Digital Marketing agency pricing models: Retainer vs performance vs project
There are various digital marketing agency pricing models in practice.
- The retainership model
In the retainership model what you do is you hire digital marketing agency based on the marketing budget that you have the platform or the digital marketing channels the platform that you intend to deploy 4 running digital marketing campaigns.
Let us assume that you would like to run digital campaigns on platforms like Google Facebook Instagram Instagram YouTube etc. in the retainership model you specify debajit you specify the budget that you intend to spend on the platform and the digital marketing agency designs digital campaigns creative and launches the digital marketing for your organization ng campaign. For doing this the digital marketing agency charges a Commission over the amount of advertising money the spend on the platform. For example let us say you spent ₹1,00,000 on Google search campaign the digital marketing agency will charge a Commission of between 7% to 14% on ₹1,00,000 asites Commission or retainer fees This disadvantage of using this agency pricing model is that the agency probably is no longer responsible for the outcome or the result of the campaign. So basically this is not a performance driven agency pricing model the agency may drain your marketing budget you may still not get results on conversion and you will still have to pay the agency
2. Project-based: In this pricing model, the agency agrees to complete a project within a fixed budget and timeline. This model is suitable for clients who have a specific project in mind.
3. Performance-based: In this pricing model, the agency receives payment based on the performance of the campaign. For example, if the campaign generates leads or sales, the agency receives a percentage of the revenue.
4. Commission-based: In this pricing model, the agency receives a commission on the sales generated by the marketing campaign. This model works best for clients who have a high-profit margin on their products or services.