing, how to price smma services, smma pricing, pricing for smma, how to price smma, how to price social media marketing, pricing smma services, how to price your smma services, smma uk, how to price social media marketing services, how to price your social media marketing services

Id: JdjI1jp-JLA

Length: 11min 51sec (711 seconds)

Published: Thu Jun 02 2022