In the digital world, considering the right pricing package can be a complex puzzle for digital marketing agencies and businesses. The hourly rate model is a popular option, but is it still relevant in today’s fast-evolving world? As we delve deeper into the article, we will explore the benefits and risks associated with hourly rate pricing and provide a real-life example.
In simple terms, the hourly pricing model charges clients based on agency hours spent on the project. It is often the starting point of a relationship between two parts.
It is important to note that hourly rates can have some drawbacks and may be unpredictable. However, there are situations where hourly prices can be beneficial. Therefore, this pricing strategy presents a low-risk, low-reward option for both the agency and the client.
Hourly pricing has pros and cons for both agencies and clients.
Undoubtedly, hourly pricing in digital marketing has risks and rewards for both sides.
You can always limit how many hours you are willing to pay for and ask the agency to update you on the hours spent.
The client is trying to get a lot without paying for the required hours. For example, we got an RFP asking to consult the in-house Paid Team and to come up with the first meeting with three ways to improve their existing setup. They wanted to pay for one or 2 hours of us talking to the in-house team.
However, to provide real work – we would need a lot more hours to audit all of their ad accounts, conversion tracking, and metrics, meet with the team to discuss improvements, develop the strategy doc, and finally talk to them. That’s more like a 30-hour job, considering the size of their campaign.
Deliverables take incredibly long to accomplish. Remember, the hourly rate should consider the whole team working on the project – so if it’s a personal team and in the scope it says 10 hours for deliverables – that’s 40 hours; it needs to make sense.
You are paying for the agency learning stuff; for example, if a person in the agency is unfamiliar with GA4 – you shouldn’t be paying for them to research how to use it.
FlexFit Studio is a boutique fitness studio that offers specialized workout sessions, including Pilates, HIIT, and yoga.
Roman Agency estimates the project will require approximately 10 hours, broken down as follows:
Roman Agency offers these specialized services at an hourly rate of $200.
Roman Agency efficiently conducts the audit and pinpoints the most suitable tracking tools tailored to FlexFit Studio’s requirements. The setup process is meticulous, and subsequent tests verify the flawless operation of the tracking mechanisms. Roman Agency dedicates 9 hours to the project, leading to a total expenditure of $1,800 for FlexFit Studio.
With the new conversion tracking, FlexFit Studio gains a comprehensive understanding of their online booking performance, allowing them to fine-tune their marketing campaigns and attain a superior ROI. The hourly pricing model benefits FlexFit Studio, offering them top-tier expertise without elongating financial commitments.
To achieve financial efficiency in digital marketing, understanding pricing strategies is crucial. Although the hourly pricing model has benefits and challenges, selecting one that closely matches your business needs and objectives is vital.
Explore our comprehensive services and let us guide you toward the best pricing strategy for your business. Take the first step today!