The Cost of Digital Marketing
It is an often-asked question, “How much does digital marketing cost?” For whatever reason, many digital fulfillment companies are reluctant to answer it. Dan Posner, VP of Sales at Leadgenix, explains just how much a marketing company, digital design shop, or advertising agency should be paying to outsource digital marketing to an agency partner.
Dan Posner compares pricing for digital marketing services as being kind of like buying a car. You can find some options at $6,000. And you can find some options at $600,000. Every option makes sense for the right buyer. The question is really, “What are you looking for?”
Outsourced Digital Marketing Services
Services that a digital marketing firm should be providing are going to be SEO work, including a national-type scale down to local services, like Google Places, Yelp, and Bing and Yahoo Local. It’s going to include pay-per-click and different paid search management. It’s going to include social media management and copywriting. Those are the main elements that any kind of digital marketing plan is going to need.
And the cost for those? You can find an outsourced company to India and you could be doing packages for $150 a month. Most of the time, that’s not going to end up being the solution that the client is happy with. You might make a larger margin on it because it’s so cheap, but the work that the client actually gets out of it is so minimal and so unimpressive, that the client is not going to stay with you for a long time. So you have that option, but, you should know that there are issues. And then there are companies that are going to charge upwards of $300 an hour for their service.
How to Mark Up the Cost of Digital Marketing
Is there a right answer? Is there a right car? It really depends on what you are looking for. Here at Big Leap, we have experts in these different areas, so we’re not charging $15 an hour to get these things done, but we’re doing them the right way the first time. That way, if we’re charging $100 an hour or a similar rate, we’ve built in that cushion so that our partners can go ahead and charge a market rate of $150 an hour or more for high-quality work that will keep their clients satisfied.
So, the question being, “What’s it going to cost me to outsource my digital marketing work to Big Leap?” It depends on what the client needs. It depends on what the services are that are involved. At the end of the day, there’s no magic answer–it would be nice if there was. A company that’s really going to a good job for you is going to look at the needs of that client, put together a proposal based on those needs, and then do it at a price point that the client can afford, but also at a price point that makes it so that you, as the partner, are making the margin that you need to to make money, and to be successful.
So, no right answer, but, as you’re going through that thought process, those are some guiding price points and some guiding ideas. If you’d like to learn more about digital marketing fulfillment, contact Big Leap here or give us a call at 801-805-2532.