Pricing Strategies: How To Price Your Social Media Marketing Services
Social media marketing is using a variety of social media platforms in order to connect with your target audience to build your brand online, boost your sales, and drive more website traffic.
This usually involves high-quality content on your social media platforms, engaging your audience, analyzing your results, and then running ads on social media.
As of the moment, the major social media platforms are Facebook, Twitter, Instagram, LinkedIn, Pinterest, Snapshot, and YouTube. Moreover, there are also a variety of tools that help businesses get the most out of social media.
Why do you need social media marketing for your business?
Social media sites are rapidly gaining in popularity, and are also extremely effective in marketing your business online.
Through social media, it is more convenient to connect with current and prospective customers. It allows you to establish relationships with people and encourage them to buy your products and services.
In fact, 90 percent of marketers say that social media has increased the exposure of their business. Also, 66 percent of marketers that spend an average of 6 hours on social media weekly has gotten more leads.
Without a doubt, no matter who you are selling to, social media is an effective marketing tool that helps grow your business and increase revenues.
What to expect from social media marketing services?
According to VoyMedia.com, here are some things that you could expect when utilizing social media marketing services:
Boosting followers on various social media networks.
Proper management of your social media pages and campaigns.
Getting guidance on how to make the most out of social media.
Boosting web traffic.
Building brand awareness.
Building a positive brand identity.
Enhancing communication and interaction among key audiences.
The bigger and the more engaged a business is on social media networks, the easier it will be to achieve every marketing goal that is written on the list above.
How to price your social media marketing services
Now when it comes to social media marketing, most people wanted to know how much it costs. Well, we could not give you a straight-up answer, because it still depends on numerous factors, such as the employees' experience with the agency that you choose to work with, the type of plan that you pick, the total number of social media networks that you utilize to market your business online, and so on.
But just to give you an idea, companies spend an average of $800 to $7000 per month on social media marketing services. Mostly, that includes the ad spend every month, as well as the custom marketing and advertising strategies that are used for one or more networks.
Here are some things that you need to take into consideration, as well:
1. Do not use an hourly rate
Do not charge hourly rates. What you should focus on instead, is charging monthly retainers.
Why? Because as you will find out and becomes a more proficient social media manager, you will going to be faster at your job. The result? You will eventually suffer from that especially if you charge clients with an hourly rate.
Billing your clients hourly makes you work less efficiently. Because you are being paid not for the outcome of your work but of the time you spent working. Thus, you will likely end up spending a lot of time doing work.
You will be far more productive if you get paid for the same amount no matter if it takes one hour or 10 hours to get that kind of outcome.
A great alternative is to charge monthly retainer fees that guarantee that the amount the client pays you monthly is already fixed. That way, you will not find yourself being nickeled or dimed every month when invoicing time comes.
2. Charge more in creating videos
Videos in online marketing are on the rise. In fact, an average Facebook user spends more than 20 minutes on Facebook Watch.
So does video marketing helps marketers succeed? The answer is a resounding yes!
Social media posts that have videos are more likely to have increased views and engagement.
So to increase the chances of more people seeing your content, going to your site, and buying something from you, all you simply need to do is to add a high-quality video that is engaging and informative at the same time.
Without a doubt, video content is important to any digital marketing strategy. That's why you need to charge more if this is part of the strategy that you need to produce for the client.
Remember that video marketing needs a lot of experience and skill, and is more expensive than written content, as you have to use different tools and equipment. As a guide, you also need to check the average hourly rates of video editors and videographers.
3. Raise your prices
It is only natural and quite tempting on your part to offer lower prices so that you can attract more clients in the long run. But the thing is, you are doing yourself a disservice of not charging clients what you are worth.
When charging lower prices, you are telling clients that your services are for hire but you do not have a say on their social media marketing direction. Therefore, you will be treated more like an employee instead of an expert that they can trust.
Now, the best way to position yourself and package your service in a way that offers optimal value to clients is to raise your prices. By charging premium fees, you are more than willing to show clients your worth and will be treated as a well-trusted expert in your niche.
Higher prices will eventually attract better quality clients. Once you switch to premium prices and becomes the best at what you do, you will be attracting the right clients who value what you have to offer. These clients are more than willing to invest in quality, instead of for rates with the lowest prices out there.
4. Charge your services before you start
Once a client commits working with you, you can charge them an upfront fee. Until then, refrain yourself from setting ups calls for SMM consulting.
There is a specific reason for this.
A lot of social media marketing agencies and social media managers get screwed up when the clients don't pay the bill for weeks or even months. Over time, this can be detrimental for your business.
For instance, you might need the cash now, but your clients are paying 30 to 60 days after your service has been rendered to them. Having these late payments will eventually stretch your financial resources. Also, a late or a non-existent payment from a client could potentially lead to a disaster.
That's why, to avoid any of these cash flow woes, you need to let your clients pay upfront. By asking to be paid upfront before the work begins, you are quite sure that you are entering a working relationship that comes from a position of strength.
It is better to bill your services first before you even start. Your goal is to place your time and energy to grow their following and giving them the best possible ROI, and not chasing them over for late payments.
5. Offer social media management package
The pricing for social media management varies on the total number of social media platforms that you are expected to handle. For instance, only Facebook and Instagram or Facebook, Instagram, YouTube, and Twitter.
It also depends on the frequency of the posts, as well as the level of customization needed.
So, let's say that you are charging at least $500 for 2 or 3 platforms that you will be posting on a couple of times, each week. The price usually increases if the amount of platforms and the service that you render also starts to increase.
If part of your social media strategy includes advertising, then the total ad spend should be added on top of your monthly retainer fee. For ad management budgets, this is an industry-standard and runs anywhere between 20-30 percent of the ad spend.
Meaning, if your client is already paying an amount of $500 for social media management, and want to spend at least $300 for the ad spend, you can take the extra $60-90 for your business and then the remaining sum for the ads.
However, this varies depending on your client's budget, especially if it is below $3000 monthly.
Over to you
Social media marketing is a powerful way for businesses, no matter how big or small, to reach prospective customers.
Because a lot of users are already actively engaging with brands on social media, if one does not speak directly through these platforms like Facebook, Instagram, Twitter, and Pinterest, then that business is missing out.
Great marketing on social media brings in a significant success to a business, because it helps create loyal brand advocates, connects with the audience at an emotional level, drives in leads, as well as sales.