7 Agency Pricing Methods (Pro vs Con) + The BEST Method 🏆

Рет қаралды 16,243

Ryan Stewart

5 жыл бұрын

GRAB THE PRICING TOOL - bit.ly/2JmibPs
PREFER TO READ? - bit.ly/2JkdsOl

Пікірлер: 57

@TorAbrams 5 жыл бұрын

Just discovered this channel for agency advice. Best agency-related KZfaq channel out there right now imo. Keep it up 👊

@NOTRyanStewart 5 жыл бұрын

Much love, Tor, thank you!

@WilliamWeekesJr 5 жыл бұрын

Ryan... This was amazing! Thank you so much for sharing. I have found that pricing is one area that always seems to get overlooked. Or better yet will work itself out. and it never does. It made so much more sense when you broke it down to a freelancer perspective. I know for a fact that I forgot to add in a few metrics (ie benefits/insurance, taxes%).so a big thank you.

@NOTRyanStewart 5 жыл бұрын

You're welcome William!

@kevinquezada 2 жыл бұрын

Thank you Ryan!! Great content!!!!

@NOTRyanStewart 2 жыл бұрын

My pleasure!

@rosewilson2338 3 жыл бұрын

This is awesome! Thank you

@NOTRyanStewart 3 жыл бұрын

You're very welcome!

@IvanKreimer 5 жыл бұрын

This is GOLDEN. I've purchased the course a few days ago, and this already convinces me that hourly is great. I just started my agency and so far, I've been using a flat fee based on my desired margins (200%, which lowers to 40-50% after all costs included). I guess it's fine, but it's true that in the SEO+Content world (what my agency does) it does seem a bit random to ask for $3,950 for a content project. Hourly seems the way to go to be able to justify everything better. I will start with your sheet and see what numbers I can come up with. I can't wait to try your model!

@NOTRyanStewart 5 жыл бұрын

Use the systems in The Blueprint - they'll get you to where you want to be!!

@donderjager7169 5 жыл бұрын

Do you charge your client upfront? What's the best tactic?

@NOTRyanStewart 5 жыл бұрын

@@donderjager7169 payments are due up front, at the beginning of every month

@IvanKreimer 5 жыл бұрын

@@donderjager7169 I also heard that you can ask an upfront payment, but with a net 15 after that. So if you start working on day 1 you can get paid between that day and the 15th. While it's not ideal, it's better than the traditional net 15 where you get paid up to 45 days after invoicing.

@tjreed 5 жыл бұрын

This clarifies things quite a bit. Thanks for this. It doesn't seem to me that your definitions of hourly based pricing and value based pricing are entirely mutually exclusive (aside from maybe the Gary V/proprietary software examples). It looks like you retain the upside of VBP while the hourly model limits the downside of scope creep.

@NOTRyanStewart 5 жыл бұрын

That's a great point Tanner. What I really see hours as is the "glue" between whatever strategy you choose. Hours, to me, tie together sales, operations and HR. Without them, you're operating in the dark. They should be used as a support system to a pricing strategy. Right now, at From The Future (our agency), we use hours as the baseline justification for our work, but ultimately charge based on retainers or deliverables.

@ChrisPodcasting 4 жыл бұрын

I’m building an agency for podcasting. This might be top 10 most valuable video I’ve ever seen. Thank you.

@NOTRyanStewart 4 жыл бұрын

Wow, thank you!

@lyn403 4 жыл бұрын

I'm an independent real estate broker in Calif. = start up. Comprehensive and it makes sense, epecially with the customer / business model (digital) changes.

@NOTRyanStewart 4 жыл бұрын

definitely

@flor.7797 5 жыл бұрын

Still not convinced of the hourly pricing model because it's just a vanity metric in your example. I prefer charging based on monthly deliverables and that's kinda what you guys are already doing in combination with the hourly model.

@NOTRyanStewart 5 жыл бұрын

Hey Florian - agreed, maybe I wasn't fully clear. I'm not advocating for an hours model (like an attorney does), I'm advocating for an hours SYSTEM. Meaning your service pitches should be tied to some sort of hourly justification, and your service delivery should be tied to some some of hours tracking. At From The Future, we use hours to pitch and track, but what we're really selling is DELIVERABLES that are amortized into retainers.

@mikaeltona 4 жыл бұрын

Bro youre videos are golden

@NOTRyanStewart 4 жыл бұрын

Thanks Mike, there's plenty more coming :)

@mikaeltona 4 жыл бұрын

@@NOTRyanStewart Awesome, very helpful!

@mikeliskalnins3991 4 жыл бұрын

Ryan, what happens after those 6 months when the agreement is over? Do you come forward with another proposal or what? Btw, I am big fan of your content. Good stuff!

@NOTRyanStewart 4 жыл бұрын

yes! we start the process over again

@jabirmohamed8647 5 жыл бұрын

Hey Ryan, I'm assuming that you guys charge per link in addition to the hourly rate when building the monthly retainer, right? If so, how much do you guys charge per link?

@NOTRyanStewart 5 жыл бұрын

We expense the cost of the link acquisition to the client (on top of our hours to attain it). It can range from $50 to $1000 depending on the link. The costs are usually content writing expenses or blogger / journalist payments to get the link live.

@leavesproduction1043 3 жыл бұрын

What do you mean by te link? please explain

@user-rz1qr2ln7i Ай бұрын

In a performance based pricing? The agency pays for the ads ran for the client or did i hear that wrong?

@NOTRyanStewart 27 күн бұрын

we cover all that inside of theblueprint.training

@reubenslouis6107 3 жыл бұрын

Will the pricing tool work for a new agency? New as in only myself

@NOTRyanStewart 3 жыл бұрын

it works for every agency

@connorbyrne422 3 жыл бұрын

You talk about calculating how much to charge hourly and that stuff but now are those hours just for the 1 client or what, like is it 5 hours or something an day for 1 hour or something?

@NOTRyanStewart 3 жыл бұрын

watch this - kzfaq.info/get/bejne/j854ZJyhrb--o5s.html

@leavesproduction1043 3 жыл бұрын

What is the ebst way to track hours of agency working to show as a proof to a client?

@NOTRyanStewart 3 жыл бұрын

we use bill . com

@melvinbrown5005 5 жыл бұрын

Does this only apply to SEO agencies or will this work for any form of marketing agency?

@NOTRyanStewart 5 жыл бұрын

This is skewed towards SEO, but I tried to make it as broad as possible. What type of marketing agency do you work in?

@melvinbrown5005 5 жыл бұрын

@@NOTRyanStewart Facebook Ad Agency

@jack76787 4 жыл бұрын

I don't totally understand what you meant with the Gary Vee example. As far as I know, Gary Vee doesn't sell his own influence as a service to his clients.

@NOTRyanStewart 4 жыл бұрын

no, but he uses his influence to attract clients to his agency. vaynermedia's growth rate is directly bc of his ability to market himself