Two of the most asked questions I receive from agencies are: “How do we price social media?” and “How Do we service social media?”
Many advertising agencies are trying to sell social media services and even though they don’t know how to price it nor service it. In prospective client meetings, if the agency brings up social media, it generally will peak a prospects interest.
A lot of agencies are still struggling for any new business opportunities. So, if it generates interest and leads to a project, they’ll sell it and try and figure out how to price it and service it when they get back to the office. I’m sure your agency has never been guilty of anything like that. Truth be known, most of us have done it at one time or another.
The agencies that do have some experience with social media tend to “over-think” social when they try to price it and create a plan for servicing it. They make it much more complex than it is.
Social media is very time intensive but usually has very little hard cost associated with it. Agencies are accustom to charging for their time and that should make it easier when they need to create a proposal for social media services.
Here are my six quick tips to help with the pricing and servicing of social media:
- Create a very detailed proposal based on “scope of work”
- Use a blended rate when pricing agency time, often $125 per hour for small-to mid-size agencies
- Provide clients with a flat-rate monthly retainer agreement
- Understand and utilize the social media 3rd party tools that will allow your agency to handle multiple accounts
- Train your staff in time management skills specific to social media to maximize their efficiency in handling client accounts
- Equip junior level staff members to handle a lot of the day-to-day “grunt” work in servicing social media accounts for clients (monitoring, blog comments, Twitter, Google alerts, maintaining Twitter, schedule, etc).
If you have additional tips, please share them in the comment section below.
Additional articles that may be of interest:
- A Guide for Ad Agencies: The Cost and Servicing of New Media
- It’s Time to Monetize Social Media for Ad Agency New Business
- Social Media Tips for CEOs: Develop An Ad Agency Blog for New Business
- Ad Agencies Should Take Note, Social Media Metrics Neglected by Most