In digital marketing, the value-based payment model stands out as a beacon of strategic compensation. It correlates the agency’s fees with the significant influence and worth it provides to the client. This pricing package is commonly used to charge for specific services or an agency’s expertise, which have a significant impact on the client’s success.
HealthVibe is a distinguished player in health and wellness, with 10,000 monthly subscribers for their health boxes. Each subscriber pays $50/month, leading to a monthly revenue of $500,000 or an annual income of $6 million.
After an in-depth review of HealthVibe’s current subscription model and subscriber behavior, Roman Agency estimates:
Potential Revenue Increase:
Pricing Based on Value: Roman Agency proposes to charge 10% of the additional revenue they help generate in the first year, which would amount to $270,000.
Roman Agency improved HealthVibe’s subscription model, resulting in more new subscribers and fewer people canceling their subscriptions. At the end of the year, the results matched what Roman Agency predicted, and proved that the value-based marketing was successful. HealthVibe’s revenue rose significantly, and Roman Agency received a fee that matched the value they provided.
If you are looking to improve your marketing approach with a value-based pricing strategy, let’s connect. We can help redefine your marketing goals and create a path for substantial growth and success.
