Marketing Service Business — How To Sell Marketing Services And Price Them | TBS #263

Podcast

If you’re interested in building a digital marketing service business there are a few different pricing models you should consider.

My favourite pricing model is charging on a retainer basis.

So what is a retainer?

A retainer is when you charge your customer a certain, fixed amount of money on a monthly or yearly recurring basis. Most marketing and advertising services require ongoing maintenance, monitoring and work, which means charging on a retainer basis makes sense.

The beauty of marketing retainers is that you have predictable income every month. Even if you have just three clients pay you $1,000 per month, that pretty much replaces a full-time job for many people.

Personally, the lowest retainer I offer is $1,000.

This usually involves some basic Facebook ad setup, monitoring, split-testing, optimising, scaling and reporting the results to my client.

Then I also have more expensive marketing retainers ranging from $2,000 per month all the way up to $10,000 per month depending on the project scope. If you target the right type of prospects, they will be willing to pay you $1,000 or $2,000 per month for you to help them with the marketing and advertising, even if it seems like a big number.

You have to understand that for many businesses $1,000 feels like $10 for you. It’s not a big deal if you’re making six figures or seven figures a year. Numbers are relative, so use it to your advantage.

I once pitched an animated marketing video to the CMO of a large company and told him the video costs $10,000. He was relieved when I revealed the price since he thought it would be a lot more expensive. As the CMO of the company he was dealing with multi-million dollar budgets, so $10,000 was like $10 in his mind.

If you learn to sell to the right people, you’ll never have financial problems again.

You have to overcome your scarcity mindset.

That being said, as you can see it’s also possible to charge a one-time fee for a marketing service. I’ve built sales funnels for $9,000 in the past, written sales letters for multiple thousand dollars and set up marketing campaigns and product launches for a lot of money.

I always tell people building a service business is one of the fastest and most solid way to start making money and quitting your job.

So if you have any skill that you can turn into a service, like design, creating websites, programming, marketing, advertising, animation and so forth, I highly recommend exploring this possibility.

It takes a lot of work, but it’s definitively worth it

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