Digital Marketing Agency Startup Cost – One hires an SEO, PPC (pay-per-click) or SMM (social media marketing) specialist all the time – usually an agency or freelancer. But money is tight, so how do startups evaluate whether the candidates they’re considering offer reasonable rates? Is gut instinct enough?
What are my options? I don’t have enough data on pricing rates in the digital marketing industry.” And you’re not alone in thinking that: For those of us who hire outside professionals for digital marketing work, it’s about the average cost. There is no clear information for the monthly retainer and hourly rates.
Digital Marketing Agency Startup Cost
So far. In recent months, I have been doing fresh research on the current state of digital marketing agency services and costs to help me orient myself in the field of digital marketing. My (unscientific) survey, which received more than 1,000 responses from digital marketing agencies and freelancers spanning 16 countries, including the United States, the United Kingdom, and several European territories, included questions about the services involved, pricing, and payment models. Some of the biggest takeaways:
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You can expect to hire a freelancer on a monthly custodian contract at a cost starting as low as $251 – although the $1,000 mentioned in the last bullet point above is an average. You can expect project-based fees for freelancers to start at $5,000.
The average hourly rate for a freelancer is over $100. But most freelancers charge less than $50 an hour. The hourly fee model is also very popular, regardless of the size of the agency.
Monthly container contracts for all U.S. The average fee in the regions is between $1,000 and $3,000. However, in Europe it is slightly lower, around $751.
A payment model chart I made (see this infographic) shows that most agencies use a monthly repayment model, which helps businesses regulate their cash flow. Freelancers are now increasingly using this model as well, and most freelancers have a good number of clients on project-based fees.
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The general trend shows that small and medium-sized businesses are the best customers for the surveyed freelancers and agencies. This is because the digital marketing industry is still a new market, and most agencies do not have enough or sufficient experience to deal with enterprise clients.
However, according to the survey, a percentage of agencies already prefer to deal only with large enterprises, so the industry is moving in that direction – it’s only a matter of time until the trend disappears.
Hyper-local, regional and small businesses tend to have limited budgets, so they prefer to deal with freelancers who will charge significantly less than the average agency.
The survey revealed that the following services were the top five – in the following order – that survey respondents said they preferred in all areas:
Agency Reckoner: Agency Reckoner 2018 19: Top 15 Digital Marketing Agencies, Marketing & Advertising News, Et Brandequity
However, the survey also showed that social media was less popular in the United Kingdom than in the United States or the rest of Europe. I assumed that the reasons revolved around the gap in market demand or the inclusion of social media in other services.
The survey showed a clear correlation between growth in the level of “other services” and the size of the agency. It makes sense: the bigger the company, the more customized solutions it offers, and the higher the average cost per customer.
It is great to see Analytics and User Experience Design (UX) among the most popular service agencies, as this data is perfectly correlated with the current global trend. As an active speaker and contributor, I have seen a significant increase in the variety of content related to this topic. And that makes the analytics/UX niche extremely promising.
On the other hand, these statistics clearly showed that business owners should consider establishing the necessary proper analytics and developing a quality user experience right from the start of their projects, which will increase their initial investment. This matters as web users have become more sophisticated, and business websites must meet those users’ expectations.
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More information about the results of the survey is available here. I am grateful for the help of companies like RavenTools, Ahrefs, DeepCrawl, Horizon, Kerboo, SERPstat, Oncrawl, Predikkta, Learn Inbound, Search Marketing Connect who distributed surveys among their clients and contractors, which enabled me to more than 1 activated to collect. 000 responses. We started in 2018 to be a resource for small businesses and early stage startups to get the marketing they need to succeed. Often our professionals ask us a common question – “Why do you work with certain brands at such a low rate?”
After years of working with various agencies, we have found that the standard rate for these services is out of reach for many small business owners. In particular, they are in a position to grow by taking advantage of agency services – but they do not have the funds to pay the hefty fees. As a result, about 50% of them fail and this is often because they lack marketing. Simply put, it’s a scary statistic – but it’s not the case for everyone – because many businesses do word of mouth or they’re the “only” program in town (for now).
To hire a marketing agency in 2020, business owners should expect to spend a minimum of $4000 per month in non-working dollars. Now what does that mean?
Non-operating dollars: Investments that don’t directly drive sales – such as paying for creative or marketing staff.
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Ultimately, business owners must invest non-working dollars to grow the business, which your working dollars cannot do on their own. That said, every non-working dollar must be spent wisely to generate meaningful returns. What does it look like if non-working dollars are spent correctly?
We sent our employees on a mission to see what the small business market looks like in 2020. Below you will find the quotes you will receive when requesting services for a small business with an annual revenue of $450,000. You will be shocked to see what was presented to us!
We contacted 10 marketing agencies (many top Google search ads). After following up three times, we were only able to speak with four of them and three of them sent us to their website to see the prices. The three agencies never returned our calls or emails. We were clearly not big enough for them!
Two sample agencies are shown below — one full-service and one designed specifically for small businesses. The remaining eight agency quotes can be found below
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It is a top agency with many people assigned to its account and has been in business for 20+ years. They will provide full service and a dedicated account manager.
When we reached this agency, we came across Nickel and Dime Models. In other words, the quoted upfront cost was low – but when unlisted services were included, the cost increased significantly. For example, social media management is quoted between $400 and $1000. However, when we asked for 2 posts per channel (Facebook, Instagram and Twitter) per week, including graphic design, copywriting, image acquisition, scheduling, responding to messages/comments/likes, software and content strategy, this figure was significantly higher. increases.
Junior level marketing professionals with 1-3 years of experience have an average salary of $49K (Glassdoor) – not including payroll fees, benefits and taxes. In addition, this person must be skilled in certain areas and must help manage the day-to-day marketing operations. That said, you’ll still need to hire freelance graphic designers or buy user-friendly software like Canva to provide you with the necessary support. If your company is large and wants to scale up into digital advertising, website management, graphic design, email marketing, etc. – the cost of bringing these services in-house will be:
Your business may want to introduce social media advertising as it is one of the top digital marketing trends in 2019. You want to spend 10% of your monthly income on marketing – you should budget $10,000 per month, with $4,000 allocated exclusively for social media advertising.
The Cost Of Starting An Affiliate Marketing Program
Campaign brief: Created 5 ad campaigns, 4-5 ad creative variations, uploading audience list, adding tags to website, creating ads in Business Manager, graphic design, daily monitoring and weekly reporting. (about 120 hours per month)
An industrial appliance repair shop repairs an average of $300 per machine, and a repair takes two hours. Applied to the above scenario, 120 hours would result in an income of $18,000.
You can see that the cost of hiring an agency does not cost much more than paying part-time employees. An agency will eliminate the need to manage hourly paid employees (who also have high turnover rates), knowledge of targeting, placement and advertising that many employees may not have.
After reading the numbers, you’re probably wondering why marketing agencies charge so much! We’ve created a series to help you understand (from our point of view) how each strategy is priced. stay tuned!
Digital Marketing Strategy: How To Structure A Plan?
Comprehensive SEO Strategy, 5-10 Optimized Web Pages, Analytics Setup, Keyword Research and Analysis, Competition Analysis, On-Page and Off-Page SEO Execution, Title Tags, Meta Description, Image SEO, Content Creation and Optimization, Inbound Traffic Management, Preliminary Backlinks analysis and reporting, Ranking reports
Includes advanced SEO techniques / skyscraper techniques, weekly reporting, social
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