What to charge for providing advertising/marketing for local business?

A small consultancy that I do business with on another front has asked me to take a look at marketing a couple of their products and services. I’ve already given some constructive feedback on their website to monetize it better and advised how we should target potential customers via Facebook ads.

However, if they decide they wish to run a campaign or two on FB, what’s the best way for an agency to charge for this. The rate they pay me for the other work is 500/day, so I guess that has set the bar for what they are willing to pay, but would a small agency normally specify "ad costs + a percentage", or "ad costs + number of hours/days worked"?

Anyone done local lead gen and got some advice on what services they provide and what they charge?

User Comment:
I have a buddy that works for an SEM firm that also does some PPC camps for corpo clients. I think they charge like $700 a month or 10% of the spend which ever is greater. (keep in mind they don’t really do PPC only clients so anyone getting adwords camps done through them is probably spending a lot more on SEO, Site optimization, link building, etc.)

Might be a good baseline.. Personally I’ve considered doing some consulting myself, but I would charge a flat rate when ever possible unless the spending budget was going to be high.

Good thing with flat rate is that it can be win/win for you and the client. You get paid a set amount and and can easily work with thier maximized budget. Also on their end it prevents you from simply "overspending" in an effort to drive up the spend and your % so you can tell them that you have no incentive to bid on broad terms etc. that would only cost them more and produce little in results.

User Comment:
Hey Nick,

The fees charged can be all over the board (really depends on a number of variables). You might be able to make more money by getting paid per lead that you generate them or you may just want to get paid for campaign management + their spend and maybe commissions on the backend…

It really depnds on what you want.

For many years I have been working/consulting with small business owners in this capacity but I only take on clients that are willing to spend at least 20k/year with me. They pay for their own ad spends and I don’t take any commissions. I just charge them a flat $1,700-$3,000/month for coaching/consulting and also bill them for any programming, graphics work or out of pocket expenses each month. This works great for me because I only want serious clients who will stay with me versus launching a quick campaign for someone once.

Hope that helps!

User Comment:
How about proposing a retainer for 5k/mo. or something based on the rate of your previous work. Have it be up to a maximum number of hours and anything beyond that is discussed and billed at a specified rate.

User Comment:
Thanks for all the input guys. It’s given me some ideas to work on.

The Article Published IN 07-20-2011 03:23 PM

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