This damn social media agency wants to charge me all this money. I don’t know. Is it worth it? Oh, I work with eight of them and I’m going to tell you how much social media agencies charge, whether you are a social media agency or whether you want to become one. I will list out what’s fair here.
so I’ve been on both sides of the equation. I’ve been a social media agency charging clients and I’ve also, I employ seven different social media agencies right now who are charging me. So I’m going to speak from experience on both sides of the equation as to what social media agencies can charge. And I’m going to use a lot of real-life examples from the money I’m paying out in my business right now. So I actually have it all listed right here in my notepad just for your guys’ convenience and go over everything from setup fees to monthly charges to whatnot. Now first off, I’ll speak from my own experience as a social media agency. I was managing Facebook ads for clients. This is years ago, back in 2013 and 2014 till I got rid of my clients. This is mainly for ad management. Okay, keep that in mind.
I was charging anywhere from $500 a month up to $10,000 a month to manage Facebook ads for companies. Basically the same service. Just I was charging different clients more money. Now the way I set things up is I would charge clients, maybe I charge them some sort of setting up fee. Usually, it was $1000 to $5,000 a month set up fee. And then I charge them a base, which is anywhere from $1000 to $10,000 a month or 15% of spent, whichever is greater. So if a client was spending $100,000 a month, I would charge them $15,000 a month for managing their ads. And I justify that by saying that takes more time to manage bigger spends, which is sorta true, sort of not, but uh, many agencies have a sliding scale where they’ll adjust the percentage of spend downwards as the spend increases.
Now I’ll speak from my experience of employment agencies and I’ll speak about all the different agencies I employ in my business right now. I’ll speak about the ones that are doing social media for me that are doing ads management and that are doing even development and support. And I’ll list out what I’m paying each of them.
And by the way, I’d love to see if you could write in the comments whether you are coming to this video as an agency that is looking to figure out how much to charge people or a prospective agency or if you’re coming to this video as a client or a prospective client that’s trying to understand how much you should be charged. So whether you’re an agency or client, if you could list it in the comments, that will be info for me to understand and I could cater these videos more.
So first off, Youtube, I’m sitting here on Youtube, I’m working with an agency to edit and post my videos and shoot my videos and all that jazz. And I’m paying my agency $8,000 a month right now to do all of my youtube postings. Okay. That doesn’t include the expenses of travel and all that stuff. That’s $8,000 I think it was like a three-month deposit or something like that. Youtube ads agency was interesting because it was a 12-month commitment and they say to have to pay for my first and my last month upfront and I thought that was very interesting because it sets a standard that you’re going to be working together for a year or else you forfeit that last month’s payment. Which I think is very smart and it incentivizes people against ever leaving, which I would have done that in my own agency if I had known about that.
The next agency I’m paying for is he manages Google advertising for me. He does Google ads and Google display and searches ads and some Facebook remarketing. I’m paying them a $3,000 a month and that’s month to month. The next agency I am a working with this person does affiliate management for me, meaning they are supposed to be reaching out to affiliates or prospective affiliates to market my product for me and they’re also managing those relationships and I’m paying that person $2,000 a month to find more affiliates for my product month to month. The next agency I’m working with, I’m paying $700 a month to and I just started with them, very excited about them. This person is based in Slovakia and they’re managing my youtube advertising for me, that’s $700 does not include the advertising. Of course, neither did any of the advertising agencies, but they will basically set up and managing my youtube advertising for me. $700 a month, month to month post pay, no setup fee. I just pay him after they’ve been working for me for 30 days.
The next agency I’m working with does Facebook ads and they charge me a setup fee of $2,000 and thereafter it’s $3,000 a month or 15% of spend, whichever is greater. Next Agency is $2,500 a month, $500 set up month to month service SEO agency. Next agency I’m working with sets up my Facebook messenger, my autoresponder on Facebook messenger called Many Chat. They set up a sequence for me for 1200/ $500 one time fee. I’m working with an agency that manages my support, which charges me $40 an hour. I prepay them $5,000 and that gets credited to my account as time is used. And the other agency I’m working with is a development agency, which I pay $5,000 and they credit me $75 an hour. Both those agencies I’m spending roughly $5000 to $10,000 a month with. So those are actually, you just got an outlay of some of the major expenses of my business.
So are some of the major expenses in my business. And I hope this was useful to you whether you were an agency or a client, if you could post, and that would actually be really helpful to me and let me know if you took something away from this or if you have any questions for me about working with agencies or what you should price things at, etc. Obviously, I have a lot of experience from both sides of the equation and I’d love to help you out. Make sure to subscribe to my channel if you want to learn more about what I do, which is affiliate marketing. I have a free course once you subscribe or if you just want to see more videos, hit that notification icon. And I come out with content regularly about running a marketing business and like, and as always, please comment and just let me know your thoughts. Thank you.
© Pendragon Labs LLC. 2018